Project on
Human Resource Management in Social
Enterprises
Name of the Author
Mashudul Hasan
Student No- 52993
Supervisor- Villy J. Rasmussen
Date of submission- 19/12/14
Fall semester-2014
Total Characters: 109,147 (with spaces)
Roskilde University, Social Entrepreneurship and Management.
Acknowledgement
I am really lucky to have opportunity for expressing my kind gratitude to everyone who supported
me for writing this project. I am extremely thankful for their aspiring guidance and supervision,
invaluably constructive animadversion and friendly suggestions during the project work. I am
sincerely owed to them for sharing their heartfelt truth and illuminating views on numerous issues
regarding to the project.
I express my warm thanks to Mr. Villy J. Rasmussen, Mr. Fakhrur Rahman and Mr. Sowrav Kumar
Saha for their generous support and proper guidance at the tenure of writing the project.
I would be glad if I have scope to thank all the people who have provided me required support til
completion of the project.
Thanking you,
Mashudul Hasan
2 ABSTRACTS
The project has its main focus on how Human Resources Division of Social Enterprises (SEs) can
help to achieve SEs mission and vision. The recent world is experiencing financial crisis and Social
Enterprises (SEs) expends its operation across the globe with its social mission. Results on,
marginalized communities are getting benefit. Thus Social Enterprises have contributed to build
strong tie in the society. Therefore, success of Social Enterprises is expecting to the mass people
especially poor region in the world. The Human Resources Division can help SEs to get their
success. In this research project, a case study has been chosen named BRAC Human Resources
Division, which is recognized as the largest SE’s Human Resources Division in Bangladesh.
In the project, it has been tried to show up how Human Resources Division of SEs’ may apply
leadership role in Social Enterprises because SEs are facing the scarcity of employees especially the
potential employees who can contribute in SEs for attaining SEs social mission and vision. In the
project’s case study BRAC Human Resources Division (BRAC HRD) is also trying to play
leadership role for recruiting, motivating and developing its employees. BRAC HRD is trying to
maintain the relationship between human resources strategy and organization’s performance by
aligning Human Resources Strategy and BRAC’s over all strategy. For ensuring the alignment of
Human Resources (HR) Strategy with BRAC’s Strategy, BRAC HRD uses some theoretical frame
works and styles such as Human Resources Scorecard, SWOT Analysis, authentic leadership and
situational leadership. By applying all these, BRAC HRD tries to do strategic human resources
activities that lead BRAC HRD to align BRAC’s strategy for achieving BRAC’s social mission and
vision.
3 Table of Contents 1. Introduction ............................................................................................................................................ 5 1.1. Introduction: .................................................................................................................................................. 5 1.2 Problem Area: ................................................................................................................................................. 8 1.2.1. Problem Formulation: ......................................................................................................................................... 10 1.3. Delimitations and Limitations: ............................................................................................................. 10 2. Methodology: ....................................................................................................................................... 11 2.1.Research philosophy: ................................................................................................................................ 11 2.2. Research strategy: ..................................................................................................................................... 12 2.3. Research paradigm: .................................................................................................................................. 12 2.4. Research Design: ........................................................................................................................................ 13 2.5. Data collection and research method: ................................................................................................ 13 2.6. Interview: ..................................................................................................................................................... 14 3. Theory .................................................................................................................................................... 15 3.1. Functions of HRM: ..................................................................................................................................... 15 3.2. Strategic Human Resource Management for Attaining Organization’s Mission & Vision: 17 3.2.1. Strategic Approaches of HRM: ......................................................................................................................... 20 3.2.2. The HR Scorecard includes four perspectives: ......................................................................................... 21 3.2.3. The Process: ............................................................................................................................................................. 21 3.2.4. Communicating the HR Scorecard: ................................................................................................................ 23 3.3. SWOT Analysis: ........................................................................................................................................... 24 3.3.1. The resource-­‐based model: ............................................................................................................................... 25 3.4. The 5Ps Model: ........................................................................................................................................... 26 3.6. Authentic Leadership Theory: .............................................................................................................. 27 3.7. Synergistic Leadership: ........................................................................................................................... 29 3.8. Douglas McGregor’s Theory of X-­‐Y: ..................................................................................................... 30 3.9. The Reasons For The Choice Of Theories: ......................................................................................... 31 3.9.1. The logic behind the choice of Authentic Leadership: ........................................................................... 31 3.9.2. The logic behind the choice of synergistic leadership: .......................................................................... 33 3.9.3. Why Douglas McGregor’s Theory Y fits in my case study? .................................................................. 35 4. Context ................................................................................................................................................... 36 4.1. About BRAC Bangladesh : ........................................................................................................................ 36 4.2. BACKGROUND OF BRAC HRD: ................................................................................................................ 37 4.2.1. Goal of BRAC HRD .................................................................................................................................................. 38 4.2.2. The most vital unit of BRAC HRD is Recruitment & Selection unit .................................................. 39 4.2.3. Policy and Capacity Development (PCD) Unit ........................................................................................... 39 4.2.4. Compensation & Benefit Management (CBM) Unit ................................................................................. 40 4.2.5. Performance Management Unit-­‐PMU: .......................................................................................................... 40 4.2.6. Code of Conduct and Sexual Harassment Elimination Policy Unit ................................................... 41 4.2.7. Grievance Management Unit ............................................................................................................................. 41 4.2.8. Human Resources Information System Unit (HRIS) .............................................................................. 41 5. Analysis ................................................................................................................................................. 42 6. Conclusion and Recommendation: ............................................................................................... 51 7. References: ........................................................................................................................................... 53 8. Bibliography: ....................................................................................................................................... 58 4 1. Introduction 1.1. Introduction: The recent growth of social enterprise has been observed in the developed industrialized countries
(Deforuney and Borzaga, 2001, p. 2-21). Salamon et al. (2003, p.3-19) mention that growth of
social enterprise has been spread in USA, Western Europe, Central and Eastern Europe and many
developed countries. Social Enterprizes are now working in multifarious sectors like as health,
social care, housing, children’s services, vehicles, food and farming, sustainable environment,
human rights and leisure (Westall and Chalkley, 2007).
DTI (2002) stresses that social enterprises are driven by social mission. A social Enterprise is
simply a business entity with primarily social objectives whose surpluses are generally reinvested
for the purpose of business or in the community rather than maximization of profit for shareholders
(Doherty et al., 2014, p.26).
The OECD (2006) has identified some features including social and economical aspect that define
SEs in all the different countries as off (Doherty et al, 2014,p. 30).
o Direct involvement of goods and services
o Voluntarily created
o Preserve stakeholders’ participation right
o Exists in significant level of economic risk
o Avail a least percent of paid employees
o Decision making power is not biased by the number of shares and every stakeholders have
power to make decision
o Participatory oriented
o Averse of maximization of profit and distribute a limited portion of profit
o Mission is to make the betterment of a specific group of people
Torrington et al. mentions that Human Resource Management (HRM) is the foundation of all
managerial activity rather than solely the foundation of all business activity. The basis of
management is honing to get the right people in right place in time for making things happen in a
productive way, so that organization achieves success and the people thrive. There was a time when
5 organization recruited mostly raw labor, those had little skill, experience, or merit and they could
able to do their assigned job. But after industrialization, the situation was opposite. In industrialized
countries, most of the job requires dexterous candidates for doing the job well. Besides the
changing workforce pattern and congenial improved method of HRM has led to the evolution of a
more complex HRM function. (Torrington et al. 2011, p.4-12).
Torrington et al. (2005) stresses that HRM is the distinctive characteristic now and it carries out
people oriented organizational activities. More simply, HRM is managing overall human resources
process in any kind of organization. Traditionally, HRM originated in the work of social reformers
and paternalist Quaker family firms conveying the theme of social justice. Sissons and Storey
(2000), and Leopold et al. (2005, p.11-14) describe that HRM considers people as resources for the
organization and can utilize them strategically for achieving organizational goal. Besides, HRM
deals in preparing planning, organizational policies and procedures, align HR strategy with business
strategy and handle organizational change with careful motion. Borzaga and Solari (2004) express
their view that HRM is needed in the SEs because of existing the internal challenges of
management. Story (2007) defines that people can be managed by two approaches. One is hard
approach that reflects employees as being a cost to the organization and is primarily concerned with
minimizing cost. The other one is soft approach that views the employees as being assets who will
produce positive margin for the organization. As SEs hold business mission and social mission
together so that they could apply the mixed approach of HRM i.e., soft and hard. Beere et al. (1984,
p.9) suggests that soft strategic approach is appropriate for SEs. They also argue that SEs HRM
Model focuses on the betterment of individual as well as society.
It has been observed that the SEs HRM that focuses good practices protect the organization form
catastrophe due to the lack of funding, short fall and unpredictable commercial contract. Thus, all
these things lead the SEs best fit (Doherty et al 2014, p.93). The HRM of SEs handling the issue of
diversity with care. Besides, the issue of equality is strongly focused in practice of SEs’ HRM (ibid,
p.102).
Additionally, development of talent management process can lead to increase the level of
performance both in individual as well as organizational level and the environment, organizational
structure and systems together play mentionable role for the improved performance in the
6 organization. Above all, HRD facilitate employees for being future leader in organization (ibid, p.
103).
Moreover, Human Resources Division (HRD) is a strategic partner of any organization. Human
Resources Division (HRD) of BRAC also plays strategic leadership role in BRAC by aligning
Human Resources Strategy with BRAC’s strategy. Procedural justice, transparent recruitment and
selection, equal employment opportunity and cultural diversity acknowledge BRAC Human
Resources Division (BRAC HRD) as a driver of BRAC (hrd.brac.net).
Torrington et al. quotes that Human Resources (HR) are the pool of potential employees who
works for the organization and Human Resources Division/Department of the organization nurtures
such human resources. Human Resources Division/ Department is involved in screening, recruiting
and training the human resources, prepared human resources policies and procedures and
administered compensation and benefit issues for ensuring human resources retention and
development (Torrington et al., 2005).
Moreover, Torrington et al. (2005,p.267) point out that good Human Resources policies and
practices do affect company’s performances positively that lead organization more flexible and
sustainable. Applebaum et al. (2001, p. 459) recognizes that practice of enhancing skill, creating the
environment of motivation and participation of employees are considered as critical factor for
business entity but widely relevant for SEs.
According to Doherty et al. opines that motivating employees is a big challenge for corporate
world. Motivation can increase employees’ level of productivity. It is highly recommended that
factors of extrinsic motivation and intrinsic motivation play significant role for increasing
employees’ productivity and organizational growth. The HRM literature spells out the merits of
extrinsic and intrinsic motivation for increasing organizational growth and employees’
sustainability (Doherty et al. 2014, p.106).
Performance measurement is also considered as challenge for SEs because SEs may see impact
measurement as a burden for them rather than a tool for measuring competitive advantage (Bull,
2007, p.49-66). Balanced Scorecard has also been used as a tool for measuring the performance of
SEs (Somers, A., 2005, p.43-56).
7 1.2 Problem Area: Doherty et al. tells that managing people is undoubtedly a complex deal in any organization. The
big challenges come forward to HRD while focused on social objectives. Traditional HRD does not
significantly consider about hiring volunteer staff but HRD of SEs have to keep consideration on
hiring and retaining a significant percentages of volunteer staff, which leads SEs HRD to stiff
position. SEs HRD has similarity with traditional HRD considering the need to establish clarity
about staffing levels and patterns of work. SEs HRD concentrates on culture-fair recruitment and
selection processes. Besides, they have to handle the big challenge with care such as staff
motivational performance and reward options. For retaining the potential as well as volunteer staff,
SEs HRD has to focus on energiging working relationship and introducing progressive development
policies (Doherty et al., 2014, p.92).
