TUTORIAL ARTICLE - Evans, S.2018
TUTORIAL ARTICLE - Evans, S.2018
TUTORIAL ARTICLE - Evans, S.2018
www.emeraldinsight.com/0142-5455.htm
Introduction
This paper sets out to examine the interplay between the role of front line managers’
(FLMs) and their implementation of employee relations (ER) and human resource
management (HRM). The importance of studying line managers is significant to our
understanding of ER/HRM in organisations because they act as key agents by taking
responsibility for translating policy into action (Purcell and Hutchinson, 2007; Brewster
et al., 2013; Guest and Bos-Nehles, 2013; Townsend, 2012a, b, c, 2013; Wright and Nishii,
2013). Previous studies have found a number of issues associated with the process
implying that line managers can either enhance or undermine ER/HRM effectiveness
(e.g. McGovern et al., 1997; Renwick, 2003, 2004, 2009; Hutchinson and Purcell, 2007;
Marchington and Suter, 2012; Townsend et al., 2013a). However, most research studies
place line managers as an adjunct to the main analysis and underplay the importance of
how they translate ER/HRM policies into practice (Brewster et al., 2013). Consequently, any
relationship between the problems already known about devolving people management to Employee Relations
the line and its relationship with the reported gap between intended and actual ER/HRM Vol. 37 No. 4, 2015
pp. 459-474
has received less attention (Khilji and Wang, 2006; Woodrow and Guest, 2014). In addition, © Emerald Group Publishing Limited
0142-5455
research has tended to classify line managers as a generic homogenous group with little DOI 10.1108/ER-06-2014-0066
ER delineation between the hierarchal structures of management within organisations. This
37,4 paper contributes to the literature on ER/HRM and line management by focusing on a
group of managers who have been largely neglected in previous research – FLMs. These
can be defined as the first level of management to whom only non-managerial employees
report (Hales, 2005, p. 473). This paper examines FLMs’ implementation of ER/HRM policy
to learn about their contribution to the reported gap between intended and actual HRM. In
460 doing so it addresses the call for more research that places FLMs central to the main
analysis and differentiates between levels of management.
The paper is structured as follows. The first section considers research on line
managers and ER/HRM with a focus on the problems that have been identified in the
process of devolving HRM down the line. The fieldwork was conducted in the retail
sector and so the industry context is briefly outlined. A summary of the methodology and
presentation of the findings follows. The paper concludes with a discussion of the factors
that influence FLMs’ management of human resources in the case study organisations
and their contribution to any divergence between intended and actual HRM. The research
found that FLMs are key agents in people management and play a critical role in the gap
between intended and actual policy. The tensions inherent in organisational strategies of
quality enhancement alongside cost reductions resulted in a manipulation of people
management by FLMs in their efforts to juggle the demands of their role.
Methodology
462 This study is part of a larger project investigating ER/HRM in retail organisations.
A case study approach was adopted to explore how ER/HRM policies and practices
operate in the retail industry and the role of different levels of management in the
process. This was to address the call for greater distinction between various categories
of management when considering how ER/HRM policies are translated into practice
(Sanders and Frenkel, 2011) and the need to better understand the processes of
ER/HRM (Brewster et al., 2013; Guest and Bos-Nehles, 2013; Woodrow and Guest,
2014). The aim of this study was to understand how and why FLMs executed their ER/
HRM responsibilities. As such, a case study approach was adopted as this was
considered most appropriate given that the focus of the study was on social processes
and consequences within a real-life context to address “how” and “why” research
questions (Yin, 2009).
This paper is based on the findings of two retail organisations operating across
distinct retailing sectors. Superco operates in the grocery market and Homeco operates
in the home improvement sector. Each organisation is concentrated in the superstore
sector of retailing, conducts large-scale store operations and hold the highest market
share in their respective sectors. Two stores within each organisation were used for
data collection to enable comparability between stores and increase validity by
reducing the risk of one particular store distorting the findings. The selection of stores
was determined through negotiation with the initial gatekeeper for the project, but was
ultimately controlled by each organisation.
