Human Resource Management in the Service Sector

1
Human Resource Management in the Service Sector

• Review of the course

2
Overview

• Course examines the HRM challenges in the
  knowledge-intensive service sector
• Introduction characteristics of the service
  sector and identifying the knowledge-intensive
  section of this sector (1 week)
• Develop theoretical frameworks and perspectives
  for analysing the HR challenges (2 weeks)
• Investigation of HR challenges in four types of
  organisations in this sector call centres,
  management consulting, law and creative (8 weeks)
• Summary and review (second half of final week)

3
Course design
Characteristics of the service sector
Summary and revision
4
Literature focus for the course
5
Week 1 Introduction to the service sector
objectives

• Outline the importance of the service sector in
  modern economies
• Identify the key characteristics of service work
  and the areas of the sector for detailed study
  knowledge intensive work
• Outline the research in the area
• Introduce the HRM challenges posed by knowledge
  based service sector working

6
Converting Human Capital into Intellectual Capital
Human Capital
Intellectual Capital
Human Capital
Conversion Process
Employee Knowledge Skills Experience
Products and services which have market value
Role of HR practices in this conversion process
7
Implications for HRM
Nature of Work
Managerial problem
HRM issue
Performance management/reward
Intangible
Measurement
Knowledge based
Training and Development
Renewal
Staff allocation
Customised
Standardisation
Organisational commitment
Recruit and retain
Professional
(Drawn from Suddaby and Greenwood (2006) Maister
(2003) and Batt (2006))
8
Week 2 HR practices in knowledge intensive
firms objectives

• To understand the distinctive characteristics of
  knowledge intensive service firms
• To identify the key resources (forms of capital)
  that knowledge intensive firms draw on for their
  success
• To identify the challenges for managing people
  and managing knowledge faced by knowledge
  intensive firms
• To explore the ways in which HR strategy,
  structure, delivery and practices can be used to
  create valuable products and services

9
Pressures on knowledge intensive firms
Product market - Customers and clients
KIF
Financial success short and long term
Employment market needs of employees
(Maister, 2003)
10
Knowledge skills and experience of staff
Forms of Capital
Human capital
Knowledge of and relationships with network
members
Social capital
Network Capital
Knowledge embedded in values, culture and
relationships
Intellectual Capital
Structural capital
Client Capital
Knowledge of and relationships with clients
Organizational Capital
Ways of structuring work
Procedures, policies and processes
11
The HR Wheel
Strategy
Resourcing
Structure
Job and Work Design
Involvement
Intellectual Capital
Training and Development
Performance Management
Pay and Reward
Kinnie et al 2006
Delivery
12
Week 3 Managing knowledge workers objectives

• Define a knowledge worker
• Identify the characteristics of knowledge workers
  and understand the human resource management
  challenges presented by them
• Explain how knowledge workers are managed
• Identify and discuss the dilemmas associate with
  the management of knowledge workers
• Understand how social identity can resolve some
  of the tensions involved in the management of
  knowledge workers

13
Managerial challenges

• How can organisations retain and develop their
  professionals?
• Presents three dilemmas that sit between the
  employee and the organisation

Retention
Employability
Organisation specific
Transferable
Multiple Identity perspective
Value capture
Ownership of value
14
Multiple sources of identity
Organisation
Professional
EE
Client
Team
15
Weeks 4 and 5 Call Centres objectives

• Define call centres and understand the reasons
  for their growth
• Identify the key characteristics of the nature
  and management of call centres
• Analyse their forms of human capital and consider
  the implications for HR especially recruitment,
  selection and retention
• Examine recent changes in call centres especially
  the moves towards outsourcing and off-shoring
• Apply the 4 ID model to gain insights into the
  nature of work in call centres with reference
  to the Norwich Union case
• (Refs Deery and Kinnie, 2004 Korczynski, 2002,
  Frenkel et al, 1999, Homan, 2004)

16
Weeks 6 and 7 Management Consulting objectives

• To understand the characteristics of the
  management consulting industry
• History
• Types of organisations
• Types of consultancy activities
• Typology of human capital
• According to the client interface process
• Career structures within management consultancy
• The role of consultants as knowledge brokers
• Typology of client capital
• The consulting firm client relationships
• The HRM practice focus
• Recruiting human capital
• Managing across boundaries

