Managing and co-ordinating the HR function (HRF) assessment template

Managing HR at Coffee Planet LLC – written briefing paper

Name: Carmen Hofmeester Foot

Word count: 2872

1.1
Human Resources play a pivotal role in the business, as there are various crucial business objectives
the HR function is responsible to deliver. Objectives should be achieved through the implementation of
holistic HR practices and performance enhancing management programs. By assisting the business to
accomplish it’s corporate strategy, the HR is able to set their own objectives accordingly. The CIPD
(2018) professional map illustrates the importance of HR achieving the business objectives as it has a
prominent effect on the workplace environment and contributes to a culture of change.
Notwithstanding, this also closes the gap in skill shortage.

 Enhanced employee relations and engagement is an objective that is entrusted by HR. Promoting
jovial relations contributes to employee engagement and ultimately leads to accomplishment of the
organisational objectives. Positive relationships are achieved through transparency, continuos
communication and upholding the laws to resolve internal disputes and implement proactive
strategies that will prevent future occurrences. Earlier this function was limited to HR and the
training function, however, it has become essential for line managers and business leaders to be
equiped to be people managers to build a high performance team that will deliver against the
business objectives.

 HR ensurers that the appropriate talent is placed to achieve the strategic objectives. By fulfilling the
staffing needs, HR is able to facilitate the operations to achieve the business objectives.
Recruitment is a HR activity whereby vacant roles were advertised in the classified section signs
displayed in store windows. In recent years, recruitment has evolved to be more automated by
using webportals like Linkedin, Indeed, Monster and Grabjobs. Depending on specialty of the role,
some business’ opt to outsource recruitment to headhunters and agencies to ensure timely
placement of the most talented candidates.

 Improvement of employee’s knowledge and skills provide solutions to the emerging challenges in
the organisation (Noe, Hollenbeck, Gerhart, & Wright, 2017). HR provide employees the opportunity
to enhance their profile through various learning and development programs. This empowers
employees. In the past training was only delivered when the need arose however, in recent times
employees’ have learning journeys which outlines their development needs, training plan and
growth path in a more proactive manner. The learning journeys go hand in hand with the business’
succession plan to identify future leaders.

HR have always been dynamic in nature and has changed over time as businesses matured. In the
past HR’s objectives were to improve absenteeism, performance improvement, maintain data, etc.
However, in recent times, HR has spread through a sequence of transformations that’s shown a shift in
perception which brought on the evolution of the HR function.

2.1

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 Human Resources is a very challenging domain which needs to lever many functionalities to deliver the
strategic objectives and meet the competitive challenges in the work environment. HR objectives can
be delivered through the application of different models. This is subject to the size of the business and
their needs. A few models that are used include shared services, business partnering and outsourcing.
Each of the models has its pros and cons in their delivery.

Shared services, mainly found in large matrix organisation, are predominately a centralised ‘hub’ within
the business where the HR administrative activities are the primary focus. The method accomplishes
the HR objectives by different HR professionals working in joint effort with line managers and other
stakeholders. The scope provides various routine administrative services such as recruitment,
induction, leavers, payroll, changes to roles/contracts and absences. To successfully implement this
method, clear objectives need to be established with a view of how the success will be measured. HR
shared services can typically be delivered via a number of stages. Adoption of advance technology
enables the delivery of shared services. Robust metrics to measure the efficiency in delivery is required
by using service level agreements (SLAs). SLAs are defined and agreed measures, reported regularly,
to ensure the quality of service remains at the level required. Shared services are beneficial in an
organisation since it is cost-efficient, offers zero functions duplication and harness focus of the entire
HR department. However, the detriments of this approach is the delivery of the HR objectives internally
hence does not integrate the external players.

