Literature Review

( Running head: HRM CAPSTONE: LITERATURE REVIEW )

The overarching goal of my Capstone project will highlight the dual effects of strategic planning relative to leadership development and cultural enrichment within a chosen organization. A review of relevant literature contributing to the principles of leadership development and organizational culture, follows.

The 5P Model “Strategic human resources management is largely about integration and

adaptation.” (Schuler, 1992) Schuler further states that HRM is fully integrated with strategy and policies, and requires a shift in practice for maximum efficacy. “Together, these viewpoints suggest that strategic HR management has many different components, including policies, culture, values, and practices.” (Schuler, 1992) Schuler diagrams the model, breaking down the structure as organizational strategy combined with internal and external characteristics, leading to developed mission, vision, and objectives. The 5Ps are then expressed through HR activities in the categories of Philosophies, Policies, Programs, Practices, and Processes. The driving force behind this model is the melding of human resource practice and strategic organizational needs.

The David Ulrich Model “According to Ulrich’s (1997) initial model, HRM professionals should simultaneously fulfill the role of being an employee champion, change agent, administrative expert and – most importantly – a strategic business partner of managers to implement and influence organizational strategy.” (Gerpott, 2015) Since its development, the model has been updated to include additional responsibilities, calling for the HR practitioner to deliver on their word, develop the organization’s culture, innovate new practices to resolve specific business issues, and finally implement technology to effectively execute Human Capital programs and processes.

Gerpott further explains the goal of Ulrich’s model as the ability to make productive and effective shifts from strategic management to administrative responsibilities to Human Resources. Though it may not be as current as others, Ulrich’s model continues to be used as a benchmark by HR professionals to measure successful activity within their designated roles.

SHRM Competency Model The Society for Human Resource Management (SHRM) HR model

is based on nine competencies. “The model is built to easily align with existing organizational strategies and can be used to identify areas of strategic importance in the HR function. HR departments can also use the model to identify HR competency strengths and gaps from which staffing, performance management, and training and development plans and processes can be established.” (SHRM, 2016)

The model’s creators view the structure through multiple levels of experience from Early through Executive with competencies appropriately aligned to experience in the industry. I find this model highly relevant to the changing needs of our organization. Several members of current leadership possess the skills and abilities detailed within the competencies.to effectively facilitate change, however; as we grow, we need to promote in-house talent to leadership positions as there is a growing need for cultural change and an invigorated morale.

How do these models apply to the overarching goal? Extensive research provides me exposure to numerous HRM models exhibiting various degrees of complexity; however, the majority of models are designed for corporate private sector companies whose structures, goals, and operations bear little to no resemblance to a small public school district. Correlating the models to my organization requires an examination of their individual facets rather than the model as a whole.

Currently, the key to developing leadership and improving culture relies on the creation and implementation of a strategic plan. There is a critical need to cultivate current leadership through performance management. Additionally, we must recognize leadership qualities and abilities in current staff below the leadership level. Schuler suggests that strategic HRM is most affected by planning. “HR managers who have never before been asked to meld human resources activities with strategic needs will find that the process takes time, persistence, and a detailed understanding of the needs that have been defined.” (Schuler, 1992) This ties directly to the organization’s ability to first determine the strategic needs currently missing from the office structure, followed by adequate planning with a focus on leadership development and cultural transformation.

Deteriorating culture, lack of shared vision, and the absence of unified goals require a model that encourages engagement, collaboration, open discussion, employee input, and an HR practitioner capable of synthesizing the components of the model into a cohesive plan for change and growth. The two-fold benefits of SHRM’s competency model are guidance for the practitioner’s career development and the ability for the practitioner to contribute their knowledge and expertise to resolve problems and facilitate growth for the organization. (SHRM, 2016)

Ulrich’s model combines the strategic component of Schuler’s model with the personal competencies of SHRM’s model; the “hard” and “soft” sides of HRM. “Expectations towards HRM professionals have changed from serving as advocates for employees’ rights to being wards of managers with the goal to maximize effectiveness.” (Francis & Keegan, 2006) I agree with Francis & Keegan’s assessment as my organization requires a blend of both disciplines for effective management of the current issues facing the Office of the Superintendent. A “hard” focus on strategy is essential but requires the additional ability to “soft” focus on employee- related issues and the overall culture.

Performance Management by Objectives Bruccoleri & Riccobono (2018) theorize the effect of

Management by Objectives. “The goal of this study is to explain the complex effect of management by objective practices on employees' innovative behavior. Instead of considering individual goal orientation and/or formal creativeness‐related goal assignment, the focus of this paper is on exploring whether the official adoption of management by objective practices may foster employee innovative behavior.” Thomson (1998) states, “The Management by Objective (MBO) approach, in the sense that it requires all managers to set specific objectives to be achieved in the future and encourages them to continually ask what more can be done, is offered as a partial answer to this question of organizational vitality and creativity.”

