Strategic Human Resource Management at Leopard Data

Question: Discuss about the Strategic Human Resource Management at Leopard Data. Answer: Introduction At times, some tricky challenges, which are inherent to human resource decision-making, occur that makes its strategic application extra difficult. As compared to other company resources, human assets differ from all other resources such as financial capital and physical products/services that the firm sells. Similar to the value associated with the investments made in the company`s brand, human resources are intangible; therefore, they are unclear. While the link between employees attitudes to their pay to workers behaviors then to customers perceptions and organizational results remains murky at its best, the cost associated with human labor is known; hence, presenting an expense that should be minimized (Jackson 2003, p.36). However, the irony is that people stand as being one of the few assets in the organization that can appreciate in value. With this in mind, decision makers in any firm are faced with a twofold challenge: How can organizations make better decisions to manage hu man capital which recognizes their value? While employee behavior can be difficult to predict, observe or even measure, investments made on employees need to be strategically managed. Drawing from relevant knowledge drawn from theories of strategic human resource management, we assist the decision makers in Leopard Data to improve their insights on choices made on human resources. Strategic Human Resource Management (Current Theory) Just as the name suggests, strategic human resource management is deeply rooted in a strategy that primarily focuses on how a firm can achieve profitability. The core competency of strategic human resource management is to guide organizations on how to improve their competitive performance by utilizing their human resources more efficiently (Wright et al. 2001, p.711). Strategic human resource management is concerned with two types of resources. The first resource pertains Leopard Data`s human capital; the skills, knowledge, and abilities possessed by the company`s employees. The challenge for human resource strategic decision is to transform the human resources to capabilities that are rare, valuable and difficult to imitate (Jackson et al. 2003, p.78). The second resource is the organization`s systems, which in these case are the human resource policies and practices that support the development of human capital. The challenge here lies in selecting a cost-efficient bundle that can assist employees to perform at their best. Leopard Data: A Case Study on a Failing of Strategic Human Resource Management Leopard Data Australia is a company based in Melbourne, Australia that deals with technology solutions. The corporation had a solid human resource strategy that featured free breakfast among others enjoyed by the company`s staff. However, the firm`s human resource manager had noted that the employees at the new branch were not responding to the dress code requirements the company had set. This proves to be a major problem since the relationships enjoyed between management and workers determines their productivity and loyalty to Leopard Data. The present paper diagnoses these problems based on theories drawn from strategic human resource management. After the identification of the problem, the paper offers recommendations that incorporate a more appropriate culture program. Management Practices and Policies Failed to Shape the Employee Behaviors According to the behavioral perspective of human resource management, the desirability of various specific actions is influenced by some factors inside and outside the organization (Jackson 2012, p.110). According to the theory, employees behaviors are malleable. That means people get motivated in certain ways by ways that are socially approved by other people hence are responsive to many informational cues. The theory emphasizes on two sources of cues concerning the manner in which employees are to be treated and informal daily practices at the company. The human resource management at Leopard Data initiated the dress code without assessing whether the dress code was socially approved by other employees at the new branch at Sydney. The acceptance at the company`s other offices did not guarantee an acceptance at the new Sydney branch. Effective Practices and Policies Did Not Support the Needed Employee Behavior All of Leopard`s Data specific management policies and practices are required to operate as a set of interrelated forces that influence the employee behavior. According to the behavioral perspective, an effective human resource system should guide employee behavior by offering opportunities for the employees to engage in the desired behavior (Jackson 2012, p.88). It should also motivate the employees. In Leopard Data, the introduction of the dress code was done but the employees were not offered any opportunity and motivation to adopt and accept the new regulation. Motivation could have for instance been introduced by having casual days where the employees could wear presentable casual wear as preferred. In Leopard Data, although the company had introduced several incentives