This post is an attempt to come back to a topic that we had explored here 7 years ago. The topic is the implications of the unstated assumptions that organizations and individuals have on 'what good looks like'.
In the the previous post (See 'On what good looks like') we had explored this mainly from the point of view of selection decisions and 'person-organization fit'. In this post, let's look at it from the point of view of the different options for running the HR function, especially from the point of view of HR policies and processes.
Now, if you were to ask me what is the significance of 7 years, I can only say that the number 7 is considered to be a 'perfect number' in many cultures and that some even associate mystical qualities to it!
In the the previous post (See 'On what good looks like') we had explored this mainly from the point of view of selection decisions and 'person-organization fit'. In this post, let's look at it from the point of view of the different options for running the HR function, especially from the point of view of HR policies and processes.
Now, if you were to ask me what is the significance of 7 years, I can only say that the number 7 is considered to be a 'perfect number' in many cultures and that some even associate mystical qualities to it!
When it comes to the underlying (unstated) definition of 'what good looks like' we had identified two themes that can be conceptualized as two ends of a continuum. They were 'absence of variation' and 'presence of value' . Let's see what this means from the point of HR policies and processes.
In 'absence of variation' kind of organizations (where the definition of quality is similar to the 'Six Sigma' definition of quality), consistency of implementation of HR processes/policies is of paramount importance. This ensures ‘procedural justice’. This is also largely in line with HR models that emphasize process stability and maturity. This would mean very few or no exceptions! The essential message to the employees in this way of working is something like "If you are eligible for something you don't have to ask for it (because you will get it without asking). If you are not eligible for something, then also you don't have to ask for it (because you won't get it even if you ask)."
In 'presence of value' kind if organizations(where the definition of quality is more like 'fitness for purpose'), the emphasis is on what makes most sense (adds most value) in a particular situation. This approach leads to a lot of flexibility in running HR (subject to some broad principles/HR philosophy and the laws of the land, of course). But it also can lead to a lot of exceptions. This, in turn, can lead to perceived inconsistency unless the HR and Business leaders have deeply understood the broad principles/HR philosophy and also have extensively communicated the same to the employees.
Most of the companies find their equilibrium point somewhere in the continuum between the two polar opposites. The state of evolution of the company, the state of evolution of the HR function in the company, the industry in which the company operates, the culture of the company and the personal preferences of the leaders are often the factors that impact the choice of the equilibrium point.
It can be argued that when the size a company becomes very large, it tends to gravitate towards the 'absence of variation' kind of underlying definition of quality (See 'Paradox of HR systems' for a related discussion).
It can also be said that in those contexts where 'the owner and the manager are the same person' (e.g. in the case of partnership firms and proprietor-driven companies) there is often an affinity towards the 'fitness for purpose' kind of underlying definition of quality (See 'HRM in partnership firms' and 'Of owning and belonging' for more details)
Again, it can be argued that as the HR function in a company evolves, the underlying definition of 'what good looks like' often follows a U-curve kind of pattern - starting with 'fitness of purpose' kind of definition (as HR policies and processes are yet to take root). moving towards the 'absence of variation kind of definition' (when there are very detailed policies and procedures in place) and then coming back to 'presence of value' kind of definition (when the policies and procedures are perceived to be too restrictive/bureaucratic). This is especially significant in companies that are operating in rapidly changing industries, and hence requiring more agility in terms of people management also. By the way, this 'U-curve' is a concept is found in many of the social sciences (See 'U-curve and Simplicity @ the other side of Complexity' for more details). A similar argument can be made in the case of some of the key enablers in HR, like behavioral competency frameworks, that assume that 'there is one right way of doing things' and hence comes very close to the 'absence of variation' kind of underlying definition (See 'Competency frameworks : An intermediate stage?' for more details).
It is also possible to create some sort of a ‘synthesis’ of these two definitions of 'what good looks like' ('absence of variation' and 'presence of value') that act like the 'thesis' and the 'antithesis'. One pragmatic option could be to define the policies/procedures very clearly/in detail, and also define an exception process that is very tough!
Any comments/ideas?
In 'absence of variation' kind of organizations (where the definition of quality is similar to the 'Six Sigma' definition of quality), consistency of implementation of HR processes/policies is of paramount importance. This ensures ‘procedural justice’. This is also largely in line with HR models that emphasize process stability and maturity. This would mean very few or no exceptions! The essential message to the employees in this way of working is something like "If you are eligible for something you don't have to ask for it (because you will get it without asking). If you are not eligible for something, then also you don't have to ask for it (because you won't get it even if you ask)."
In 'presence of value' kind if organizations(where the definition of quality is more like 'fitness for purpose'), the emphasis is on what makes most sense (adds most value) in a particular situation. This approach leads to a lot of flexibility in running HR (subject to some broad principles/HR philosophy and the laws of the land, of course). But it also can lead to a lot of exceptions. This, in turn, can lead to perceived inconsistency unless the HR and Business leaders have deeply understood the broad principles/HR philosophy and also have extensively communicated the same to the employees.
Most of the companies find their equilibrium point somewhere in the continuum between the two polar opposites. The state of evolution of the company, the state of evolution of the HR function in the company, the industry in which the company operates, the culture of the company and the personal preferences of the leaders are often the factors that impact the choice of the equilibrium point.
It can be argued that when the size a company becomes very large, it tends to gravitate towards the 'absence of variation' kind of underlying definition of quality (See 'Paradox of HR systems' for a related discussion).
It can also be said that in those contexts where 'the owner and the manager are the same person' (e.g. in the case of partnership firms and proprietor-driven companies) there is often an affinity towards the 'fitness for purpose' kind of underlying definition of quality (See 'HRM in partnership firms' and 'Of owning and belonging' for more details)
Again, it can be argued that as the HR function in a company evolves, the underlying definition of 'what good looks like' often follows a U-curve kind of pattern - starting with 'fitness of purpose' kind of definition (as HR policies and processes are yet to take root). moving towards the 'absence of variation kind of definition' (when there are very detailed policies and procedures in place) and then coming back to 'presence of value' kind of definition (when the policies and procedures are perceived to be too restrictive/bureaucratic). This is especially significant in companies that are operating in rapidly changing industries, and hence requiring more agility in terms of people management also. By the way, this 'U-curve' is a concept is found in many of the social sciences (See 'U-curve and Simplicity @ the other side of Complexity' for more details). A similar argument can be made in the case of some of the key enablers in HR, like behavioral competency frameworks, that assume that 'there is one right way of doing things' and hence comes very close to the 'absence of variation' kind of underlying definition (See 'Competency frameworks : An intermediate stage?' for more details).
It is also possible to create some sort of a ‘synthesis’ of these two definitions of 'what good looks like' ('absence of variation' and 'presence of value') that act like the 'thesis' and the 'antithesis'. One pragmatic option could be to define the policies/procedures very clearly/in detail, and also define an exception process that is very tough!
Any comments/ideas?
2 comments:
Very rightly said. I'm dealing with exactly the same situations with one of my clients. In my career so far, I'm tightly boynd to Process compliance and implementation. Now, I was struggling to balance it with founders value orientation. Your post once again help me choose the right path. Thanks for sharing sir. Your posts have always guided me when I'm on the crossroads.
Thank you very much Srividya for your time and for your kind words!
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