Given the present conditions in my organization as well as the goals of leadership development and cultural change, I concur with both viewpoints presented in the literature as this method of performance management drives innovation and creativity, both of which are lacking within the current leadership and support staff. With little to no goal setting or evaluation framework in place, there are no measurements for success or indicators for improvement. We require both completion of short- and long-term goals and objectives as well as vision for a cohesive, inspired, and collaborative culture. Implementing a Management by Objective process is an important step in identifying both strong and weak leaders in the current hierarchy, allowing the organization to adequately map a strategy to resolve gaps and strengthen the fabric of our current leadership.

Strategic Planning - “Midlevel leaders, one of the greatest assets at the institution, are often

overlooked when it comes to professional development.” (McPhail, 2020) The author goes on to say “One of the primary responsibilities of the midlevel leader is to facilitate collaboration among diverse groups of people to accomplish the goals of the unit in service of the institution.” Floyd & Wooldridge (1992) argue that “Midlevel leaders serve a key role in implementing change in hierarchical institutions by exerting influence in both upward and downward directions.” These statements are tethered to midlevel management views within my organization. The key push for a strategic plan currently resides with midlevel managers who recognize the need for structured planning including potential restructure of departments to shift responsibilities, and provide opportunity for managers to move into leadership roles.

“A strategic plan can be the framework for an organization to develop the talents and skills of midlevel leaders. Both senior and midlevel leaders must accept responsibility for engaging in the development and implementation of the strategic plan.” (Hatherill, 2017) I have spoken extensively with the Director of Human Capital regarding our need for a strategic plan. I represent a midlevel leader with the ability to create an effective strategy to begin our leadership overhaul and cultural framework as suggested by Hatherill. These are crucial first steps in a detailed process to affect overall growth.

Succession Planning - Fusarelli et al (2018) make an accurate assessment of succession planning

in education. “The practice of succession planning is not as common in education. Often when a leader departs, many programs and initiatives disappear as well, because the structure and motivation that supported the programs resided within the administrator, instead of being embedded within the staff.” Like most school districts, ours engages in leadership succession planning infrequently as there is little movement until an employee retires. Occasionally, succession fills an unexpected gap, something for which we are currently unprepared.

The superintendent is entering his last two years in the district while the assistant superintendent is preparing to enter her final year. The current finance director, a key contributor to the decline in our culture, holds a leadership position but fails to perform at the expected level. The organization is on the precipice of several open leadership roles, some of which may be filled by internal employees provided a succession plan is implemented and properly executed. “Succession planning activities in education should be “aimed towards divesting old professional identities, expectations, and values and replacing them with the values, skills, and assumptions necessary to support new ways of doing things” (Hart, 1993)

Additionally, Riddick (2018) contends “Districts must assess their current status in the various leadership positions and also assess their available internal pipeline of talent. Once this is determined, specific professional development strategies and other programs to meet the needs of the district can be planned and implemented.” This is a key component of the strategic plan for the district to develop its leadership and invigorate its culture and employee morale. Developing and recognizing existing talent with the organization is important as we move toward enlightened operations and increased employee engagement.

Creating Culture - “Fiol (1991) suggests a necessary link between an organization’s culture,

including its values component, and business strategy so that the whole identity of the organization, including its intended path, can be fully known.” (Williams, 2002) Our organization requires an equilibrium comprised of sound strategy in its leadership development, and employee engagement in the conversation about shared vision, values, and overall culture. “Organizational culture and leadership can be seen as two sides of the same coin, to the extent that leadership affects culture as much as culture influences leadership.” (Chong et al, 2018) To create a strong, progressive, unified culture, we must work to develop new leadership, take definitive action with underperforming current leaders, and ensure that internal successors possess skill, agility, and vision to transform operations as well as cultural climate.

Leadership – HR leadership was the topic of an interview conducted with the Director of Human Capital for the Belmont Public Schools. “As a leader, opportunities exist to incite change and growth, both within a small team as well as across the organization. Piloting a new program or redesigning a failing process such as our non-contractual evaluation system presents a chance for improvement on several levels from leadership down through the ranks of all other district employees.” (Personal Communication, Michael McAllister, Director of Human Capital, August 20, 2021)

SHRM (2014) defines the HR practitioner’s leadership cluster of its behavioral competencies via two components: Leadership and Navigation, and Ethical Practice. Leadership and Navigation is specifically described as “The knowledge, skills, abilities, and other characteristics needed to navigate the organization and accomplish HR goals, to create a compelling vision and mission for HR that aligns with the strategic direction and culture of the organization, to lead and promote organizational change, to manage the implementation and execution of HR initiatives, and to promote the role of HR as a key business partner.” (SHRM, 2014)

The HR practitioner as leader uses skill and persuasion to create strategy, build partnerships, reinforce trust, and facilitate change within the organization. These are key facets for necessary for growth within my organization. A leader must come forward to initiate the process of strategic planning, leadership development, and cultural metamorphosis. Utilizing the SHRM competency map as the basis for planning and engagement with both leaders and support staff will infuse the process with substantial skill and agility, both of which are necessary to create an effective shift in the current leadership structure.

