LEADING MANAGEMENT AND DEVELOPING PEOPLE

What development would need to be put in place in order to equip line managers to deliver
effective people management practices?

The contribution of line managers towards the effective people management is very vital to
the business performance (Rees and French, 2010). Most organisations laid emphasis on
learning and development because it has been acknowledged as part of strategic activities for
sustainable business performance. HRD which is part of human resource management that
specifically deals with training and development of the employees has a great link with line
managers.

managers are those managers to whom individual employees or teams directly report and
who have responsibility to a higher level of management for those employees or teams
(CIPD, 2012). line managers play a pivotal role in terms of implementing and enacting HR
policies and practices. Where employees feel positive about their relationship with their front
line managers, moreover, they are more likely to have higher levels of job satisfaction,
commitment and loyalty which are in turn associated with higher levels of performance or
discretionary behaviour. Discretionary behaviour is defined as that which goes beyond the
requirements of the job to give the extra performance that can boost the bottom line

Line managers need to be carefully selected, with particular attention paid to people
management behaviours, and to be supported by strong organisational values that show
clearly the behaviours expected and those not tolerated. They should have sufficient skills
training to enable them to fulfil the people management requirements of the job, and they also
need to feel confident that their own managers will treat them with respect. They should be
encouraged to reflect on their own behaviour and how they are perceived by those they
manage, to ensure they are managing positively and understand their impact or motivation,
and hence performance.

Organisations need to encourage line managers buy-in and commitment to people
management activities by clarifying their responsibilities through job descriptions,
performance appraisal and communications on the importance and value of development-
related activities. It is also important for the HR function to be aware that line managers often
have conflicting priorities and role overload and that all managers need adequate time to
carry out their people management activities.

According to Purcell and Hutchinson (2007), the following steps need to be taken into place
in organisations for effective people management.
a focus on key staff
building a language of learning and development
creating a culture of performance where learning and development is highly valued
designing effective performance management systems
developing line managers themselves as a distinctive occupational group.



CIPD, 2012. The role of line managers in HR. Available at: http://www.cipd.co.uk/hr-
resources/factsheets/role-line-managers-hr.aspx (Accessed 31 December 2012).

Hutchinson, Sue 2007. The role of line managers in training, learning and development
[Online] London: Chartered Institute of Personnel Development. Available at:
http://www.cipd.co.uk/NR/rdonlyres/45B74613-3157-4064-93CD-
7EA30AA8A172/0/learnline.pdf (Accessed 31 December 2012).


Halint seems to focus predominantly on issues that impact on the private sector. Whilst this is
understandable given Halints background, as a group provide a two page summary
highlighting the extent to which the trends indentified and the importance of linking HR
activities to business outcomes impact on both public and voluntary sector organisations.
The management of human resources is central to the voluntary sector, not only because
labour costs represent a significant proportion of total costs (Passey et al., 2000), but also
because the staff play an important role in delivering the organisation's mission (Kendall,
2003; Ridder and McCandless, 2010)

Human resources being one of the important factors of production, therefore human resources
development is needed to develop competences of employees. According to Ahmad and
Schroeder (2003), human resources are considered the most important asset of an
organization. Human resource functions that directly contribute to the development of human
resources. Training is a set of planned activities on the part of an organization to increase the
job knowledge and skills or to modify the attitudes and social behaviour of its members in
ways consistent with the goals of the organization and the requirement of the job (Schmidt,
2007). According to Nwachukwu (2004), the objectives of training employees include
increasing productivity, lower turnover, higher morale and promote goal congruency. Bartlett
(2001) found a positive relationship between training and organizational commitment and
recommended that human resource development professionals adapt new research methods to
demonstrate to organizational decision makers that training and development contributes to
desired workplace attitudes which may in turn influence behaviours such as absenteeism and
turnover. Aragon-Sanchez et al. (2003) and Lee and Bruvold (2003) stated that
comprehensive training activities are positively associated to productivity, reduce staff
intention to leave and organizational effectiveness. Rowden and Conine (2003) found that a
large part of the workers sense of job satisfaction can be attributed to workplace learning
opportunities. There are several different methods of training used in the workforce: learning
principles and instructional techniques (Alvarez et al., 2004); goal setting (Holton and
Baldwin, 2000) and self management and decline anticipation strategy or policy (Batool and
Batool, 2012). Therefore, organizations should prepare their training programmes ahead of
time. Rautalinko and Lipser (2004) claim that certain training programmes are designed to
trigger specific reasons while others apply to general strengths and weaknesses of employees
before training. Two major types of trainings are off-job training which is conducted outside
the office; and an on-job training which is conducted within the office environment.
Successful and effective job trainings largely impact the productivity of employees during
their present job. If employee feels well-trained, they automatically commit to the
organization.