A qualitative approach was adopted to collect and analyse the data to understand
FLMs’ roles and experiences of implementing HRM within a specific industry context.
The research objectives of the study required a depth of understanding that would be
more difficult to obtain using solely quantitative methods. The data were collected
using semi-structured, face-to-face interviews and document analysis. Interviews were
selected as the preferred data collection method because the research study sought to
investigate the experiences of FLMs in the execution of their ER/HRM responsibilities.
The interview sample for the larger research project translated to managers at each
level of the organisations’ hierarchy. Table I outlines the basic characteristics of
each retail store under investigation and details the interviews conducted with each
level of management. A total of 51 interviews were completed with a range of managers
operating at Head Office, Regional and Store level. For the reasons articulated earlier,
this paper focuses on FLMs, of whom a total of 27 interviews were conducted between
2012 and 2013. The number of interviews conducted at each store was determined by
the size of the store, which in turn dictated the number of FLMs employed at each site.
All interviews were one-to-one with no other persons present. A range of secondary
sources including corporate web sites, annual reports, strategic plans and ER/HRM
policy documents were also studied.
The aim of this study was to investigate the role of FLMs in ER/HRM so the
interview questions covered a range of topics including organisational context,
strategies and policies, management roles and responsibilities, the communication and
implementation of ER/HRM policy, and any associated problems or challenges with the
Store weekly Number of Front line Senior Total
Store opening store manager manager Executive manager number of
Company Retail sector location hours employees Departments interviews interviews interviews interviews
Superco Grocery Surrey 83 450 Customer services Section Store HR Director (Head 33
Quays Trading (fresh foods) Managers × 11 Manager Office)
Trading (ambient) Senior store Employee Relations
Human resources Managers × 4 Manager (Head
Office)
Regional Director
Lewisham 126 291 Customer services Section Store
Trading (fresh foods) Managers × 9 Manager
Trading (ambient) Senior Store
Human resources Managers × 4
Homeco Home Essex 78 70 Hardside Supervisors × 7 Store Personnel Director 18
improvement Softside Manager (Head Office)
Administration Assistant Personnel Manager
Managers × 2 (Head office)
Department Regional Director
Managers × 3
Oxford 78 62 Hardside Department Store
Softside Managers × 6 Manager
Gardening Assistant
Customer services Managers × 2
Administration
Trade
Total 27 18 6 51
study methodology
Summary of case
the line
Table I.
463
Juggling on
ER ER/HRM process. The data were initially coded along the themes of the interview
37,4 as identified above with the problems and challenges of ER/HRM implementation
grouped according to Teague and Roche’s (2012) framework of delegation, alignment
and monitoring.
Homeco
Homeco operates in the decorative and DIY sector multiple retailing sector employing
over 25,000 staff. The company was structured on a regional basis with nine regions
across the UK. The study used two stores for data collection; one located in Essex, the
other in Oxford, and both classified as superstores. The Essex store was termed a
“Traditional” store, which meant it had not undergone recent refurbishment, while
Oxford was a “Renewal” store, which had recently undergone major renovation. Each
store had a senior store management team comprising of a Store Manager and two
Assistant Store Managers. The Essex store was sub-divided into three departments: Juggling on
Hardside, Softside and Administration. Each department was managed by a Department the line
Manager, who had responsibility for a variety of sections within their department, which
were each managed by a Supervisor. As a “Renewal” store the Oxford branch had the
same senior store management team and then six departments overseen by Department
Managers, but there was no supervisory level. For the purposes of this research study,
Section Managers in the Essex store and Department Managers in the Oxford store were 465
classified as the FLMs as these positions were the last managerial level to which only
shop floor staff reported.
Homeco had a strategy of growth by means of a store refurbishment programme,
the introduction of a customer loyalty card, improvements to operational efficiency and
a focus on customer service. Homeco operated in a sector with fewer large competitors
than Superco, but the company was struggling to maintain profitability, particularly
due to the recession. Homeco was also facing a number of ER/HRM challenges
including concerns about employee performance, recruitment shortages and high
labour turnover. Consequently, their priorities were directed towards “recruiting
more part-time employees and investing heavily in training all its staff” (HR Director,
Head Office). As in Superco, strategy was communicated using a cascade system
through the management hierarchy.