Manimala (2011) stats that leadership practice could be challenging in the field of social enterprises
because social enterprises perennially struggle with various critical human resource issues such as
getting employees at low rates of compensation, providing growth opportunities for employees only
within the organization not for globally, retaining the negligent percentage of talent resource pool in
the middle management, blurred job description etc, leading to high attrition and increasing the cost
of acquiring and training newly recruited employees again and again.
(Ban et al. (2003) maintain that new recruitment, trained up employees’ retention, and workforce
diversity is some of the major problems being faced by Human Resources leader in social
enterprises. In addition, they investigated that it is difficult for social enterprises to recruit in certain
areas, such as information technology and business development, as the staff of these mentioned
fields demand high salaries, which are too high for some social enterprises to afford. It has been
also quite hard for some of the social enterprises to convince their donor to recruit potential
candidates with high salaries for creating a balance to their over all human resources so that they
can retain them effectively and efficiently to bring about a change in the larger society and fulfill
their mission. Though the donor-dependency is relatively low for some social enterprises, they too
are not in a position to offer market related competitive salary packages to their employees.
8 Srivastava & Bhatnagar (2008) addressed that recruitment of potential candidates can increase the
productivity of organization. In the competitive business world, talent acquisition and retention is
vital factors for some of the social enterprises that could be attained through excellent teamwork
and lucrative factors of motivation. Only, a talent hunting process of any organization especially for
social enterprises that is synchronized and accomplished from starting to end that seems to be a
battlefield for social enterprises.
For the lower level recruitment process, social enterprises’ Human Resources Department generally
uses referrals and local newspaper advertising methods on the basis of their local demands that are
relatively inexpensive and have a local focus reflecting on effectiveness, but in reality, the tendency
of people to recommend individuals like themselves or recommend them for non-professional
reasons can potentially lead to the reduction in diversity as well as quality among the workforce
(Ban et al., 2003).
As social enterprises are only able to retain less percentage of potential staff so that Human
Resources Department of social enterprises count the loss for recruiting potential staff again and
again that is costly in terms of new recruitment, training and development, interruptions service,
and decreased employee morale (Ban et al., 2003); (Lynn, 2003). Researchers maintain that the
significant objective of HRD is not only to recruit potential employees but also to retain employees
in the organization as well. (Lynn, 2003), (Vigoda & Cohen, 2003). It has been added that value
and goal congruence positively affect employee’s morale and performance, motivation, job
satisfaction, tenure, and career success. Generally, social enterprises are unable to ensure such
congruence. That’s why, sometimes, social enterprises cannot discover the latent skills of
employees, and many cases, SEs HRD leads to meet the organization of being politically
discriminative and inequitable. In order to avoid such a potentially destructive situation, leader of
HRD of social enterprise has to be a continuous assessment of the interface between the workforce
and the working atmosphere and their work atmosphere, and the development of advanced Human
Resources strategies for recruitment and retention (Vigoda & Cohen, 2003). This is normally
relevant for the current situation when the retention rates for social enterprises especially declines
and talent resource pool turns to the for-profit corporate sector as an alternative (Light, 2000);
(Salamon, 2002).
(Brown et al., 2004) argues that compensation is the crucial factor that influences talent resource
pool turnover in social enterprises. Even though, the mission of the social enterprises attracts
9 employees and satisfied with their work, the potential employees do not stay in social enterprise for
long without snappy remuneration.
BRAC is a kind of social enterprise that also faces more or less in the above-mentioned problems.
Though BRAC has a long success story from its inception. BRAC started its first journey in 1972
through the relief operation across Bangladesh. Now BRAC is the largest non-government
organization in the world that is dedicated to elevate poverty, remove eradication and malnutrition
and empower the deprived people in the poor region in the world (www.brac.net).
1.2.1. Problem Formulation:
How can Human Resources Division/Department effectively support management in achieving
Social Enterprises’ (SEs) mission and vision?
i)
How does Human Resources Division/Department of Social Enterprises’ (SEs) play and
practice leadership roles?
ii)
How does Human Resources Division/Department of Social Enterprises’ (SEs) recruit
and motivate potential employees?
1.3. Delimitations and Imitations: The research project is basing on the role of Human Resources Department of Social Enterprises
(SEs) for achieving Social Enterprises (SEs) mission and vision and how can Human Resources
Division plays and practices leadership roles and the way of recruitment and development of
employees of Human Resources Division in Social Enterprises? My case study in this research
project is BRAC-Human Resources Division as BRAC is social enterprise. In my research project, I
have conducted two skype interviews that provide me a lot of information that is relevant to my
research. They mentioned some of the leadership theories and frameworks, which help me to use
the concept of those theories in my research project. Besides, they have focused some component of
Human Resources Division, which are being used to align Human Resources Strategy with
Organization’s Strategy. Thus, the research project is delimited to show the role of Human
Resources Division in achieving SEs’ mission and vision.
10 During the research, I have faced few challenges such as limited time, limited respondents and
delays from respondents. Finally the respondents have allotted their time for me to conduct
interview.
Simply, a case study represents the behavior of a person, a group or an organization, the analysis of
it may or may not reflect the behavior of similar entities. A case study could be suggestive of what
could be found by studying similar organizations, but more researches are required to verify and
compelling the findings and makes them able to be generalized elsewhere. (Simon & Goes, 2013).
As mentioned before, case study is considered as a useful tool in research as it capacitates
researchers to examine data at the micro level and present in real life situation. Case study also
provides better insights into the studied subject (Zaidah, 2007). Moreover, case study has a high
degree of validity with the findings, which is close to the reality (Yin, 2003). The above can be
perceived as advantages of the case study, but the inability to generalize the results is the main
disadvantage of them (Zaidah, 2007). Therefore, the findings of the BRAC HRD could not be
generalized because it is based on single case.
2. Methodology: 2.1.Research philosophy: Research philosophy helps to create and develop a new knowledge and belong a specific belief that
induces to find out relevant answer of particular research question (Saunders et al 2007). Saunder
(2007) further adds that three types of thinking are practiced in research philosophy such as the
epistemology, the ontology and the axiology with several perspectives. The perspectives generally
include positivism, realism, pragmatism, interpretivism, objectivism, and constructionism. The
research has been conducted in this project basing on the philosophy of critical realism. This is
basically a philosophical theory of reality and human knowledge. The philosophy of critical realism
focuses the capacity of human’s to learn objectively regarding the world, without interruption from
the side of human psychology or other factors. To see the world, the researcher must acquire
knowledge and reflect critically on what was learned. Based on Saunders (2007) arguments, in the
philosophy of critical realism are not only the things directly, but the images of the things in the real
11 world and their sensation of experience, which could also not be experienced directly. Therefore,
Saunders suggests that the researchers of this philosophy should use all the human senses and
spread out. These guidelines help the researchers to conduct in the phase of planning the research
strategies. This could help to define problems and suggest using the appropriate hypotheses and
thus the exploratory (or formulative) research method was followed (Kotler & Armstrong, 2006).
2.2. Research strategy: Saunders (2007) argues that, the research strategy is the planning designed by the researchers to
answer the research questions. He introduces different sorts of research strategies such as
experiment, survey or case study. The case study has been chosen in this research project. Case
studies are considered as a useful tool in research as case study capacitates researchers to examine
data at the micro level and focus or present in real life situation. Case studies also provide better
insights into the studied subject but the inability to generalize the produced results is the main
disadvantage of them (Zaidah, 2007). In this research project, the aim is to find out the leadership
role of Human Resources Division of SEs that can help to align Human Resources Strategy with
organization’s strategy for attaining mission and vision. Furthermore, in this research project,
secondary data such as online resources, census data, statistical abstracts, journals and other similar
periodicals and primary data have been used through the conducting semi- structured interviews.
2.3. Research paradigm:
In the context of social research, it might be convenient to consider research paradigm. Research
paradigm helps researcher to complete his or her research effectively with the right viewpoint
(flower, 2009). Paradigm is way of describing social phenomena (Saunders et al 2009). My problem
formulation in this research project is ‘How can Human Resources Division effectively support
management in achieving social enterprises’ mission and vision?’ I do think that my problem
formulation is going to describe the objective of human resource regarding to social enterprise. It is
more than analysis and sometimes it is descriptive as well. I am not going to measure rather I am
going to describe my own and interviewees’ viewpoint through this research. I do think it’s
different from positivism view. According to Denscombe phenomenology means people’s attitude,
belief, perception, emotion, feelings etc. Experience is also an important term of phenomenology
(Denscombe, 2010). In this research project I am trying to convey few of human resource
12 managers’ experience with their feelings, emotion, belief etc. Here phenomenological viewpoint is
close to appropriate because my interviewees specifies that they use situational leadership, authentic
leadership, synergistic leadership and theory of X-Y and they also share their own experiences
which are related to their environment (Simon and Francis, 2001) cited in (angles, 2007). I choose
this paradigm because phenomenological approach helps me for conducting small-scale research
project. On the other hand, Denscombe phenomenological view has some disadvantages such as it
is more descriptive rather than the analytics of data (Denscombe, 2010).
2.4. Research Design: Research design is important for both quantitative and qualitative method. Research design takes
human psychology into control and gives a basic shape into the researcher’s research (Roller,
1997). Here to give a proper descriptive shape I prefer to do my research in a qualitative method. I
took two interviews of brack enterprise human resource manager and going to describe in a
descriptive way. The descriptive research may describe the element or incident in a more proper
way than any other way into a research (Robson, 2009 cited in (Saunders et al 2009)
2.5. Data collection and research method: Usually, the way of data collection is bit monotonous and complex. Sometimes it’s not an easy to
collect and produce relevant data for the research (Martin, 2000). In this project, my research
question is: How can Human Resources Division of Social Enterprises (SEs) effectively support
management in achieving social enterprises’ mission and vision? So I organize two interview
sessions with Brack’s Human Resources Managers. Here they describe their personal experiences
and thoughts basing on my questionnaire, which I include in the appendix. In my research project, I
have used qualitative data, which is also cost effective because I have communicated to the
interviewees through skype that does not make any expense for me. Besides, qualitative data assists
to progress the qualitative research (Condie, 2012). Marcella et al also state that interview method is
the most easiest and communicative method to collect raw data, which describes the research in a
proper way (Marcella et al 2003). I have conducted interview with two Human Resources Manager
13 of BRAC through Skype and I recorded that in a very convenient way. I do think the data they have
provided me through the interview will be effective for my research.
My research method is qualitative because I have taken two depth interviews. Ekanem notes that
qualitative method emphasizes in depth interviews with semi structured or unstructured question,
which really draw actual facts of the research. Moreover it can be applied any where in research in
general (Ekanem, 2007). Qualitative approach patronizes a researcher to work with a common
object. Through the qualitative research a researcher may reveal and progress his or her common
object (Fisher et al 2011) if wishes. In addition to, qualitative research is important to investigate in
management research and question. It could change the managerial phenomena. This approach
helps to reveal new organizational change (Garcia et al 2013) that Human Resources Department
introduces in the organization. I am going to find or reveal new organizational phenomenological
link about human resource management and social enterprise. Melina et al states that qualitative
data does not cover or describe all the required element of the research through interview but the
European really prefer this method than American because it can open up people’s mind and may
use in many process (Melina et al 2011) for achieving object. My topics, research questions and my
environment tend me to conduct qualitative research though it has few difficulties.
2.6. Interview: Two of Human Resources Managers’ interviews have been conducted for the purpose of this
project. The interviews have been conducted through Skype in two different dates. The interviewees
live in Bangladesh and they have tried to response lively. Their name is Mr. Fakhrur Rahman and
Mr. Sowrav Saha. Both of them hold the designation of Manager, Human Resources Division of
BRAC. They confess that they involve in strategic leadership activities in BRAC. The interview
question was open ended semi-structured.