Performance appraisal and feedback: Performance appraisal consists of a framework of
planned goals, standards and competence requirements and plays an important role in
integrating the individuals needs with the organizational needs (Saraswathi, 2010). It is a
formal management system that provides for the evaluation of the quality of an individuals
performance in an organization (Yousef, 2000). Hussain-Ali and Opatha (2008) stated that
performance appraisal is perceived degree to which performance appraisal system has
attributes those are right for fair and accurate evaluation of employee job performance. They
argue that the attributes comprise nine features such as PA Objectives; PA Policies; PA
Criteria and Standard; PA Form and Procedure; Training of Appraisers; Feedback
Discussion; Procedure for Ensuring Accurate Implementation; Make Decisions and Store
them; and Review and Renewal. Ali and Akter (2011) stated that employee performance
appraisal is subject of great interest in most organizations. There are several reasons behind
this. First reason is performance appraisal decisions have effects and consequences on
workers compensation and recognition (Bartol and Locke, 2000; Millward et al., 2000).
Second important reason is, performance appraisal is important for the development of
strategic human resources, which looks at employees as an organizational tool for an
organization to survive in competitive and turbulent situations (Ahmad and Spice, 2000).
Strong evidence shows that performance appraisal has positive association with performance.
Hanley (2005) stated that developmental purpose of performance appraisal is more
productive in influencing organizational performance. Brown and Heywood (2005) noted that
performance appraisal system has positive association with improved productivity of
organizations. Lee and Lee (2007) investigated that effective performance appraisal system
improves productivity and quality.


Potential appraisal and career planning: In organizations that subscribe to human resource
development, the potential of every employee is assessed periodically. Such assessment is
used for developmental planning as well as for placement. Saraswathi (2010) say that in most
Indian organisations, the normal practice is to promote people on the basis of past
performance. She argues that most young executives coming to organizations are career
minded, ambitious and looking for fast growth.

Reward and employee welfare: Rewarding employee performance and behaviour is an
important part of human resource development. Organizations with better learning, training
and development systems, reward and recognition and information systems promoted human
resource development. According to Mercer (2003), employees will stay if they are rewarded.
Employees are usually rewarded based on quality based performance. A sense of
accomplishment is recognized as important and as motivator. Armstrong (2001) linked
reward and employee welfare to the achievement of previously set targets which are designed
to motivate people to be more productive to achieve high level of firm performance. Ian et al.
(2004) concurred that rewards should be incorporated to organization strategies as seen as a
technique which organization can apply in order to achieve higher productivity in accordance
with goals. Mohamad et al. (2009) research found that incentives is positively related to
organizational performance but did not moderate the relationship between both human
resource development and organizational performance.

Performance: The relationship between human resource and performance is based on two
theoretical strands. The first is the resource based perspective of the firm and the second is
the expectancy theory of motivation which is composed of three elements: the valence or
value attached to rewards; the instrumentality, or the belief that the employees will receive
the reward upon reaching a certain level of performance; and the expectancy, the belief that
the employee can actually achieve the performance level required (Stiles and Kulvisaechana,
2005).

Productivity is a performance measure encompassing both efficiency and effectiveness. It is
important, therefore, to know who the productive workers are. Productivity is a performance
measure encompassing both efficiency and effectiveness (Bhatti and Qureshi, 2007).
According to Rahimi and Vazifeh (2011), productivity is a measure of output from a
production process, per unit of output. High performing, effective organizations have a
culture that encourages employee involvement. Therefore, employees are more willing to get
involved in decision-making, goal setting or problem solving activities, which subsequently
result in higher employee performance. Encourage a more modern style of participatory
management, raise employee and satisfaction and even lower workers compensation rates.
Noe et al. (2000) contended that human resource development shapes behaviour, attitudes
and performance of employees. Ramsey et al. (2000) study found that human resource and
productivity are related. This is further supported by Horgan and Mohalu (2006) and Bashir
and Khattak (2008) that some selected human resource development strategies are associated
with better employee performance.

HR Practices

HR Practices are linked with the management of human resources, activities necessary for
staffing the organization and sustaining high employee performance (Mahmood, 2004). The
most common HR Practices are recruitment, selection, training and development,
compensation, rewards and recognition (Yeganeh & Su, 2008). Six HR practices selective
hiring, compensation policy, rewards, recognition, training and development and information
sharing have been studied with relation to employee job satisfaction (Dessler, 2007). The
present study examines the relationship between three HR Practices i.e training and
development, rewards, recognition and employee job satisfaction.

