Strategic Human Resource Management as Ethical Stewardship

Strategic Human Resource Management as Ethical Stewardship Cam Caldwell University of Georgia, Athens,GA,USA E-mail: cam.cadwell@gmail.com Do X. Truong, Pham T. Linh and Anh Tuan Vietnam National University, Hanoi, Vietnam Journal of Business Ethics, (2011) 98:171 182 DOI 10.1007/s 10551-0100541-y, Spring 2010 This is a good effort because there is strong indication that you clearly understand this topic and the questions have been generally well answered. I enjoyed reading this paper, and I feel it is a very important topic! The foregoing mechanisms facilitate the management of knowledge within a particular organization. This can be supplemented with external benchmarking against other successful organizations. For instance, and in a global context choosing external benchmarks, it is important to recognize that no single organization is likely to provide an adequate model for all aspects of an organization's operations. Sophisticated global organizations often benchmark different aspects of their operations against different global organizations and do not necessarily limit their benchmarks to private sector organizations.

Article Review Valeriano Kataya DBA 861 Instructor: Dr. James William October, 2 2011

Strategic Human Resource Management as Ethical Stewardship

Introduction Cam Caldwell is a professor at the University of Georgia, GA, USA and Do X. Truong, Pham T. Linh and Anh Tuan are professors at Vietnam National University, Hanoi, Vietnam. The authors wrote the article entitled Strategic Human Resource Management as ethical Stewardship. This paper reviews the article and offers comments about selected aspects, identifies some relevant aspects that can be regarded as useful to the implementation of ethics in an organization. It also discusses the strengths and usefulness of the article, discusses the weaknesses, limitations, or problems of the article. The article suggests a very important topic that helps getting from it learning lesson and recommends it to other researchers. According to this article, research about the strategic human resource management has exponentially increased over the last decade ( Hartel et al., 2007) cited by (Caldwell, C., Truong, Do T., Linh, T. P and Tuan, A. , 2010). It reveals that researchers have been concerned with the strategic human resource management issue to organizations for long. There are many aspects that have been raised. These aspects are related with the need of improving the way employers and stewards have to cope with strategic human resource management and know how to apply the ethical stewardship in organizations. Thats why; the purpose of this article is to examine the ethical duties associated with the implementation of HRM systems in helping organization to achieve their potential (cf Payne and Wayland, 1999). It also identifies the leadership roles which make up an ethical stewardship approach to organizations systems. As to provide a contextual framework for examining the importance of the alignment and congruence of human Resource management System, the authors begin by citing the strategic human resource literature. (Caldwell., Truong, Do T., Linh, T. P and Tuan, A. , 2010 p.1). It is exactly to define and clarify the problem, identify relations, contradictions, gaps, and inconsistences in the literature.(American Psychological Association, 6 edition p.10). Then, they examine the nature and duties of ethical stewardship as cited in (Caldwell et al., 2008) related to the effective governance of organizations.
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Strategic Human Resource Management as Ethical Stewardship

They still identify the important and sometimes implicit leadership roles that human resource professionals (HRPs) ought to contribute in optimizing the ability of their organizations to achieve that long - term wealth creation (Senge, 2006). The authors end by identifying the contributions of the article, offer comments about the importance of ethical leadership in creating the work systems, culture, and the high level of employee commitment that are essential for organizations in todays global workplace (Pfeffer, 1998,2007). The last focused traits are so important that the reviewer of this article will take and propose them as significant issues to be apprehended. Strategic Human Resource Management For a clear understanding of the subject, it is required to present the definitions of some important terms. To start with, some scholars define Strategic Human Resource Management as the process of linking the human resource function with the strategic objectives of the organization in order to improve performance (Lundy, O. and Cowling, A. 1996). The field of strategic HRM is still evolving and there is little agreement among scholars regarding an acceptable definition. Generally speaking, SHRM is about systematically linking people with the organization; more specifically, it is about the integration of HRM strategies into corporate strategies. HR strategies are essentially plans and programs that address and solve fundamental strategic issues related to the management of human resources in an organization (Schuler, 1992). When there is an interdependent connection, among participants of an organization in terms of functions, one accomplishes a high performance in executions of different accountabilities. And this action can be reflected in strategic management. Wheelen and Hunger (1995, p. 3) define strategic management as that set of managerial decisions and actions that determines the long-run performance of a corporation. Hill and Jones (2001, p. 4) take a similar view when they define strategy as an action a company takes to attain superior performance. It can be understood clearly, the reason for which the researchers, in their article, affirm that understanding of the important role of SHRM in the modern organization provides an important context to understanding the ethical duties owed by HRPs (Caldwell et al, 2011, p 1). The high level of outcome in an organization, is obtained by connecting people, strategy, values and performance ( Becker et al.,2001). When these key elements are not taken on account, it is verified great failures in some organizational departments.

