Human Resource Professionals and Management Order Instructions: I have ordered the first section of my dissertation. Please strictly follow the DBA rubric (I will email it to you shortly).
My dissertation topic is “What Human Resource (HR) Professionals can do to increase an organization’s profitability?”
I will email some other guidelines and examples of qualitative research to you later.
Thanks for providing such great work as always.
Human Resource Professionals and Management Sample Answer
Table of Contents
Section 1: Foundation of the Study …………………………………………………………………………………..3
Background of the Problem ……………………………………………………………………………………………..3
Problem Statement ………………………………………………………………………………………………………….4
Purpose Statement …………………………………………………………………………………………………………..4
Nature of the Study …………………………………………………………………………………………………………5
Research Question …………………………………………………………………………………………………………..7
Interview Questions……………………………………………………………………………….7
Conceptual Framework …………………………………………………………………………………………………….8
Definition of Terms…………………………………………………………………………………………………………10
Assumptions, Limitations, and Delimitations …………………………………………………………………….11
Assumptions ……………………………………………………………………………………………………….11
Limitations …………………………………………………………………………………………………………12
Delimitations ………………………………………………………………………………………………………12
Significance of the Study ………………………………………………………………………………………………..12
Contribution to Business Practice ………………………………………………………………………….12
Implications for Social Change ……………………………………………………………………………..14
A Review of the Professional and Academic Literature ………………………………………………………15
The role of HRM in organizations……………………………………………………….16
HR Professionals’ Effectiveness…………………………………………………………17
HR Professionals’ Competencies…………………………………………………………17
HR Professionals’ Willingness…………………………………………………………..18
Transition and Summary …………………………………………………………………………………………………18
References………………………………………………………………………………………..20
Section 1: Foundation of the Study
1.2 Background of the Problem
Large and small businesses may require their human resource professionals additional strategic strategies in order to increase organization’ profitability (Çalişkan, 2010; Becker & Huselid, 2014). In a business environment that is rapidly changing and competitive, human resources professionals remain a crucial source of competitive advantage subsequently leading to increased profitability (Wright, Dunford & Snell, 2014). The creation of sustainable human resources strategies are essential for continued profitability of organizations based in the United States (Pfeffer & Veiga, 2014). However, many organization’ profitability are below satisfactory levels due to a lack of appropriate knowledge about effective utilization of human resources (Klink & Boon, 2012; Lawler & Mohrman, 2013). Organizations that lack implementation of the necessary by human resources professionals often record the lowest profits in the United States and their profitability could increase due to additional HR strategies (Yeung, Woolcock & Sullivan, 2012; Zaugg & Thom, 2013).
Accordingly, addressing these profitability levels that are less than average in organizations appropriate human resources strategies can help them improve their profitability (Huselid, Jackson & Schuler, 2014). The information in published literature generally shows relationships that are statistically positive and significant between the adoption of appropriate HR practices and organizations’ profitability or business performance. The purpose of this qualitative exploratory case study was to explore what HR professionals can do to increase organizations’ profitability. As a result, this research could lead to improved profitability in organizations by providing the necessary information to HR professionals in organizations about effective HR strategies that have potential to considerably increased profitability.
1.3 Problem Statement
The most important aspect of many businesses in the United States accounting to about 80% of the value of an organization is attributable to intangible assets, including human capital and assets (Platonova, Hernandez & Moorehouse, 2013). Considering that compensation of personnel accounts for about 60-85% of operating budgets of many organizations, if it is effectively management by HR professionals may have significant effect on the bottom line through improved productivity and subsequent increase in profitability (Walsh, Sturman & Longstreet, 2010). HR professionals that achieve sustained profitability may increase it through improved HR strategies (Çalişkan, 2010; Becker & Huselid, 2014). The general business problem is that HR professionals in many medium sized organizations have limited strategies to improve employees’ productivity and increase organizations’ profitability. The specific business problem is that HR professionals in many medium sized organizations often lack appropriate HR strategies to increase the profitability of their organizations.