Outsourcing, predominantly found in Small Medium Enterprises (SME), is equally used to deliver the
HR objectives. It encompasses having a job done by a third party vendor as opposed to in-house
services. The transition from in-house to outsourced delivery requires significant changes to existing
HR processes, self-service systems and/or formalised HR call centre provisions. It’s therefore crucial to
ensure sufficient HR expertise remains internally to manage the change as well as providing ongoing
strategic direction. A robust open dialogue is needed between the vendor and the business, as the
implementation brings possible changes to the roles and skills required of the remaining members.
Open and ongoing communication about the whole process is vital for success. Once a decision to
outsource is finalised, it becomes necessary to implement a risk management strategy. Outsourcing
may lead to cultural shock and have a negative effect on employee productivity. It is imperative to have
proper mitigation measures that prevent negative effects due to cultural change. The approach is
beneficial as it include cost effectiveness, flexibility and the ability to improve the overall efficiency while
making sure that the entire organisation’s expertise is made useful. The detriments of this approach is
a high possibility of losing sensitive business data and confidentiality.

2.2
Every business has a unique functional structure based on variables and practices. Therefore HR is
unique to specific organisations in every aspect of their operations. HR departments share the same
goals of effective problem solving and plan development however, they differ in the paths they take to
reach these goals. Size, responsibilities, resources, and recruiting methods are the main differences
between HR in small businesses versus large companies.

The most common differences between small and large businesses is the availability of resources.
Naturally, small businesses tend to have limited resources, including a small HR team (usually one to
three employees) and a restrictive budget, owing to their modest earnings. As a result, HR can’t afford
to do much when it comes to employee training, team building, and a long–term work policy
development. This means the HR function have to get creative when fulfilling their responsibilities. But,
the element of creativity in this regard is almost non-existent in large businesses.

In Coffee Planet, considered a SME, we consulted seasoned industry professionals to bring alignment
to the business goals and industry standards. We outsourced learning and development boost our
employees’ and up and coming leaders morales to help them develop their skills. This creative
approach was a more affordable means. Our competitor, Starbucks, a large organisation, have internal
HR leadership and mentorship at their disposal and this allows them to execute more than one program
simultaneously. They have a robust shared service function and believe that their HR function plays a
strategic role in their organisation. Their shared service centre offers a centralised service to the

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 business as, HR provides line management the expertise and the knowledge required when dealing
with employees with a non invasive approach. Even though the service may be delivered by regional
hubs, it is based upon a common set of processes and underlying values. Ultimately, the final decision
is always left to the line manager. Their services are offered through a tiered enquiry and delivery
model.

Dubai customs is a large public organisation, using shared services and outsourcing. Their HR
department’s shared service function is organised at tier 2 but also have tier 3 process owners. The tier
2 teams are aligned to specialised areas and are responsible for HR, Administration and financial
support with specialist working in areas such as Organisational development, Financial Management,
Recruitment and Employee Relations with Learning and Development for HR personnel being
outsourced. L&D for the HR function is outsourced to CIPD Middle East to ensure the HR Unit and
everyone in it are operationally ready.

K9 and friends in Dubai is another large organisation but operating in the voluntary sector. They
provide volunteer services by taking in, caring and reuniting lost dogs. They do not have a specialist
HR function as they cannot afford the luxury as they operate as a non profit entity. Their budgets are
limited as they rely on external funding and donations. They do face challenges when it comes to HR
as one person has to assume the responsibilities of the HR activities as well.

1.2
Organisational change is driven by numerous distinct forces such as customers, market, and
technology. Distressing and long-term affects impact a business that fails to effectively manage
change. A business can witness a decrease in market share, a shift in their market positioning, loss of
key talents, and stakeholder’s credibility. Thus, experts must comprehend the issues affecting change
and equip themselves with relevant approaches and techniques to support change management
initiatives. Major theories of effective change management include; Kurt Lewin’s Change Model,
McKinsey 7 S Model, Nudge Theory, ADKAR model, Kotter's change management theory, Kubler-Ross
Five Stage and Bridges' Transition Model.

In Coffee Planet we implemented change and followed Lewin’s change model. We opted to shift away
from our annual ‘tick the box’ routine performance appraisal process and proceeded to implement the
OKR (objectives, key results) methodology which is more robust.

Unfreezing is the stage where employees gain a positive perspective of their daily activities and
unlearn their bad habits. Employees should open up to new ways of reaching the business objectives.
Lewin argues that change follows resistance by group forces which prevent individuals to embrace
change. We started the process by conducting a survey to determine what needs to change and why it
was necessary. Presenting the findings in a persuasive manner was imperative to illustrate how change
can positively impact the entire business and obtain the relevant support from all the stakeholders.
After presenting in an impactful manner, our stakeholders realised how vital the change was going to
be.

