Relationship between line and human resource ...

Int. J. Indian Culture and Business Management, Vol. 3, No. 3, 2010

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Relationship between line and human resource executives in Indian organisations Rakesh Kumar Agrawal Institute of Management Technology, Ghaziabad 201 001, UP, India Fax: +91 120 282 7895 E-mail: [email protected] E-mail: [email protected] Abstract: This paper explores the working relationships between line and human resource (HR) in 16 different organisations covering a variety of sectors in India. A content analysis of responses taken from 74 line and HR managers reveals that while the quality of HR–line relationships is moderate to low in most organisations, there are organisations where HR and line are very cooperative and appreciative about each other. In general, HR–line interactions vary from good to moderate within companies in the IT sector while manufacturing and media companies fare poorly on this front. The relationship is healthier for financial services, real estate and mining companies. An area which can have significant effects on the quality of HR–line interactions in the IT sector is the proper design and execution of the performance appraisal process. Keywords: line; human organisations; sectors.

resource;

executives;

relationship;

Indian

Reference to this paper should be made as follows: Agrawal, R.K. (2010) ‘Relationship between line and human resource executives in Indian organisations’, Int. J. Indian Culture and Business Management, Vol. 3, No. 3, pp.285–306. Biographical notes: Rakesh Kumar Agrawal is an Associate Professor of OB&HR at the Institute of Management Technology, Ghaziabad, India. He received his PhD from IIT Roorkee after completing his MTech in Behavioural and Social Sciences from IIT Delhi and BTech from IIT Bombay. His primary research interest is in the area of humanistic principles of management and related issues. He has a number of publications to his credit.

1

Introduction

Today firms are emphasising on increasing their competitive edge by effectively managing their human capital. Managers at different levels are realising that a critical source of competitive advantage often comes not from the most ingenious product design or service, or the best marketing strategy or technology, but from having systems and processes for managing human talent (Mello, 2007). These developments are bringing about a shift in the role of human resource management from a primarily administrative function focused on the individual employee and job to a more macro and systems Copyright © 2010 Inderscience Enterprises Ltd.

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orientation and towards a strategic partnership role in the business (Becker et al., 2001; Khatri and Budhwar, 2002). The last two decades have witnessed a significant change not only in the role of human resource (HR), but in the role of line managers as well. The primary responsibility for managing the new employer-employee relationships has fallen onto the shoulders of line managers who are being called upon to develop, communicate and motivate employees (Caudron, 1999). Thus, a critical aspect of strategic HR is the devolvement of HR work to line managers who ‘are now expected to do more of their own HRM’ and ‘can benefit from crosstraining in HR processes’ (Mohrman and Lawler, 1999, pp.443–4). This involves close understanding between HR and line managers. Jackson and Schuler (2000, p.25) suggest that there should be a ‘partnership’ approach among HR, line and employees to manage HR issues – an ‘HR triad’. Yet available literature suggests that the relationships between HR managers and line managers are not quite positive. HR seems to have an image problem with its chief internal customer – the line manager (Caudron, 1999). “HR still tends to be reactive and confrontational, and much of the time, line management views HR as the government. The line doesn’t want to go to HR, and they certainly don’t want calls from HR people.” (a director of employment and development at Paramount Pictures, as quoted in Caudron, 1999, p.34). “If you really fall out – you try to give them a doing and it depends how well they defend themselves.” (a line manager – quoted in Renwick, 2003, p.270)

Though academicians have started investigating the involvement of line in the successful implementation of human resource practises, the related linkages between line and human resources and their implications for people management and organisational performance (Dorenbosch et al., 2006; Nehles et al., 2006; Perry and Kulik, 2008; Purcell and Hutchinson, 2007), research is still in its nascent stage. This paper reports the findings of an exploratory study designed to examine HR interactions in the Indian context, an area which has not received much attention in India’s growing economic environment since the early 1990s. It becomes especially important in the current scenario as efforts of HR to play a strategic role will not bear fruits in the absence of a cordial, trusting and cooperative relationship between line and HR. The rest of this paper is organised as follows: the next section gives a brief overview of the literature studying HR and line interactions. This is followed by related academic developments in the Indian context. The methodology behind the current study is described next. Finally, the results and discussions are presented along with the limitations of the study and the conclusions.

2

Literature review

There has been criticism by line managers about the lack of contribution by HR specialists to organisational performance. Whittaker and Marchington (2003) have classified these criticisms falling into four categories: 1

Personnel practitioners seem to be out of touch with business realities and are unable to comprehend the commercial realities, the nature of customers or please check alignment- make the paragraph full justified.

2

HR managers are unresponsive and slow to act, wanting to check options thoroughly rather than pursuing a series of actions.

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HR practitioners promulgate practises which may be theoretically sound but hard to practise or inappropriate for their particular workplace.

