Downsize or rightsize? Changing KESC to K-ELECTRIC (Case A)

2016 ◽  
Vol 6 (1) ◽  
pp. 1-26
Author(s):  
Nyla Aleem Ansari
Keyword(s):  
Human Resources ◽  
Organizational Performance ◽  
Workplace Violence ◽  
Human Resources Management ◽  
Critical Role ◽  
Hierarchical Structures ◽  
Public Utility ◽  
Quality Service ◽  
Content Type

Subject area Organizational restructuring strategy such as downsizing and rightsizing and their effects on organizational performance. Study level/applicability The case can be taught to graduate students of a business administration program for change management or human resources management courses. Case overview The case discusses a structural change strategy followed by a crisis management situation of a Pakistani state-owned enterprise with hierarchical structures, unclear work roles and workplace corruption and its shift toward a profitable company with rebranded mission and values. With the management takeover by the Abraaj Group, several issues were identified as major blocks to K-ELECTRIC’s performance. Drastic changes included information technology advancement, investment in infrastructure of generation capacity, marketing campaigns and corporate social responsibility initiatives with a record profit in 2011-2012, for the first time in 17 years. But, the greatest challenge to quality service and profitability was faced by the human resources department, to retrench 4,459 workers by offering a voluntary separation scheme to non-core management staff in 2009. However, disregarding the successful impact on business performance, only 300 workers (approximately) had accepted the package in early 2010, while the rest questioned the decision of outsourcing non-core jobs and demanded reinstatement with the company, followed by a series of protests in January 2010. K-ELECTRIC needed to make some sensitive and timely decisions to ensure efficient and quality service to its customers as its top agenda. Expected learning outcomes The outcomes include: to understand the challenges faced by a recently privatized public utility service to become lean and efficient without compromising on its public mission of providing electricity to the residents of the city; to analyze the factors that influence choice of restructuring strategies and their effects on the employment relationship and organizational performance; to recognize the critical role of leadership in choosing a voluntary downsizing strategy and analyzing the sense of urgency needed to execute the decision; and to recognize the role of legal and organizational consultancy needed in critical decision-making to prevent workplace violence. Supplementary materials Teaching notes and teaching guide.

scholarly journals Labor markets: preventing rivalry and myopia through HRM

2018 ◽  
Vol 5 (4) ◽  
pp. 346-360 ◽  
Author(s):  
Rose Opengart ◽  
Peter M. Ralston ◽  
Steve LeMay
Keyword(s):  
Supply Chain ◽  
Human Resources ◽  
Organizational Performance ◽  
Labor Markets ◽  
Human Resources Management ◽  
Critical Role ◽  
Content Type ◽  
Human Resource Capacity ◽  
Workforce Productivity ◽  
Hr Strategy

PurposeThe purpose of this paper is to extend the concept of myopia and introduce the concept of labor market myopia (LMM), as well as the role that human resources management (HRM) plays in its prevention and resolution. LMM, a more specific form of factor market myopia (FMM), is a myopic view of labor needs. LMM is only going to increase as human capital becomes increasingly scarce due to labor shortages.Design/methodology/approachThis conceptual review focuses on research on factor market rivalry (FMR) in the supply chain. Using three sample job categories, the concept of myopia is applied toward the human resources context to propose a new term describing a failure to consider future labor needs.FindingsThe authors position HRM/talent management as critical in preventing and addressing LMM at both firm and industry levels and the critical role of labor markets in FMR. HR strategies are suggested to prevent LMM include: expansion of the available workforce; increasing current workforce productivity, economic remedies like paying higher wages and proactively assessing and forecasting the current and future human resource capacity and needs.Practical implicationsLabor needs to be considered as a factor in the same realm of importance as other resources. The HR strategies discussed are key to preventing LMM and improving organizational performance and effectiveness.Originality/valueThe authors argue that organizations not only compete for resources downstream (i.e. customers and markets) but also upstream, such as with human resources. The authors introduced a new concept/term to frame the effect on organizations when supply chain planning and HR strategy do not take labor into consideration. This was accomplished by first narrowing the concept of marketing myopia to FMM, and in this conceptual paper, it was subsequently narrowed to introduce the term LMM.