Strategic Human Resource Management as Ethical Stewardship

When Pfeffer (1998,p14) and Kouzes and Posner (2007,p.75) emphasize that the key to effective organizational is execution, they mean that leaders should know how important is to search and share the knowledge and put it into practice as to build a sustainable and competitive organization. That is why it is said that Successful SHRM involves designing and implementing a set of internally consistent policies and practices that ensure that employees collective knowledge, skills, and abilities contribute to the achievement of its business objectives( Huselid et al., 1997.p.172). Despite these requirements, HRPs are often unprepared to help their organizations to optimize the use of human capital and todays organizations fail to perform effectively (Lawler III, 2008). So, it is required for leaders or responsible in any organization, to assume the responsibility of preparing themselves as to be able to convey positively this experience and skills to other members of the firm. The human Resource professional as ethical steward Ethical stewardship has been defined as honoring of duties owed to employees, stakeholders, and society in the pursuit of long term wealth creation (Caldwell et al., 2008). Ethical stewardship is a theory of organizational governance in which leaders seek the best interests of stakeholders by creating high trust cultures that honor a broad range of duties owed by organizations to followers ( Caldwell and Karri, 2005; Pava,2003). From this overview, it can be inferred that leaders have to be sympathetic and attentive with their cooperators need. There must have a cooperation and understanding between leaders and stakeholders. This cooperation and understanding is only possible if leaders search for getting an ethical attitude. It means that, ethics should be an obligation for leaders professional life. It is in this perspective that Covey (2004) has described the stewardship role as value-based, principle-centered, and committed to the welfare of all stakeholders. Sometimes, it has been noticed leaders seeing themselves as the owners or commandant of everything in the organization. Employees are highly seen as its and not as you. Consequently comes forth a discomfort among employees, and this behavior leads, in many cases, to the fall of organizational development. However, the moral position of ethical stewardship is that organizational leaders have the obligation to pursue long - term wealth creation by implementing systems that strengthen the organizational commitment of each stakeholder (Caldwell and Karri, 2005). Ethical stewards in HRM demonstrate the insights of great organizations that transform their companies into human and humane communities which emphasize inclusion, shared partnership, empowerment, and leadership trustworthiness (Kanter,2008).

Strategic Human Resource Management as Ethical Stewardship

Therefore, it is necessary to implement a transformative culture, in which leaders come nearer their employees or stakeholders and share experiences as well as develop professional and social relationship. Strengths and Usefulness of the article This article arises various aspects to be considered valuable to any business academic researcher. It begins by showing its purpose that of examining the ethical duties associated with the implementation of HRM systems in organizations to achieve their potential. The logical and linear way the authors present the subject help readers and researchers to grasp easily essential notes to help improve researchers professional experience. In addition, it permits researchers find out how important and necessary the ethical is in any kind of activity when it involve individuals. Weakness or limitations of the article Although the authors present an important overview concerned with the topic. There are some aspects found important that could support this valuable information. First, stating Cleary the problem as to respond to the purpose of the article. Then, it is admitted that it may not be the purpose of the articles writers to design a collecting data chart, but it could give an overview about those organizational leaders or steward needing know-how and fill in this gap. It also could help get a sight of what is needed to have this problem resolved. Aspects learned from the article This article presents valuable issues. It can be considered as a consulting material for everybody who wants to improve his/her knowledge in human resources management as ethical stewardship. There are many aspects learned from this article, among a lot of them, it was pointed out some considered more useful to any leader or researcher, that are: 1. Human Resource Professionals should be able to empower employees maximizing commitment and enabling employees to become a source of strategic competitive advantage that competitors rarely can duplicate ( Becker et al., 2001). 2. Successful SHRM involves designing and implementing a set of internally consistent policies and practices that ensure that employees collective( Cam Caldwell et al.) knowledge, skills, and abilities contribute to the achievement of its business objectives(Huselid et al., 1997, p. 172). 3. Charismatic leaders are ethical stewards to the degree that they personally inspire others to achieve worthy goals (Caldwell et al., 2007). 4. The HRPs that demonstrate principles of servant leadership build trust and inspire the confidence of others. Servant leadership is at the heart of
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Strategic Human Resource Management as Ethical Stewardship