Hammonds (2005) outlines four reasons why line hates HR. 1

HR people are not the sharpest of the lot. The best and the brightest of the students do not go into HR while some come to HR as exiles from the corporate mainstream.

2

HR focuses of efficiency and doing what is organisationally expedient rather than adding value.

3

HR people pursue standardisation and uniformity in the face of a workforce that is heterogeneous and complex.

4

The corner office does not get HR.

However, Leicester (1989) has found that line managers failed to take responsibility for employee development nor were willing to be trained in interpersonal skills as they considered these unnecessary. Line managers did not feel any institutional pressures to consider HRM issues like appraisals seriously because these were low on their list of priorities (Cunningham and Hyman, 1999; Gratton et al., 1999). Other line managers viewed devolution of personnel practices to them as illegitimate (McGovern et al., 1997). Storey (1992), however, concludes that line managers seemed pretty satisfied with their responsibilities related to people management. Managers were willing to accept the advice of HR specialists but they did not want to be subjected to their direction (Marsh and Gillies, 1983). Yet, Cunningham and Hyman (1995) report that there was a degree of resistance to line managers’ involvement in HR work and personnel respondents viewed line managers as not possessing the requisite people management skills. Personnel’s involvement in HR strategy was executed through partnership with line managers in a piecemeal, rather than holistic, manner. Explanations have also been put forward for attributing causes to this line–HR conflict and why HR professionals have not been able to shift fully from bureaucrats to strategists. HR and line managers come from very different cultures, and their training, experience and objectives are very different. In the words of a senior vice president of a US-based company “Most of HR comes from a background that is behaviourally based, as opposed to line managers who are bottom-line oriented. HR wants to talk about resolving conflict, whereas the line wants to know how to drive market share” (quoted in Caudron, 1999, p.34). Renwick (2000) suggests four themes emerging in HR–line work configurations: 1

Power and strategies managers can exercise in their dialogue with each check alignment in this and the following pointed paragraphs a common perspective so as to act and speak in a consistent manner and it is quite normal that managers behave as politicians. Tyson (1997) notes that shift of HR practises from corporate to divisional level places functional strategy closer to business strategy which helps to integrate HRM with line management.

2

Conflicts resulting from the use of these power-based strategies: Line and staff functions conflict over both methods and authority used in their work (Dalton, 1959). Conflicts may arise as personnel function may also become the eyes and ears of senior management (Tyson and Fell, 1992) or from split in accountabilities and responsibilities between HR and line (Kahn et al., 1964).

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3

Prospects of partnership working to resolve these conflicts: HR needs to become more involved in supportive, collaborative relationships with managers (Tomlinson, 1993). This can be facilitated if HR executives create consensus on corporate HR agendas and then orchestrate organisational learning across operating units on how best to address that agenda (Eisenstat, 1996). Schuler and Huselid (1997) regard this link between HR and line as an ‘ideal situation’. Ulrich (1997) sees HR as the responsibility of the HR community whose membership and balance can vary (i.e. HR and line together) and where line managers review, monitor and hold HR accountable. HR and line moving towards partnership involves work being organised in terms of intellectual knowledge flows instead of authority flows (Quinn et al., 1998).

4

The choices and considerations that senior managers must make in reconfiguring HR work to produce more effective organisational outcomes: Innovations in people management occur where personnel is decentralised to line managers (Adams, 1991). Ulrich (1997) sees changes in the HR role as being connected to the shape of the organisations of the future.

A stream of studies on aspects of line managers’ role in HR activities like appraisal, involvement and incentive pay have noted the distinction between espoused and enacted HR practices with the gap often explained by line managers’ lack of interest, work overload, conflicting priorities and lack of training (Grint, 1993; Harris, 2001; Whittaker and Marchington, 2003). A number of authors have suggested that there are positive as well as negative consequences of devolution of HR responsibilities to line managers (Bond and Wise, 2003; Renwick, 2003). First-line managers find implementing HR practises at the operational level difficult and show reluctance with their HR responsibilities (Nehles et al., 2006; Storey, 1992). However, a recent study conducted by Perry and Kulik (2008) on devolution of HR to the line reveals that devolution can have a positive effect on perceived people management effectiveness. Consensus between HR professionals and line managers on HR practises (career opportunities, appraisal criteria) and on HR’s role is positively related to commitment strength within a department (Dorenbosch et al., 2006). Front-line managers act as agents in the HRM performance chain and the quality of leadership behaviour and satisfaction with HR practises have a strong effect on employee attitudes (Purcell and Hutchinson, 2007). Yet, while HR directors would like to see line managers handle at least 80% of day-to-day people management issues, the reality is that HR has to get involved 46% of the time (Anonymous, 2007). Female top managers in the public sector exhibit the greatest interest in HR whereas men at the lower managerial levels in the private sector give lowest priority to HR work (Brandl et al., 2009). Maxwell and Farquharson (2008), in a study of best employers in UK, have found that HRM is afforded high-level organisational support at chief executive level, if not always at senior operational manager level.