High-performance human resource management and firm performance

2015 ◽  
Vol 115 (2) ◽  
pp. 353-382 ◽  
Author(s):  
Kangyin Lu ◽  
Jinxia Zhu ◽  
Haijun Bao
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
High Performance ◽  
Human Resources Management ◽  
Chinese Enterprises ◽  
Content Type ◽  
Resources Management ◽  
Mediating Role ◽  
The Relationship

Purpose – Human resources have become a key issue in relation to the strong competition between service firms. Therefore, the purpose of this paper is to explore the relationship between high-performance human resource management (HRM) within this field to firm performance, making a useful attempt to explore the “black box” of enterprise human resources management effect on firm performance. Design/methodology/approach – In order to validate the relationship between high-performance HRM and firm performance, Chinese service industry samples were collected. Structural equation modeling and regression are adopted to estimate the direct effect of high-performance HRM on firm performance and the mediating role of innovation. Findings – The results show that the impacts of high-performance HRM on firm performance are significant. Moreover, innovation plays a partial mediating role between them. Training, work analysis and employee participation has a significantly positive impact on firm performance, while effects of profit sharing, employee development and performance evaluation on enterprise performance is not significant. The results strongly support the hypothesis that innovation holds intermediary variables between high-performance HRM and firm performance. Practical implications – Studying the relationship between high-performance HRM and firm performance can help Chinese enterprises more reasonable and effective learning foreign advanced management ideas and methods. And then can help Chinese enterprises to establish a high-performance HRM system that is suitable for Chinese enterprises; the research can help enterprises to identify meaningful practice of human resources management, outstanding keys, and perfect the HRM system of enterprises; research on innovation and innovative thinking is conducive to develop employees’ innovation motive, promote employee’ innovative behavior, and improve firm performance. Originality/value – This paper takes innovation as a mediating variable into the model and studies the intermediary role of innovation.

Getting inside the black box

2014 ◽  
Vol 43 (4) ◽  
pp. 490-514 ◽  
Author(s):  
Nizar Mansour ◽  
Emna Gara ◽  
Chiha Gaha
Keyword(s):  
Human Capital ◽  
Organizational Commitment ◽  
Firm Performance ◽  
Organizational Performance ◽  
Critical Role ◽  
Black Box ◽  
Future Research ◽  
Financial Industry ◽  
Content Type

Purpose – The purpose of this paper is to explore, and eventually unlocking, the “black box” problem by addressing the potential mediating role of human capital and organizational commitment in the relationship between high performance work systems (HPWS) and perceived firm performance in the Tunisian financial industry. Design/methodology/approach – Based on the strategic human resource management (SHRM) theory, the authors developed a model that links HPWS to perceived organizational performance through human capital and employee organizational commitment. Data collected from 351 respondents was considered. Multiple regression analysis was then used to assess the research hypotheses. Findings – Data collected from 351 respondents suggest that HPWS positively affect perceived firm performance through first, enhancing the firms’ human capital; and second, developing positive organizational commitment attitude among employees. In addition, a direct relationship between HPWS and firm performance was found. Research limitations/implications – The research focussed on the perceived performance of the organization rather than financial measures. Also, because data were collected from a sample of Tunisian financial companies, results of this study are not generalizable. Originality/value – More than two decades after the earliest contributions, the SHRM scholars believe that the “black box” problem is still accurate and, therefore, needs to be addressed in an effective way. At a general and broad level, the authors believe this study contributes to the SHRM literature by successfully addressing two critical “black box” elements, i.e. human capital and organizational commitment. Also, since there is a lack in such research in Tunisia, an icon country of the Arab spring, this paper provides theoretical basis for future research and managerial implications for Tunisian business leaders and HR managers. Finally, this research is extending the current empirical SHRM literature by addressing the critical role of HRM in the largely understudied field of financial services industry.

scholarly journals The Key Role of Strategically and People-Oriented HRM in Hospitals in Slovakia in the Context of Their Organizational Performance

