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HRM in project-based organisations

Karin Bredin

Department of Management and Engineering

Linköping University

Karin.bredin@liu.se

Agenda

Modern organisations in transition

Projects and Project-based organisations

Human Resource Management (HRM)

Challenges

How are companies changing?

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Modern organisations in transition

”I think Chaplin was trying to say: Fight for your own humanity. Don’t allow yourselves to get dehumanized! He shows it as a David and Goliath struggle, to not get caught in the wheels, to not be forced into a job that takes your soul and turns it into a cog…”(Movie critic L. Milton)

Charlie Chaplin’s Modern Times, 1936

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Organisational changes – important influences in the development of HRM

A shift from bureaucratic organisations and ”de-skilled” work to

…service- and knowledge-based organisations

…complex technologies and complex problem solving

…higher levels of education among employees

Created needs and opportunities for

…utilising employees’ full potential

…enhancing worker autonomy and motivation (high involvement)

…total quality management instead of cost management

An individualised working life

Work – earning one’s living or a ”life project”?

Self actualisation through your work

Building an attractive carreer: employability

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SonyEricsson – students’ choice:

The difference is you

We offer first-class training, an international environment and an innovative culture where you can grow to your full potential and your ideas can fly. We lead the way in mobile communications, film and imaging, music and games. A lead we can only keep by hiring the best people and giving them the best opportunities to succeed – personally, socially and occupationally. (www.sonyericsson.com)

Trends interrelated with new organisational forms

Knowledge intensity and competence development

Individualisation and employability

More flexible organisational arrangements (projects, networks, temporary workforce)

Finding flexible and effective ways of integrating knowledge resources

Creating time and task focus

Enhance organisational flexibility

Enhance motivation and commitment

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Projects and project-based organisations

An increasingly common work environment

Projects and project-based organizations

Project Specified aim: a process intended to produce certain results

Specified resources: certain resources are devoted to the project

Temporary: it has identifiable start and end points

Cuts across organisational lines: Integrates people and competences from different parts of the organisation, or across different organisations.

Project-based organization A ’permanent’ organisational framework in which temporary projects are

embedded

Carry out most of its core activities in projects.

Project work is routine rather than the exception

”Individuals working by projects experience a long-term trajectoryconsisting of a long series of projects” (Packendorff, 2002, p 44)

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Project-based work

Projects are temporary

People move between line and projects, and between project teams.

Projects are often cross-functional

People work in cross-functional project teams

Cross-functional project work can be organised in different ways at the operational level

Intra-functional: focus on cooperation within the line (the same knowledge base)

Inter-functional: focus on cooperation in the project team

Fragmented participation: Several parallell projects

Focused participation: One project at a time

Project work

Participation

Inter-functional

Focused

Fragmented

Intra-functional

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Human Resource Management

Activities, processes and structures directed towards the management of the relation

between people and their employer

Critical HRM topics:

How to get access to individuals with the competence we need?

How to make sure that our employees get feed back and a fair compensation for their efforts

How to support our employees’ competence and career development – both for the sake of the organisation and to satisfy the needs and interests of our employees?

How to support the total life situation of our employees, avoiding problems with health and work-life balance?

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HRM practice area Focus

Flows (1) In‐ and out flows of human resources across the organizational boundaries.(2) Internal flows: job rotation, mobility in line and project dimensions. 

Performance (1) Design of work settings that allow for high‐performance and enhancement of proper and motivating work conditions.

(2) Appraisal, feedback, and reward systems.

Involvement  (1) Involvement in decision‐making processes.(2) Individual influence on work and work conditions.

Development (1) Competence development.(2) Career systems and development.

HRM at an operational level: core practice areas

Opportunities and challenges with project work Projects

Can integrate knowledge in an effective and flexible way, and creates a focus

Is often considered to be fun, motivating, and challenging

Provide opportunities for shifting assignments, a broadening of competences and individual development.

Projects

Create a short-term focus which affects long-term needs (e.g. competence and career development)

Create a high-intensive work environment

Sets a new stage for evaluation and feed-back

Increase the demands on individual employees

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Challenges

Challenges for HRM: Flows

Flows of human resources in and out of the organisation.

Temporary projects temporary workforce?

Internal flows of project members between line-project and from one project to another.

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Source: Huemann, Keegan, Turner (2006, p 319)

Challenges for HRM: Performance

Create good conditions for knowledge integration and knowledge sharing.

In the line when focused project participation

In the projects when fragmented project participation

Reliable appraisal/rewards system

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Who sees my performance and who evaluates it?