Change will only occur once the unfrozen stage is dealt with. Organisational change is intricate in
nature and will require a robust process. Preparing an assortment of change alternatives is paramount
since there is no guarantee of the anticipated results. Continuous communication and leadership are
two foremost drivers of a successful and lasting effective change implementation. We designed a 12
month communication plan with defined timelines and concise messages. Communication was shared
business wide about the intended change, benefits, those affected and the implementation process.
Stimulated activities was conducted to encourage employees to get involved in the change process.
During the team townhall meetings we arranged Q&A roulette, popped balloons with messages during
the countdown and scavenger hunts related to the change. We provided the line managers with
relevant support to guide them on the journey so they could provide directions to their team members.

Refreezing is the final stage and the purpose is to sustain the change enacted in the business. The
core objective is for employees to acknowledge the change as the new standard so they no longer

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 resist the forces trying to implement the change. We designed and implemented dashboards and
infographics which were presented regularly. Infographics were promoted on the intranet and our CSR
sustainability progress on our Linkedin page. Employees had direct visibility to the change and it’s
positive impact once they logged into the Employee Self service system. This method sustained the
change to be more lasting. For the first six months weekly “drop in” training sessions were conducted
and support provided. The training then changed to once a month. We continued with communications
to ensure the employees learn and embrace the change. Finally, we were able to identify change
support and barriers by ensuring the new change were tied into the orgnisation culture.

Figure 1: Lewin’s Three-step Change model

(Source: Saylordotorg, 2019)

Kotter's model works using eight stages like increasing urgency, building a team, getting the correct
vision, communicating, getting things moving, focusing on the short-termed goals, not giving up, and
incorporating changes. It was developed to be used at the strategic level of the business to make a
transformation in the entity (Hayes, 2018). Every phase takes specific amount of time and errors but It
is efficient to accentuate that each of these steps leave an adequate opportunity for improvement.

1.3
HR should display a level of decorum by always acting in a professional, ethical and just manner
because their treatment toward employees is what sets the tone for others to follow. The morale is
highly influenced by how HR treat everyone. If favouritism is present in the business it can be
disheartening, and the productivity decreases, which is ultimately wounding to the business (Cascio,
2015). HR have to consistently demonstrate the highest level of integrity when making decisions, this
helps to build a culture of trust as well as transparency. This also creates an environment that
encourages the workforce to work to their fullest potential and have greater productivity. There are
numerous reasons for the HR department to behave in a professional manner and adhere to ethics.

Professional and ethical conduct is essential as it aids the business to be compliant with the various
laws and service standards in the industry. In Coffee Planet the HR department ensures we adhere to
the UAE labour and civil law. The business is also certified by HACCAP, UTZ and ISO and has to
uphold the standards of such. In the event employment ethics are breached, it will lead to legal
implications which would have a negative impact on the business. Coffee Planet has a comprehensive
ethics culture which is strictly adhered to. The resilient professional principles allow the business to
avoid substantial costs associated with discrimination and is able to safeguard their reputation.
Disputes associated with non-compliance to ethics can spread very fast to the media thereby affecting
the business reputation (Collings, Wood & Szamosi, 2018). Upholding the company ethos aids in
keeping employees dedicated. It conveys a vast benefit to the employees as it creates a sense of
belonging and value. Employees gain more confidence when they are treated professionally and in an
ethical manner, thereby promoting greater productivity (Collings, Wood & Szamosi, 2018). Dedicated
employees become business ambassadors as well as the company’s product champions. The coffee
industry in the UAE is very small so a bad reputation has a huge impact on the business’ sales.

Being a member of the CIPD professional body, HR professionals must pledge to uphold and maintain
the standards and behaviours that are set in the Code of Professional Conduct. There are 4
underpinned principles that needs to be oblidged, namely (CIPD, 2020):

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  Professional Competence and behaviour
 Ethical Standards and integrity

 Representative of the Profession

 Stewardship

Professional - The HR profession is based around the knowledge and expertise that is required to carry
out the role and essentially use this to make informed choices about their actions. The HR function’s
responsibility to set the behaviours such as role modelling, setting the standards, having the courage to
challenge and build collaborative working, all of which can be underpinned using the behaviours set out
in the CIPD Profession Map. Should there be a breach of confidentiality then trust would be broken
between HR and the wider business. This has a substantial impact on employee relations within the
business as all credibility would be lost.