1.4 Purpose Statement
The purpose of this qualitative exploratory case study was to explore how HR professionals in many medium sized organizations can use HR strategies to increase the profitability of their organizations. Ten HR consultants and five employees of a recruiting agency who operate in central Ohio have participated in semi structured interviews. I also undertook a review of the agency and company documents where profits are recorded for methodological triangulation demonstration. HR professionals in many medium sized organizations may significantly benefit from the study by expanding the knowledge gained from HR strategies to increase organizations’ profitability. This would subsequently ensure that these organizations recruit more employees from the accruing increasing profits which usually positively related to continued expansion of these organizations. Furthermore, the findings from the study could potentially provide HR professionals in many medium sized organizations with strategies to motivate their employees, including continuous professional trainings for progressive career development as well as increased remunerations in terms of wages, allowances and bonuses contributing to improvement of their financial status and well-being as well as growth of the local economy.
1.5 Nature of the Study
This study used a qualitative research methodology. This is attributable to the fact that qualitative research utilizes common themes out of detailed experiences through the identification of a person’s intentions and actions (Rehman & Roomi, 2012). Through the research method which is qualitative the researchers are allowed to undertake an exploration of complexities in the behaviors’ of an individual from the participants’ viewpoint with regards to a phenomenon that is contemporary (Walker, 2012; Yin, 2014). According to O’Reilly & Parker (2012) for the data saturation in the study which is associated with the depth of the research sample as well as the ability of achieving data repetition by conducting interviews on most of the HR professionals. When the data saturation is considered with respect to an exploratory case study design, it is evident that it consists of the ones with the significant knowledge towards answering the research topic question. The size and composition of the research sample for the study allowed for the maximum opportunity for relevance and repetition of the research findings (Blau, Bach, Scott, & Rubin, 2013; Stacey & Vincent, 2011; Gherardi & Perrotta, 2014). Furthermore, the addition of qualitative research is likely towards providing answers to questions concerning the HR strategies and/or practices required to increase organizations’ profitability (Stacey & Vincent, 2011; Rehman & Roomi, 2012). On the other hand, quantitative research is considered as a statistical method that gives numerical results’ collection to provide additional data sets for analysis (Blau, Bach, Scott, & Rubin, 2013; Stacey & Vincent, 2011; Gherardi & Perrotta, 2014). However, according to Stacey & Vincent (2011) both statistical and numerical approaches are usually designed in a manner such that they do not allow provision of descriptions that are detailed by the research participants concerning their experiences. In particular, when this study is considered a qualitative approach is the most appropriate to offer alternatives that are best.
Exploratory case study design with regards to the nature of the problem was the most appropriate. This is attributable to the fact that a case study usually focuses on the group process, which subsequently leads to a detailed research, and holistically providing the view of issues under consideration from varied data sources (Blau, Bach, Scott, & Rubin, 2013). Case studies are exploratory or explanatory and involve one location or organization, or comparatively including various locations and organizations (Stacey & Vincent, 2011; Yin, 2014; Wolgemuth, 2014). Other designs of research such as ethnography, phenomenology, content analysis, or grounded theory have not yet proved to be cost effective and do not have potential of meeting the study’s purpose. Phenomenological and ethnography research designs were not appropriate for this doctoral study because they usually concentrate on a specific cultural group of participants as a result of a single data source, which means that it is not a process within a group of research participants (Blau, Bach, Scott, & Rubin, 2013; Gherardi & Perrotta, 2014). In addition, according to Shover (2012) grounded theory was also no essential since it would not allow incorporation of multiple responses that were detailed responses from the research participants within an organization (Stacey & Vincent, 2011; Shover, 2012). Furthermore, narrative research design is conducted through the descriptions of the author, and through this process some themes and details may be missed from the research participants which makes the research process incomplete (Gherardi & Perrotta, 2014; Wolgemuth, 2014). The case study design and particularly that of exploratory nature incorporates multiple methods for data collection and the ability towards developing common factors inherent in the collected data (Stacey & Vincent, 2011; Gherardi & Perrotta, 2014).
1.6 Research Question
The research question that guided the study was: What human resource (HR) professionals can do to increase organizations’ profitability?
1.7 Interview Questions
The interview questions that were included are a follows:
- What make you think that human resource (HR) professionals play a crucial role to increase organizations’ profitability?