Job Satisfaction

Job satisfaction means what are the feelings of different employees about the different
dimensions of their jobs (Robbins, 2003). The level of satisfaction and dissatisfaction is
another aspect which is related to employee job satisfaction (Spector, 1997). Job satisfaction
may be the general behavior emerged due to different happenings at the work place; it may be
supervisors behavior, relationship with peers or the work environment (Janet, 1987)

.Various factors such as an employee needs and desires, social relationships, job design,
compensation, developmental opportunities and aspects of work-life balance are
considered to be some of the key factors of job satisfaction (Byars & Rue, 1997; Moorhead &
Griffin, 1999). According to (Robbins 1999), a satisfied workforce can increase
organizational productivity through less distraction caused by absenteeism or turnover, few
incidences of destructive behavior, and low medical costs.

Training and Development

Training is focusing on fixing a specific issue (Doyle, 1997).Training often answers the
question "what happens if" Development on the other hand takes a more global approach.
Training is related with current performance and progress of an employee while development
is related with the future performance and progress (Miller, 2006). Training is anything
offering learning experience (Paul & Anantharaman, 2003) Training helps employees is more
specific with their job and organization and as a result increases employee job satisfaction
and makes them work better.
H1: Training and development is significantly and positively related with employee job

satisfaction.

Recognition

Recognition is appreciation of employees performance in formal or an informal way.
Recognition is one of the driving force towards motivating employees, it also highlights how
much an employees performance is appreciated in an organization for the amount of work
he/she has put in (Miller & Lawson, 1999). Recognition maintains a strong bond between
motivation and performance and as a result the level of motivation of employees stays very
high almost all the time (Flynn, 1998). Recognition increases level of job satisfaction and
satisfied employees are a valuable asset for any organization (Entwistle, 1997). Recognition
is often considered to be of two major types, cash and non-cash awards. Different sectors
need different ways of recognition to be applied, some sectors or segments of population may
like cash and prizes to be a easy and better way of motivation while others may like non-cash
awards because they feel that if cash is to be given as recognition than they already have
salaries and other bonuses which get consumed very quickly (Holmes, 1994) .
H2: Recognition is significantly and positively related with employee job satisfaction.

Rewards

Rewards are usually referred to as intangible returns including cash compensation and
benefits. Reward system is set of mechanisms for distributing both tangible and intangible
returns as part of an employment relationship (Rue & Byars, 1992). Rewards are also termed
as the need of an employee because when reward will be linked with the employees desire it
will motivate him/her to a very high level (Kalleberg, 1977). It certainly shows that what an
employee wants after performing a certain task. It has been revealed in the past researches
that rewards are very strongly correlated with job satisfaction. Rewards are positively linked
to employee job satisfaction (Gerald & Dorothee, 2004). Their research extracted one
important element that employees are more satisfied with those rewards that they actually
perceive. (Clifford, 1985) argues that employee Job satisfaction may be determined through
job rewards. There are a lot of differences between different authors related to the dimensions
of rewards and employee job satisfaction but one thing upon which almost all agree upon is
the element of rewards that are perceived by employees (Kalleberg, 1997).
H3: Rewards are significantly and positively related to employee job satisfaction.
Clare Kelliher, Emma Parry, (2011) "Voluntary sector HRM: examining the influence of
government", International Journal of Public Sector Management, Vol. 24 Iss: 7, pp.650
661



LO2
10.
What does the dispute tell you about employment relations between BA and its cabin crew?
The collective bargaining system in BA is not properly managed. Collective bargaining does
not take place on a regular basis and a breakdown in the bargaining process usually lead to
disruption in operations and adversely affecting the business performance. The companys
effort to manage employment costs increases the risk and creates conflict.

Do you think BA was right to insist making changes to employment terms given its financial
position? Why do you think employees did not accept these changes?

BA unilateral decision to change the employment terms without due consultation with the
trade union was not right. The lack of proper communication and non-involvement of all
stakeholders by BA is not right. Disproportionate effect of relatively few active employees on
the many in the bargaining unit. This is particularly the case when collective bargaining
involves a system-wide structure of elections.
Employees refusal to changes made by BA is based on the fact that the plight of the
employees were not properly considered. The management central its decision on reducing
costs while neglecting the welfare of the employees.


Would you have advised BA managers to do anything differently?
Encourage more collaborative discussion with union before introducing the changes.
Adopt strong management rights clauses that explicitly designate the specific rights reserved
to the BA management. Ensure that this prerogative is carried through the entire agreement in
collective bargaining.
Recognize that not all employees desire union membership or even support the union.
Take advantage of court ruling and changes in law to regain control of, and restore flexibility
to decision making by removing any contract language that identifies a specific union or
group in determining the employment terms.