Healthcare ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 255
Author(s):  
Nadežda Jankelová
Keyword(s):  
Transformational Leadership ◽  
Human Resources ◽  
Organizational Performance ◽  
Leadership Style ◽  
Slovak Republic ◽  
Human Resources Management ◽  
Significance Level ◽  
Healthcare Facilities ◽  
Resources Management

The main objective and purpose of our paper is to verify the positive congruence between the synergistic effect of the mixed roles of human resources management departments in healthcare facilities and their organizational performance. Such congruence is mediated by means of a transformational leadership style and information sharing. The research was carried out on a sample of 44 hospitals in the Slovak Republic, which are included in the ranking according to a comprehensive indicator of their performance (medical and non-medical). Data were obtained using a questionnaire for 44 top managers from these hospitals. Mediation was used as a tool to examine the relevant variables relationship mechanism. All data was analyzed using the SPSS 24.0 software package with the help of selected analytical tools. A series of regression analysis were used to identify the proposed hypotheses. ANOVA was used to analyze the multiple dependence. We worked at a significance level of 5%. The main conclusion of our study is the significant impact of the implementation of the new—mixed role of human resources management departments on organizational performance. Another finding is that the direct effect between the two variables examined is more significant than the mediated effect. This means that if management unambiguously declares and implements the policy of mixed roles of human resources management departments, less influence from the mediator—transformational leadership is sufficient to transmit the effect of this variable onto organizational performance. Completed specialization studies in the field of management play a significant role in the studied relationships.

scholarly journals Digital Transformation: Challenges for Human Resources Management

2021 ◽  
Vol 7 (1) ◽  
pp. 365-375
Author(s):  
Anton Florijan Barišić ◽  
Joanna Rybacka Barišić ◽  
Ivan Miloloža
Keyword(s):  
Human Resources ◽  
Organizational Performance ◽  
Performance Management ◽  
Employee Engagement ◽  
Business Models ◽  
Human Resources Management ◽  
Digital Transformation ◽  
Employee Relations ◽  
Future Research

The global economic situation and need to be better prepared for competitive challenges put pressure on modern companies to shift toward automation and digitalization. As a consequence of rapid technological development and the speed of change and therefore forced transformation of business models and work design, organizations are faced with a need for a massive change of features and an extended role of HR management processes. To be able to drive future organizational performance, HR leaders and professionals are required to make changes in the skills and competencies they have and to acquire and possess new ones. The critical components of a digital transformation strategy that can help achieve a competitive advantage are human capital, intellectual capital, and knowledge. The purpose of this paper is to explore and elaborate on the contemporary position and the changing function of HRM in light of digital transformation. In that sense, a comprehensive analysis of available literature has been conducted addressing the domains of HR planning, reward management, performance management, employee engagement, training and development, health and safety, employee relations, as well as their change under the influence of digital transformation. As the main conclusion of this research, it can be stated that although digitalization, i.e., digital transformation, strongly affects HR practices and procedures specifically by using human resources information systems, the role of HR in contributing to the digitization strategy is not sufficiently emphasized. However, it can be argued that the results of this research represent a valuable contribution to future research and can certainly be an important benchmark for organizations when preparing strategies to respond to the challenges of the digital age. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How does job‐training increase firm performance? The case of Morocco

2010 ◽  
Vol 31 (5) ◽  
pp. 585-602 ◽  
Author(s):  
Audrey Dumas ◽  
Saïd Hanchane
Keyword(s):  
Public Policy ◽  
Human Resources ◽  
Development Strategy ◽  
Job Training ◽  
Training Programs ◽  
Human Resources Management ◽  
Content Type ◽  
Special Training ◽  
And Performance