- How do you use human resource (HR) information to increase the profitability of the organization?
- What goals for increased profitability do you have for the organization?
- What human resource (HR) strategies do you use to increase the profitability for the organization?
- How do you motivate employees use to increase the profitability for the organization?
- How do you identify the strengths of your workforce and harness them to drive profitability for the organization?
- What behaviors exhibited in the workplace by the recruited employees do you think are the most critical in assisting to increase the profitability for the organization?
- What else could you share that is pertinent to your human resource (HR) strategies for increasing organization’s profitability?
1.8 Conceptual Framework
The Ulrich model was the primary conceptual framework adopted in conducting the study. Ulrich & Yeung (1989) developed the Ulrich model in an attempt towards understanding an individual’s competency and effectiveness influence on performance of an organization and subsequent profitability. The development of Ulrich model came from the theory of reasoned action which has had varied definitions including, the utilization of performance metrics of an organization such as productivity, return on investment (ROI), etc. and these metrics may be utilized as indicators of HRM effectiveness such as employee selection, advancement and retention (Ahmad, Kausar & Azhar, 2015); or human resource development, staffing, remuneration, health and safety management of employees as well as labor relations (Huselid, Jackson & Schuler, 2014). Brockbank, Ulrich & Beatty (2013) stated that while many studies involve the concept of organizational strategies with regards to human resource management, the competency and effectiveness of the human resource department professionals ought to be given a priority in order to deal with employee motivations and newly emerging challenges.
According to Martina, Hana & Jiri (2012), the Ulrich model offers an up to date look into human resource management that extends beyond mere management of the human capital into implementation effective strategies including intentions and actions aimed at keeping up with the appropriate utilization of an organization’s human capital to increase profitability. Ahmad, Kausar & Azhar (2015) stated that Ulrich Model creates a framework from three varied capabilities of human resource professionals. The first is the competency toward performance, the second is the effectiveness of human resource professionals toward organizational performance, and the third is the willingness of human resource professionals toward organizational performance. Martina, Hana, and Jiri, (2012) argue that identification of human resource competencies and its subsequent development forms crucial components of HRM targeted at achieving improved profitability of the organization. For instance, competencies, i.e. the necessary capabilities to ensure that the required level of profitability is achieved, in conjunction with effective organization management becomes a critical factor of competitive advantage and subsequently also a source of increased profitability. The central objective of this model was to explain the relationship between the competency human resource professionals and performance of the organization during the initial development of competency models which constituted the HRM domain (Ulrich & Yeung, 1989). Later modifications of the Ulrich model suggest six competency domains including Cultural and Change Steward, Operational Executor, Credible Activist, Talent Manager/Organizational Designer, Business Ally, and Strategic Architect (Ulrich et al., 2007). This implies that proposed model by Ulrich et al., (2007) is undoubtedly the most pertinent to today’s HR Professionals and contemporary business world. The purpose of the qualitative exploratory case study was to explore the human resource strategies of a medium sized HR consulting company as well as a medium sized recruiting agency in central Ohio that have emphasis on increasing organizations’ profitability. The ability to understand the strategies necessary for human resource professionals may provide insight into how they could use effective human resource management practices to increase profitability of an organization (Brockbank, Ulrich, Younger & Ulrich, 2012).
1.9 Definition of Terms
With regards to the research topic concerning exploring of what HR professionals can do to increase organizations’ profitability, the following defined terms are specific and unique to the study topic. These definitions help the reader to understand the study as a whole.
Profitability: This is the ability of an organization to earn profit from its business ventures (Yeung, Woolcock & Sullivan, 2012).
Productivity: This is the effectiveness of a productive effort in an organization, as a measure of output rate per unit of input (Platonova, Hernandez & Moorehouse, 2013).
Human capital: Human capital is the skills, knowledge, and experience possessed by an individual and includes education, experience, knowledge, and skills (Wright, Dunford & Snell, 2014).
Motivation: Motivation describes someone’s general willingness or desire to do something (Mohrman, Lawler & McMahon, 2014).