The Indian perspective With the Indian economy growing rapidly (Grossman, 2008), HR challenges are becoming very dominant in the country. Curtailing attrition levels and managing aspirations of young employees are amongst the most important concerns of the HR professionals (Dubey, 2008; Grossman, 2008). Indian industry is realising that a

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company’s ability to effectively manage its workforce and unleash their creative and entrepreneurial energies will provide the competitive edge and not just its infrastructure, capital, etc. Indian business will have to invest in people. Therefore, Indian business is witnessing an interest in HR policies, practises and roles (Bhatnagar and Sharma, 2004). Sharma and Khandekar (2006) have discussed the evolution of strategic HRM in India in some detail, beginning from the period of Chandragupta Maurya in ancient India. However, strategic HRM in India is still in its incipient stage, with a gap of about a decade when compared to the West. Dubey (2008) contends that, except for a handful of cases, HR in corporate India has not been able to shake off its traditional role of a support function focused on labour relations and hiring. Less than 3% of HR heads in India sit on the boards of their companies. Bhatnagar and Sharma (2004, 2005) have investigated the perceptions of over 600 HR and line managers from nine industrial sectors on strategic HR roles. They find that there is no difference in the strategic partner role among the managers of public sector and multinational firms, but there is a significant difference in the perceptions of HR and line managers. HR managers have the most significant impact on the strategic HR role and self-report it to be higher than the line manager. Gopalakrishnan (2008) has argued for placing HR on line managers’ agendas. He contends that the line must understand that their main job is to manage people. HR should help managers to rediscover how to manage. Managers would need guidance to reconnect with the people and HR can help them fulfil this role.

3

Research methodology

3.1 Sample and data collection Students enrolled for a course in HRM in a premier business school in India were divided into groups and each group was asked to study HR’s and line’s perceptions about each other and about their interactions in one organisation. A total of 20 groups, with each group consisting of four to six members each, were formed. Student groups were asked to tap different organisations in a variety of sectors (manufacturing, banking and financial services, information technology (IT) and others), thus drawing upon a diverse set of organisations in different industrial settings. The students received credits for their work. The final choice of organisations was based on the willingness and cooperation from the HR department of the organisation to be a part of the study. From each organisation, two to three line managers and two to three HR managers were interviewed and asked to fill up an open ended questionnaire to investigate the HR–line interactions in that organisation. Most of the student groups interacted personally with the respondents, as the offices were located in and around New Delhi. However, where the organisations did not have the offices in the Delhi region, telephonic interviews were conducted and the detailed responses taken through e-mails. The respondents were assured of total confidentiality. Only full-time employees with at least two years’ experience in the current organisations were considered for being a part of the study. Among the line managers, only those line managers were considered who were supervising at least four to five people under them and were responsible for some of the HR functions like conducting performance appraisals. The students were required to get the contact details of the respondents. To ensure that the intended respondent was actually responsible for completing the survey, I

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contacted at least two respondents from each organisation telephonically between 15 days to one-and-a-half month after the surveys were reportedly conducted. These individuals were asked innocuous questions pertaining to the survey and their interactive session with the students (What do you think about the survey? Did you find particular sections incomprehensible? Were the students taking interest in learning from you about the workings of the organisation?). Results of this telephonic verification provided the necessary evidence that the target respondents were indeed responsible for completion of the survey. Out of 96 respondents initially targeted, a total of 74 surveys from 16 different organisations were returned adequately completed. The final sample consisted of 60 males (81.1%) and 14 females (18.9%). The total number of line mangers taking part in the study was 38 (34 males) while the total number of HR managers was 36 (26 males). The average age of respondents was 34.2 years (SD = 8.54 years) and they had been working with their present organisations for an average of 6.05 years.

3.2 Measures Open-ended questions covering various areas of HR–line interactions were included in the questionnaire. These questions were designed to assess the perceptions of line managers and HR managers about each other’s roles and about the quality of interaction between line managers and HR managers. A sample list of questions is given in Appendix A. In addition, the line manager’s questionnaire also included a series of items on line–HR exchange (LHX) questionnaire, which is a modified version of leader-– member exchange measure, LMX 7 (Graen and Uhl-Bien, 1995). The LHX had ten questions covering different aspects of line’s relationship with HR and had to be answered on a 5-point scale (1 = lowest; 5 = highest). The list of items in LHX questionnaire is given in Appendix B. Each questionnaire also included items on background variables related to age, experience, education, etc. The respondents also had the freedom to express themselves on any other point related to HR–line work relations which had not been addressed earlier.

3.3 Data analysis The responses to the open-ended questions were content analysed. A sectorwise summary of the opinions and views of the line and HR managers are given in the next section. For the LHX questionnaire, mean of the responses received is considered as the LHX score.