PurposeThe purpose of this paper is to evaluate the effects of job‐training programs, initiated by the Moroccan government and called “special training contracts”, on the performance of Moroccan firms.Design/methodology/approachTwo databases (MICT, OFPPT) of Moroccan firms were considered. Matched databases were completed using a questionnaire survey. Panel data with 322 firms from 2001 to 2003 were obtained.FindingsThe paper highlights that “special training contracts” is an efficient measure of public policy. Indeed, job‐training programs increase the competitiveness and performance of Moroccan firms. Additionally, it was shown that firms have different perceptions of the role of public policy. It was emphasised that training effects are higher when training is considered as part of a human resources development strategy. On the contrary, when firms view public policy as just a financing opportunity, they do not get any returns from training.Practical implicationsA better understanding of the role of STC may increase training efficiency.Originality/valueThe case of an emerging country, Morocco, was studied. The conclusion of the analysis could provide solutions linking human resources management to issues of growth and long‐term development.

scholarly journals A Survey and Analysis of the Relationship between Human Resources Management and Organizational Performance

2017 ◽  
Vol 7 (6) ◽  
pp. 2200-2204 ◽  
Author(s):  
S. A. Hashemi ◽  
F. Dehghanian
Keyword(s):  
Human Resources ◽  
Organizational Performance ◽  
Organizational Innovation ◽  
Human Resources Management ◽  
Reliability And Validity ◽  
Structural Equations ◽  
Resources Management ◽  
Mediating Role ◽  
The Relationship

This study aims to evaluate the relationship between human resources management and organizational performance with emphasis on the mediating role of organizational innovation. The study methodology is descriptive-correlation and structural equations modeling. The study population is employees of the electricity distribution company of Tehran city. The reliability and validity of measures were evaluated using Cronbach’s alpha and confirmatory analysis and the results showed the acceptable reliability and validity of measures. For data analysis, Pearson Correlation coefficient and structural equations method with Lisrel software were used. The results showed that the effect of organizational innovation mediating variable was indirectly 0.17 meaning that if human resources management is increased as 1%, the organization performance with the mediating role of organizational innovation is increased as 16%. This study evaluates the relationship between human resources management and organizational performance with emphasis on the mediating role of organizational innovation.

scholarly journals The role of knowledge management in organizational performance: case study of University of Malang, Indonesia

2019 ◽  
Vol 17 (1) ◽  
pp. 230-243
Author(s):  
Andi Nu Graha ◽  
Achmad Sudiro ◽  
Armanu ◽  
Kusuma Ratnawati
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Human Resources ◽  
Organizational Performance ◽  
Management Practices ◽  
Human Resources Management ◽  
Sampling Technique ◽  
Resources Management

The present study puts forward a model that examines variables of human resources management practices, organizational culture, knowledge management and organizational performance. By this model, it intends to explore the effects of human resources management practices and organizational culture on organizational performance. Particularly, it intends to find out their relationship with knowledge management as a mediator. The research applies SmartPLS for data analysis, with 163 respondents by means of saturation sampling technique. The results display several facts. First, both HRD practices and organizational culture have significant effects on knowledge management. Second, while knowledge management and organizational culture have a significant effect on organizational performance, HRD practices do not significantly affect organizational performance. It makes knowledge management only serve a partial mediation between human resources management practices and organizational performance, and serve a full mediation between organizational culture and organizational performance.

BİLGİ YÖNETİMİ UYGULAMALARI KAPSAMINDA İNSAN KAYNAKLARI YÖNETİMİNDE MEYDANA GELEN DEĞİŞİMLER

2013 ◽  
Vol 1 (1) ◽  
pp. 83
Author(s):  
Ozan Büyükyılmaz
Keyword(s):  
Knowledge Management ◽  
Human Resources ◽  
Performance Management ◽  
Management Practices ◽  
Human Resources Management ◽  
Management Strategies ◽  
Resources Management ◽  
Management Philosophy ◽  
Management Processes

The development and expansion of knowledge management as an important management philosophy has a significant impact on human resources management as well as on organization as a whole. In this context, knowledge management processes have been used as a strategic tool within human resources management.Therefore, functions of human resources management must adapt itself to this change. The purpose of this study is to determine the role of human resources management in the management of knowledge and to reveal the effects of knowledge management practices on the functions of human resources byexamining the relationship between human resources and knowledge management. In this context, a theoretical investigation was conducted. It has been determined that significant changes occurred on the functions of human resources management such as selection and recruitment, performance management, remuneration and reward, training and development within the framework of the knowledge management strategies.

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