2826744_MGT5350_1

Critically evaluate the assertion that direct line managers play a pivotal role in the HRM
– Performance relationship.

Introduction

Line managers who supervise employees in the company's business are deeply
engaged in HRM, hiring team members when others quit and being held directly
accountable for their team's performance. Farnham (2015) describes that line managers
are frequently held accountable for dealing with several aspects of human resources,
including recruiting and selection, pay and reward, performance management,
complaints and sanctions, coaching, and learning and development. In addition, Purcell
and Boxall (2015) emphasize those line managers responsible for providing a
suggestion about remuneration as well as a foundation for making choices regarding
promotion and succession. This essay will explore the idea that direct-line managers
play a crucial part in the link between HRM and performance. Initially, the role of the line
manager in human resource management will be identified through literature, which
should be considered to have an impact on organizational performance. Subsequently,
evidence from three models of the impact of HRM on organizational performance will be
discussed further regarding the contribution of line managers. Finally, the practice of
line managers playing a vital position in an organization will be discussed in the broader
context of the HRM-performance relationship.

Discussion

To begin with, line managers have a key role in executing HR strategies, policies, and
practices, while HR specialists focus on establishing strategies and building
performance management systems. Several of the studies that were discussed in this
article provide compelling evidence of the critical function that line managers play in the
organisation. Selfridges' employees' attitudes and experiences improved after a team
leader role change (Purcell and Hutchinson, 2007). Similar findings occurred in Swedish
healthcare following the line manager re-evaluating their standing as translators of the
effective meaning of work because the workforce expected them to provide essential

1
2826744_MGT5350_1

reference points in a volatile world (Ericsson and Augustinsson, 2015). A CIPD (2014)
survey asked employees to rate their manager on a set of behaviours that support high-
performance working practices. The quality of the line manager's relationship supports
organizational productivity, enthusiasm, and work performance. It has also been
observed that a positive approach to employee performance and motivation can be
achieved by strengthening the relationship between line managers and the employees
under their supervision. In addition, the most crucial variable for workers is how and to
what extent line managers assist and enable their engagement as a continuous process
(Purcell and Boxall, 2015). The studies come to the conclusion that is improving the
relationship between line managers and the employees under their supervision results
in a positive approach to the performance of the employees.

Without a doubt, it's essential to learn more about HRM and the performance link, the
so-called "black box" dilemma. Farnham (2015) explained that the multilevel nature of
this link and the complex human and organisational value chains are part of the HRM
problem. Top managers, HR professionals, middle managers, first-line managers, and
employees at different organisational levels make up the human value chain. Second,
there are strategic alignments at different levels in the organisational value chain:
business and HR strategy; HR design and policy development; HR implementation
between HR professionals and line managers; employee attitudes and behaviours to
HR practises; and firm performance in terms of productivity, profitability, flexibility, and
legitimacy (Farnham, 2015). In this "HRM black box," the critical link is how HR
practises influence employee attitudes and improve worker performance in ways that
benefit the employing organisation. In other words, the significance of line managers
and the more significant emphasis placed on workforce management within modern HR
strategy are reflected by the role that strategy implementation plays within the "black
box" that sits between Hr strategy and business performance.

The core concept of strategic human resource management is that adopting a more
sophisticated set of HR practises covering key aspects of workplace people

2
2826744_MGT5350_1

management has a positive impact on organisational performance. Policies and

practices are involved in various human resource functions such as recruitment and
selection, training and development, performance management, pay and benefits,
participation, and communication. The more these HR practices are implemented in the
organisation, the better the organization's performance, according to strategic human
resource management theory. However, our understanding of the processes by which
HR practices influence organisational performance is limited. Indeed, it is the number of
steps in the link between HRM and Performance, as well as the content of each step. In
strategic human resource management, this is known as the black box. Many efforts
have been made in response to model the impact of HRM on organisational
performance. The idea that employees play a key role in explaining the impact of HR
practices on organisational performance is central to this model. The field of strategic
human resource management is dominated by three theories.