14 3. Theory 3.1. Functions of Human Resources Management: Human Resource Management is a wide field in the management science. The HRM’s functions
can be described in four distinct objectives such as staffing objectives, performance objectives,
change management objectives and administrative objectives.
Staffing Objectives: According to Torrington et al. staffing is very important in the context of
Human Resources Management (HRM). Human Resource Management is always concerned with
staffing in the organization especially right people in the right place in the right time due to the
requisition of organization. Before recruiting, Human Resources manager involves in preparing job
description, job specification and different sorts of criteria basing on the organization’s demand.
Besides, HRM is always concerned with staff retention because employment market is very
competitive and potential staff has high demand in the employment market so that it is a big
challenge for HRM to penetrate effectively in the labor market. Designing and offering smart
compensation package is other kind of challenge for HRM if HRM wants to penetrate in the
competitive labor market, hire potential staff and retain them for organization’s demand. In this
situation, increased attention should be given to develop competitive salary packages and allocate
sufficient budget for the purpose of employees’ training and development because employees’
development through training is expensive. In the recent corporate world, it has been seen that
organization takes more strategic approach that can be attained through the recruitment of right
skills in the right place in the right time (Torrington et al., 2011, p. 6).
Performance Objectives: Jaap Paauwe addresses that performance objectives relate to the
exchange relationship between employees and organizations. Generally, employees are expecting to
have a fair equitable exchange of contribution between employees and organization i.e., what
employees contribute to organizations and what organizations contribute to employees for their
outstanding performance. Employees are expecting monetary and non-monetary gains from the
organizations in exchange of their effort for the organizations. HRM should focus on the part of
employees’ motivation because of getting best performance from them. Training and Development
can play a strategic role for motivating employees. In some cases, HRD can handle to assist in
disciplining employees effectively for achieving of best performance objectives where employees
are performing below standard in organization. Welfare benefits can play a significant role for
15 motivating employees so that Human Resources manager can design welfare benefit in such a way
employees whose performance fall short can perform better again. Moreover, employees
involvement initiative in organization make sense of ownership that can increase employees’ level
of commitment and engage employees’ to create innovative ideas for organization. Besides,
sustainability, participation, solidarity and trust can also create value in the organization that attracts
employees’ to stay in and work effectively (Jaap Paauwe, 2004, p. 4).
Change Management Objectives: According to SA Burtonshaw-Gunn and MG Salameh, Human
Resources Management should have clear idea about the organization’s mission and strategy
because mission and strategy of the organization provides a direction of intent and serves as a
reference point to establishing any kind of changes. Managers can remove ambiguity and darkness
from organizational change strategy through the development of organization’s mission, vision and
strategic objective. Organization should also realize that any kind of change would be successful if
stakeholders of the organization involve in the changing process. If stakeholders involve in the
changing process, they can also put contribution by involving in day to day activities on behalf of
organization (SA Burtonshaw-Gunn and MG Salameh, 2007, p.3)
An organization’s culture also gives message to employees regarding change initiatives in
organization so that HRM should use organization’s culture to employees and involve them
effectively (ibid).
HRD can develop the ‘right’ organization structure in support of the business plan and can lead to
some changes. If employees are well informed about changes in the organization, then the change
process would be effective (ibid).
As technological changes occurs continuously in the world so that technological changes also affect
organization because organization accepts technological advantages which bring some changes
inside the organization and HRD can play a significant role for implementing change strategy
(ibid).
HRM can facilitate to the management of organization for initiating change strategy by designing
organization’s structure. HRM can make structural change depending on long term planning and
budgeting, systems development, customer related issues and employees development. In this stage,
communication is required for implementing stage strategy and HRD can play significant role
16 through maintaining proper communication (ibid, p.4). Reward system is vital factor for
organization and employees together. Any sort of change in reward system done by HRD with
series of consultation between HRD, top management and employees. Thus, a convenient reward
system can be designed and offered for employees’ motivation and organization’s performance can
be attained (ibid, p.4).
Administrative Objectives: Torrington et al. adds that Human Resources Management’s other part
of objective is to accomplish administrative objective though it is not directly related to gain
competitive advantage but helps to function organization’s activity smoothly. For accomplishing
administrative activity smoothly, it is needed to maintain employees’ record and data regarding
employees’ performance and their personal details. In addition to, administrative activities include
sick leave, maternity leave, legal compliance issues and pension schemes, which facilitate
employees to retain in the organization. Sound administration in Human Resources matters because
of achieving organizational excellence by avoiding potential legislative risks. Thus, HRD can build
trust on other managers for practicing sound administrative activities (Torrington et al., 2011, p. 6).
3.2. Strategic Human Resource Management for Attaining Organization’s Mission & Vision: Strategic Human Resource Management is the intention of the corporation both explicit and covert,
toward the management of its employees, focused through ideal philosophies, effective policies and
practices (Tyson’s, 1995). Torrington et al. further adds that strategic Human Resources tend to
issue-based practical oriented rather than formulation of theory and its explanation. Organizational
strategy has been implemented through Human Resources Strategies. Proper implementation
ensures the success of Human Resources Strategy. Weak Human Resources Strategy that is lack of
proper information meets organization’s failure. Human Resources Scorecard, SWOT Analysis and
some of the approach help Human Resources Division/Department to design and implement Human
Resources Strategy comply with the organization’s strategy (Torrington et al., 2011, p. 59-60).
17 The link between Human Resources Department/Division and Organization/Business Strategy:
Source: http://www.apsc.gov.au/publications-and-media/current-publications/workforce-planningguide/workforce-planning-explained
Torrington et al. asserts without consistent link between Human Resources and overall organization
or business strategy, Human Resources cannot function smoothly. The Human Resources strategy
and organization’s business strategy should be consistent for meeting up the desirability and
feasibility of Human Resources that will also meet up the gap between HR strategies, business
strategies and workforce planning. As BRAC is a social enterprise dedicated to reduce the poverty
from the world and empowered the marginalized people in the society so that the Human Resources
Driven Model is the best fit in my research project (Torrington et al., 2011, p. 61-62).
Butler says that the strategic Human Resources Driven Model places the Human Resources
Department priority to accomplish Human Resources activities. Human Resources driven model
considers employees are the key resources for the organization so that employees’ skills should be
improved for the progress of the organization. This model suggests that the efficient employees can
contribute a lot in the organization’s strategy. Besides, this model is the reflection of resource based
Human Resources strategy and patronizes to turn employees as human capital (Butler, 1988, p. 88102).
Maintaining the relationship between human resources, strategy and organization’s performance is
the main locus of resource based approach. This approach focuses on the sustained improvement in
the organization through employment relationship (Scarborough 2003a, p.2). Financial asset is not
only the valuable asset but also perceived human resources also important assets for the
18 organization. Human resources contribution could be identified through proper monitoring.
Balanced scorecard is a technique to measure the contribution of human resources (Torrington et
al., 2011, p. 72).
Generally, human resources can ensure the strength of the organization by creating competitive
advantages for the business. The important thing is here that human behavior is focused here along
with the skills, knowledge, attitude and competencies, which have a more sustained impact on long
term survival (Briggs and Keogh, 1999, p. 447). Barney states that there are four criterions for
ensuring sustained competitive advantages. First, the resource must be valuable. He also argues that
how human resources is the factor of heterogeneous. They describe that both factor i.e., the demand
for labor and supply of labor are heterogeneous because different organizations require different
competencies from each other and the supply of labor comprises individuals with different level of
skills and competencies. Here, matching employees’ competencies with the organization’s
requirement creates value.
The second criterion is rarity. Rarity is related to value creation. Employees’ cognitive ability is
very important due to future needs for employees’ adaptability and flexibility. Adaptability and
flexibility shapes employees valuable assets in the organization and organization also values such
type of employees for their future growth (ibid).
The third one is inimitable. Wright et al. argues that the human resource department can facilitate
the organization by developing outstanding resource pool those have innovative capability which
helps organization in market leader. The competitor will not identify the inner mater of the market
lead organization and cannot imitate any thing that will be treated an asset for the market lead
organization. Besides, the market lead organization develops its own culture and environment for
prioritizing the potential employees. Results on, the company can create a sustainable environment
and if the rivals try to allure and recruit some of the potential employees from the market lead
organization, there will not be tremendous loss for the market lead organization.
Finally, the market lead organization amalgamates non-substitutable resources. Wright et al. also
argue that human resources can be substituted in the short period of time but in the long run,
substituting the human resources would be critical.
19 Wright et al. opines that all level of human resources is considered as pool of capital in every
organization if organization wants to be lived in the competitive market. This is why, the
organization should be evolutionary and every strategy should be discussed from bottom up as well
as top down level. Human Resources Division has to be involved not only in implementing the
Human Resources strategy but also to involve in formulating the strategy, then Human Resources
Division can recruit the right people in the right place in the right time for the organization and
align human capital with HR strategy as well as the organizational strategy. Moreover, Human
Resources Division/Department should concentrate careful on the issue of human capital while
drawing and designing Human Resources and organization’s aggregate strategy.
3.2.1. Strategic Approaches of Human Resources Management:
Torrington et al. explains about the role of HRM in the organization is changing now due to the
economic downturn. Early on, people considered that Human Resources Division/Department’s
primarily functioned was staffing and administration. Human Resources Department/Division’s role
was administrative that did not produce innovation. But now HRM is the heart of all managerial
activities. Human Resources Division helps management to get employees for the organization to
make things done in a systematic and productive way so that the organization and the employees
thrive together. All organizations have needed to set the alignment between human resources and
financial resources together for achieving organization’s goal. HRM can ensure the alignment of
human resources and financial resources through the development of right people in the right place
in the right time (Torrington et al., 2011, p.4).
Brian. E. tells that Human Resources Division can widely contribute to the strategic success of
organization by transforming itself from partner to a key role player by applying HR tools like
Human Resources Scorecard. The Human Resources Scorecard does just that provides vital role by
which HR can assess how to manage strategy. Human Resources Scorecard handles sophistically
about the relationship between HR value drivers and the business outcomes. Moreover, Human
Resources Scorecard provides management a complete framework with which to build strategies
for human capital growth. Human Resources Scorecard introduces the way in organization to
measure and manage the human capital (Brian. E., et al. 2001, p.1).
20 The Human Resources Scorecard approach is the modified formation of initial Balanced Scorecard
model. The Human Resources Scorecard is widely used in the human resources department for
aligning HR strategy with the organization’s strategy by focusing on long-term outcome (Garrett
Walker and J. Randall MacDonald, 2001, p. 368).
3.2.2. The Human Resources Scorecard includes four perspectives (Garrett
Waæler and J. Randall MacDonald, 2001, p.368-369):
Strategic Perspective: The Human Resources Scorecard aligns with the organization’s strategy for
achieving business goal.
Operations Perspective: The Human Resources Balanced Scorecard is dedicated to measure HR’s
success in operational excellence. For measuring operational excellence, the HR Scorecard focuses
primarily in three areas: staffing, technology, and HR processes and transactions.
Customer Perspective: The Human Resources Scorecard also focuses the customer segmentation
by tracking customers’ perceptions of services. Besides, HR Scorecard assess overall employee’
engagement, competitive capability and links to productivity.
Financial Perspective: The Human Resources Scorecard addresses to the management that HR is
not spending money but adding financial value to the organization.