LO2 11
benefits of partnership agreement to employers, trade union and employees
to employees:
Partnership agreement develops a sense of self respect and responsibility among the
employees.
It increases the strength of the workforce, thereby, increasing their bargaining capacity as a
group.
Partnership agreement increases the morale and productivity of employees.
It restricts managements freedom for arbitrary action against the employees. Moreover,
unilateral actions by the employer are also discouraged.
Partnership agreement machinery strengthens the trade unions movement.
The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.


It helps in securing a prompt and fair settlement of grievances. It provides a flexible means
for the adjustment of wages and employment conditions to economic and technological
changes in the industry, as a result of which the chances for conflicts are reduced.


to employers:
It becomes easier for the management to resolve issues at the bargaining level rather than
taking up complaints of individual workers.
Partnership agreement tends to promote a sense of job security among employees and thereby
tends to reduce the cost of labour turnover to management.
Partnership agreement opens up the channel of communication between the workers and the
management and increases worker participation in decision making.
Partnership agreement plays a vital role in settling and preventing industrial disputes.

to organisation:
Partnership agreement leads to industrial peace in the country
It results in establishment of a harmonious industrial climate which supports which helps the
pace of a nations efforts towards economic and social development since the obstacles to
such a development can be reduced considerably.
The discrimination and exploitation of workers is constantly being checked.
It provides a method or the regulation of the conditions of employment of those who are
directly concerned about them.



Block 3 12
Equality

It makes good business sense to treat workers fairly and considerately. Organisations should
ensure they have policies in place which are designed to prevent discrimination both to stay
within the law and to attract the best employees.

It is unlawful to discriminate against people at work because of:

Age
Disability
Gender reassignment
Marriage and civil partnership
Pregnancy and maternity
Race
Religion or belief
Sex
Sexual orientation.


TUC View
Equality and Diversity is an ever-present theme in TUC campaigning, but is more important
now than ever, due to the unfortunate growing presence of organizations such as the BNP and
the candidates they are standing in local and European elections across the region. The
immediate priority is to ensure the far-right remain in the political wilderness and to keep the
northern region fascist-free. The excellent work of last year will be continued and built
upon, forging strong community coalitions and building trade unions capacity to challenge
racism and fascism through specific trade union training. With the threat having moved
exceptionally close to home at the start of this year; several key union figures in the fight
against fascism have been targeted with threats of violence - including Claire Williams,
regional convenor of Unison in the north east, the support of trade unions and activists is
absolutely crucial.
There will also be work done to ensure that the legal responsibility for public organisations to
introduce race equality scheduling is implemented with the view to extend this beyond the
public sector.
To further illustrate our unwavering commitment to promoting equality and celebrating
diversity there will be a bigger and better Cultural Diversity Event, the regions first
RESPECT Festival held in Sunderland on Bank Holiday Monday 3rd May. This years
event promises to be a fantastic day out for everyone and, like all of the other campaign
work, demonstrate categorically that the north east embraces its cosmopolitan and multi-
cultural influences.
Kevin Rowan comments; 'The north east is famous for the warmth of its people and for the
strength of its community spirit. The naturally inclusive nature of the region is completely
contrary to the ideals of parties like the BNP and the north east is likely to once again totally
reject them in the ballot box in June.'
Frances OGrady, Deputy General Secretary of the TUC added, "The North East has so far
resisted the BNP and I believe this will continue on June 10. Trade unionists have long been
at the forefront of anti-fascist work - and there's never been a more important time to
campaign against the race hate and poisonous politics of the far right than now.

Union learn UK
All too often the lions share of development opportunities have gone to the high-flyers, the
people already blessed with good skills and qualifications. At the other end of the spectrum,
far too many ordinary workers have missed out part-time women workers with caring
responsibilities; older workers out of learning for decades; migrant workers denied access to
English language training; disabled workers suffering prejudice at work; and temporary and
agency workers who often are simply off the radar when it comes to learning.

All of this goes some way to explaining why this country remains such an unequal place. And
thats why we in the trade union movement must see learning and skills as fundamentally
about equality. Training and skills are crucial to better jobs, better prospects and a better
quality of life for workers, families and whole communities.

Regardless of age, race, gender, class, sexual orientation, religion or belief, disability or the
passport they hold, every worker should enjoy an equal chance to up-skill or learn something
new at work. Union learning has a massive contribution to make in helping that goal become
a practical reality building individual and collective confidence, and dealing with
discrimination, disadvantage and unfairness wherever we find it.