The resource-based view that Barney has on the company makes up the first model.
The research conducted by Barney (1991) and cited by Takeuchi (2003) implies that
human capital may be one of the few firm resources with the potential for a long-
term competitive advantage. This is due to the fact that human capital may satisfy the
four components (i.e., value, rarity, inimitability, and non-substitutability) that resources
need to maintain to supply firms with sustainability. Furthermore, this theory is
predicated on the idea that businesses can gain a competitive advantage by utilising
resources that are valuable and capable of delivering superior comparative results,
which competitors were unable to quickly obtain, which are imperfectly imitable or
suitable, and which are difficult to substitute. The fundamental concept underlying this
theory is that businesses can gain a competitive advantage by utilising resources that
are valuable and capable of delivering superior comparative results. Moreover,
hierarchical regression analyses from Takeuchi's research (2003) on 322 line managers
showed a positive relationship between High-Performance Work Systems (HPWSs) and
the unit's human capital and collective normative contract that related to most HR-
related outcomes, which were related to overall unit performance.

3
2826744_MGT5350_1

The second model is what's known as the ability, motivation, and opportunity (AMO)
framework, and it was developed by Applebaum and his colleagues. This is a reference
to the notion that people will be successful in their endeavours if they have the ability to
do so, the motivation to do so, and the opportunity to do so. Appelbaum et al. (2001)
argue further that such a work system could have a positive impact on worker
outcomes. They propose that, in addition to increasing worker wages, the high-
performance work system (HPWSs) or human resource systems - firm performance
relationship would increase worker trust, and intrinsic rewards would mediate the
positive relationship between HPWS and organisational commitment and job
satisfaction. Appelbaum et al. These, in turn, are susceptible to being affected by HR
practises, such as opportunities for furthering education. For instance, when HR
practises such as internal career opportunities and generous rewards are implemented
at work, motivated employees are more likely to perform well on the job. This is
because they voluntarily want to. Furthermore, according to the findings of Mansour
(2021), each and every AMO bundle can be interpreted as a resource motorhome route.
This not only protects employees against the resources that are lost, but it also enables
them to effectively perform their jobs and recover service after it has been interrupted.
This study also demonstrates that each bundle has a definitively detrimental relationship
with emotional exhaustion and mental well-being, as well as a mediating influence on
service recovery performance through emotional exhaustion. Previous research has
shown that a public line manager's AMO influences the way in which they manage
people within their organisations (de Vries, 2021). This connection between the two has
been demonstrated. For instance, in conclusion, that the way in which line managers
implement people management is influenced by a few characteristics of the public
sector. These characteristics include greater institutional flexibility and HR allocation, as
well as a push to enforce better governance on line managers, which results in more
manpower red tape.

The SHRM model, which stands for strategic human resource management, was
created by Wright and Nishii as the third and final model (2007). Because those who are
charged with the actual execution of practise, including line managers in the

4
2826744_MGT5350_1

performance feedback context, develop a comfort that comes with the familiarity of
behaviour and results, the implementation of the HR system is made more difficult at
the individual level. For instance, if line managers do not have enough time or the
necessary skills, it is possible that an intended HR practice will not be implemented.
Employees, for their part, may have different interpretations of the same practices
depending on a variety of factors, such as their prior experiences in the workplace.
These new practices threaten that sense of ease because people have to learn new
behaviours that are unfamiliar to them and whose effectiveness is unknown; as a result,
they provoke resistance (Wright and Nishii, 2007). The valuable insights gained from
adopting innovative SHRM practises in organisations in India show that the
generalizability, applicability, acceptability, and diffusion of the SHRM practice are the
main propositions that could occur in the future (Som, 2007).