3.2.3. The Process:
The process of Human Resources Scorecard is comprised of Planning and Aligning, Assessing,
Developing, and Implementing (Garrett Waæler and J. Randall MacDonald, 2001, p.368-369). The Human
Resources Scorecard plans Human Resources Department’s objectives and aligns these with
organization’s strategy. It is required to educate and train Human Resources personnel on business
performance management, the methodology of Human Resources scorecard and the way of
application of Human Resources Scorecard (Garrett Walker and J. Randall MacDonald, 2001,
p.368-369). The Human Resources Scorecard assesses the competencies of the HR workforce (i.e.,
the people who populate the HR function, their strengths and weakness in specific areas of expected
21 HR performance). Moreover, David Ulrich, Professor, Ross School of Business, University of
Michigan describes Human Resources Scorecard’s roles focusing on people or processes, strategy
and operations. Thus, these roles can be depicted as a two-by-two matrix. First, the Human
Resources Scorecard analyses the Human Resources function that can be conceived as having a
process and tactical focus on administrative efficiency in the delivery of HR transactions. Second is
HR’s employee advocacy with an operational focus on serving the human resources management
(i.e., people) and the growth and retention of critical components of the human resources. The
Human Resources Scorecard enlightens the role of Human Resources Strategy, whereby Human
Resources Division enables organization to function its strategy by aligning Human Resources
practices with business strategy. The Human Resources Scorecard describes the fourth role of HR
that is always concerned with the changing culture in organization. Obviously, the HR Scorecard
correlates HR’s function with life cycle phase and strategic choice of the organization (Richard et
al., 2003, p.111).
Source: http://www.quantisoft.com/Industries/HRScorecardSurveys.htm and www.quantisoft.com-348X311
o The Human Resources Scorecard focuses on the clear mission and vision of Human
Resources Division/Department while assessing and it draws comparative analysis of the
relative value of business (Garrett Walker and J. Randall MacDonald, 2001, p.368-369). It
also helps to guide HR initiatives which help employees and organizational performance
that help to achieve business goal.
22 o The process of development focuses the designing of Human Resources measurement model
that clarifies the measurement criteria and the way of measures through Human Resources
Scorecard by establishing targets, defining the process for collecting and tracking results,
and creating the communications strategy that are the key deliverables in this phase (ibid).
In addition to, the Human Resources Scorecard assesses the HR’s best practice by delivering
basic HR practices (e.g., selection, rewards, measurement, training and development and
work design, etc.) is to collect best practice data from available sources or actually conduct
site visits. Once the data is gathered, the function can compare itself against a baseline and
decide what improvement initiatives to undertake. Moreover, organization can see the
retention cost, labor cost, cost of recruiting talent resource pool and cost-benefit of
employee compensation packages through designing the HR Scorecard (Richard et al.,
2003, p.11).
o The HR Scorecard is implemented through the collection of data and assesses HRD’s
performance in the organization. In this phase, sound communication and training are
required to Human Resources As the HR Scorecard focuses the HR’s performance and value
creation by aligning organization’s strategy, therefore organization can also understand
different value proposition (Richard et al., 2003, p.111-112).
3.2.4. Communicating the Human Resources Scorecard:
Garrett Walker and J. Randall MacDonald stresses that it is critical to communicate the Human
Resources Scorecard across the Human Resources as well as organization. Only top management
and Human Resources personnel can know the overall situation of organization through the
development process of the HR Scorecard but mass level employees are blind about the existing
scenario of the organization. Besides, the planning, measurement and analysis team can develop a
phased approach to communicate and train the line managers by which all employees of
organization can understand existing scenario of organization. Generally, the HR Scorecard
emphasizes on providing the value tool in communicating strategy and aggregate alignment to the
business. Moreover, it also serves as a tool that is considered as proactive solutions to employees’
issues before a negative impact could occur to the bottom line. Besides, performance measurement
is also acknowledged as fundamental component of the HR Scorecard, which is the indicator of
paying reward to the employees. Result tracking is not the only objective of the HR Scorecard but
23 by providing information and taking action to influence and better business performance are also
considered as the vital objectives of the HR Scorecard. Thus organization can run smoothly in the
competitive business world (Garrett Walker and J. Randall MacDonald, 2001, p. 373-374)
3.3. SWOT Analysis: Mark A. Thomas describes that SWOT analyses are widely used in the business aspects.
Notwithstanding, HR Department can use SWOT that examines overall situation of HR
Department. HR Department can identify its internal factors such as strength and weakness and
external factors such as opportunities and threats by using SWOT Analysis. SWOT Analysis is a
method, which contribute to redefine the functions and mission statement and to put a quantitative
and qualitative human resource input to the strategic planning process. SWOT Analysis is very
plain to understand and easy to apply and convert into positive action. HR Department can analysis
its internal strength and weakness and external threat and opportunities by applying SWOT. SWOT
Analysis helps line managers by informing emerging issues regarding human resources and so on.
By this way line managers become proactive and contribute best effort for the betterment of
organization ( Mark A. Thomas,1990, p. 12-16).
Source: http://dev.deltapartners.ca/blog/re-visiting-the-swot-analysis and rpihub.org-960X720
24 3.3.1. The resource-based model:
The resource-based model of SHRM can be explained with the help of SWOT Analysis that reflects
the strategic value of the human resources and the issues of human resources learning. Thus it
seems to embrace a ‘soft’ view of strategic human resource management. Selznick (1957) describes
about the resource-based model ‘distinctive competence’ that enables them to outperform their
competitors, and Penrose (1959) acknowledges the firm as a ‘collection of productive resources’.
She sequesters between ‘physical’ and ‘human resources’, and focuses to issues of learning
including knowledge and experience of the management team.
Barney (1991) has posited that ‘sustained competitive advantage’ can be attained through the
internal analysis of the firm’s skills and capabilities, which cannot be imitated by other rival firms.
A firm can assess its strength and opportunity and threat and weakness by applying SWOT.
Resource based model gives more important on the strategic importance of internal strength and
weakness. The resource based model addresses that HR can achieve sustainable competitive
advantages by implementing strategies that suck their internal strengths, responding to
environmental opportunities, while mitigating external threats and internal weakness (Barney, 1991,
p. 99). Barney argues there are four characteristics of resources and capabilities that are important
in sustaining competitive advantages such as value, rarity, inimitability and non-substitutability
(ibid).
Moreover, it has been found that the collective learning in the working place by higher level and
lower level staff. Resource based model deals in how to coordinate each staff’s diverse knowledge
and skills and integrate diverse information technology, is a strategic asset that rivals could hardly
be imitated and traded. (Amit and Shoemaker,1993, cited in strategic human resource management,
John Bratton, 2007).
It has been added that managers can devise heuristic solutions that explore between the numerous
cognitive and affective characteristic that biases humans and organizations (Amit and Shoemaker
1993, p. 44). Cappelli and Singh (1992, p. 186) focuses that firm’s specific and rare inimitable
resources create mutual relationship and create sustainable competitive advantage. Kamoche (1996,
226) argues that the firm’s value creation appears through the alignment of HR competencies and
firm’s core competencies.
25 John Purcell (1995) argues that the organization’s human resources can make the significant
contribution of strategic HRM ‘immense’. Instead, the strategic role for Human Resources
Management is trying is to develop ‘horizontal’ strategies which put aside a ‘premium’ on the
human resources, and ‘emphasizes’ on the reduction of transaction with the help of skill transfer
(Purcell, 1995, p. 84) but the challenges for HRM is to view an alignment among policy, practice
and achieved outcome that conveys the meaning to the management body (ibid).
3.4. The 5Ps Model: Schulcr (1992) formulated the 5-P model of HRM which are described as off:
Human Resources Philosophy: Human Resources philosophy tends leaders to articulate and map
out a clear and compelling vision, integrity, accountability, and innovative thinking. HR Philosophy
leads to employ high-quality, ethical and committed individuals whose skills are consistent with
organizational needs and values. Diverse perspectives and experiences are sought and valued by HR
Philosophy. Moreover, HR Philosophy strives to create a respectful behavior at all level in the
organization (ibid).
Human Resources Policies: Human Resource policies provides a fare guidelines for employees,
management and the organization. Human resource policies are considered as organization’s code
of conduct which provides guidelines for performance management, employee relations and
resource planning.
Human Resources Programs: Human Resources programs mean different tools and techniques of
HRM, issues and practices including recruitment, selection, training and development employee
relations, retention, competency, policies, workplace issues, and compensation and benefits.
Human Resources Practices: Human Resources practices means all sorts of HR activities such as
conducting biased free recruitment, employee wellness programs, creating equal employment
opportunity, succession planning and so on that must be conducted by HRM.
Human Resources Processes: Human Resources processes are the formal procedures and methods
26 used to conduct recruitment and staffing, design compensation and benefit, prepare and analyze
budget and arrange training and development program, create a career management path, launch
talent management and leadership development program and strengthen HR controlling.
3.6. Authentic Leadership Theory: George, B. describes that authentic leaders’ tendency is to help others through their leadership.
They have confidence on themselves and they are used to help others from their core values. They
are keen to empowering the people and employees’ in the organizational aspect and they lead to
make a difference in working place rather than gaining money, fame and achieving power. They
focus five characteristics: Clear about their purpose, doing right thing through their strong core
values, create trustworthy blessing relationship with others, consistent and self-disciplined and lead
with purpose from their gut. George, B. (2003) identifies that authentic leaders should have
purpose. They are well informed about their purpose. They know about their background, strength,
weakness and their future destination. Basically, they are inspired to do something from their heart.
They are able to employ their employees from their hearts through their sense of purpose. Authentic
leaders are well informed about their values and behave and treat others in the same way. Authentic
leaders have the ability to open up themselves and create a sound relationship with others. Thus,
trust and closeness develop between leaders and followers. The reward of authentic leadership is
both tangible and intangible that last for long. Self- discipline establishes authentic leader in
supreme position. Simply, self-discipline helps leaders to motivate employees or followers and able
to energize employees’ potentiality. Authentic leaders’ self-discipline helps them to lead
organization smoothly. Furthermore, self-discipline gives authentic leaders fuel to carry out their
duties in accordance with their core values. Lastly, compassion and hearts are important characters
for authentic leaders and they are sensitive to employees or followers due to their compassion. It is
possible to open up themselves and help others without their own interest due to their openness.
Collectively, these characteristics shape a person to be authentic leader. (George, B., 2003, p.1-40).
Walumbwa et al. (2008) mentions that there are four fundamental components make a person to
become authentic leader.
27 Leader self-awareness:
As Kernis (2003, p.13) describes that self-awareness helps authentic leaders to build trust in one’s
motives, emotions, willingness and self-relevant cognitions. Self-awareness directly reflects
leaders’ core values, feelings, goals and helps to realize the leaders’ capability (Gardner, W. L. et
al., 2005, p.349).
Leader self-regulation:
Stajkovic & Luthans (1998) describes that leaders can regulate their self the self-regulation through
their internal standards. Leaders can also use their internal moral standards and values to guide their
behavior. With the help of self-regulation, authentic leaders can control over the extent by which
they can motivate others very easily. Beside, employees or followers can rely on authentic leaders’
due to their consistency, strong belief and morality (Gardner, W. L. et al., 2005, p.354).
Balanced Processing:
Balanced processing helps leaders to analyze the actual situation and conclude the meaning (Kernis,
2003, p.13-15). To the frank, balanced processing is a self-constraint attitude by which leaders can
analyze information objectively and followers’ opinions prior to make decision. Authentic leaders
can take decision without biasedness through their balanced processing quality. Leaders can take
their decisions by considering the mutual interest of themselves and their followers (Gardner, W. L.
et al., 2005, p.356).
Relational transparency:
Kernis (2003, p. 15) describes the relational transparency relates to honesty for presenting in one’s
real face to others. It is also called self-regulatory process because leaders transparency can attract
and regulate their followers. Relational transparency involves trustworthiness for helping close
others. In short, relational transparency acts as a network, which creates bonding basing on intimacy
and trustworthy. That’s why employers or followers feel interest to do the same what leaders do
(Gardner, W. L. et al., 2005, p.357-358).
There are factors such as positive psychological capacities, moral reasoning and critical life events
that influence authentic leaders to take challenge. Positive psychological capacities have four
28 attributes such as confidence, hope, optimism and resilience (Luthans & Avolio, 2003, p.241).