Research findings
The role and responsibilities of FLMs
FLMs in both organisations were the direct interface between the shop-floor staff
and organisational policy with their roles primarily devoted to operational work
covering people management, customer service and budget control. FLMs across both
organisations commonly started their employment as school leavers and were
promoted from a shop-floor position. This was in contrast to senior Store, Regional and
Head Office managers who were more likely to be recruited as graduates. FLMs had
less opportunity for career progression (due to a preference for graduates at the
more senior management levels), were expected to fill staffing gaps on the shop-floor
when required, and were only paid on average 30 per cent higher wages than
shop-floor staff (compared to senior Store Managers who were paid upwards of 80
per cent higher wages than shop-floor staff). These factors compounded the pressures of
the role because of the divorce between their responsibilities and their status in the
organisation. Within their role they also held significant ER/HRM responsibilities
including recruitment and selection, on-the-job training, performance management
(including staff appraisals), staff scheduling and workload allocation. Unlike Homeco,
Superco employed in-store HR Managers, but the role largely involved duty
management responsibilities with only around a third of their working week devoted
to HRM. These in-store HR Managers typically had relatively little HR experience,
expertise or qualifications:
After the store restructuring, the job became more retail oriented and less HR focused.
But they make you do time in every senior management role to be promoted. So you’ve got
HR managers who don’t know a lot about HR and aren’t really interested in it, but just doing
their time in the role to try and get promoted (Senior Store Manager, Superco, Lewisham).
Therefore FLMs in both organisations did not receive particularly significant support
in the execution of their HRM responsibilities, even in Superco which employed
store-level HR Managers.
ER Some aspects of ER/HRM were centrally designed and controlled by Head Office.
37,4 FLMs were given support and guidance in those ER/HRM areas that held greater risk
of Employment Tribunals, such as equal opportunities, reward management, grievance
and disciplinary. For example, Head Office conducted diversity monitoring and
provided diversity training for line managers. Other examples of centralised ER/HRM
included company-wide recruitment and induction processes, as well as some selection
466 methods such as standardised application forms in both organisations, and assessment
tests at Superco. There was also a higher degree of centralised control over pay and
reward decisions whereby any FLMs’ decision about an employee’s appointment or
promotion to a particular pay grade, was subject to approval by their own Senior
Manager and constrained by the budgets set at Head Office. In addition, Superco
operated bonus payments, but these were related to the organisation’s performance,
rather than individual performance, and as such were centrally determined and beyond
the remit of FLMs. Centrally produced customer service training packages were
a feature in both organisations, with store-level HR Managers and FLMs at Superco,
and FLMs at Homeco, delivering the training to shop-floor staff. In summary, some
ER/HRM activities were centrally determined and not left to FLMs, although FLMs
working at Homeco appeared to have more autonomy over ER/HRM than those
at Superco.
Responsibility for the delivery of the organisation’s customer service strategy
also formed a significant proportion of a FLM’s role at both Superco and Homeco.
At Superco, these responsibilities included resourcing longer store opening
hours and the company’s pledge to reduce the length of checkout queues, the
recruitment of Customer Service Assistants, increasing the proportion of full time
employees to improve service delivery, and the achievement of customer service
performance targets set by Head Office. Data were gathered through technology,
mystery shoppers and Head Office visits to stores. The results were compiled
into regional league tables that published the customer service performance
achievements of each store. At Homeco, FLMs’ responsibilities including the
recruitment of customer service employees, the training of shop-floor employees
to fulfil the expectation of greater product knowledge amongst all staff and
achieving requisite performance standards during visits to stores from Head
Office managers to assess customer service performance. However, overall there
appeared to be lower demands for, and monitoring of, customer service standards
at Homeco compared to Superco. The methods of measurement and monitoring of
performance were less complex at Homeco and results neither were the results published
in any league tables.
The third key area of responsibility for FLMs was the management of budgets and
financial targets. A budget-driven context was dominant in both organisations, as
reflected in their cost minimisation strategy:
The company has become more ruthless. There are forever devising new ways to cut costs.
