Humen Resource Management (HRM)

HUMAN RESOURCE MANAGEMENT : PETER 'S PRINCIPLE

(2008

INTRODUCTION

Human Resource Management (HRM ) is the effectively management of the workforce in an organization to make the organization attain its objectives . The process adopted in HRM is a scenario where the organization help the individual workers attain their aspiration and objectives , for them in return to meet the objectives of the organization . In the process of HRM , there is an increasing emphasis on the personal needs of the organisation and its members . Thus , how effectively an organisation 's employee contribute successfully to

the attainment of the organisational goals depends to a larger extent upon the ability of its HRM staff . Hence , the challenges of HRM are to create an organisational environment in which each employee can grow and develop to his or her fullest extent (Sims , 2002 , pg 3

The significant role of human resources in contemporary business operations has lead to a thrust where the organization partners with the human resource in the strategic management of the organization . In this instance , strategic human resource management (SHRM ) ensures that workers and subordinates are involved in the strategic formulation and implementation process in the organization . Top level manager plays significant role in the management of organization 's strategic and also the organization 's workforce , thus the responsibility for those at the top echelon of the organization is to motivate their subordinates into effective performance . One way to adequately do this is to make them partners in the strategic process . This will not only motivate them to cultivate a moralistic attitude towards ensuring the success of the organization 's objective , but give them a sense of belonging . According to Wilson (1999 , pg 27 , An alignment between strategy and training and development is now commonly regarded as a good business sense in all corners of the globe . This is more adduced to the limited resources and finance to aid an organization in the attainment of its goal . Thus HR development will go a long way in the organization to attain effectively set goals in the most efficient way

The level of competency of top level managers who grew from lower level to occupying the top position is what the Peter Principle on HRM focuses . The validity and feasibility of this principle is discussed

QUESTION 1 : DOES PETER PRINCIPLE SUGGEST THAT HR FUNCTIONS ARE ONLY GOOD IN THEORY

The Peter Principle have it that the promotion of some personnel from their previous position would lead to lower performance (i .e incompetence ) than the performance they would have put in the former occupied position . He also has it that demotions are rare in organization to correct the wrong placement of incompetence staff in higher position (Peter Hull , 1969 . The Human Relations functions include in an organization includes the reward system for deserving workers through promotions and other incentives with such higher post . This function has being an effective wage of rewarding hard and efficient workers . However , the Peter 's principle has seen the promotion of workers to the next higher level that it may be done erroneously , where sometimes the worker tend to be more comfortable and perform effectively in his previous job (Tortorici 2006 . And organizations rarely conduct demotions when incompetence is recognized However , this sometimes , erroneous promotion do not rule out the fact that many promotions are based on right judgment where an industrious worker and achiever who is promoted to higher tend to perform well by justifying the reason for their promotion . Furthermore , there are instances where incompetent workers are either relieved of their position or replaced with other personnel who supercede his official functions , or rendered redundant , sometimes the ultimate penalty is paid where they are sacked . Thus , the Peter Principle pertaining to worker promotion does not promotion and workers motivation . The situation where this function falls short is when the workers is erroneously promoted based on favoritism and other self interest ground other than merit based . A promotion that is based on merit will deliver , and the percentage of incompetence that could be associated with this function will be minimal , compare with the promotion based on favoritism

The decision to promote an individual worker , when he is sure to perform better in his previous position is not really an erroneous function Sometimes , this is done with the aim of tasking the worker to work harder and put more effort in self actualization and development , and executing higher functions . According to Koch Nafziger (2007 , pg 3 Such a decision hence is not a mistake , but optimal : the promotion allows extracting more effort from the agent than he would be willing to provide for the same earnings in the lower level job . As a consequence employees moving up the career ladder may earn more only because they have to work harder

Beside the fact that the promotion function of a Human Resource manager may be sometimes done erroneously where the promoted staff may be incompetent in higher post , this does not make the HR functions ineffective outside theoretical setting . For instance , the HR functions do not only pertain to promotion . It involves other functions as workers recruitment , placement , motivation , training , human relations , workers welfares administration , wage and salary administration , termination of worker appointment , and administering worker gratuities and pensions Theoretical these functions are good , and in many occasion in the practical sense these HR functions forms the advancement and growth of an organization , whereby it goes a long way to influence an organization 's productivity rate . Apparently , it suffice to say the sometimes erroneous promotion of incompetent workers or one who will not perform well in a higher post does not mean that all workers promotions are aligned with errors and that they will result in incompetence Furthermore , this does not mean that Peter Principle sees HR functions as infeasible in practice