Confidence refers to having self-efficacy that helps leaders to do the work accurately (Bandura,
1997; Luthans & Avolio, 2003). Hope is other kind of positive trait of leaders that encourages
leaders to do work hard for filling their will (Luthans & Avolio, 2003, p. 241). Leaders can expect
favorable outcome due to their cognitive process of viewing. Reliance is the leaders’ one of the
most rare qualities that makes leaders able to recover from and adjust to inverse situations. It
energizes leaders to adopt them in any kind of environment. Therefore, during the odd time,
resilient leader is able to shrink back from threats (Sutcliffe & Vogus, 2003). Moral Reasoning
capacitates leaders to make decision basing on ethics. Development of moral reasoning is not a
matter of short time. Higher level of moral reasoning leads to leaders to take decision through
consensus. Moral reasoning capacities enable leaders to be sagacious, judicious and selflessness. As
a result, leaders can take good decision for the betterment others rather than for themselves alone
(Northouse, 2010, p. 220).
Critical life events are also vital events that remolds leaders’ lives. Critical life events can be
positive or negative but that does not discomfit the mental and moral strength of leaders. Critical
life events act as catalyst to domain of leaders for bringing changes (ibid). Shamir and Eilam (2005)
describes when authentic leaders tell their live experiences as story-telling, they gain at that time
greater self-knowledge, more consciousness about their existence and better understanding of their
role playing. Leaders can be more authentic by realizing their own life experiences.
3.7. Synergistic Leadership: According to Moran T. et al., synergistic leadership helps leaders to educate and train their
employees in new interpersonal and professional skills so that employees can develop their
communication skills as well as co-operative mentality and act together for mutual benefit. This
type of leadership forms a partnership-based organization where a group of initiative and cooperative action is accomplished for mutual learning (leaders and employees). Empowerment is the
key to synergistic leadership so that leaders have to face challenge to empower their employees by
mentoring or coaching (Moran T. et al., 2011, p. 238).
Moran T. et al. also focus that synergistic leaders in a knowledge economy brings a synchronized
29 changed in the work culture. This leadership emphasizes on quality of life so that employees are
treated as resources rather than just quantity of goods or services. Under the consideration of
synergistic leadership, organizations are run through the conception of interdependence and cooperation, rather than just competition. Synergistic leaders are patronizing the state of art and ever
conscious of sustainable employee friendly environment. Corporate social responsibilities are
highly enlightened and profit maximization is controlled in the regime of synergistic leadership.
This leadership creates a cross-cultural environment where high level of employees’ motivation is
preserved through participation. Organizational best practices such as personal integrity, work
ethic, respect for others’ job, personal responsibility and social cohesion are ensured. Moreover,
synergistic leaders create a positive working environment where the capacity for intuition,
innovation, flexibility, openness and group sensitivity are strongly encouraged (ibid, p.239).
Moran T. et al. further add that one-sided skills employees are not best fit for today’s competitive
market place so that leaders are sorting out versatile workforces so that competent organizations are
patronizing synergistic leadership for their sustainable growth. Synergistic leaders assist their
employees for grooming and strengthening their social institutions for increasing social value.
Globally synergistic leaders are now more focused on the sustainable organization. This is why
leaders need to posses transcultural insights and skills for coping with unstable business world
(ibid).
3.8. Douglas McGregor’s Theory of X-­‐Y: Theory of X-Y was proposed by Douglas McGregor (1960) in his book ‘The Human Side of
Enterprise’. His theory is still popular and widely used in the field of management and motivation.
The management of Y behavior and attitude towards employees dictates management to practice
positive attitude to employees in organization. Organization’s cultural development and employee
motivation are largely focused on the management of Y behavior and attitude towards employees.
McGregor’s wrote in his book that two fundamental approaches lead to managing people. One is X
i.e., close supervision, routine and monotonous working environment and so on. Results on,
management gets low productive employees in their organization. Management those follow the
30 conception of Y behavior and attitude towards employees, comparatively they are more enlightened
and acknowledge employees as resources for their organization (Argyris, C, 2002, p.206-18). They
try to motivate employees by providing motivational training, improving working condition,
designing effective job description, ensuring succession management, practicing compensation and
benefit culture and creating hazardous free employee friendly working environment in the
organization (ibid). In this project, I would like to use McGregro’s X-Y theory.
Assumption of the Y the management’s attitude and behavior towards employees:
o Employees wish to work.
o Employees are considered as resources so that they have freedom for applying their own
knowledge and skills in pursuit of organizational knowledge.
o Employees are endowed to get reward for their outstanding contribution in the organization.
o Innovations are encouraged for solving emerging organizational problem.
3.9. The Reasons For The Choice Of Theories: 3.9.1. The logic behind the choice of Authentic Leadership:
As, the management of psychological contracts is vital task for organization that attempt to shape
an organization as employee friendly rather than employee using organization (Schalk and
Rousseau, 2001) that also followed by SEs (Doherty et al, 2014,p. 30). I have chosen my research
project basing on the practice of leadership role in Human Resource Department of Social
Enterprises that tries to robust employees morality, friendly working environment (Guest and
Conway, 2002, p.22-38). It has been appeared that the practicing working culture in my case
reflects to the nature of authentic leadership because authentic leadership draws upon and develops
employees’ positive psychological capacities, create environment friendly ethical climate, assist to
arise employees self-awareness, nurture employees positive morality and try to establish a good
path of relational transparency (Walumbwa et al., 2008, p. 94) that is also the practice of
management of BRAC Human Resources Division.
My logic behind the selection of authentic leadership in my research project is that Human
Resource Department of Social Enterprises give emphasis on employees’attitudes and behaviors for
31 the increased level of productivity (Doherty et al. 2014, p. 98) that is also followed by authentic
leadership because authentic leaders always tries to make a link between their attitude and
employees’ attitude (Avolio et al. 2004, p.804). Authentic leadership provides a certain, trustworthy
relationship in the society, which is desired in the society. This leadership style helps employees to
fill the void and disseminate the message of sound leadership in the recent unstable world and
employees become motivated to stay in the atmosphere of authentic leadership. Besides, authentic
leadership assists employees by providing broad guidelines (Northouse, 2010, p.221-222).
There is other logic for choosing this theory because Human Resources Department is dedicating
for creating congenial working environment by developing employees moral values and strong
attitudes (Avolio et al. 2004, p.801-804) that is supported by the authentic leadership style.
Authentic leadership helps employees’ behavior by improving authentic values over time.
Moreover, authentic leaders can develop positive psychological changes of employees by
developing strong confidence, hope, optimism and resilience, which could lead to create a positive
organizational change (Northouse, 2010, p.221-222) that is also done by Human Resources
Department/Division.
Practice in leadership role of Human Resource Department/Division implies to develop human
resources through development packages (Torrington et al. 20011, p. 6). The authentic leadership
style helps Human Resources Department/ Division by creating resilience in the employees’ mind
that allows employees to be developed after experiencing a failure. Besides, organizations can
achieve its vision promptly by creating employees’ optimist because optimism directly allows
employees to keep their self-efficacy intact that is important for organizations’ growth.
Organizations are expecting optimistic employees because optimistic, hopeful, and self-efficacious
employees are potentially more resilient to adversity (Bandura, 1997 and Luthans et al. 2007).
Authentic leadership advises especially in the context of organization that self-efficacious
employees are more creative because they accept significant challenges and carries out cognitive
and creative efforts to implement objective and achieve goals, which is patronized by the Human
Resource Department. The propensity of success is stronger if employees belong the high degree of
hope so that they do not only accept specific challenges and make an effort to achieve goals, but
also traces sub-goals, create pathways and market fit strategy to achieve those goals (Northouse,
2010, p.221-222), which is also facilitated by the Strategic Human Resources Department (Glen D.
Murphy Greg Southey, 2003, p.75). In addition, Luthans et al. (2007, p. 551) point out that
32 authentic leadership emphasizes on the positive psychological development because employees
who embody high levels of overall positive psychology may be stronger performers. Considering
the above reasons, it appears to me that I can choose authentic leadership for analyzing in my
research project.
As Human Resource Department involves in identifying and creating a long range potential
employees who will consistently exhibit effective leadership competencies will progress in
satisfying career path (Gangani et al.,2006, p.136) that matches with the conception of authentic
leadership because authentic leadership helps to create an environment in which employees can
discover their latent talent and prove themselves that they are competent. Amabile (1983, p. 357–
376) tells that authentic leaders facilitate some predicators for creating innovative solution such as
domain-relevant skills (knowledge and expertise), creativity-relevant processes (including cognitive
styles, cognitive strategies, and personality variables), and task motivation (attitudes and
motivation, such as intrinsic motivation). Woodman et al. (1993, p. 292-321) describes that
authentic leaders’ rare quality of personality, characteristics of intrinsic motivation, and domain of
knowledge can attract employees to perform competently. There has been a positive link between
functions of Human Resources Department and authentic leadership theory.
3.9.2. The logic behind the choice of synergistic leadership:
In my research paper, I have chosen a Case that is BRAC Human Resources Department/Division
where the synergistic leadership style is practiced through the patronization of Human Resources
Department/Division (interview with Mr. Sowrav: 33:18- 35:50). Besides, I think that the
conception of synergistic leadership will help me to analyze the role of BRAC Human Resources
Department/Division is dedicated to create hazardous free working environment and preserve
employees’ interest (hrd.brac.net) that is linked with the concept of synergistic leadership because
synergistic leadership involves in improving working environment and respecting employees’
interests. In this situation, I think that synergistic leadership is best fit for my case study because
this leadership patronizes to enhance quality of work life. In addition to, employees have given
opportunity for increasing their efficiencies. Results on, employees feel more autonomy and control
over their working place. (Moran T. et al., 2011, p. 241-242).
33 As BRAC Human Resources Department is deep seated to empower the employees through
procedural justice, transparency, equality, respect for diversity, potentiality that create unique
culture inside the organization (hrd.brac.net). The synergistic leadership also patronizes the
empowerment of employees’. Synergistic leaders are used to ensure the employees’ participation
and involvement in the enterprise and its decision making process. Additionally, relevancies and
creativities are considered as organizational norms and standards. Besides, employees are
considered as organization’s resources so that train them properly for getting high performance and
productivity from the employees (ibid) that is also respected by BRAC HRD (hrd.brac.net).
My case study BRAC Human Resources Department is recruiting 30% female employees and
trying to escalate them in the leading position (interview with Mr. Sowrav: 17:14-18:57) which
supports to the notion of synergistic leadership theory because synergistic leadership shapes
organization as flexible where participative decision making process, introduction of rotational
leadership process, encouragement of preserving community interest as well as cooperation and
power sharing are patronized. Moreover, leaders are intended to run the organization valuing the
employees’ belief, ideas, actions and sentiments. As a result, employees feel high level of
motivation to stay in the organization and try to best perform for the betterment of organization
(Morgan, 1994, p.665-684).
Synergistic leaders are different from other leadership because female leadership is also highly
focused in synergistic leadership but other leadership does not highly focus female leadership like
as synergistic leadership. (ibid). This is why I have also chosen the synergistic leadership theory
for my project by maintaining the link within my case study (Interview with Mr. Sowrav: 17:1418:57).
34 3.9.3. Why Douglas McGregor’s Theory X-Y fits in my case study?
I have chosen McGregor’s theory X-Y because this theory focuses that employees are capable, selfmotivated and focused to accept challenges if the management provides motivational factors for the
employees that is linked with my case study as Applebaum et al. (2000) assert that employees’ skill
enhancing practices, motivational practices and employees’ involvement practices as critical for
business performances that is also patronized the BRAC Human Resource Department
(hrd.brac.net). Applebaum et al. (2000) also suggest that there is clear relevance and understanding
in SEs of above mentioned such practices.
