Thus, Peter Principles has a significant effect on HR Managers in the decision they take concerning workers partnership to actualizing the corporate goals, and giving them the need to make such of information within their reach in making good decision on who to promote. Furthermore, in situation where the HR Manager recognises incompetence in an official position, based on the Peter Principle, he/she is prompted to take a reactive action, by replacing such worker by competent staff or by giving the worker the needed training to make him perform better.
A closer integration between top management goals and Human Resource Management practices helps to elicit and reward the types of behaviour necessary for achieving an organisation’s strategy. Thus, with the right information within the reach of the HR Manager better decisions are taking as to avoid incompetence, but to promote worker’s efficiency and effectiveness. Furthermore, the Peter’s principle put HR Manager on their toe to recognize management changes and adapt new technique in their operation in executing their human resource functions.
The ability of the HR Manager to operate in line with changes the industry will enable the organization workers are disposed to adapt to new changes in the industry and pattern of the organization’s operations. A key factor in the process of integrating strategic planning with Human Resource Management is ensuring that the Human Resource staffers recognise their roles as change agents and strategic business partners. “This becomes difficult to attain in a rapidly changing organisation where the lack of stability tends to leave people with the feeling that they are victims of change rather than champions of it.
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However, one key to creating a successful Human resource function is to organise the chaos caused by change” (Cipolla, 1996). The human resources that are well developed are apt at managing changes that comes with uncertainties in their official capacity in strategy implementation. The manager in this scenario plays a prominent role in harnessing the organization’s strategy alongside those objectives set to develop the workers who would be implementing the organization strategy, within the context of the environment in which the organization operates.
This task will be conducted effectively when the senior and middle managers are carried along in the planning process and the implementation processes of the change. Usually, the senior managers will play more roles in the planning process, while the middle managers, alongside the senior managers, involve in the implementation process. It is germane to state here that the business environment in which contemporary HR manager operates requires them to do more effective planning.
Today’s organisations need more than a traditional personnel model of Human Resource Management activities that simple involve putting out small fires like ensuring that people are paid on the right day, that the job advertisement meet the newspaper deadline, that the same manager remembers to observe due process before, sacking the new rep who didn’t work etc. the strategic Human resource management is now widely recognise where the Human Resource Management is seen as a strategic components is organisational management.
The Peter Principle in this instance, gives HR Manager the obligation of making the right decision through available information, and collaborating with line managers in order to make the right decision on who to promote to what higher position, and also having the right sense to take decisive action when incompetence is noticed in the workplace or in an official position.
OPERATION OF PETER’S PRINCIPLE IN MY ORGANIZATION
In my organization a brewery company that has different departments- finance department, HR department, marketing department, production department it becomes challenging for the HR manager to adequately make the right decision of promoting workers in other department, without the right consultation with other line managers. For instance, to promote a fort lift driver to a higher post of a supervisor, the HR manager needs to consult the Operation’s manager that has adequate information about the ability of who should adequately manage the post of a supervisor in the production department.
Thus, the Peter Principle in the Brewery organization where I work, when promotion are made based on sentiments and favouritism, without proper consultation to derive good information to make the promotion decisions. Furthermore, where lapses are recognized traceable to a position, the organization does not outright demote the occupier of such post. Rather, they would take time to train the worker or give a superior to supervise while the occupy gain experience to manage the situation in future.
HOW THE PETER PRINCIPLE AFFECT THE LINK BETWEEN HR AND CCOMPETITIVE ADVANTAGE, AND THE HR GENERAL FUNCTIONS The Peter Principle influences the pattern in which HR decision are formulated regarding the implementation of the organization’s corporate strategy and how to involve competent workers to put up the right attitude towards competing in the actualizing of the organization corporate objectives and goals. The principle gives HR manager the added responsibility to be awakened to the reality that they are significant resource in the actualization of the corporate goal.
HR manager and staffers tend to recognise the critical linkages between organisational strategy and Human Resource Management strategy. “The view that Human Resource Management personnel are simply ‘paper pusher’ continues to disappear, to be replaced by the notion that they play a key role in helping to achieve organisational success and determining the organisation’s competitive advantage” (Sims, 2002, pg 5). Thus, the Peter Principle enables Human Resource Managers sees the Human Resource as strategic partners working towards the organisation’s strategic goals.