4

Results and analysis

4.1 Line–HR relationships in the IT sector Table 1 gives the key elements in the relationships between line and HR executives in the IT sector. Altogether eight companies, many of them multinational corporations with operations in India, were examined.

Relationship between line and human resource executives Table 1

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Line–HR relationships in IT sector

Nature and frequency of HR–line S. No. Company interactions 1 Offices in more than Infrequently with 20 countries younger line executives Employees of 60 different nationalities Frequency increases Rated best employer at higher levels in different surveys During changes in HR policies During performance appraisals (LHX = 3.2) 2 One of the world’s Moderate largest providers of (LHX = 2.8) IT, consulting services and BPO Employees in more than 40 countries

3

Software MNC Offices in 45 countries Indian operations since last 11 years Employs 15,000 people in India

High, generally once every fortnight Very effective interaction HR generalist for every business unit (LHX = 3.6)

4

Global IT solutions major More than 4,500 employees in India and abroad

Formal and periodic interaction is the norm Mutual trust and respect (LHX = 3.9)

Line’s view of HR

HR’s view of Line

Support group Generally satisfied Doubtful if HR possesses all requisite skills HR should get involved throughout – from goal setting to evaluation – which is not happening

Should sensitise employees to be more open in their interactions with HR and to take up issues directly with HR

HR policies well defined but not properly executed and managed HR not able to understand requirements and make flawed selections Job not assigned based on capabilities Forced curve evaluation demotivates employees HR can help us further by offering some learning workshops for communication skills Exit interviews need to be more streamlined Very positive views about each other One of the lowest attrition rates in industry Jointly discuss major appraisals, leave and salary comparison issues

Line managers should be more involved in the recruitment and other HR processes

Line managers can develop more HR related skills Should have a thorough understanding of the HR lifecycle Also strategic and resource allocation issues For appraisals, line managers assist HR

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Table 1

Line–HR relationships in IT sector (continued)

S. No. Company

Nature and frequency of HR–line interactions Good interaction, but scope for improvement present (LHX = 3.7)

Line’s view of HR

HR’s view of Line

HR practices seen as unbiased Yet HR does not have proper understanding of tasks performed by line managers

Do not give timely feedback for telephonic interviews during recruitment We are not updated on project status Need training to enhance their HR skills Do not understand HRM processes It is line managers’ job to keep employees motivated Give very short notice periods for additional requirements Line unhappy with appraisal system

5

Headquartered in USA Workforce of more than 20,000

6

Employs about 80,000 people Offices in 80 countries

For appraisals, training and routine work like transport requirements (LHX = 2.9)

Appraisals and compensation decisions are a very lengthy process HR unable to fully understand the employees’ potential Training not satisfactory

7

Headquartered in USA On Level 5 of people capability maturity model

High HR present in all top level business meetings (LHX = 4.0)

8

MNC headquartered in USA Into both hardware and software

Do not need to interact directly with HR Each employee has a people manager (non-HR) who remains in close contact with HR 100% interaction with people manager on HR related issues (LHX = 3)

Line itself believes that every manager has to play role of HR manager HR strategies and line executes Mainly an operational role rather than motivating people to perform their best Final decision by line manager always Feedback not taken seriously

Line can help in retaining employees and in grievance handling Do not give requirements in time

There are differences in the quality of interactions between line managers and HR managers in different companies within the IT sector. While the interactions are very positive in few companies (companies 3, 4, 5 and 7), it is moderate in others. Some major IT firms in India have been rated as best employers in various surveys. However, this research shows that even in these firms, HR–line relations can be improved (e.g. company 1). The general perception is that HR is a support group and most interactions take place when there are changes in policies and during appraisals.


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Performance appraisals are an area which brings out the conflict between line and HR: “One of the areas of concern is performance appraisal. …It becomes very difficult to rate” – a line manager in company 5 (line, 5)1 “…problem area is the lack of HR involvement in appraisals. HR should be involved right from goal setting to evaluation of final issues settlement. Right now it is only the issues settlement where HR gets involved.” – (line, 1) “…the presence of two cycles of appraisal increases ‘overheads’ which should be changed.” – (line, 7)

On the other hand, HR managers contend that the line managers should become more involved in the HR processes and develop HR related skills. “Line must become more involved and have a thorough understanding of the HR cycle.” – (HR, 4) “In performance appraisals, they can help us in deciding the level of output as per the requirements of the job.” – (HR, 3)

IT organisations need to resolve these differences on a priority basis. Employees feel that appraisals can have a great effect not only on their own careers but also on the careers of those whom they rate. Many IT companies lay off workers based on performance appraisals (Anonymous, 2008; Parekh, 2008). It becomes a very sensitive activity both for the appraisers and the appraisee, and a healthy and trust-based interaction between HR and line can be very fruitful on this front. In addition to differences related to performance appraisal issues, some other areas which require attention are recruitment, training and job allocations. It is also observed that HR–line interactions become weaker as one moves down the organisational ladder. Some managers believe that HR is mainly concerned about getting its job done – implying a focus on systems rather than on people. This type of approach can actually alienate the people from HR. “Whenever there is a time for the manager to provide the performance rating and we miss deadline, HR will come after us.” – (line, 2)