The management of Y behavior and attitude towards employees, believes in employees’
participation helps organization’s to get performance excellence which is more congenial for social
enterprises’ as Judge (2005) asserts the linking employees and performance as being a unifying
great idea that is more applicable to the SEs rather than the conventional organizations. Considering
the above statements from Judge (2005), I believe that this theory will help me a lot for postulating
my analysis.
Believers of the management of Y behavior and attitude towards employees facilitate employees’
friendly working environment by which employees’ will be creative and more productive. Doherty
et al. (2014, p.99) assert that organization especially for the SE’ increased level of efficiency
depends on the balance of expertise employees in the organization that is only possible by ensuring
employees’ creativity.
The management of Y behavior and attitude towards employees believes that, ensuring a good
working environment will influence employees to work with motivation and increase employees’
performance that is also supported by Peffer (2001, p. 248-59). He acknowledges that the
employees’ friendly working environment and flexible organizational structure and systems play a
vital role for employees’ outstanding performance that also supports my selected case study so that
I have chosen this theory with some other theories.
McGregor simply opines that significant employees’ relationship can help organization to retain
potential employees that is also supported by Doherty et al. (2014, p. 105). Doherty et al. argues
that friendly employees’ relationship has significant impact on their retention in the organization,
35 especially SEs have to ensure the good employees’ relationship inside the organization because they
also rely on volunteers employees. My case study is also SE so that the management of Y behavior
and attitude towards employees supports my case study as well.
4. Context 4.1. About BRAC Bangladesh: Source: http://upload.wikimedia.org/wikipedia/en/a/a4/BRAC_logo.svg
BRAC is a development lead organization that has success story, spreading solutions born in
Bangladesh as well as around the world – a global leader in creating opportunity for sustainable
solution for alleviating poverty from the globe. BRAC started in its operation at first in 1971
through the distribution of relief in a remote village of Bangladesh and now it has turned into the
largest development organization in the world. BRAC catalyzes lasting change in the marginalized
community through the creation of ecosystem in which marginalized people have the right to seize
control of their own lives. BRAC is doing those activities through the holistic approach by using
some tools like microfinance, community education, healthcare facility, legal services, community
empowerment, social enterprises and BRAC University. Now BRAC touches the lives of an
estimated 135 million people along with its staff over the world and it has already set a landmark of
positive change to 11 countries in Asia, Africa and the Caribbean. BRAC believes in the
empowerment of women and marginalized people in the society. Therefore, BRAC focuses on the
social and financial freedom of women. BRAC’s gender and justice program identifies the causes of
exploitation of women in the poor community and tries to provide sustainable solution for the better
condition (www.brac.net/).
BRAC is also dedicated to empower grassroots people. BRAC’s legal rights, community
empowerment and advocacy programs are involving in organizing the poor at the grassroots level
36 by delivering non-stop legal services that means the people who need legal service, BRAC provides
legal services until meeting up their problem without charge (www.brac.net/).
BRAC’s stepped in Health and Education sector is also praise worthy. BRAC provides healthcare
and education to millions by which human capital increases especially poor region in the world.
The biggest opportunity of BRAC’s indicates around 97,000 community health workers on behalf
of BRAC have been offering doorstep deliveries of vital medicines and health services to their poor
neighbors. Besides, BRAC is involving to remove illiteracy from the remote region in the world
(www.brac.net/).
BRAC also works for farmers and it has been operating agro-farming activities across eight
countries for ensuring the sustainable food security. Through the production, distribution and
marketing BRAC ensures the supply of quality seeds to the farmers’ door at fair price.
BRAC attempts to alleviate poverty from the poor region by providing financial services. BRAC
disburse around 10 billion USD microloan annually among the marginalized community in the
world. Farmers are also entitled to get microloan at ease condition. Besides, farmers are also get
high quality of seeds and technical support from BRAC(www.brac.net/).
Moreover, BRAC is trying to create self-sustaining solutions. BRAC’s enterprises and investments
subsidiary creates a financial surplus that is reinvesting in various development programs for
reducing poverty alleviation from the deprived area in the world(www.brac.net/).
4.2. Background of BRAC Human Resources Division: BRAC Human Resources Division is trying to achieve its operational excellence through assisting
the overall organization by aligning its HR Strategy with organization’s strategy. Besides, HRD is
also functioning for maximizing employees motivation, designing effective job description and job
specification, enhancing transparency and creating equal employment opportunity for all employees
of BRAC. As, BRAC is one of the largest development organizations in the world so that BRAC is
operating a wide variety of multifaceted development programs. For operating these programs, a
37 significant number of potential employees are needed to attain the organization’s goal. HRD is
doing that significant task on behalf of BRAC for attaining BRAC’s objectives’. Besides, BRACHRD provides significant effort to appraise BRAC’s employees, which helps to motivate and retain
employees in BRAC. Moreover, HRD is trying to ensure an environment where employees feel free
to flourish. Finally, HRD is trying to develop the right people in the right skills for BRAC in right
time.
4.2.1. Goal of BRAC Human Resources Division
As HRD is a strategic partner of BRAC so that it works for BRAC through the alignment of HR
strategy with BRAC’s strategy. Considering BRAC’s strategy, HRD is trying to ensure procedural
justice, intensify transparency along with equality and facilitate for creating such an organizational
environment where individual’s potentials & competencies will take consideration, introduce
innovative culture and make ready all employees for undergoing organizational changes
(hrd.brac.net).
Objectives of BRAC HRD:
o Recruit the right people in right place in right time for BRAC.
o Embed BRAC’s culture and values in the employees’ mind to enable an environment of
right-based human organization.
o Provide a series of programs for developing staff.
o Train employees for increasing employees’ competence to institute gender justice and
diversity where employees work for BRAC by giving their best effort irrespective of class,
religion, ethnicity, age and sex.
o Develop and implement Performance Appraisal system to identify employees’ level of
skills.
o Informing management through the preservation and dissemination of employees’ recent
information.
o Formulating HR Policy, implementing and monitoring through HR Compliance.
38 4.2.2. The most vital unit of BRAC HRD is Recruitment & Selection unit
Through effective flawless recruitment, HRD always tries to recruit the right people for the
demanding programs. While conducting the recruitment, HRD gives emphasis on recruiting
effective, value driven and competent employees who will meet up the specific programs’ needs.
Normally, HRD spends 3 months for conducting the recruitment of each employees.
Major Objectives of Recruitment, Deployment & Appointment (RDA) Unit:
o Receive requisition from Programs through proper approval.
o Prepare and publish advertisement mentioning proper specification.
o Receive and sort out application from several sources.
o Accomplish CV sorting as per criteria.
o Use candidates’ database management and plan for selection.
o Prepare and validate the Question Papers and Answer Scripts.
o Carry out the examination, publish results and provide offer letter for joining.
4.2.3. Policy and Capacity Development (PCD) Unit
This unit is involving in developing and implementing Human Resources Policies and Procedures
(HRPP). Developing employees, increasing employees’ awareness about rights, HR publication
and overall communication are done by PCD Unit.
Objective of PCD Unit:
o Prepare, justify and disseminate circulars
o Prepare, justify and update different types of formats
o Conduct of Human Resources Policies and Procedural orientation
o Publish of HR Report, journal and Bulletin
o Conduct training and development session
o Organize induction for newly recruited employees
o Conduct Exit Interviews and feedback session
o Organize Employees’ Exposure Visit
o Organize and celebrate social events
o Communicate, align and coordinate with different programs’ spoke persons of BRAC
39 4.2.4. Compensation & Benefit Management (CBM) Unit
This unit is responsible for the issue of motivation, salary survey, increment, annual adjustment,
leave, employees’ loan, allowances and employees’ contributory welfare fund. Performance
management is the systematic process by which an organization involves its employees, as
individuals and members of a group, in improving organizational effectiveness accomplishing
organizational mission and goals. BRAC HRD has a specialized section, Performance Management
Team to identify performance of every staff. Performance Management Team constantly works to
provide a complete scenario of staff performance to the top management. It works to expedite the
progression of the organization. BRAC believes that the ability of the staff to perform well depends
on qualities, skills and competencies. Performance Management Team institutes a performance
assessment system for staff appraisal, which motivates the staff and his/ her supervisors for
improving their competencies.
4.2.5. Performance Management Unit-­‐PMU
Performance management (PM) is vital issue in the modern HR Practices that includes activities
ensuring that goals of HRD and organizations are consistently being aligned in an effective and
efficient manner. Performance management can widely focuses on the performance of an
organization, all sorts of department and employees at all. Moreover, PM is also known as a process
by which HRD helps organizations to align their resources, processes and employees to strategic
objectives and priorities
Major Activities of Performance Management Unit-PMU:
o Introduce effective Performance Management System through 360-degree peer appraisal in
BRAC.
o Organize Promotion process, introduce the method of performance appraisal as per Human
Resource Policy and Procedure.
o Conduct Training Need Assessment on the basis of peers appraisal and supervisors’
recommendation in appraisal.
o Conduct training session for enhancing knowledge of all managers/supervisors about the
way of rating employees’ performance assessment system.
40 4.2.6. Code of Conduct and Sexual Harassment Elimination Policy Unit
This unit is considered as the integral parts of BRAC’s that directly align with core value, belief
and culture of BRAC. Sexual Harassment Elimination (SHE) and Staff Relations Section of HRD
tries to ensure a good working environment in BRAC.
4.2.7. Grievance Management Unit
Grievance Management Unit is working for mitigating employees’ grievance and increasing
motivation in the working place.
Major Activities of Grievance Management:
o Analyze employees’ grievance and handle with care.
o Spreading awareness and disseminating on Sexual Harassment Elimination Sexual
Harassment and Elimination (SHE) Policy among employees.
o Ensure employees access to have a free flow of information system.
o Closely follow up and monitor in grievance related decisions.
4.2.8. Human Resources Information System Unit (HRIS)
HRIS is maintaining a strong employee database management system with the help of professional
data administrator. HRIS Unit preserves all sorts of raw data, which can help management to take
any decision regarding employees’. Moreover, it ensures sound flow of information within the
department as well as other programs. Besides, HRIS also maintain HRIS database system and
provides IT related support for HRD.
41 5. Analysis BRAC’s Human Resources Division is a strategic partner of BRAC for attaining its goal
(hrd.brac.net). BRAC Human Resources Division tries to foster employees’ morality and friendly
working environment and practice in leadership culture and helps to create that environment. While
conducting the interview, Mr. Fakhrur acknowledges that he has motivation to work in BRAC
because he has scope to play leadership role in his working place. For increasing employees’
morality, BRAC Human Resources Division introduces an effective Human Resources Policies and
Procedures, which ensure employees’ morality and safety (Objective of Policy and Capacity
Development Unit). But in some situations, it could be hard for Human Resources Division of
Social Enterprises to ensure employees’ motivation and improved morality due to the problem of
managing membership and lack of balancing of social and financial goal (Roger et al., 2009, p.256258).
BRAC Human Resources Division is trying to develop employees’ psychology through different
trainings where employees can develop their self-awareness and leadership capability, which may
help employees to be authentic leaders in some contexts. While conducting the interview with Mr.
Sowrav asserts that he is used to stimulate his peers because he does not want to demoralize his
peers. He realizes that giving employees’ opportunity to be flourished employees positively that the
actual leadership embeds in. He further adds that he always tries to figure out the potentiality of his
peers and colleagues and try to retrieve the latent talent from them that might be happened by
belonging the trait of authentic leadership (Interview with Mr. Sowrav: 12:34-14:41).
BRAC Human Resources Division introduces employees’ code of conduct (hrd.brac.net) dictating
employees’ attitudes and behaviors in such a way that helps for increasing level of productivity,
which is also supported by Doherty et al. (2014, p.98).
