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Banfield and Kay: An Introduction to Human Resource Management

Chapter 08

HRM Insight 8.2: Developing the HR function in an international company (pg. 195)


An explanation of how the issues confronting the HR manager were resolved


Three key developments within the company overall are relevant to the case study in chapter eight.

Firstly, as a result of her commitment to professionalise the HR function within the Cork plant, The HR manager, because of her commitment to gaining recognition for the herself and the HR function, was able to reach agreement from all members of the management team that ‘people management’ issues should be channelled through HR – effectively through her.  This had the effect of avoiding individual managers acting independently and in a way that reflected their sectional interests.  However, this process of change was not achieved without resistance, and even though a sense of team identity gradually emerged, several managers were reluctant ‘team players.’ One important implication of HR occupying a central role in respect to people management issues, is that plant managers may now feel that as HR have primary responsibility for this area, it absolves them of any HR contributions in respect of their subordinates, leaving them free to focus on production and non-people matters. This would be an unintended consequence of the changes explained.

Secondly, a new factory General Manager was appointed about 12 months ago – someone who is very supportive of HR and conscious of the value of his employees.  The HR manager was instrumental in his selection – recognising his commitment to base the management of the factory on a team culture. He has proven to be a very good leader with a powerfully inclusive style that embraces the whole management team. He and the HR manager work closely together on HR issues, and this means of course that HR has a champion at the head of that part of the organization. This is a good example of how a new senior appointment can have a strategic impact on the way an organization operates.

Thirdly, developments have also been taking place at the company’s headquarters in Belgium.  The original HR director is still there, but because of life style choices and an inability to understand the strategic challenges facing the HR function, she has taken a ‘back seat’ and is no longer influential in terms of HR strategy and policies. The company has also created a new position of Vice President Global Operations, who has become an ally of the Cork HR manager, and is working with her to address some of the deficiencies in the company’s global HR strategy, which is becoming an important issue as the company continues its global expansion. There is a strong possibility that the Cork HR manager will be appointed to a senior corporate HR role to develop and take responsibility for delivering the strategy.