However, many people do appreciate the tough role played by HR and there is much respect for each other in some companies. In company 1, a line manager has commented that “HR is a tough job. I feel HR in my company is overstretched but still delivering most of what is expected of them”. In company 7, HR is generally present in all top level business meetings and aligns HR planning with the business objectives that are being set and to the projections that are made. There is a dedicated HR partner for each of the subverticals. Line itself believes that every manager has to play the role of a HR manager. “Our own role is that of an executioner. HR strategises and we implement.” – (line, 7)

Formal and periodic interactions between the line and HR are the norm in company 4. Major appraisals, issues with casual/sick/unplanned leave and issues of salary comparison are dealt by HR in consultation with line managers. Strategic issues like resource reallocation, employee grievances, etc. are also discussed. Line managers have the final say on the selection of a candidate. For performance appraisals, it is the line managers who assist HR in deciding on the level of output as per the requirement of the job. HR managers hold the view that the line managers in the company possess the

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required competencies required for performing the various tasks envisaged by the company. This reflects the confidence HR has on the line managers and this confidence forms the basis of a healthy relationship of mutual trust and respect. As a result, this company has one of the lowest attrition rates in the industry. HR managers also point out that the company takes care to inculcate within HR an appreciation of the company’s business and its strategy.

4.2 Line–HR relationships in the manufacturing sector The state of relationships between line and HR executives in the manufacturing sector is summarised in Table 2. Contrary to what was observed in the IT sector, the relationship between line and HR is poor in the manufacturing sector. Of the four companies studied, only in company 10 were line and HR managers somewhat appreciative of each other’s roles and the LHX score was moderate (LHX = 2.9). In the other three companies, the relationship was rather poor. Table 2

Line–HR relationships in manufacturing sector

S. No. Company

Nature and frequency of HR–line Line’s view of HR interactions

9

Low

Into exploration and production of oil and gas, refining and production of textiles

Especially not present at lower and middle levels Mainly during appraisals (LHX = 2.3)

10

Large passenger car company Manufactures a variety of passenger cars – from compact cars to luxury cars Preferred employer for many automotive engineers

Line managers themselves need skills like grievance management and how to counsel employees

HR’s view of Line Accept that HR is still evolving

Executives with an open mind and a broader outlook need to be taken

Regular, but frequency can be increased

Appreciates HR doing reasonable job as support function

(LHX = 2.9)

HR doing good job in training and development Lack of synergy between departments while building teams Lack of clarity about job roles

Line manager is the first HR manager Need to improve in soft skills


Line–HR relationships in manufacturing sector (continued)

S. No. Company 11

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Nature and frequency of HR–line Line’s view of HR interactions

One of India’s largest Little or no steel companies interaction, unless an 80,000 employees in emergency crops up 24 countries

(LHX = 1.9)

HRM is a weak area Required smaller, focused groups of HR managers HR managers’ performance contract should have a linkage with the performance of line managers

HR’s view of Line HR accepts presence of problems HR needs to be empowered to deal with situation

HR must have an attitude to help others 12

Global producer of steel Customised steel products

Minimal Mainly during appraisals, recruitment and exit (LHX = 2.2)

HR only an ornamental department

Accept possibility of some glitches on implementing HRM

Do not trust HR

Line managers do not lay enough emphasis in utilising services of HR

Doubt capabilities of HR personnel

HR inexperienced in dealing with practical Lack of cooperation from line issues of field work HR comes out with impractical policies and programmes

Line managers seem to have lost trust in the functioning of HR and doubt the capabilities of the HR personnel. In company 12, they did not think that the HR department was playing any special role in facilitating the interaction between the hierarchies of employees. The only time line contacted the HR department was during appraisals, new recruitment and exit processes. When asked about consulting the HR in times of crisis, the line managers held a very conservative view and said that they would prefer not disclosing their concerns to the HR personnel for fear that the information might be used against them. “The basic problem in my company is that HR managers work in isolated compartments. They are busy showing results in a particular area given to them as a target. Mostly they miss the holistic target of improving efficiency and effectiveness of entire workforce of the company.” – (line, 11)

On being asked as to how they would like to assist HR in improving HR–line interactions, a line manager replied “I don’t think I can do much in that. HR should take initiative in doing that”. This manager also commented that he interacted with HR only on the lunch table.

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However, HR seems satisfied with its own performance. They feel that their facilities are being underutilised and the line managers do not lay enough emphasis on availing the benefits provided by HR. The difficulties arise because of lack of cooperation from line and because of some systemic constraints. “We would like to consider any practical suggestions from them that brings in their experience from the fields.” – (HR, 12) “Currently we do not have a free hand and the authority to change policies and practices. We are forced to work with old policies that need to be changed.” “We are also generally treated like servicemen.”