QUESTION 2 : IMPLICATION OF PETER 'S PRINCIPLE ON HR MANAGER

Peter 's Principle tends to give HR Manager excessive caution in the performance of their duty of promoting workers to higher levels . In this case HR Managers need to do proper assessment and engage their promotions based on merit . Promoting worker to a higher position means the worker should attain more responsibility . In this era of strategic human resource management (SHRM , a worker who is not competent can not be useful in contributing effectively to the organization strategic process . Effective Human Resource Management practices are recognises as to enhance an organisation 's competitive advantage by creating both cost leadership and differentiation . Today 's competitive global environment has made organisation maintaining a competitive advantage puts a premium on having a committed and competent workforce . Low-cost , high- quality products and services are a result of committed employees all working hard to produce the best products and provide the best services that they can at the lowest possible cost . Thus , it is important that the Human Resource Managers are made to get in touch and be included in the organisation 's strategic plan , since they have the wealth of experience in the motivation of the organisational workforce into putting their best in the attainment of the strategic goals of the organisation Furthermore , the possession of information about human resource planning put the Human Resource Manager in a good position to partake in the strategic planning of the organisation . For example , with the available information on human resource planning , this along side with the organisation strategy would bring the selecting of the best human resource that would be in a better position to efficiently meet the organisation 's goals . In this view , Sims (2002 , has it that , As effective partners in helping organisations successfully achieve their goals , Human Resource Management managers need to have a clear understanding of exactly what are the organisation 's strategies , and then they must ensure that their own efforts are consistent with provide support for those strategies . To the extent that the Human Resource Management function is seen as a strategic partner and /or a centre of expertise , of course , its manager should also be actively involved in the formulation of corporate and business strategies as well as other functional strategies

Thus , Peter Principles has a significant effect on HR Managers in the decision they take concerning workers partnership to actualizing the corporate goals , and giving them the need to make such of information within their reach in making good decision on who to promote Furthermore , in situation where the HR Manager recognises incompetence in an official position , based on the Peter Principle , he /she is prompted to take a reactive action , by replacing such worker by competent staff or by giving the worker the needed training to make him perform better . A closer integration between top management goals and Human Resource Management practices helps to elicit and reward the types of behaviour necessary for achieving an organisation 's strategy . Thus with the right information within the reach of the HR Manager better decisions are taking as to avoid incompetence , but to promote worker 's efficiency and effectiveness

Furthermore , the Peter 's principle put HR Manager on their toe to recognize management changes and adapt new technique in their operation in executing their human resource functions . The ability of the HR Manager to operate in line with changes the industry will enable the organization workers are disposed to adapt to new changes in the industry and pattern of the organization 's operations . A key factor in the process of integrating strategic planning with Human Resource Management is ensuring that the Human Resource staffers recognise their roles as change agents and strategic business partners . This becomes difficult to attain in a rapidly changing organisation where the lack of stability tends to leave people with the feeling that they are victims of change rather than champions of it . However , one key to creating a successful Human resource function is to organise the chaos caused by change (Cipolla , 1996 . The human resources that are well developed are apt at managing changes that comes with uncertainties in their official capacity in strategy implementation . The manager in this scenario plays a prominent role in harnessing the organization 's strategy alongside those objectives set to develop the workers who would be implementing the organization strategy , within the context of the environment in which the organization operates . This task will be conducted effectively when the senior and middle managers are carried along in the planning process and the implementation processes of the change . Usually , the senior managers will play more roles in the planning process , while the middle managers , alongside the senior managers , involve in the implementation process . It is germane to state here that the business environment in which contemporary HR manager operates requires them to do more effective planning . Today 's organisations need more than a traditional personnel model of Human Resource Management activities that simple involve putting out small fires like ensuring that people are paid on the right day , that the job advertisement meet the news remembers to observe due process before , sacking the new rep who didn 't work etc . the strategic Human resource management is now widely recognise where the Human Resource Management is seen as a strategic components is organisational management

The Peter Principle in this instance , gives HR Manager the obligation of making the right decision through available information , and collaborating with line managers in to make the right decision on who to promote to what higher position , and also having the right sense to take decisive action when incompetence is noticed in the workplace or in an official position

QUESTION 3 : OPERATION OF PETER 'S PRINCIPLE IN MY ORGANIZATION

In my organization a brewery company that has different departments- finance department , HR department , marketing department , production department it becomes challenging for the HR manager to adequately make the right decision of promoting workers in other department , without the right consultation with other line managers . For instance , to promote a fort lift driver to a higher post of a supervisor , the HR manager needs to consult the Operation 's manager that has adequate information about the ability of who should adequately manage the post of a supervisor in the production department . Thus , the Peter Principle in the Brewery organization where I work , when promotion are made based on sentiments and favouritism , without proper consultation to derive good information to make the promotion decisions . Furthermore , where lapses are recognized traceable to a position , the organization does not outright demote the occupier of such post . Rather , they would take time to train the worker or give a superior to supervise while the occupy gain experience to manage the situation in future

HOW THE PETER PRINCIPLE AFFECT THE LINK BETWEEN HR AND CCOMPETITIVE ADVANTAGE , AND THE HR GENERAL FUNCTIONS

The Peter Principle influences the pattern in which HR decision are formulated regarding the implementation of the organization 's corporate strategy and how to involve competent workers to put up the right attitude towards competing in the actualizing of the organization corporate objectives and goals . The principle gives HR manager the added responsibility to be awakened to the reality that they are significant resource in the actualization of the corporate goal . HR manager and staffers tend to recognise the critical linkages between organisational strategy and Human Resource Management strategy . The view that Human Resource Management personnel are simply ` pusher ' continues to disappear , to be replaced by the notion that they play a key role in helping to achieve organisational success and determining the organisation 's competitive advantage (Sims , 2002 , pg 5