Human
capital
Social
Network
capital
Capital
Structural
Client
capital
Capital
Organizational
Capital
17
Using external facilitators poses a challenge to
many forms of intellectual capital flows
Clients
Facilitators
18
Facilitator network HC viewpoint
HC boundary
19
Weeks 8 and 9 Law Firms objectives

• Understand the basic characteristics of the
  sector
• Identify the traditional model of organising and
  management of HR
• Consider some of the key changes in the sector
  and the responses of law firms
• Identify the challenges this presents for HRM and
  for knowledge management
• Focus on the key issue of remuneration and
  reward, especially variable reward
• Analyse a practical case drawing on our knowledge
  of theory

20
Traditional HR practices Up or Out
High reward for equity partners
Partner in 6 years or leave the firm
Apprenticeship model
Elite recruitment
21
High Trust

• Local law firm - medium sized and growing fast
• Strong emphasis on culture and values inclusive
  and mutual respect building social capital
  sharing work and knowledge
• Issue of how to reward their staff who contribute
  to the success of the firm while reinforcing
  their values

22
Weeks 10 and 11 Creative Firms objectives

• Understand the basic characteristics of the
  sector and establish our focus on
  advertising/marketing agencies
• Identify the key forms of capital present in
  these firms
• Identify the challenges this presents for HRM
  especially the development and retention of staff
• Draw contrasts between two practical cases on the
  way they manage these HR challenges

23
Building network capital
Agency
24
Key challenges and tensions facing HRM in
marketing agencies

• External Resourcing
• Attraction and retention of staff valuable to the
  firm and to existing and potential clients
• Recruiting for internal development recruiting
  experienced staff
• Internal Resourcing
• Promotion and career building efficient
  allocation of staff
• Rotation of staff - building and maintaining
  client and network relationships
• Training and Development
• Developing human capital - developing client
  capital
• Importance of coaching, feedback and development
  importance of serving client needs
• Reward
• Intrinsic rewards linked to development
  extrinsic rewards linked to client success
• Longer term rewards through promotion shorter
  term linked to targets
• Our focus the interaction between the need to
  develop employees, serve the needs of clients and
  achieve financial success

25
Revision

• Essential to understand the basic theoretical
  frameworks underlying the course (weeks 2 and 3
  especially)
• Need to be able to apply these to the four
  sectors studied (eg how does the reactor model
  apply to creative firms)
• Facility to move between theory and practice (to
  understand the theory in practice and the
  practice in theory)

26
Revision continued

• Cases studied in class are important along with
  other cases and your own experience
• Key is to build up your understanding of the
  issues at a sector level and at a macro/cross
  sector level
• Use the frameworks and models to guide your
  analysis to help you understand the
  issues/problems/cases

27
Examination structure and rubric

• Unseen paper in 2 hours no additional materials
• 6 questions one from each sector studied plus
  two others
• Answer three questions

28
Sample questions

• What are the most important external pressures on
  the managers of knowledge intensive firms? How
  might HR strategy and practice help to manage
  these pressures?
• How might the concept of multiple identities help
  managers of HR contribute to the creation of
  organisational value in professional service
  firms?
• With reference to the High Trust case study
  discuss the problems associated with designing a
  variable reward system in law firms. How might
  these problems be resolved?

29
Expectations

• Demonstrate your learning and your understanding
  of the theory and the practice
• Answers which directly focus on the question
  (basic descriptive answers will get a low pass)
• Explicit references to previous research (you
  will get credit for this)
• Good use of practical examples to illustrate
  points (credited)
• Highlight conflicts and tensions where they exist
• Develop an argument which is supported by theory
  and evidence (illustrates higher level
  understanding)

30
Advice

• All the basics apply plan your answer/focus on
  the question/refer to relevant theory and
  examples/pull it together
• Thorough revision understanding not rote
  learning test yourself out use the models to
  analyse cases use the cases to ask what is this
  an example of?
• See links between the models and sectors
• Use contemporary examples if you can shows
  engagement with the material