Ethical - HR professionals work closely with internal and external stakeholders daily, it is vital that
behaviour is seen positively to build relations based around making the right decisions in line with
morale guidance and aligning best practice in legislation. HR has to select the right path to avoid legal
implications and/or negative publicity. Being seen to be ethical in its practices this can help to promote
employer branding making it easier to recruit new employees and enabling the business to retain its top
performers.

Just Manner - It is imperative that HR is seen treating others equally and in line with the company code
of conduct, legislation and policies. These can be underpinned by using the Equality Act 2010, UK to
ensure the business is not behaving in an unethical manner such as discrimination or favouring certain
groups, which can result in employment tribunals, imposed fines and again gaining negative publicity
for the business.

Early 2020, at the start of the covid-19 pandemic, Tesla CEO, Elon Musk valued his profits more than
his employees by instructing employees to return to the factory in defiance of the lockdown order from
the State. The actions of the business not only met with controversy in the media but it also put the
lives of the employees at risk as many of them contracted the virus after rejoining the factory. Thus
Tesla being viewed as an unethical business.

Starbucks has made many strategic maneuvers during the COVID-19 outbreak that have impacted
their business as well as other businesses. They have closed their stores all over the world, but has
kept drive-thrus open in some states in the US. Their employees are required to wear masks, and they
have updated their safety precautions in their stores. The efforts made by Starbucks have shown
exemplary leadership skills and they continue to be a company that puts their employees
first. Their style attracts customers from all over and their consistency and reliability have
certainly helped people through these troubling times.

3.1
Methods for evaluation include the use Key performance Indicators (KPI’s), Service level agreements
(SLA’s), balance score card and other metrics (Noe et al., 2017). The process requires setting clear yet
appropriate goals for every HR objective. Evaluating talent acquisition, the use of KPI’s becomes
essential. A KPI should be set to measure the average number of candidate responses, average time
required to recruit and the average cost of recruitment. For performance evaluations, the KPI entails
measuring the percentage of the employees who are satisfied with the organisational performance as
well as determine the number of days that are lost through the absence (Noe et al., 2017). The metrics
for learning and development includes the average cost of training per every employee, the percentage
of the employee undertaking the training and development, the rate of return for the training and
development programs. KPI’s can indeed aid the business to conduct proper assessments of the
performance and efficiency.

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 In Coffee Planet, we conduct internal as well as external benchmarking in a bid to ensure that our
performance outshines compared to our competitors (Noe et al., 2017). Our internal benchmarking
entails making performance comparisons on different areas within the business and identification of
best practices. Our external benchmarking allows us to compare the performance using various
indicators with fellow coffee entities. However, when we conduct external benchmarking, it is essential
we always deal with confidentiality in a sensitive manner to safeguard the business. With the HR
balanced score card we are able to assess the performance of employees by identifying the core
priorities through an analysis of a range of indicators that relate to the HR deliverables (Noe et al., 2017
(Noe et al., 2017).

4.1
The article focusses on the mechanisms of the integration of HR in the strategic decision-making
process of the business, which is inclusive of employee participation and involvement (Kim & Sung-
Choon, 2013). This article is valid as it deals with the HR functions which contribute to the success of
the business. The findings is very useful to understand how HR practices are used to improve the
business. The article is persuasive and adopts an arduous approach to explain the integration of the
HR strategies in the organisation.

The use of the high-involvement practices used by HR is indicative of the involvement of the employees
in the decision making processes. This illustrates that their opinions are considered and is bound to
improve their morale and motivate them. It fosters shared objectives and vision by the employees who
strive towards a common goal (Kim &Sung-Choon, 2013). The article has taken into consideration the
various stakeholders of businesses who contribute to the success through their actions and
functionalities. The associated efforts of the employees and management make it easier for the
employees to achieve their goals. The targets are much more in tune with the necessities and
inclination of the employees which is beneficial for the business’ output. Therefore, this article has
deliberated the various dimensions of employee encouragement and evidence the views of
guaranteeing better drive and commitment for the employees to complete the tasks of the organisation,
which leads to its success.