– (HR, 11)

“Line managers should have more seriousness towards HR initiatives and take out time for them. After all these efforts are for their own benefits.” – (HR, 12) “Line managers should help in educating their subordinates. They should act as representatives of HR managers.” – (HR, 12)

The line managers, however, did admit that they never bothered to spend time on the online portals that were available to them (company 12) nor did they take most of the training programmes suggested by HR seriously. This, they said, was because they ‘already knew’ what was going to happen in such trainings and were not keen on ‘wasting time’ attending any sessions. In addition, they felt that given the scarcity of time they faced, the portals had too much of information too little of which was practically useful. They seemed confident about their own skills. Also, they seemed relatively unaware (and at times confused) of the HR managers’ responsibility and the kind of skills that they needed to possess. However, the situation is not so bleak in company 10, a large passenger car company that manufactures a variety of passenger cars. HR holds regular meetings with the line and both HR and line conclude that the relations are satisfactory. Line does appreciate that HR is doing a reasonable job as a support function, although it has a long way to go. Line managers also accept that having soft skills is important as they have to deal with illiterate people. “The line manager is the first HR manager as he is the person who is handling the people day in and day out. They are responsible to handle the people at the first go.” – (HR, 10) “Since this is a manufacturing firm, the line manger should be equipped with soft skills because he has to handle people day in and day out to run the plant in the best possible manner and get the output from the not so literate people.” – (line, 10)

4.3 Line–HR relationships in other sectors Apart from IT and manufacturing companies, companies in four other sectors were also studied. These belonged to the financial services, media, real estate and mining sectors. Table 3 gives a summary of the relationships between HR and line executives in these sectors.


Line-HR relationships in other sectors

S. No. Sector 13

Company

Nature and frequency of HR–line interactions

Line’s view of HR

Financial Non banking Regular, HR plays services financial company sometimes daily if significant role required right from Into retail and candidate institutional Conflicts settled prospecting distribution, retail through mutual finance and commercial finance

discussions Healthy interaction

(LHX = 3.5) 14

Media

Publishes a national newspaper from 21 centres across India, apart from other newspapers and magazines

Poor and infrequent (LHX = 2)

HR is for routine work and troubleshooting

One of India’s leading real estate companies

Line managers’ treat HR just a support function

Lacks proper Close minded understanding of towards training business processes and developing HR is understaffed subordinates

Should come up with more inhouse training

Real estate

HR’s view of Line HR also has positive views about line

Both line and HR possessed required skills and competencies

- cannot devote time for us

15

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High, but frequency could be increased Cooperative relationship

HR performing crucial role in a growing organisation

HR brings in objectivity in a HR–line have confidence in each subjective performance other management (LHX = 3.6) process Requires comprehensive sector specific knowledge HR has built a bond of trust

Need soft skills training but are not interested Should not recommend quick fix solutions to subordinates HR is key change agent -line plays a great supporting role in recruiting and retaining talent Line managers could become part of strategy formulation process

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Table 3

HR–Line relationships in other sectors (continued)

S. No. Sector

Company

16

Wholly owned by Govt. of India

Mining

Nature and frequency of HR–line interactions Moderate (LHX = 3.2)

Engaged in mining of coal and mining consultancy Employs over 4,00,000 people

Line’s view of HR

HR’s view of Line

Not satisfied with HR’s role in job allocation

HR needs to be trained in other areas so that it can HR should play a understand the more active role in different functions and areas motivating workers

Should help line in understanding psychology of new entrants HR should be open to new ideas

4.3.1 Financial services, real estate and mining In the real estate, financial services and mining sectors, HR–line interactions were found to be reasonably good, although gaps and weaknesses were also present. HR has built a bond of trust making it easier for line managers to deal with subordinates (company 15). HR and line have very positive views about one another in the financial services sector (company 13) and in real estate (company 15). HR has a significant role to play in these organisations starting from candidate prospecting and throughout the service period. As one line manager in the non-banking financial company opines: “… because only staff-based companies grow”. The line managers also feel that they need to be trained by HR in the areas of performance review and in delegation. “HR provides key inputs by bringing in objectivity, accuracy, timeliness and fairness in an otherwise very subjective and reactionary decision-making process of employee performance management. However to improve the implementation of the strategic HR policies, HR itself requires to possess a comprehensive sector specific knowledge.” – (line, 15) “HR can help us by imparting knowledge in behavioural sciences and by acquainting us with the psychology of new entrants.” – (line, 16)

4.3.2 Media The quality of relationship between line and HR managers is quite poor in the media company. Although only one company from the media sector was surveyed, still some idea about HR–line linkages can be obtained by examining the LHX scores (2.0) and the comments of the respondents. Line and HR conflicts are quite visible and line managers view HR activities as leisure activities. Line managers think it is more important for HR to understand the business processes.