for the employees that were not enough since imposing a dress code was seen by the employees as an infringement of their rights. Moreover, the management did not offer any incentive that would assist the employees to adopt the new dress code. Leopard Data`s Practices Should Shift From Best Practices to Those That Fit.' The behavioral perspective presented a departure from prior practices where human resources management policies are designed to achieve their strategic goals (Collins Clark 2003, p.745). In the past, human resource management was engrossed in technical perspectives that assumed that there were better ways of managing people according to the best practices.' This is exactly what happened in Leopard Data where the human resource policy picked the best practices which involved imposed a dress code which is the most widely accepted in most companies. In contrast, however, the behavioral perspectives assume that human resource practices should be designed to fit in the company. In this paradigm shift, there is no any one best way of managing people. Leopard Data human resource policy should have instead focused on the approach that fit their situation. In this case, I would recommend that the company allows casual wear that is official at the same time. For instance, polo shirts and khak i wear for men. Women could have fitting trousers allowed as well as low heel shoes. Disparate Treatment Theory In the case study, we are presented with one particular incident where the company sent emails that encouraged staff to follow the appropriate dress code. The employees were irate on the request and one employee challenged why the company`s dress code included more comfortable shoes for women. This comment brings up the discriminatory issues that impact Leopard Data`s dress code policy. Just like many companies, Leopard Data`s dress code allows men to wear suits and women dresses. Can this be discriminatory according to the disparate treatment theory? The disparate treatment theory has been used to ascertain whether a policy amounts to discrimination. According to the theory, discrimination occurs when one group is treated less favorably than another group in similar situations (Bent 2011, p.797). Leopard Data`s policy on dress codes cannot be termed as being discriminatory since men and women cannot be on the same platform since each group wears differently. Even if the employees from both sexes determine what they dress, the men cannot dress exactly as women. Hence the policy cannot be termed as being discriminatory to the men. Leopard Data implemented the system so as to ensure decency and sanity at the workplace which would then convey a professional image to other business stakeholders such as owners and customers. Job Enrichment With continued negative tension between the management and employees at Leopard Data, the company requires a new job design approach that will take care of the concerns of the employees. Job enrichment is a redesign technique that allows the employees to have further control on how they perform their tasks (Wright 2001, p.718). The approach allows the employees to take more responsibility which can go a long way to increasing productivity while reducing employee turnover. The psychological needs of the employees are paramount in the design of jobs that increases their satisfaction. One recommendation would be to introduce casual days when employees are allowed to become more relaxed. Another approach would be to let the employees wear casual yet appropriate wear while retaining dress pants at the office for the impromptu meetings. These approaches should be such that instead of having a culture where rules are developed and continually explained, the employees should take ownership of the rules. All this would offer a richer job experience that would provide job satisfaction that will help the company retain its employees. Conclusion In summation, the behavioral approach provides guidelines on how strategic human resource policies should be devised. The human resource policies should be those that fit while at the same time supporting employee behavior through motivation. It should acknowledge that human behavior is malleable. On the discrimination claims, a necessary approach would be to introduce the recommendations offered in the paper that would ensure a view of equality. References Bent, J.R., 2011. The telltale sign of discrimination: probabilities, information asymmetries, and the systematic disparate treatment theory, University of Michigan Journal of Law Reform, Vol. 44, Issue 4, p. 797 Collins, C. J., Clark, K. D. 2003. Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage, Academy of Management Journal, Vol. 46, No. 13, pp.740-751. Jackson, S. E., Hitt, M. A., DeNisi, A. S. (eds.) 2003. Managing knowledge for sustained competitive advantage: Designing strategies for effective human resource management, San Francisco, Jossey-Bass. Jackson, S. E., Ones, D., Dilchert, S. 2012. Human resource management for environmentally sustainable organizations, San Francisco, Jossey-Bass. Wright, P.M., Dunford, B. B., Snell, S. A., 2001. Human resources and the resource based view of the Firm, Journal of Management, Vol.27, No.3, pp.701-721.