Cognitive orientation: Cognitive orientation describes the different ways an individual may go about the thinking process (Walsh, Sturman & Longstreet, 2010).
Competency: Competency describes the ability someone’s to do something effectively or successfully.
Practices: Practices describes the ability to perform or carryout a particular method, custom, or activity regularly or habitually (Wright, McMahan & McWilliams, 2014).
Strategy: Strategy describes a policy or a plan of action designed to attain a major or overall aim of an organization (Yeung, Woolcock & Sullivan, 2012).
Sustainability: Sustainability is consistent development based on the balance of economic, social, and environmental outcomes to provide benefits to multiple stakeholders (Huselid, Jackson & Schuler, 2014).
1.10 Assumptions, Limitations, and Delimitations
Assumptions
In order to make sure that the study was successfully completed there were several basic assumptions that were made. The first assumption was that, during the interview process the researcher shall obtain active feedback from the research participants as a result of their enthusiasm to participate in the study, enthusiasm of contributing to the data, trustworthiness, as well as reliability during interviews participation and provision of records. The second crucial assumption that was made during this study is that women HR professionals are nowadays looking for ways to increase profitability of their organizations. The last assumption that was made during this study is that research participants would provide perspectives that would assist other HR professionals and not only focus on their industry and business. This assumption was made on the premise that the research participants can articulate how to use human resource management strategies to increase organizations profitability. However, the risk would have been that the research participants were likely to focus on other strategies they believe HR professionals need to know, but this risk was mitigated by asking questions that specifically focused on HR strategies subsequent to asking probing questions that helped to seek clarifications and kept the interviews in focus.
Limitations
The study may be limited by the selected location of study, and the memories of the research participants selected may have inherently missing details making it entirely inaccurate. Furthermore, there is a possibility of research participants unwilling to share or holding back information. For the mitigation of this limitation particularly the lack of willingness to open up and memory, the interview questions focused on specific issues followed by probing questions to seek for clarifications in order to ensure that succinct answers were obtained. The limited number of research participants is the other limitation since the study only focused on two medium sized businesses in central Ohio.
Delimitations
To mitigate the limitations of the study several delimitations were devised concerning the research participants, data, as well as the geographical area of the study. For instance, the study included participants from two HR organizations that seemed to help organizations to effectively manage their human capital. The data collection included interviews with the HR consultants and a recruiting agency’s employees and the reviews were documented. The geographical area provided a reasonable representation of similar areas in the United States.
1.11 Significance of the Study
Contribution to Business Practice
In a business environment that is rapidly changing and competitive, human resources professionals remain a crucial source of competitive advantage subsequently leading to increased profitability (Wright, Dunford & Snell, 2014). The creation of sustainable human resources strategies are essential for continued profitability of organizations based in the United States (Pfeffer & Veiga, 2014). This means that HR activities play a vital role in many organizations both large and small and subsequently to the economy (Çalişkan, 2010; Becker & Huselid, 2014). According to Martina, Hana, and Jiri (2012) if appropriate HR strategies and/or practices are implemented they create economic growth, and there is likelihood of businesses to further benefit from the findings of the study concerning HR strategies that are essential to increase organizations’ profitability (Yeung, Woolcock & Sullivan, 2012). Organizations that tend to deploy the most effective HR strategies and/practices display the ability of sustaining grow profits, high profits, and effectively utilize its human capital (Platonova, Hernandez & Moorehouse, 2013; Huselid, Jackson & Schuler, 2014). Additionally, highlighting profitability strategies that accrue from effective utilization of the human capital could help to improve the expansion of many small and medium sized organizations (Çalişkan, 2010; Becker & Huselid, 2014). Future research is highly required in this topic since it may help in providing specific strategies HR professionals to increase profitability of their respective organizations. Human capital constitutes the most crucial production input, thus improving HR strategies aimed at its effective utilization can result to increased production subsequently leading to increased profitability (Ahmad, Kausar & Azhar, 2015). Furthermore, sharing HR strategies on effective utilization of human capital may increase the likelihood that of other organizations to increase profitability (Yeung, Woolcock & Sullivan, 2012; Zaugg & Thom, 2013). Therefore, the findings of this study could contribute to business practice by providing knowledge to HR professionals concerning how to use appropriate HR strategy to increase the profitability of their organizations (Çalişkan, 2010; Becker & Huselid, 2014).