ethical stewardship (Caldwell et al., 2007) and exemplifies its depth of commitment to serving the individual. This is an article which can be recommended to other researchers or students and leaders. One of the great reasons is that, the article conveys transformative information that can change professionals or other involved peoples attitude to get a new managerial vision. Researchers can get news related with ethical stewardship and consequently know how to lead with stakeholders or employees. Conclusion The researchers suggest that human resource professionals have the opportunity to play a greater role in contributing to organizational success if they are effective in developing systems and policies aligned with the organizations values, goals and mission. When human resource professionals take an innovative attitude applying the strategic human resource as ethical stewardship, they contribute greatly to the development of an organization. However, this development gets only to summit if professionals devote effectively their ability and interest to change. As it was referred in this paper, applying ethical stewardship in an organization is one of motivating strategies that can increase employees or stakeholders interests in cooperating and participating in organization growth .

Strategic Human Resource Management as Ethical Stewardship

References Becker, B. E., M. A. Huselid and D. Ulrich: 2001, The HR Scorecard: Linking People, Strategy, and Performance (Harvard Business School Press, Boston, MA). Boxall, P. (1992) Strategic human resource management: beginnings of a new theoretical sophistication?, Human Resource Management Journal, 2(3): 6079. Caldwell, C. and R. Dixon: 2007, Transformative Leadership An Integrative Theory of Ethical Stewardship. Paper Presented at the Fourteenth Annual International Conference on Ethics in Business at de Paul University on November 1, 2007. Caldwell, C. and R. J. Karri: 2005, Organizational Governance and Ethical Systems: A Covenantal Approach to Building Trust, Journal of Business Ethics 58(1), 249259. Caldwell., Truong, Do T., Linh, T. P and Tuan, A.: 2010, Strategic Human Resources as Ethical Stewardship p.1). Covey, S. R.: 2004, The 8th Habit: From Effectiveness to Greatness (Free Press, New York). Hartel, C., Y. Fujimoto, V. E. Strybosch and K. Fitzpatrick: 2007, Human Resource Management: Transforming Theory into Innovative Practice (Pearson Education, Australia). Huselid, M. A., S. E. Jackson and R. S. Schuler: 1997, Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance, Academy of Management Journal 40(1), 171188. Kanter, R. M.: 2008, Transforming Giants, Harvard Business Review 86(1), 4352. Lundy, O. and Cowling, A. (1996) Strategic Human Resource Management. London: Thompson. Pava, M.: 2003, Leading with Meaning: Using Covenantal Leadership to Build a Better Organization (Palgrave MacMillan, New York). Payne, S. L. and R. F. Wayland: 1999, Ethical Obligation and Diverse Value Assumptions in HRM, International Journal of Manpower 20(5/6), 297 308. Pfeffer, J.: 1998, The Human Equation: Building Profits by Putting People First (Harvard Business School Press, Boston, MA). Pfeffer, J.: 2007, Human Resources from an Organizational Behavior Perspective: Some Paradoxes Explained, Journal of Economic Perspectives 21(4), 115134. Schuler, R.S. (1989) Strategic Human Resource Management and Industrial Relations. Human Relations, 42(2): 157184. Senge, P. M.: 2006, The Fifth Discipline: The Art and Practice of the Learning Organization (Doubleday, New York). Wheelen, T. L., J. D. Hunger. Strategic Management and Business Policy, 5th ed., Addison-Wesley, Reading, MA, 1995, p. 3.