In the ‘Strategic HR functions and firm performance’ article produced by Hyondong Kim and Kang
Sung-Choon (2013), it is clear research have been identified and evaluated, evidencing the link
between HR practices with positive outcomes. The studies were based around 4 HPW practices and
discussing the reasonable relation between HR practices and business performance, particularly pay
for performance strategies. The article was detailed using various approaches of data collection but
there were limitations identified by there not being enough business data, limited data measures and
response in surveys. The theory was tested along with existing measures or reviewed literature to
ensure validity and reliability.

The writers have carried out much research into the influence of HR practices and policies on the
general business performance however, there are still unanswered questions regarding high
performance. For instance, there’s no clarity whether the business performs better due to these
practices or if high performance businesses should implement further HR practices. The article does
however, link between HR practices and business outcomes, particularly the value of strategic HR and
business performance. Having this in mind, procedures in the business tend to have an impact on the
workforce because of the way they are followed and in turn can have an effect on the performance
outcome of the business AMO Model Purcell et al. (2003) using the HR practices. It is clear the authors
use credible sources throughout the article such as Ulrich and Purcell to back their research.

The AMO model is an illustration of how employees can be motivated by the line managers using the
HR policies and practices involved so as to enhance performance and well-being. The term AMO
means A=Ability, M=Motivation, O= opportunity. Ability refers to the practices and policies that ensure
the employees in a business get the best and are prepared with the skills to take on any job in the
organisation, with the assumption that jobs would be challenging. In order for employees to use their
discretionary practice, they need to be motivated with either an extrinsic, intrinsic or trust factor
(Appelbaum et al., 2000). Extrinsic can be financial such as performance pay, intrinsic pay comes from

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 inner satisfaction and finally, when a business can enable an environment that is trustworthy and
encouraging, then employee’s feel valued and wanted. If all these motivational factors are absent, then
employees tend to be absent or likely leave the job.The opportunity to be involved in the decision-
making process in a business gives employees the sense of involvement, engagement and enhances
well-being (Appelbaum et al., 2000).

Results shows that the involvement of strategic HR has an impact on career development and have the
ability to positively influence HPW practices. The results have also indicated that weak correlation
between HR and the business may contribute to the gap but overall high-performance working links the
gap between the performance of HR and the business. The research clearly indicates that HR practices
and policies must be put in place that foster employee involvement and engagement to ensure
business success.

The John Lewis partnership is a visionary and successful way of doing business, boldly putting the
happiness of partners at the centre of everything they do. The emphasis of the model gives each
employee part-ownership of the company, a share of its annual profits, and a say in how it is run. In
theory, it makes employees more invested in their work, and so heightens both productivity and profits.

Much of the Virgin Group’s culture is influenced by its founder Richard Branson’s personal
philosophies. The ability of the group to operate effectively with almost a non-formal structure is
because of its unique organisational culture. The culture reflects Branson’s casual nature, his
disrespect for hierarchy and formal authority, commitment to employees and consumers and his belief
in hard work and responsibility. This in turn, enables the Virgin Group to provide an environment in
which talented, ambitious people are motivated to do their best and strive for a higher level of
performance. However, even in an informal environment, a high level of commitment, acceptance of
personal responsibility and long hours of work when needed is expected. Performance incentives at
Virgin for most employees are diffident but Virgin provides benefits like social activities, company
sponsored weekend getaways and impromptu parties. Such an environment promotes better relations
among the employer and the employees.

Pfeffer suggests that organisations which invest in their employees, gain valuable assets and that it is
important that the organisation aims to retain skilled employees where possible. Organisations which
adopt such a policy tend to have the capacity to retain employees in times of financial difficulty.
However, highly skilled employees may become attractive to competitors. Whereas, Purcell’s people
performance model is heavily influenced by three key factors focusing on ability, motivation and
opportunity otherwise known as the AMO theory. Results from the AMO theory and if all three elements
are present then performance is likely to be enhanced, if not then morale and performance levels will
drop.

