Human resource management reform and organisational effectiveness: perspectives of human resource professionals in UK Higher Education institutions

Abstract

The starting point of this thesis is the idea in the literature that the main objective of NPM is to apply strategic direction to public organizations (Truss, 2006) that could help to achieve economic and cost-cutting objectives (Boyne, ibid.). Achieving these objectives is, in part, based on applying management reform (Hood, 1995) through a focus on performance management, the setting of quality standards, the adoption of a philosophy of enhancing value for money and the replacement of the allegedly traditional bureaucratic structure of management based on satisfying organizational members’ interests and demands a more market- or competition-based set of arrangements.

In UK higher education institutions (HEIs), human resource management (HRM) has had a major influence by orchestrating these changes to achieve organizational effectiveness (Brown, 2008). Thus human resource professionals must address these changes when planning and carrying out their roles and programmes.

This thesis proposes that there are two models that can be adapted to public sector organizations, such as universities: Stakeholder Satisfaction (SS) model and Instrumental Rationality (IR) model.

Stakeholder Satisfaction model is concerned with balancing the demands and interests of different stakeholders and members. It is related to political, social and communicative forms of rationality as a base to achieve Organizational Effectiveness (OC). The HRM role in this model seems to focus on operations and people to satisfying members’ interests (Employee Champion role) and to perform administrative activities (Administrative Expert role).

Instrumental Rationality model is seeking to achieve economic goals. The OE perspective under this model is related to technical and economic rationality. HRM within this model is concerned with achieving strategic orientation in an organization (Business Partner role). I argue that applying New Public Management (NPM) may influence public sector organizations to move from the Stakeholder Satisfaction model to the Instrumental Rationality model. Similarly, this might well be accompanied by HRM departments in universities shifting their main focus from the role of ‘Employee Champion’ to that of ‘Business Partner’.