BRAC Human Resources Division also provides a certain, trustworthy relationship inside the
organization by giving employees’ opportunity to be groomed in many ways. The management of
42 BRAC HRD is dedicated to assist their peers, colleagues and subordinates by providing guidelines
which are supported in some ground by the feature of authentic leadership (Northouse, 2010, p.221222). It can also be conferred that BRAC HRD has scope to patronize authentic leadership because
Mr. Sowrav’s mentions that as a leader, he always tries to minimize his peers and colleagues weak
sides so that they can come out their points every time (15:55-17:13). He further adds that BRAC
HRD practices in three or four different leadership styles that is synergistic leadership, authentic
leadership, situational leadership and motivational theory of X-Y because BRAC is social enterprise
so that BRAC HRD gives emphasis on talent recruitment and retention. It is a big challenge for
them. Therefore, they try to ensure participative leadership style more widely especially for
motivating their employees by which BRAC can grow faster (33:18- 35:50). But ensuring
employees’ motivation is not so easy for most of the social enterprises because financial capability
is important for ensuring employees’ motivation. Borzaga and Solari (2001, p.340) mention that
most of the social enterprises are facing financial crisis.
BRAC HRD is involving in creating employees’ friendly hazardous free working environment by
developing employees moral values and attitudes through the assistance of Sexual Harassment and
Elimination Unit (hrd.brac.net) by providing Human Resources Policies and Procedures that also
make space to practice authentic leadership because Avolio et al. (2004, p.801-804) adds that
authentic leaders try to improve employees’ morale and strong attitude for creating employees’
friendly environment. Mr. Fakhrur also adds that BRAC HRD is trying to practice in good working
environment and all time the management of BRAC HRD do not impose their decision on peers or
colleagues. Sometimes, peers and colleagues come up with their ideas and BRAC HRD emphasizes
building the leader’s legitimacy through honest relationships with followers, which value their input
and are built on an ethical foundation (14:48-16:47).
Practice of authentic leadership does not always demonstrate the straight direction to how BRAC
HRD plays significant leadership role because this leadership is a complex process that always seek
for the development of quality that helps leaders to create a trustworthy environment (Northouse,
2010, p.221). Besides, in this research project, single case study has been chosen but single case
study does not provide the compelling result as like as multiple case study (Yin, 2013).
BRAC HRD is trying to create hazardous free working environment and preserve employees’
43 interest (hrd.brac.net) that is linked in some contexts with the concept of synergistic leadership. Mr.
Sowrav also refers that BRAC HRD is patronizing synergistic leadership because synergistic
leadership involves in improving working environment and respecting employees’ interests. In this
situation, it has been reflected BRAC HRD probably can apply because BRAC is trying to enhance
quality of work life and employees’ efficiencies for giving birth its strategic objective
(www.brac.net/). BRAC HRD gives more freedom to employees and Mr. Sowrav supports that. Mr.
Sowrav thinks whatever he wants to do, he can do in his working place freely without any
hesitation and interference (0:01-2:20). Mr. Sowrav Further adds that BRAC HRD patronizes
synergistic leadership (interview with Mr. Sowrav: 33:18- 35:50). It can be appeared in the website
of BRAC. BRAC HRD is deep seated to create hazardous free working environment for ensuring
employees’ motivation (hrd.brac.net) and synergistic leadership in some situations may help BRAC
to ensure such hazardous free working environment. Synergistic leadership involves in improving
working environment and respecting employees’ interests that probably helpI BRAC HRD to
preserve its one of the core values by creating sustainable employee friendly hazardous free
working environment (www.brac.net). Moran T. et al. (2011, p. 241-242) also mentions that
synergistic leadership helps an organization to retain employees by increasing employees’
proficiencies and quality of employees’ work life.
It could be assumed that BRAC HRD practices a bit of synergistic leadership for empowering the
employees through procedural justice, transparency, equality, respect for diversity, potentiality that
is creating unique culture inside the organization (hrd.brac.net). This unique culture helps BRAC
HRD to achieve organization’s mission. BRAC HRD believes in empowering and ensuring
employees’ participation by which employees’ feel their ownership in the organization and then
they try to be more effective for the organization (hrd.brac.net).
Besides, BRAC HRD is trying to create a good culture in the over all BRAC because BRAC is a
cross-cultured organization. As well as BRAC’s mission is to create women leadership that might
allure to use the culture of synergistic leadership. Mr. Sowrav opines that BRAC is a cross-cultural
diversified work places. There are significant number of people come from diverse groups. There
are significant number of female employees work in BRAC whose percentage is 30%. So BRAC
HRD is trying to some diversity in workforce. In the recruitment and promotion process, BRAC
HRD is trying to ensure diversity and justice (17:14-18:57). Through the whole process, BRAC
44 HRD is trying to achieve BRAC’s mission and vision.
As BRAC is a social enterprise so that its primacy is to social aim like other social enterprises
(Peattie and Morley, 2008, cited in Doherty et al., 2014, p. 26-27) that involves in improving the
skills of local community by which society will measure positive impact. BRAC HRD is recruiting
30% female employees and trying to escalate them in the leading position (interview with Mr.
Sowrav: 17:14-18:57) that helps BRAC to achieve its mission and vision because especially the
poor and women in the developing countries are deprived. In this situation, BRAC HRD recruits
30% female staff that align with BRAC’s strategy by which BRAC empower women in the society
and society gets positive impart from that activities. This large giant task is possible for BRAC
HRD because it has sound logistic supports (hrd.brac.net) but there have been some social
enterprises those are dependent on donor fund, they are facing trouble to equip their Human
Resources Division/Department for aligning Human Resources Strategy with over all
organizagion’s strategy.
This has also been predictable that BRAC HRD follows in some cases the synergistic leadership
that probably shapes BRAC as flexible and feminist organizations where participative decision
making process, introduction of rotational leadership process, encouragement of preserving
community interest as well as cooperation and power sharing are patronized.
Women empowerment is one of the core values of BRAC (www.brac.net) so that for uplifting this
core value, BRAC HRD is emphasis on the recruitment of female employees (hrd.brac.net). Mr.
Sowrav mentions that they are deeply working with people for empowering especially for women
empowering because BRAC’s one of the vision is to empower women in the main stream so BRAC
HRD is also working with the female worker in the ground of decision-making process. Women
can come up and attain senior position in the organization. On the other hand, the decision making
process of BRAC and HRD is absolutely participating. There is no autocracy and every decision is
very much participatory and the people who work in the bottom line can also participate in the
decision making process even they can also participate in the strategic decision process. On the
other hand, the development of knowledge and skills of employees is the priority of HRD. They are
working in two types of skills development. One is soft skill and other is hard skill. So that people
are given training on technical skill that is related to their working skill. On the other hand they are
45 providing some value based training and some motivational training and counseling to the staff so
that they can perform effectively which is aligned with BRAC value and culture as well (26:4831:21).
BRAC HRD follows multi concept of leadership, which helps BRAC to achieve its mission and
vision. In this situation, BRAC HRD significantly focuses only synergistic leadership, then it will
be hard for BRAC HRD to help BRAC’s for attaining over all mission and vision because only
synergistic leadership will promote stereotypical norms for BRAC (Gossetti and Rusch, 1995).
Employees’ motivation is one of the prime objectives and challenges of BRAC HRD because
BRAC HRD can easily align its strategy with over all BRAC’s strategy if HRD can ensure
employees motivation. Therefore, BRAC HRD has taken many effective initiatives that can be
heard from Mr. Sowrav’s interview. Mr. Sowrav addresses that the most priority area of BRAC
HRD is to maintain motivational level of BRAC’s staff optimally so that employee can perform at
their best. Therefore, BRAC HRD launches different programs to motivate employees such as HR
management software, databases, transfer software. By this way, they have some impacts on
employees’ motivation. Employees can get their benefits in right time and right places. This is why
they are motivated with these types of arrangements. On the other hand, they have succession
planning; they have some different benefits arrangement as well as compensation packages and
other things, which are also competitive in the market. By these ways, they are trying to motivate
people in the work place. Besides, BRAC HRD is also launching different type of skills
development initiatives so that employees can enhance their skills in the organization, which helps
their career progression as well. By this way, HRD can create an impact on employee motivation in
BRAC. So that strategic initiative can be achieved (39:40- 43:45). But in many cases, social
enterprises are failed to motivate employees because of poor career progression and low paid salary
(Hynes, B., 2009).
BRAC HRD also practices in employees’ participation that matches a bit with the management of Y
attitude and behaviour towards employees. Mr. Sowrav expresses that they have succession
planning for meeting future leadership position and they offer good career path for employees.
BRAC HRD practices in three or four different leadership styles that are synergistic leadership,
authentic leadership, situational leadership and motivational theory of X-Y because BRAC is a
social enterprise so that BRAC HRD gives focusing on talent recruitment and retention. He thinks
46 that this is a big challenge for them so that they try to practice participative leadership style more
widely especially for motivating their employees by which BRAC can grow faster. He also further
adds that they are working with communities such as poor people, under privileged people so that
they have very informal working environment. Additionally he mentions that creating future leader
who will lead BRAC is important to them (33:18- 35:50).
The management of Y attitude and behavior perhaps create believes a good working environment
which may influence employees to work with motivation and increase their performance that is also
supported by Peffer (2001, p. 248-59). He acknowledges that the employees’ friendly working
environment and flexible organizational structure and system sometimes can play a vital role for
employees’ outstanding performance.
BRAC HRD always tries to create a significant employees’ relationship that can help BRAC HRD
to retain and develop potential employees as well as volunteers’ employees for achieving BRAC’s
over all objectives. Doherty et al. (2014, p. 105) asserts that friendly employees’ relationship has
significant impact on their retention in the organization, especially SEs have to ensure the good
employees’ relationship inside the organization because they also rely on volunteers’ employees.
Moreover, BRAC HRD is trying to recruit and retain employees by introducing training and
development programs though many of the some of the organizations in developing countries like
Bangladesh are failed to recruit in a smooth way due to political pressure and external inverse
environment (Tabassum, A., 2011, p.55-67).
Mr. Sowrav opines that they have extensive training and development program for employees’
motivation. They are doing succession planning too. He further expresses that everyone knows that
there is a skill shortage in their work place. Lots of people around them but there are few people
who are skilled. So, it is challenges for BRAC to grasp them and employ them into BRAC. Yet, he
argues that they have some limitations regarding the financial capabilities because they have some
dependency on donor agencies and if donor does not donate then they cannot pay the attractive
remuneration to the skilled employees. There are also some limitations in succession planning
because they cannot develop actually good successor because of shortages of skilled manpower
(18:58-21:02) though they have great endeavor to motivate their employees.
47 As, BRAC is one of the largest development organizations in the world is operating a wide variety
of multifaceted development programs so that it needs high volume of employees. BRAC HRD is
recruiting the right people in the place in the right time for achieving BRAC’s vision (hrd.brac.net).
Mr. Fakhrur explains about the recruitment process of BRAC HRD. He nicely explains that they
have a very effective recruitment process and they try to ensure the biased free recruitment. While
conducting recruitment, they have also given emphasis on transparency by which they can retain
potential employees mostly. For ensuring the transparency, they have taken so many actions and
follow so many policies. He further refers that they have specific procedures and guidelines for
conducting recruitment. These procedures and code of conduct in some way ensure that BRAC
HRD is solely responsible for fair recruitment. Therefore, BRAC HRD follows the guideline and
code of conduct accordingly. BRAC HRD announces vacant position through job advertisement.
Then BRAC HRD screens CVs’, and conducts the selection process. The selection process depends
on required job specification. Sometimes BRAC HRD arranges written exam and in some
situations, only conducts practical test. Most of the cases, BRAC HRD is going to arrange interview
for selection process with transparency (20:30-24:34). The above mentioned task may be possible
in the context of BRAC because it has brand image and financial solvency but there have been
many social enterprises are facing the lack of brand image and financial insolvency that could be
hard to ensure employees’ motivation (Doherty et al., 2014).