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4.3.2.1 HR’s view of the line: Line managers take HR as just a support function and come to HR only when they have some issues with their employees. They are close-minded when it comes to training and developing their subordinates. They give work supreme importance and consider HR activities only as leisure activities. HR also feels that line managers lack self-motivation and do not take initiatives. Line managers also need soft skills training. However, being middle aged, they are not interested in improving on soft skills. Neither are they interested in understanding and using motivational tools. They need to reduce their subjectivity while dealing with subordinates. The resistance offered by line is in conformity with the reports cited by Leicester (1989) and Cunningham and Hyman (1995). “The line managers fail to understand that besides the job responsibilities, there are other aspects to employee needs and satisfaction, working hours, leaves, etc. to name a few. The line managers simply are not trained to think on these lines and because of their workload, they do not even bother to look into the HR aspects. This leads to employee dissatisfaction.” – (HR, 14)

4.3.2.2 Line’s view of HR: An analysis of the line managers’ responses confirms the concerns of HR. The basic perception of the line manager is that HR is meant to do the routine work and for troubleshooting. According to them, the basic work of HR is nothing more than the normal day-to-day activities of the organisation and not in any way strategic. x

HR department lacks the complete understanding of the business processes in the organisation – HR managers’ tasks primarily involve dealing with employee issues.

x

HR department is understaffed, that is, it does not have sufficient number of people in place to carry out the tasks effectively. HR people have their hands full and so they cannot devote time into other activities that could enhance their understanding of the organisation.

x

HR needs to come up with more in-house training – HR should initiate more of in-house training programs both for new recruits as well as senior personnel.

5

Further discussions

An analysis of the findings throws open some interesting points for further discussions and future research. There is variation in perceptions of line and HR managers in companies not only in different sectors, but also within companies in the same sector. Yet, on the whole, IT sector has a higher quality of HR–line interactions than the other sectors, while manufacturing witnesses very poor relationships between the line and HR. In addition, although line–HR interactions is weak in most of the companies studied, the angst of line and HR managers does not seem to be as severe as has been cited in previous research, none of which have reported studies in the Indian context. It is also apparent from the content analyses that in those organisations where the HR–line relationships are not very good, many line managers are actually doubtful about the competencies possessed by HR professionals, a reason cited too by Hammonds (2005) for line not getting along well with HR. When asked about the skills required of HR managers, line managers in one IT company felt that HR managers must have integrity apart from good communication skills. Yet, on the question whether HR

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managers possess those skills and competencies, one of the line managers in company 1 stated “I would like to reserve my comments here”. In general, HR seems to be playing mainly an operational role rather than a strategic role (Ulrich, 1997; Whittaker and Marchington, 2003). “Frankly speaking HR is doing more of an administrative job rather than really doing what they should …they are not on the decision making panel…final decision is taken by the line manager always. If HR is given some decision making power then it will surely result in better recruits.” – (line, 8)

It is also observed that HR–line interactions in the manufacturing sector are poorer than in IT, finance, mining and real estate sectors. Statements such as “HR needs to create a friendly and conducive environment in offices” (line, 9), “HR managers work in isolated compartments” (line 11) suggest the unhappiness of line managers with HR. However, HR managers feel that these problems are there as HR is still evolving in these companies and because HR does not have a free hand. They are forced to work within old policies. HR managers also opine that line managers should be empowered further to improve the situation. “The line manager is the first HR manager as he is the person who is handling the people day in and day out. They are responsible to handle the people at the first go” (HR, 10). HR itself wants a greater experience in the line (“.. transfer HR managers to various line positions in the firm” – (HR, line)). Although many of the comments of line about HR in this research (e.g. ‘HR managers work in isolated compartments’ – company 7) expressed similar views as mentioned in the works of some earlier researchers of HR–line interactions (e.g. – ‘HR wants to talk about resolving conflict whereas the line wants to know how to drive market share’ – Caudron, 1999, p.34), it is also observed that none of the comments are as severe as those expressed in some of the earlier studies (like “if you really fall out – you try to give them a doing and it depends how well they defend themselves” – Renwick, 2003, p.270). In fact, many were appreciative of the role HR was trying to play. HR itself was interested in getting a greater line experience in some cases. This is a healthy sign and needs to be improved further for removing boundaries and enhancing cooperation between line and HR. It is also observed from the data in this study that HR–line relationships are healthier where the frequency of interaction between line and HR is higher. Thus, better communication and more frequent interactions can remove negative opinions of line and HR and pave the way for the HR executives to play a more strategic role. Improvements in HR–line work relations should not be the sole responsibility of HR or of line. Both the domains have to understand that development of human capital is a joint responsibility. Line can step forward towards HR by trying to understand the human and behavioural aspects of work and by not treating HR just as a support function. Rather HR is a function that is integral to the business and can provide a competitive edge. On the other hand, HR should acknowledge the value of bottom line and business results that line is trying to achieve. It is only through proper appreciation of each other’s roles and through synergistic processes that the organisation can compete in an uncertain environment. It is good to note that this is happening in some of the organisations studied within the Indian context, but there are others where line and HR need to value and work with each other.