Implications for Social Change
Successful organizations have effective utilization of human capital through adoption and sharing of appropriate HR strategies, creating opportunities to increase profitability for other organizations (Gherardi & Perrotta, 2014; Wolgemuth, 2014). In the United States, HR management has become one of the fundamental drivers of business development and growth (Ahmad, Kausar & Azhar, 2015). Additional strategies for HR professionals especially those working in small and medium sized organizations improve the performance of their organizations, creating a positive impact on the economy (Çalişkan, 2010; Becker & Huselid, 2014). This means that when HR professionals adopt the right HR strategies, there is a high probability of increasing profitability (Wright, Dunford & Snell, 2014).
HR professionals in many medium sized organizations may significantly benefit from the study by expanding the knowledge gained from HR strategies to increase organizations’ profitability. This would subsequently ensure that these organizations recruit more employees from the accruing increasing profits which usually positively related to continued expansion of these organizations (Wright, Dunford & Snell, 2014). Furthermore, the findings from the study could potentially provide HR professionals in many medium sized organizations with strategies to motivate their employees, including continuous professional trainings for progressive career development as well as increased remunerations in terms of wages, allowances and bonuses contributing to improvement of their financial status and well-being as well as growth of the local economy (Walsh, Sturman & Longstreet, 2010). Social change stem from empowering HR professionals by providing appropriate HR strategies and creating a culture of continuous and effective utilization of human capital by organizations making them highly profitable (Gherardi & Perrotta, 2014; Wolgemuth, 2014). Accordingly, the study findings can help in developing better training programs at the workplace to make employees more productive, and the acquired skills can also be used to significantly impact the society positively (Brockbank, Ulrich, Younger & Ulrich, 2012; Wright, Dunford & Snell, 2014). Social change can come from the corporate social responsibility undertaken by many organizations from a proportion of the earned profits due to expansion, which can be attributed to adoption of effective HR strategies (Walsh, Sturman & Longstreet, 2010).
1.12 A Review of the Professional and Academic Literature
The purpose of the qualitative this exploratory case study was to explore what HR Professionals can do to increase organizations’ profitability. The central research question for the study was as follows: What HR Professionals can do to increase organizations’ profitability? This research question seems very essential due to the fact that it considers human resource strategies that directly impact profitability. The determination of possible human resource strategies is likely to be achieved through a qualitative research method, using an exploratory case study design. This is attributable to the fact that an in-depth exploration of medium sized organizations’ HR strategies that directly affect profitability has the potential to lead to increased knowledge for HR professionals across various sectors (Brockbank, Ulrich, Younger & Ulrich, 2012).
This section presents a detailed review of both seminal and contemporary peer-reviewed literature relating to the research topic including studies that address the limitations and potential for future research in this research topic. The literature review is focused on these key areas: the Ulrich model, HR professionals, and why the Ulrich is important to understanding HR in an organizations and its subsequent profitability.
Various database searches were conducted and they are the basis of the literature review. The used databases include: Business Source Complete, Academic Search Complete, ProQuest Central, Google Scholar, and Emerald Management Journals. The keywords and phrases used in the databases searches include:
HR professionals; HR strategies; theory of HR management; motivations of employees in organizations; HR management and organizations’ profitability; HR competency; HR effectiveness. The majority of the articles were from peer-reviewed journals published since 2011. The literature review contains a minimum number of articles dated greater than 5 years as well as a minimal number of references are from journals that are not peer reviewed.