BRAC HRD tries to ensure employees’ motivation in BRAC. This can be known from Mr.
Sowrav’s interview. Mr. Sowrav explains that BRAC HRD has elaborative and very comprehensive
Human Resources Procedures. All types of procedural clauses and policies explanation are written
over there. These policies and procedures make justice to all of the employees’ and help to motivate
for working effectively (8:11-10:53). But many of the smaller organizations have less developed
Human Resources Policies where emotional blackmailing is practiced and human resources practice
are turbulent. Employees’ ethics are severely violated in such type of organization (Nelarine et al.,
2007, p.360).
BRAC HRD has philosophy for recruiting and developing employees, which ensures to recruit
skilled employees for achieving BRAC’s vision. BRAC HRD has policies that provide a fare
guideline for employees and management together for ensuring justice in the organization. It has
HR programs such as recruitment, selection, training and development and retention that help over
all BRAC to achieve its vision. Good HR practices help to align HR strategies with BRAC’s
48 strategy. Besides, HR processes help BRAC to avoid uneven situation and lead to BRAC a
successful organization. In reality, especially for small organizations’ Human Resources
Division/Department that are not well equipped is hard to achieve Human Resources Division/
Department’s success because HRD’s success dependent on the fulfillment of HRD’s needs by the
organization (Ulrich, 1997).
BRAC HRD can widely contribute to the strategic success of organization by transforming itself
from partner to a key role player by applying HR Scorecard. Mr. Fakhrur asserts that Balanced
Scorecard can help HRD to run their activities properly and then BRAC will attain its mission and
vision. Because Human Resources Division of BRAC is the strategic partner of BRAC (27:3128:04). The values of HRD and the organization’s outcome can be linked up through the Human
Resources Scorecard. The Human Resources Scorecard of BRAC helps to align Human Resources
Strategy with the BRAC’s strategy by which BRAC can achieve its vision without interruption.
BRAC Human Resources Scorecard helps BRAC’s management by providing complete
information that helps management to take strategy. Additionally, HR Scorecard helps management
to find out the way of measuring and managing efficient human capital (Brian. E., et al. 2001, p.1).
But, small social enterprises faces problem of using Human Resources Scorecard because most of
the performance management tools are designed for using large scale organization. Additionally,
most of the social enterprises are facing the scarcity of managerial resource pools whose are
supposed to use such a complex measurement system (Bull, 2007; Ronchetti, 2006).
In reality, it is hard to communicate the Human Resources Scorecard across the HRD as well as the
organization. Only top management and Human Resources personnel can know about the overall
situation of organization through the development process of the HR Scorecard but bottom level
employees are blind about the existing scenario of the organization. Through the proper
communication, HR Scorecard is able to educate all employees who will be able to understand the
overall existing situation of organization. HR Scorecard emphasizes on providing the value tool in
communicating strategy and aggregate alignment to the business strategy (Garrett Walker and J.
Randall MacDonald, 2001, p. 373-374). Mr. Fakhrur says that BRAC HRD practices strategic
human resources management so that they align their Human Resources strategy with BRAC’s
strategy. They believe that strategic human resource management is an approach, which defines
how the organization’s goals will be achieved through people, by means of HR strategies and
integrated HR policies and practices etc, means various Human Resources approaches such as HR
49 Scorecard and SWOT (24:34-25:54). In addition to, performance measurement is also
acknowledged as fundamental component of the Human Resources Scorecard, which is the
indicator of paying reward to the employees. Result tracking is not the only objective of the Human
Resources Scorecard but by providing information and taking action to influence and better
business performance are also considered as the vital objectives of the Human Resources Scorecard.
Thus organization can run smoothly in the competitive business world (Garrett Walker and J.
Randall MacDonald, 2001, p. 373-374). But many social enterprises are unable to use Human
Resources Scorecard because of its complex application. Moreover, most of SEs considers that
Human Resources Scorecard is the burden for them (Bull, 2007, p.51).
SWOT Analysis can locus the overall situation of Human Resources Division/Department before
the eyes of management. Human Resources Division/Department can identify its internal factors
such as strength and weakness and external factors such as opportunities and threats by using
SWOT Analysis. SWOT Analysis is a strategy, which contributes to fine tune of Human Resources
Strategy by recruiting quantitative and qualitative human resource (Mark A. Thomas, 1990, p. 1216). BRAC HRD also uses SWOT Analysis for changing and aligning its strategy with the
contemporary strategy of BRAC that can be known from Mr. Fakhrur’s statement. Mr. Fakhrur
believes in the strategic planning process that begins with a concise mission statement by
articulating the company's mission and vision. He asserts that they are used to assist senior
management to develop strategic objectives and goals. He again confers that especially, goals which
must be met in order to uphold the organization’s mission. Besides, formulation of strategy should
be conducted for meeting BRAC HRD’s objectives, and tried to ensure the closeness of the gap
between where HRD is now and where HRD wants to be. And finally, BRAC HRD implements the
strategy basing on SWOT (2:50-7:00).
The resource-based model of SHRM can help to create knowledge-sharing culture that reflects the
strategic value of the human resources and the issues of human resources learning. That might be
created with the help of SWOT Analysis. Mr. Fakhrur focuses about this issue throw his interview.
He explains that they have knowledge sharing session in every week and they are practicing the
culture that every person can come up with his or her knowledge and share with them and they are
facing the weekly knowledge sharing session that is very helpful and effective (19:40-20:30). By
this way BRAC HRD creates distinctive competence that enables them to outperform their
competitors that is also supported by Selznick (1957).
50 6. Conclusion and Recommendation: Human Resources Division can play a vital role not only for profit driven organizations but also for
Social Enterprises (SEs) by practicing effective leadership role where employees’ are considered as
being the key to competitive advantage rather than just the implementing the organizational core
strategy. In this situation, Human Resources Division/Department emphasizes on increasing
employees’ strengths. Results on employees can positively affect on organization’s strategy for
achieving mission and vision. Human Resources Division/Department practices strategic human
resources leadership that helps organization to recruit potential employees’ and transform them as
human capital. Moreover, strategic human resources leadership helps organization to identify and
develop the leadership behaviors by which organization can attract skilled employees for joining
and retaining them for long term. Through strategic human resources leadership, organization can
get sustainability by unlocking employees’ productive potential.
Additionally, Human Resources Division/Department introduces the practices of enhancing
employees’ skilled, motivation and participation and Applebaum et al. (2000) addresses that
employees’ increased level of skilled, motivation and participation is now more relevant in social
enterprises. Therefore, social enterprises human resources divisions/departments can play a critical
leadership role by linking employees and performance in the mission driven social enterprises.
Strategic leadership in social enterprises can unlock the employees’ potential and may be created a
well link with motivation to achieve organizations’ mission and vision. Besides, Human Resources
Division/Department through the effective leadership insists management to introduce extrinsic and
intrinsic factors of motivation that attract employees to join in the organization and stay for a long
term. Thus, Human Resources Division/ Department can align its strategy with the help of skilled
human resources along with organization’s core strategy for attaining mission and vision. The
research case BRAC Human Resources Division may be tried to do the same thing for attaining its
social goal, mission and vision which can be reflected a bit from the website of BRAC, BRAC
HRD and the interviewees’ statement.
Not with standing a detailed discussion on the leadership role of BRAC HRD, it might be
recommended that BRAC HRD may also practice Ethical Leadership because BRAC is a social
51 enterprise, which is embedded in social mission where justice and fairness considers as core values.
Ethical Leaders are caring about justice and fairness and put them at a top priority. Every
employee’s can enjoy the same level of opportunity that might motivate employees’ severely
especially the volunteer employees (Northouse, 2010, p. 388-389). Besides, BRAC Human
Resources Division may introduce Human Resources Accounting that will help BRAC Human
Resources Division to ensure financial transparency. As a result, BRAC HRD can recruit and
develop employees effectively that may help BRAC to flourish smoothly.
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58 8. Appendix
Appendix-1
The purpose of this questionnaire is to collect information about the Practice of Leadership and
HRM in BRAC. I will use this information to write up my university project. Your input will be
used to help me better understand the content of your organizational practice.
Please not that the information requested is intended to be narrative of the general nature and
prevailing practice of HRD in BRAC. I do not intend for you to write an exhaustive list of practice
and culture of HRD.
Each question contains open-ended and forms semistructured and you can feel free to answer from
your own mind-set. Please be thorough but concise.
Please be noted that all information given will be treated as confidential, you will not be identified
at all and will not be used for any other purposes more.
Questionnaire
Would you please tell me how long have you worked in your working place in a leadership role and
do you feel free to play your role in your working place?
Ans:
How effective is HR department in creating a common vision of HR, which will lead to achieve
over all organization’s vision? Please explain it.
Ans:
How effective is HR department in prioritizing actions and creating a plan in order to achieve
organizational excellence? Please tell me in detail.
Ans:
How do you think that the arising grievance helps a team member for playing a role in the
development of his or her leadership capability? Would you please tell me how does the HR
Department facilitate you to handle grievance issue in your working place?
59 Ans:
How could you asses the HR Department on the issue of belonging clear, simple and specific
procedures for commonly encountered operational situations (assessment; logistics; security; sound
flow of information etc.) and why?
Ans:
How could you consider that HRD assists you to match your actions and organization’s core value
with you?
Ans:
Why would you usually like to emphasize your own point of view at the expense of your other
peers?
Ans:
What sorts of tasks you are preferred to ask to your peers to perform and would you consider that
are they sufficient to do the assigned job?
Ans:
Do you consider that every team member should belong the same level of skills, which will help
you to do your job perfectly for achieving the organization’s goal smoothly? Please explain.
Ans:
60 How do you consider the issue of cross-culture practice and working friendly environment are
ensured in your organization through HR Department? Is career ladder as well as training &
development programs are conducted by HRD by which new leaders will be created?
Ans:
Do you practice knowledge sharing culture in your organization through the exchange knowledge
sharing process among the employees in the organization and why or why not?
Ans:
Would you please tell me what is the prevailing state of the art of recruiting process of HRD where
you are working or your organization’s HR Department?
Ans:
State that does the Human Resources Department demonstrate a clear understanding of
organizational as well as stakeholders needs?
Ans:
Do you think that HR services and functions are aligned and prioritized for both organizational as
well as stakeholders needs?
Ans:
Do you think that the HRD is taking a lead in striving for a more empowered and participative work
force basing on some characteristics such as productivity improvement cost reduction, quality
improvement and improved quality of work life programs?
Ans:
61 What is your opinion about the understanding of all HR Personnel regarding their respective roles
and relationships to others in the department?
Ans:
What sorts of programs are conducted by HRD for building future leader in your organization?
What type of leadership styles are desired in your organization and does HRD supports for
providing such environment where you can be groomed (from the view point of HRD’ employees
as well as other department)?
Ans:
Please state that do you feel that HRD is a strategic partner of BRAC through the accomplishment
of sound HR activities?
Ans:
Do you think that HRD is able to rate the importance of SWOT Analysis process for assisting
the BRAC’s to attain its mission and vision?
Ans:
How does the HRD ensures the employees’ motivation to maintain and support the implementation
of strategic initiatives by the management body and staff
together?
Ans:
62 Appendix-2
Mr. Md. Fakhrur Rahman
Manager, Human Resources Division,
BRAC.
Phone: 008801718453536
E-mail: fakhrur.r@brac.net
Mr. Sowrav Saha
Manager, Human Resources Division,
BRAC.
Phone: 008801729070644
E-mail: sowrav.k@brac.net
63 Appendix-3:
Recorded Interview of Mr. Fakhrur Rahman
Recorded Interview of Mr. Sowrav Saha
64