6

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Conclusions

Line and HR work relations can play an important strategic role in ensuring organisational success; yet, this issue has not been explored seriously in the Indian context. This paper reports the working relationships of line and HR managers in 16 different organisations covering different sectors in India. While the HR–line relations are average to low in most organisations, there are pockets where line and HR are not apprehensive about each other. Rather they respect and appreciate the roles played by each other. Some line managers are willing to accept their responsibilities to play a greater role in developing themselves and their employees. However, others need to be sensitised towards this vital aspect for healthy subordinate development and culture that may have a bearing on the relationships between line and human resources executives in India.

Limitations of the study Finally, this exploratory research would be incomplete without noting the limitations of the study. The first and foremost limitation is the choice of companies studied. Since the companies were selected based on willingness and cooperation of the HR Department, many companies (e.g. those from banking or FMCG sector) were not included in the study. It is due to this reason that the relative proportion of companies from the IT sector is greater than those from other sectors. Only one company from some sectors like media, mining, financial services and real estate were included in the study. Thus, the findings of the study cannot be generalised across the sectors and the company studied may not be fully representative of the sector. Secondly, only two to three line managers and two to three HR managers were chosen as respondents from each company. Although it was found that the views of a group of respondents (say, line managers) were quite similar in an organisation, it cannot be conclusively stated that other employees held similar views. The responses could also vary across levels in the organisational hierarchy and this has not been studied. Finally, the responses were taken through personal interviews and administering open-ended questionnaires in some organisations and through e-mails in others. Each company was also surveyed by a different group of students. This can introduce errors and variations due to the presence or absence of different groups of interviewers. Yet, since the goal of the study was an exploratory one on which further causal studies can be designed, it is felt that content analysis of a small set of respondents from a varied set of organisations sufficiently serves the purpose. Further studies should develop upon the insights gained from this research to conduct more conclusive and rigorous investigations into the entire gamut of issues involved. They can also study the influence of other variables like organisational leadership.

Acknowledgements The author gratefully acknowledges the anonymous reviewers for their valuable comments and constructive criticisms to improve the quality of this paper.

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Note 1

This notation will be adopted in the rest of the text, that is (HR, x) implies ‘as quoted by one of the HR managers in company x’.


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Appendix A Sample list of questions for line (HR) managers 1

What, in your opinion, is the role of HR in an organisation?

2

Do you see linkages among HR functions/activities and some of your activities? If yes, what are the major linkages?

3

What is the current state of interaction between HR and line managers in your company?

4

What steps can be taken to increase the effectiveness of HR–line interactions?

5

How would you like to assist HR (line) to help improve HR–line interactions?

Appendix B LHX questionnaire 3.1

How well does your HR understand your job problems and needs? (1) Not a bit

3.2

(5) Fully

(2) Small

(3) Moderate

(4) High

(5) Very High

(2) Small

(3) Moderate

(4) High

(5) Very High

(2) Disagree

(3) Neutral

(4) Agree

(5) Strongly agree

(2) Disagree

(3) Neutral

(4) Agree

(5) Strongly agree

I can discuss problems with HR without it being used against me. (1) Strongly disagree

3.8

(4) Mostly

I can count on my HR for help if I have difficulties on my job. (1) Strongly disagree

3.7

(3) Moderately

I have enough confidence in my HR. (1) Strongly disagree

3.6

(2) A little

Again, regardless of the amount of formal authority your HR has, what are the chances that he/she would advocate your case whenever required? (1) None

3.5

(5) A Great Deal

Regardless of how much formal authority your HR has in the organisation, what are the chances that your HR would use his/ her power to help you solve problems in your work? (1) None

3.4

(3) A Fair Amount(4) Quite a Bit

How well does your HR recognise your potential? (1) Not at all

3.3

(2) A Little

(2) Disagree

(3) Neutral

(4) Agree

(5) Strongly agree

How would you characterise your working relationship with your HR? (1) Extremely ineffective

(2) Worse then average

(3) Average

(4) Better than average

(5) Extremely effective

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LHX questionnaire (continued) 3.9

In case of any problems with subordinates/peers/superiors, I can easily approach HR with trust and confidence. (1) Never

(2) Rarely

(3) Sometimes

(4) Often

(5) Always

3.10 How would you characterise your subordinates’ (those who report to you) relationships with HR? (1) Extremely ineffective

(2) Worse then average

(3) Average

(4) Better than average

(5) Extremely effective

Note: This is a modified version of the LMX 7 questionnaire (Graen and Uhl-Bien, 1995) that deals with leader–member exchange and has been used only for exploratory purposes in this research.