Thus, this gives the organization the right resource to compete favourably. The awareness of strategic function of Human Resource Manager is emphasised by Chaturvedi (2005). He put it that “By design the perspective demands that Human Resource Managers become strategic partners in business operations playing prospective roles rather than their being passive administrators reacting to the requirements of other business functions.
Strategic Human Resource Managers need a change in their mind set from seeing themselves as relationship managers to resource managers knowing how to utilise the full potential of their human resources. The Peter Principle has the effect of changing the mind frame of HR manager to making them see the reason to cooperate with other personnel to make right decisions regarding promotion, assigning functions that would affect the strategic and competitive stand of the organization.
The strategic function of Human Resource Managers are existed when they participate in the process of defining business strategy, when they partake in asking questions that move strategy to action and when they design Human resource practices that align with the business strategy. In executing this role, the Human Resource Professionals increase the capacity of a business to execute its strategies. Thus, the current challenge of Human Resource Management, according to Sims (2002), “is to integrate programs involving human resources with strategic organisational objectives”.
Truss and Gratton (1994:663) as cited in Sims (2002, pg 2), sees, “the linking of Human Resource Management with strategic goals and objectives in order to improve business performance and develop organisational cultures that foster invocation and flexibility”. Today’s competitive business world has made the significant role of the Human Resource Management in strategic planning more acknowledge than ever before.
Thus, the Peter Principle future reemphasised the role of HR manager to make decisive and right choice of human resource structuring for the effective operation of the organization. “Today’s top company executives are increasingly looking to Human resource to improve the bottom-line. The traditional Human resource functions of staffing, recruiting, compensation, and benefits are losing ground to a new generation of value added core Human Resource functions that include career planning, executive development, training, succession Planning, and organisation development” (Caudron 1994).
Furthermore, corrective measures is emphasised by the principle where HR managers are expected to demote incompetent workers to lower positions where they can effectively perform. Though, as Peter Principle observed, this is rarely executed in organizations. Effective Human Resource Management practices are recognises as to enhance an organisation’s competitive advantage by creating both cost leadership and differentiation. Today’s competitive global environment has made organisation maintaining a competitive advantage puts a premium on having a committed and competent workforce.
Low-cost, high- quality products and services are a result of committed employees all working hard to produce the best products and provide the best services that they can at the lowest possible cost. Thus, it is important that the Human Resource Managers are made to get in touch and be included in the organisation’s strategic plan, since they have the wealth of experience in the motivation of the organisational workforce into putting their best in the attainment of the strategic goals of the organisation.
CONCLUSION The Peter’s Principle sees the wrong choice of promoting worker to higher position with no comfort and competence to perform better than the previous post goes a long way in influencing HR Manager to make right decisions, regarding rewards and promotion of workers. The principle do not negate the fact that HR functions are only feasible in theory, but erroneous decision leads to reduced productivity and the ability of the organization to compete favourably.
Furthermore, the principle gives HR Manager the sense to know that his/her decision has significant impact in the corporate operational and competitive levels. Corrective measures need to be taken in situation where lapses are recognized in the promotion of workers to higher positions. When this is adhered to it leads to effective operations and competition of the organization.
Caudron, S. (1994), “HR Leaders Brainstorm” Personnel Journal, 54-61, August Chaturved, Siddharth (2005), “Strategic Human Resource Management” http://www. humanlinks. com/manres/articles/shrm.
htm (15/08/05) Koch, Alexander K. & Nafziger, Julia (2007), “Job Assignment under Moral Hazard: The Peter Principle Revisited” IZA Discussion Paper Series No. 2973 August ftp://repec. iza. org/RePEc/Discussionpaper/dp2973. pdf (20/02/08) Peter, L. J. , and R. Hull (1969): The Peter Principle: Why Things Always Go Wrong. William Morrow & Co. Inc, New York. Sims, Ronald R. (2002), Organisational Success through Effective Human Resources Management West Port, CT: Quorum Books. Pp. 1-5, 8, 9, 20, 23. Tortorici (2006) “Can we turn back the rising tide of incompetence? ”https://www.conference-board.org/
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