Thus , the Peter Principle enables Human Resource Managers sees the Human Resource as strategic partners working towards the organisation 's strategic goals . Thus , this gives the organization the right resource to compete favourably . The awareness of strategic function of Human Resource Manager is emphasised by Chaturvedi (2005 . He put it that By design the perspective demands that Human Resource Managers become strategic partners in business operations playing prospective roles rather than their being passive administrators reacting to the requirements of other business functions . Strategic Human Resource Managers need a change in their mind set from seeing themselves as relationship managers to resource managers knowing how to utilise the full potential of their human resources . The Peter Principle has the effect of changing the mind frame of HR manager to making them see the reason to cooperate with other personnel to make right decisions regarding promotion , assigning functions that would affect the strategic and competitive stand of the organization

The strategic function of Human Resource Managers are existed when they participate in the process of defining business strategy , when they partake in asking questions that move strategy to action and when they design Human resource practices that align with the business strategy In executing this role , the Human Resource Professionals increase the capacity of a business to execute its strategies . Thus , the current challenge of Human Resource Management , according to Sims (2002 , is to integrate programs involving human resources with strategic organisational objectives . Truss and Gratton (1994 :663 ) as cited in Sims (2002 , pg 2 , sees , the linking of Human Resource Management with strategic goals and objectives in to improve business performance and develop organisational cultures that foster invocation and flexibility

Today 's competitive business world has made the significant role of the Human Resource Management in strategic planning more acknowledge than ever before . Thus , the Peter Principle future reemphasised the role of HR manager to make decisive and right choice of human resource structuring for the effective operation of the organization . Today 's top company executives are increasingly looking to Human resource to improve the bottom-line . The traditional Human resource functions of staffing , recruiting , compensation , and benefits are losing ground to a new generation of value added core Human Resource functions that include career planning , executive development , training , succession Planning and organisation development (Caudron 1994 . Furthermore , corrective measures is emphasised by the principle where HR managers are expected to demote incompetent workers to lower positions where they can effectively perform . Though , as Peter Principle observed , this is rarely executed in organizations

Effective Human Resource Management practices are recognises as to enhance an organisation 's competitive advantage by creating both cost leadership and differentiation . Today 's competitive global environment has made organisation maintaining a competitive advantage puts a premium on having a committed and competent workforce . Low-cost , high- quality products and services are a result of committed employees all working hard to produce the best products and provide the best services that they can at the lowest possible cost . Thus , it is important that the Human Resource Managers are made to get in touch and be included in the organisation 's strategic plan , since they have the wealth of experience in the motivation of the organisational workforce into putting their best in the attainment of the strategic goals of the organisation

CONCLUSION

The Peter 's Principle sees the wrong choice of promoting worker to higher position with no comfort and competence to perform better than the previous post goes a long way in influencing HR Manager to make right decisions , regarding rewards and promotion of workers . The principle do not negate the fact that HR functions are only feasible in theory , but erroneous decision leads to reduced productivity and the ability of the organization to compete favourably . Furthermore , the principle gives HR Manager the sense to know that his /her decision has significant impact in the corporate operational and competitive levels Corrective measures need to be taken in situation where lapses are recognized in the promotion of workers to higher positions . When this is adhered to it leads to effective operations and competition of the organization

REFERENCES

Caudron , S (1994 , HR Leaders Brainstorm ' Personnel Journal , 54-61 August

Chaturved , Siddharth (2005 , Strategic Human Resource Management HYPERLINK http /www .humanlinks .com /manres /articles /shrm .htm http /www .humanlinks .com /manres /articles /shrm .htm (15 /08 /05

Koch , Alexander K Nafziger , Julia (2007 , Job Assignment under Moral Hazard : The Peter Principle Revisited ' IZA Discussion Series No . 2973 August HYPERLINK "ftp /repec .iza .org /RePEc /Discussion /dp2973 .pdf ftp /repec .iza .org /RePEc /Discussion /dp2973 .pdf (20 /02 /08

Peter , L . J , and R . Hull (1969 : The Peter Principle : Why Things Always Go Wrong . William Morrow Co . Inc , New York

Sims , Ronald R (2002 , Organisational Success through Effective Human Resources Management West Port , CT : Quorum Books . Pp . 1-5 , 8 , 9 , 20 , 23

Tortorici (2006 ) Can we turn back the rising tide of incompetence The Conference Board at HYPERLINK "http /www .conference-board .org /utlities /press http /www .conference-board .org /utlities /press (22 /01 /207

Wilson , John

(1999 , Human Resource Development : Learning and Training for Individuals and Organizations London : Kagan Page

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