Chapter 13 - Answers to review questions in textbook, page 318
1 Discuss the important challenges facing management and HR
professionals regarding the development of virtual organisations.
Answer: (Sec 13.1.1)
Management perspective
From a management perspective, issues such as effective communication
and planning will need attention as the face-to-face approaches which
have worked well over the years disappear. In addition, to capitalise on
the flexibility and speed that is possible through these networks, managers
and team members will have to form clear agreements from the outset
regarding issues such as performance expectations, team priorities,
communication links, and resource allocation. Other problems that may
arise include possible misunderstandings and interpretations as a result of
electronic mail (e-mail) correspondence. By means of this system
messages and computer files can be sent electronically from computer to
computer over a network. The advantage of e-mail is that it cuts down on
paper use and increases the speed of messages. According to Barnatt,
the computer giant Microsoft sees its e-mail system as the carrier of its
culture. The company is expanding so rapidly that it is reliant on e-mail as
the glue to hold its employees together.
The redistribution of power within the organisation can also be
problematic. For example, with electronic networks, individuals can skip
levels in the chain of command and give senior managers direct feedback
on problems or successes, which is not the case in many conventional
organisations.
As a result of the computer networks, faster decision-making and easier
access to company information are also possible. However, the speed of
decision-making may place great pressure on individuals who do not
possess the necessary skills to function within such environments. At the
same time, those who thrive in such an environment will find themselves
in a strong competitive position in the networked marketplace.
HRM perspective
From an HRM point of view the virtual organisation also holds a number of
challenges. For example, the way recruitment and career development
have been approached in the past will change rapidly. More companies
and employees are using the Internet to match jobs and candidates. If the
information on individuals is up to date and correct, no skill within a
company will be able to go unnoticed. It also helps management to put
people together with specific skills via cross-functional teams to solve
problems. This was impossible in the past with outdated information
1
, systems and rigid organisational structures. Flexibility is thus the new
goal.
Easy access to relevant information will mean that individuals will also be
able to plan their own career moves within the company, thus utilising the
available talent to the benefit of both the company and the individual.
With multiple teams, the rigid traditional job description will also have to
disappear. Job descriptions are not flexible enough for the constantly
changing world of new strategies, customer requirements and
membership of multiple teams. To fill this gap, companies will follow the
competency-based approaches more enthusiastically. Competencies can
and should be organised into menus that individuals and teams can use to
describe their work and conduct people practices.
With workers at distant work sites, problems can also arise regarding the
appraisal system to be used and the manner in which these individuals
are compensated. Innovative methods will have to be devised by HR
managers to address these unique situations.
2 Briefly explain Kesler's performance capabilities model.
Answer: (Table 13.1 and Sec 13.2.1)
The performance capabilities model: defining the fundamental role of HR
Greater leveraged Less leveraged
Roles roles
1 2 3 4 5 6
Catalytic Diagnostic Innovating Assurance Administration Problem-
influence assessment processes, of standards and services solving
structure
'Partnering role' 'Transactional role'
● Enable others ● Service others (or remove administrative
● Knowledge-based barriers)
● Performance-based quality ● System-based
● Distributed resources ● Conformance-based quality
● Enhance business performance ● Consolidated resources
● Knowledge transfer to line ● Economy of scale/cost (commodity)
● Highly integrated with business process ● Few specialists/admin transferred to line
● Non-linear work - focus design on ● Parallel, stand-alone
outcomes and competencies ● Linear work - process map and redesign
● Early life cycle (for consolidation, elimination, automation)
● Late in the life cycle
Source: Kesler, G.C. 1995. A model and process for redesigning the HRM role, competencies, and work
in a major multinational corporation. Human Resource Management, vol. 34, no. 2 (Summer), p.
237. Reprinted by permission of Wiley-Liss Inc., a subsidiary of John Wiley & Sons, Inc.
2
1 Discuss the important challenges facing management and HR
professionals regarding the development of virtual organisations.
Answer: (Sec 13.1.1)
Management perspective
From a management perspective, issues such as effective communication
and planning will need attention as the face-to-face approaches which
have worked well over the years disappear. In addition, to capitalise on
the flexibility and speed that is possible through these networks, managers
and team members will have to form clear agreements from the outset
regarding issues such as performance expectations, team priorities,
communication links, and resource allocation. Other problems that may
arise include possible misunderstandings and interpretations as a result of
electronic mail (e-mail) correspondence. By means of this system
messages and computer files can be sent electronically from computer to
computer over a network. The advantage of e-mail is that it cuts down on
paper use and increases the speed of messages. According to Barnatt,
the computer giant Microsoft sees its e-mail system as the carrier of its
culture. The company is expanding so rapidly that it is reliant on e-mail as
the glue to hold its employees together.
The redistribution of power within the organisation can also be
problematic. For example, with electronic networks, individuals can skip
levels in the chain of command and give senior managers direct feedback
on problems or successes, which is not the case in many conventional
organisations.
As a result of the computer networks, faster decision-making and easier
access to company information are also possible. However, the speed of
decision-making may place great pressure on individuals who do not
possess the necessary skills to function within such environments. At the
same time, those who thrive in such an environment will find themselves
in a strong competitive position in the networked marketplace.
HRM perspective
From an HRM point of view the virtual organisation also holds a number of
challenges. For example, the way recruitment and career development
have been approached in the past will change rapidly. More companies
and employees are using the Internet to match jobs and candidates. If the
information on individuals is up to date and correct, no skill within a
company will be able to go unnoticed. It also helps management to put
people together with specific skills via cross-functional teams to solve
problems. This was impossible in the past with outdated information
1
, systems and rigid organisational structures. Flexibility is thus the new
goal.
Easy access to relevant information will mean that individuals will also be
able to plan their own career moves within the company, thus utilising the
available talent to the benefit of both the company and the individual.
With multiple teams, the rigid traditional job description will also have to
disappear. Job descriptions are not flexible enough for the constantly
changing world of new strategies, customer requirements and
membership of multiple teams. To fill this gap, companies will follow the
competency-based approaches more enthusiastically. Competencies can
and should be organised into menus that individuals and teams can use to
describe their work and conduct people practices.
With workers at distant work sites, problems can also arise regarding the
appraisal system to be used and the manner in which these individuals
are compensated. Innovative methods will have to be devised by HR
managers to address these unique situations.
2 Briefly explain Kesler's performance capabilities model.
Answer: (Table 13.1 and Sec 13.2.1)
The performance capabilities model: defining the fundamental role of HR
Greater leveraged Less leveraged
Roles roles
1 2 3 4 5 6
Catalytic Diagnostic Innovating Assurance Administration Problem-
influence assessment processes, of standards and services solving
structure
'Partnering role' 'Transactional role'
● Enable others ● Service others (or remove administrative
● Knowledge-based barriers)
● Performance-based quality ● System-based
● Distributed resources ● Conformance-based quality
● Enhance business performance ● Consolidated resources
● Knowledge transfer to line ● Economy of scale/cost (commodity)
● Highly integrated with business process ● Few specialists/admin transferred to line
● Non-linear work - focus design on ● Parallel, stand-alone
outcomes and competencies ● Linear work - process map and redesign
● Early life cycle (for consolidation, elimination, automation)
● Late in the life cycle
Source: Kesler, G.C. 1995. A model and process for redesigning the HRM role, competencies, and work
in a major multinational corporation. Human Resource Management, vol. 34, no. 2 (Summer), p.
237. Reprinted by permission of Wiley-Liss Inc., a subsidiary of John Wiley & Sons, Inc.
2