”Say that Mr Johnson works in a project in England and spends half of his time there. He works in that project team, so the one knowing the most about his performance in the project is his project manager. The coach is not with him! It is enormously difficult for the coach to evaluate his performance, handle the competence mapping and identify gaps. /…/ The coach carries out performance reviews, but the problem is these become theoretical, because the performance of Mr Johnson is only seen by his project manager and his team. The coach cannot question his performance, he has to trust the assessment of others.”  (Top Manager, Tetra Pak).

Challenges for HRM: Involvement

Flatter organizational structures increased responsibilities on individual and team levels.

Possibilities for project members to influence their work situation, minimize stress and impossible work-life puzzles

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The “ideal” project member in focused, inter‐functional project work:

“You need to have self confidence…”

”Not anyone could make it in this environment…”

”You need to have a platform, and continuously build that platform….be able to establish yourself in the projects…”

“In many projects you need to spend a lot of time getting to know the people, establish trust and build your role and place to be able to carry out the assignment. You need to socialize, be nice, say the right things, and all that” 

“The social skills are important. To be able to so to voice your opinion, you need to get an understanding of the situation, what kind of situation is this, what is needed…do I need to act, how should I act? And when you have managed a certain number of situations you grow as a person and thereby become a better project worker.”

Fragmented project work in the line -”Project overload”?

Many projects at the same time

Feelings of fragmentation, interruptions and inefficiency

Small possibilities to recover between projects

Lack of developed routines

Lack of time

Stress reactions

Less competence development

Time delays

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Challenges for HRM: Development

Balance broad and deep competences

Plan future project assignments according to competence development plans and career plans.

Create career systems that are adapted to the project-based organization (project management, specialist, competence managers

Voices on competence development:

”…the engineer is getting too narrow in his technical skills, so I might have to start a process to get him onto another project to broaden his repertoire of skills…” (Manager Combitech)

Cooperation between different competence areas require broader competencies

T-shaped abilities

“They possess a T-shaped combination of skills: they are not only experts in specific technical areas but also intimately acquainted with the potential systemic impact of their particular tasks. On the one hand, they have a deep knowledge of a discipline like ceramic materials engineering, represented by the vertical stroke of the T. On the other hand, these ceramic specialists also know how their discipline interacts with others, such as polymer processing — the T’s horizontal top stroke.” (Iansiti, 1993:139)Disciplinary abilities

Ability to apply your knowledge in different situations and relate it to

other knowledge areas.

Source: Iansiti, 1993; Leonard-Barton, 1995

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Integrating knowledge in project-based organisations: Balancing broad and deep competencies

Wanted development Risk

More effective knowledge integration

Increased flexibility

Loss in deep specialist competence

Decreased quality

Challenges for HRM: Development

Balance broad and deep competences

Plan future project assignments according to competence development plans and career plans.

Create career systems that are adapted to the project-based organization (project management, specialist, competence managers

Voices on competence development:

”It is not necessarily about attending training programs, even if that is also part of it. But it is also about planning what type of project assignment a person should have the next time.” (Competence coach, Tetra Pak

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How do companies meet the challenges?

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How do companies meet the challenges?

New tools and processes to align ”line HRM” and ”project HRM”

Refined functions of the dimensions, but increased communication between the two:

Project – Task – Short term

Line - People and competencies – Long term

Changed line management role

Increased individual responsibility

Clarifyed project management role

Changes in HR departments

Introducing the HR quadriad in project‐based organisations A group of four with an interest or a task in common

Important part of the HR organisation at the operational level

How does the operational project work setting influence the design of the HR quadriad?

HR Specialists

Line Managers

Project Managers

Project Workers

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Intra-functional and fragmented project work

Inter-functional and focused project work

Project workers Disciplinary specialists. Learn how to handle fragmented project participation. Mentors in the line, might be active in recruitment processes.

Disciplinary generalists. Focused project participation. Important responsibility for maintaining and developing ‘deep’ competences. Develop a ‘reputation’ as good project members. Learn how to handle shifting assignments and teams.

Line managers Technology/competence managers. Supervisors. Direct assessment.

Competence managers. Competence puzzle-solvers. Disciplinary coordinators. Assessment hubs. Artist agents.

Project managers Project coordinators. Sources of information for performance appraisal.

Team leaders. Participants in performance review processes. Ensuring working climate.

HR specialists Integrated HR support. Integrated with line operations. Collaborators with line management.

HR service centers. HR specialists. Infernal consultants. Support on demand. Providing arenas for HR experience sharing.