The subsequent effect of delegating HR activities to line managers is that these

managers assume a potentially significant part of the responsibility for putting HR
strategies and HR practices into action. Line managers need to collaborate with HR
professionals and attain their guidance in order to be successful in this role. This will
allow them to effectively manage their staff. Research by Purcell and Boxall (2015)
indicates that line managers play an essential part in developing employees, boosting
career progression, and improving performance, despite the fact that this presents
several challenges. Critical theorists of human resource management place an
emphasis on the tensions that exist between management rhetoric and reality. In
addition, the possibility of these gaps highlights the fact that senior managers are
completely reliant on lower-level line managers in order to accomplish objectives with
the workforce (Purcell and Boxall, 2015). The importance of line managers and their
influence on the health and happiness of their employees has been highlighted in a
growing number of studies investigating the connections between HRM and
performance. It is possible to equip and motivate line managers to manage the
workforce more efficiently and successfully if they are managed in a manner that is
more effective overall. However, the research that was conducted based on semi-
structured interviews with line managers at diverse scales and across different

5
2826744_MGT5350_1

departments of Sainsbury's Southern by Anwaar et al. (2021) raised a few concerns.

These concerns included insufficient training, undefined perceptions concerning the
policies, increased workload, ineffective HR practices, and other similar issues. The line
managers feel that these issues need to be optimised so that they can perform their
new roles more effectively. Additionally, the study found that the trend of delegation, as
well as HR support to the line and also outlined the various strategies used to assist the
line managers so that they can conduct their new roles more efficiently, has been
productive as the employees surveyed, are satisfied with the amount of assistance
received by HR.

Conclusion

Line managers play an important role in the relationship between HRM and
performance. They are in charge of carrying out HR strategies, policies, and practices.
A positive approach to employee performance has been observed to be achieved by
enhancing the interaction between line managers and employees under their
supervision. For workers, the most important variable is how and to what extent line
managers support and enable their involvement as a continuous process (Purcell and
Boxall, 2015). Improving the relationship between line managers and employees under
their monitoring results in a more positive attitude toward employee performance.
According to strategic human resource management theory, the more HR practises that
are implemented, the better the organization's performance. Three theories attempt to
model the impact of human resource management on organisational performance,
namely the research-based view, AMO framework, and SHRM model.

6
2826744_MGT5350_1

Reference
Anwaar, S., Nadeem, A.B. and Hassan, M., 2016. Critical assessment of the impact of
HR strategies on employees’ performance. Cogent Business & Management, 3(1),
pp.35-47

Appelbaum, E., Bailey, T., Berg, P., & Kalleberg, A. L. 2001. Manufacturing Advantage:
Why High-Performance Work Systems Pay Off. The Academy of Management Review,
26 (3), pp. 459-462

CIPD (2014). Employee Outlook - Focus on Manager. Retrieved from http://

https://www.cipd.co.uk/Images/employee-outlook_2014-focus-managers_tcm18-
10998.PDF

Ericsson, U. and Augustinsson, S., 2015. The role of first line managers in healthcare
organisations–A qualitative study on the work life experience of ward managers. Journal
of Research in Nursing, 20(4), pp.280-295.

de Vries, J.P. and Vermeeren, B., 2021. People management in public organisations.
In Research Handbook on HRM in the Public Sector. Edward Elgar Publishing.

Hutchinson, S. and Purcell, J. 2003. Bringing policies to life: the vital role of front line
managers in people management. Centre for Employment Studies Research Review.

Mansour, S., 2022. Can strategic HRM bundles decrease emotional exhaustion and
increase service recovery performance?. International Journal of Manpower, (ahead-of-
print).

Purcell, John, and Peter Boxall. Strategy and Human Resource Management,
Bloomsbury Publishing Plc, 2015. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/gla/detail.action?docID=4763425.

7
2826744_MGT5350_1

Som, A., 2007. What drives adoption of innovative SHRM practices in Indian
organizations?. The International Journal of Human Resource Management, 18(5),
pp.808-828.

Takeuchi, R., 2003. How do we get there from here? Understanding the black box in
strategic HRM research from resource-based and social exchange perspectives.
University of Maryland, College Park.

Wright, P. M., & Nishii, L. H. 2007. Strategic HRM and organizational behavior:
Integrating multiple levels of analysis.