HR has evolved from a pluralist approach, where management were the managers and workers were
simply the workers, to where best practices are inclined to revolve around people. Pfeffer and Purcell,
have identified several pillar strategies that underline good HR policies. Research has illustrated that
the implementation of these strategies pays dividends in term of the overall success of an organisation.
Effective HR has been shown to result in motivated employees, generating higher performance and
ultimately greater prosperity for the organisation. Large multi-national organisations like John Lewis and
Virgin Group have demonstrated that implementing best practice provisions and creating environments
which promote satisfied employees can in turn generate business growth. In this context, one can see
how by applying best practices can provide organisations with the tools to enhance HR processes and
so heightens both productivity and profits.

4.2
The impacts of high performance working in business success can be a metric to understand how
employees work collaboratively to achieve a common goal. High performancers are committed to the
mission and values of the business and always increases the productivity of the business. The human
capital investments made by the business are beneficial as distinct talent is recruited and onboarded in
the business who are capable of delivering their tasks and contribute to the strategic objectives. The

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 investment the business makes should be in suitable recruitment and development of the talents who
can take the business onward (Kim & Sung-Choon, 2013). In Coffee Planet, the business invests in the
certification of the beverage specialists to create the most pioneering drinks. This impacts the business
in a positive way, as this leads the team to be high performers. It is relatable to the article, which also
states similar conclusions through their research.

High-performance working is a concept that stresses managing companies in ways to stimulate higher
commitment and involvement among employees (Ashton and Sung 2002, p.4). Creating an
environment based on trust, transparency and communication, a flatter structure where employees feel
happy, engaged, motivated and ultimately work towards achieving the same organisational goals. HPW
is based around processes, policies and practices that when integrated generate improved
performance in employees. HPW practices include enhanced employee involvement such as self-
directed teams, improved rewards such as flexible working apply HR practices such as mentoring
schemes.

Human capital describes people’s potential to create value for their organisations (CIPD, 2021). Heery
and Noon’s A dictionary of human resource management defines human capital as ‘the knowledge,
skills, and abilities that workers possess and which have been acquired through education, training,
and experience both within and beyond the workplace’. This provides employers with a competitive
advantage with people management stating if employers view employees as assets and invest in HR
and human capital it will result in a successful outcome for the organisation. So, the investments of the
organisation must be in the proper recruitment and developments of the talents who can take the
company forward (Kim & Sung-Choon, 2013).

An influential study carried out by David Guest and his team of researches found a link between HR
and business strategy and the business’ financial performance, all connected by a series of people
management practices. Guest et al. (2000) argued that the greater number of practices employed, the
higher the levels of commitment, quality and flexibility. The more effectively these practices are applied,
the better the business performance. The NHS has committed to invest in their staff by involving them
in decisions that affect them as well as in the facilities provided, work flexibility and engage them to
improve employee heath and well-being. Staff well-being can assist in delivering the four elements of
the quality, innovation, productivity and prevention (QIPP) program. The importance of staff
engagement and motivation links between staff engagement and patient experience, where staff would
recommend their place of work to a family member or friend as a high-quality place to receive treatment
and care.

Attempted studies have tried to identify whether people management practices make a difference to
the business performance. The two main alternative approaches are best practice and best fit. The best
fit approach assumes there is no universal approach for HRM policies and practices whereas the best
practice approach is the opposite. The best fit approach is contingent on the context and culture of the
business and the best practice approach, if adopted, lead to better business performance.

Following the conclusion of the research conducted by Hyondong Kim and Kang Sung-Choon (2013),
results have shown that there are many impacts that high-performance working and investment in
human capital can have on an organisation. It’s been established that although there is a weak link
between a strategic HR function and its effect on the organisational performance, high working
performance practices moderate the relationship. They also discussed how the HR function is
enhanced by the use of career development programs and reinforcing temporary workers dedication
and cooperation by providing benefit programs which all support the organisation’s success through
investing in human capital and high-performance working practice. The researchers also concluded
that strategic HR will not be successful in the absence of practices that foster employee involvement.

References:

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