Change Management – Goleman (1998) writes of four key competencies for leading change management: self-awareness, self-management, social awareness, and social skills. Cameron and Green (2020) further analyze these competencies and state, “Those involved in leading change need to develop these ‘inner’ leadership skills. The emotional ups and downs that people experience during change can be quite dramatic, particularly if involvement and collaboration is low.”

Yukl (2008) makes a relevant observation in conjunction with my organization’s cultural inadequacy. “Flexible, adaptive leadership is especially important when there is substantial change in situation and the leadership behaviors that are relevant for it. Differences in the situation occur within the same position when a person is transitioning to a different leadership position, or when major changes are made in the current position.” This is particularly relevant as not only are we in need of making changes to leadership by repositioning midlevel leaders to leadership roles, but we are embarking on major cultural changes involving both leadership and support staff. The ability to pivot successfully with maximum flexibility is integral to the changes we seek as current leadership is unable to collectively do so.

Consultation – The Society for Human Resource Management (SHRM) has developed an industry-leading competency model comprised of Leadership, Interpersonal, and Business clusters containing related competencies. The model places Consultation in the Business Cluster, and is defined as “The KSAOs needed to work with organizational stakeholders in evaluating business challenges and identifying opportunities for the design, implementation and evaluation of Consultation change initiatives, and to build ongoing support for HR solutions that meet the changing needs of customers and the business.” (SHRM, 2016)

Green (2022) supports consultative HR leadership, stating “Most human resource

departments still focus on the transactional parts of their job-filling vacancies, maintaining employment records, and running open enrollments. HR professionals are not being insincere

when they say that they want to become more strategic and more consultative; many organizations just need to define what it means to be "strategic" and "consultative." Green’s article goes on to discuss the meaning of consultation and the skills required for effective transition from traditional HR roles based on standard tasks to consultative roles requiring knowledge in the areas of organizational theory and culture, and strategic planning. Additionally, Green cites critical skills such as high-level communication, diagnostic acumen, and influence of leadership as integral characteristics of an HR leader.

I agree with Green’s assessment as these core competencies and abilities are precisely what the Office of the Superintendent is missing. Though our Director of Human Capital is highly effective in his role, he is pulled in numerous directions that detract from his efforts to incite the sweeping changes necessary to invigorate our culture, engage staff, and encourage collaboration between leaders and support staff. Consultation and influence form a partnership. Our current leadership needs to see a well-planned strategy including projected outcomes and measurable positive change if we hope to turn the corner and work toward growth rather than perpetuate stagnancy.

Incorporating foundational disciplines in my work as an HR practitioner is integral to developing leadership and enriching the organization’s culture. Maintaining this dual objective requires a focus on employee relations and organizational development driven by comprehensive strategic planning.

Employee Relations - Maintaining employee relations is achieved through open communication, addressing concerns by providing clear and transparent information as well as solutions to problems, and collaboration to enhance employee engagement. By applying foundational disciplines such as employee surveys to measure satisfaction and engagement levels among staff, I am able to collaborate with employees in developing a shared vision that will drive the group toward our overarching objective. Additionally, creating this vision will fuel our organizational development and allow me to apply other HRM disciplines for efficacy.

Organizational Development – Developing leadership is a key facet of organizational development. Not only does the office need to make significant changes within its leadership structure, but I need to assert myself and begin my journey as an HR practitioner whose goal is facilitating transformational change. Chapman (2002) writes of the framework for transformational change, stating “In the framework, special emphasis is placed on attitudes, beliefs and values as the key change levers in an organizational transformation.” Viewing the organization through a transformational lens means applying the fundamental disciplines relative to this theory of leadership such as intellectual stimulation, individualized consideration, idealized influence, and inspirational motivation. (Riggio, 2014)

These fundamental disciplines allow me to serve as a role model, inspire those around me to work toward similar goals, and to work creatively to examine and solve problems while expressing genuine concern for employees’ contributions to the current work environment. (Bass & Avolio, 1994) Combined with surveying to measure engagement and leadership development via comprehensive strategic and succession planning, I will possess the necessary tools to create a viable structure for sweeping organizational changes necessary to improve the culture among our staff and current leadership.

Much of the literature reviewed emphasizes the key concepts of leadership development and strengthening culture. These are the focal points of my Capstone journey. Implementing a strategic plan to not only develop an effective leadership team but create a robust culture boasting collaboration, innovation, and drive toward organizational goals are essential to our growth as a school district. Creating a partnership between leaders and support staff ensures we bridge the existing gap and build a path to success as one cohesive team guided by shared objectives for future success.

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References

Bass, B. M., & Avolio, B. J. (1994). Transformational leadership and organizational culture. International Journal of Public Administration, 17(3–4), 541–554. https://doi.org/10.1080/01900699408524907

Bruccoleri, M., & Riccobono, F. (2018). Management by objective enhances innovation behavior: An exploratory study in global management consulting. Knowledge and Process Management, 25(3), 180–192. https://doi.org/10.1002/kpm.1577

Cameron, Esther & Green, Mike. (2020) Making sense of change management: a complete guide to the models, tools and techniques of organizational change, fifth edition. https://capella.skillport .com/skillportfe/main.action?assetid=145450