The staffing budget was cut by 12% this year even though we are open for longer than we
ever have before (FLM, Superco, Surrey Quays).
Staff budgets at Superco were determined by a non-conformance team based at Head
Office who would visit stores and allocate a labour allowance to each department,
which was then operationally managed by FLMs. At Homeco, budgets and targets
were set at store level as a proportion of its turnover, rather than through any detailed
analysis of labour use at individual departmental level. These differences in the level of
financial control had an impact on FLMs’ execution of ER/HRM, as detailed in the Juggling on
following section. the line
Factors influencing FLMs’ execution of their ER/HRM responsibilities
The factors influencing FLMs’ execution of their ER/HRM responsibilities were
analysed using Teague and Roche’s (2012) delegation, alignment and monitoring
classifications. FLMs at Superco cited delegation issues, particularly time constraints, 467
as a factor that limited their ability to fulfil the ER/HRM responsibilities of their role.
This was largely attributed to the large spans of control for these managers caused by
a high proportion of part timers and the recent management de-layering exercise within
stores. Conversely, FLMs at Homeco did not cite a lack of time to implement ER/HRM
practices as an influencing factor suggesting that delegation issues were less of a
problem. In neither organisation did FLMs disparage their ER/HRM responsibilities or
hold the dissonant opinions identified in previous research (e.g. Maxwell and Watson,
2006; Bondarouk et al., 2009). FLMs appeared committed in principle to their ER/HRM
responsibilities, but those at Superco believed they had inadequate time resources to
effectively implement ER/HRM policy. This appeared to be a consequence of Superco’s
response to the economic climate of pursing a cost cutting strategy with an accompanying
delayering exercise. While this was supported by some “high commitment HRM”
practices, this approach does align with Teague and Roche’s (2014) findings that
organisations are applying mixed bundles of ER/HRM policies in response to the
economic climate. FLMs at Superco bore the brunt of the delayering exercise as it
brought increased pressures to their role causing them to cite delegations issues as a
problem in their execution of ER/HRM. This was not evident at Homeco who took a
more incremental approach to their restructuring process and were not pursuing such
an aggressive cost cutting strategy.
The problem of alignment and institutional support for these managers to carry out
their HR responsibilities was also evident. Both company literature and interview data
emphasised employees as a key contributor to competitive success, particularly at
Superco. Yet, little explicit ER/HRM guidance was provided to FLMs:
All we have for our stores is a 12-point guide to best practice in managing human resources.
We don’t like to direct them specifically because they should know how best to manage their
employees (HR Director, Head Office, Superco).
Combined with the lack of expertise held by store level HR Managers, FLMs had little
institutional guidance or support when executing their ER/HRM responsibilities at
Superco. Similarly, at Homeco, the devolvement of ER/HRM to FLMs was accompanied
by few guidelines from Head Office:
Employment decisions depend very much on the Store Manager. There is very little direction
or impact from Head Office (FLM, Homeco, Essex).
This approach was in line with the company’s lack of centralised control, compared to
Superco, with FLMs describing the culture as “relaxed”, “very laid back”, and “informal”.
In terms of monitoring and evaluation, budgets and targets were a major
influencing factor on the role of FLMs and consequently their management of
human resources. This was particularly exigent in Superco where budgets and
targets were devolved to individual section level and more closely monitored
and evaluated by Head Office. Yet FLMs’ actual people management responsibilities
ER were less closely monitored or evaluated beyond an adherence to staffing budgets, even
37,4 in Superco:
As long as we meet the targets set by head office and keep within our budgets they don’t
really bother us too much about how we actually manage our staff (FLM, Superco,
Lewisham).
468 Such a context gave FLMs greater freedom in their implementation of ER/HRM and
enabled them to make decisions that were contrary to intended policy, but this was
particularly evident at Homeco where there was a lower degree of centralised control
and monitoring of budgets or targets. These findings confirm that the issues of
delegation, alignment and monitoring extend through the management hierarchy to
FLMs working at the forefront of the organisation.
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