The role of HRM in organizations
The role of HRM in the organizations has significantly changed to align with shifting economic activity (Brockbank, Ulrich, Younger & Ulrich, 2012; Wright, Dunford & Snell, 2014). Initially the HR professionals were considered as implementers of organization rules and policies, a role that was basically administrative (Walsh, Sturman & Longstreet, 2010). Alternatively, in transitional economies there has been a realization that the employees are strategic resources in terms of the value that they offer to the organizations with the unique feature of being repositories of knowledge, skills and capabilities (Wright, Dunford & Snell, 2014). As it is the people who actually implement the strategies by leveraging their skills and capabilities and therefore, the HR professionals who are tasked with managing this resource has become the resource of organizational success (Yeung, Woolcock & Sullivan, 2012; Zaugg & Thom, 2013). This has created the need for HR professionals to recognize this shift in paradigm by adapting to it for the sake of improving and enhancing HR’s organizational contribution meaning that HR professionals are not only required to embark on transforming what they do but also recognizing that their capabilities have a significant impact on their effectiveness and performance (Çalişkan, 2010; Becker & Huselid, 2014).
HR Professionals’ Effectiveness
The notion of managerial effectiveness has been of interest to researchers since the 1960s (Ahmad, Kausar & Azhar, 2015). HRM effectiveness came from the theory of reasoned action which has had varied definitions including, the utilization of performance metrics of an organization such as productivity, return on investment (ROI), etc. and these metrics may be utilized as indicators of HRM effectiveness such as employee selection, advancement and retention (Ahmad, Kausar & Azhar, 2015); or human resource development, staffing, remuneration, health and safety management of employees as well as labor relations (Huselid, Jackson & Schuler, 2014). Brockbank, Ulrich & Beatty (2013) stated that while many studies involve the concept of organizational strategies with regards to human resource management, the competency and effectiveness of the human resource department professionals ought to be given a priority in order to deal with employee motivations and newly emerging challenges.
HR Professionals’ Competencies
Selmer and Chiu (2004) define competency as the work related personal attributes like knowledge, skills and values that individuals draw upon to do their work well and is focused on the individuals’ internal factors. According to Martina, Hana & Jiri (2012), an up to date human resource management extends beyond mere management of the human capital into implementation effective strategies including intentions and actions aimed at keeping up with the appropriate utilization of an organization’s human capital to increase profitability. Ahmad, Kausar & Azhar (2015) stated that to achieve this there is need for the utilization of a framework from three varied capabilities of human resource professionals. The first is the competency toward performance, the second is the effectiveness of human resource professionals toward organizational performance, and the third is the willingness of human resource professionals toward organizational performance. Martina, Hana, and Jiri, (2012) argue that identification of human resource competencies and its subsequent development forms crucial components of HRM targeted at achieving improved profitability of the organization. For instance, competencies, i.e. the necessary capabilities to ensure that the required level of profitability is achieved, in conjunction with effective organization management becomes a critical factor of competitive advantage and subsequently also a source of increased profitability.
HR Professionals’ Willingness
According to Martina, Hana, and Jiri, (2012) the work performance of efficiency among HR professionals improves if individuals have the will to put more effort to the task. One of the reasons why many project fail lies in the lack of enthusiasm, unwilling or uninterested behavior at employee’s end (Ahmad, Kausar & Azhar, 2015). As a result, HR professionals ought to be willing to actively contribute in the implementation of the HRM strategies through their competencies to achieve competitive or comparative advantage.
- Transition and Summary
Section 1 was an introduction to the study, problem statement, and the lack of knowledge on how successful women small business owners use profitability strategies. The section covered some key elements for the study, to include the Problem Statement, Purpose Statement, Nature of the Study, Research Question, Conceptual Framework, Significance of the Study, and Literature Review sections. Human capital shows a significant proportion of expenses in organizations which subsequently reduce their profits (Platonova, Hernandez & Moorehouse, 2013). Research shows a lack of profitability strategies that are unique to the utilization of human capital (Platonova, Hernandez & Moorehouse, 2013). Organizations perform better when their human capital is aligned to their needs (Çalişkan, 2010; Becker & Huselid, 2014). The findings from the study could provide HR professionals with a better understanding of the strategies that are effective for the needs of their organizations. The knowledge could facilitate HR professionals to enhance the profitability potential in their organizations. The literature review provided an understanding of the processes, social constructs and motivations that are unique to human resource management. In Section 2, there is a description of a qualitative method research approach, including the populations and sampling, data collection, data analysis, and reliability and validity. The information in Section 3 presents the doctoral study findings, including applications to professional practice, implications for social change, and recommendations for future study.
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