Division of labor and cooperation between HR professionals and line managers in Chinese SME

Introduction

This chapter has a specific analysis and discussion direct at HR professionals and line managers in the division of labor and cooperation which is a vague and chaos in human resources management of small and medium enterprise (SME). And the analysis is based on two aspects--- asymmetric information theory and the Herzberg two-factor motivation theory. In order to continuously improve the efficiency of enterprise human resource management, the scientific division of labor and cooperation is essential.

There must be fundamental reasons for it and the following will go over some of the fundamental reasons why the scientific division of labor and cooperation is essential. In the corporate human resource management, HR professionals and line managers have common goals -- to build a high-quality, high commitment and high performance employees team and creating a first-class company performance, but they have a different status and role in the process of achieving the goals. With the strengthening the function of human resource management in the modern enterprise, this division of labor and cooperation is at an unprecedented intensity and depth into all levels, all aspects and various links of human resource management.

In order to enhance efficiency of enterprise HRM, HR professional and line manager must seriously consider the problem of how to implement the scientific and rational division of labor and effective cooperation. Ding, Goodall, and Warner (2000)state in China, after nearly three decades of reform and opening up, although most of the company are transferring from the traditional personnel management to modern human resources management, there are still not yet mature and specification. There are

numbers of HR, Professionals and line managers, especially in SMEs, they do not understand and neglect the division of labor and cooperation, and it will cause a seriously confusing human resource management in practice.

This paper will be based on asymmetric information theory and the Herzberg two-factor motivation theory to analyse the division of labor and cooperation between HR professionals and line managers. The following will have a general discussion about the basic division of labor and cooperation of the major aspects for HR professionals and line managers in human resource management and want to be able to provide a clearer outline to reader.

Asymmetric information-based division of labor and cooperation

David and Baruch (2000) defined asymmetric information as a situation in which one party in a transaction has more or superior information compared to another. This often happens in transactions where the seller knows more than the buyer, although the reverse can happen as well. Potentially, this could be a harmful situation because one party can take advantage of the other partys lack of knowledge.

When HR professionals and line manager complete human resource management in the mutual cooperation, the information which are owned and used by them are asymmetric in each different aspects, it means that who occupies more and more direct information, then he/she should has the initiative on decision-making or action. While the other party occupy information less or indirectly, then he/she in the assist position, which formed a division of labor and cooperation based on asymmetric information.

For example, in the performance evaluation, HR professionals are responsible for the development of assessment tools, while assessed work is completed by the line manage. During the development of tool, Compare with the line managers, HR professionals

have more expertise and relative development skills.

In addition, in the process of assessing, relative to other people, including HR professionals, line managers have a better understanding for the job nature and job status (usually are their subordinates)(Zhu, Cooper, De and Dowling,2005)Both of them cannot replace each other, but must work closely together to ensure effective performance evaluation.

The majority of the division of labor and cooperation for HR professionals and line managers are based on asymmetric information in HRM. Here specific investigation of both the division of labor and cooperation based on asymmetric information will be carrying out from the five aspects: human resource planning, job analysis, recruitment and hiring, training and development and performance management.

Human Resource Planning

HR professionals are under the guidance of the corporate strategic plan to develop and implement human resource plan. In this process the line manager also assume the essential duties. Warner (2004) points out that firstly line managers should accurately predict the demand for business development and changes resulting from recruiting demand for new employees. Then, line managers accurately determine whether should training and developing employees to enable employees to adapt work requirements. Next, to identify the useful information passed to the HR professionals.

In addition, line managers should also give useful suggestions about how to manage employee performance, compensation and welfare and other aspects. HR professionals will have to seriously assess and confirm these requirements and recommendations; combined with the human resources market (internal and external) labor supply, training and development conditions, as well as the current situation and problems of

other aspects, to develop the human resource planning.

Warner and Zhu (2004) state in China, in corporate HRM, the responsibilities of line managers in human resource planning are often not clear and stressed, resulting all of the job will take by HR professionals. This unscientific division of labor can easily lead to failure of the entire planning, or planning cannot be implemented. Finally, HR professionals should be responsible for monitoring and evaluation of the planning implementation.

Job analysis

Job analysis is the cornerstone of human resource management. Job analysis and the result of its outcome (statement of work) will affect the effectively running of whole HRM system. For HR professionals and line managers there are two completely different views and measures dealing with job analysis and statement of work on the division of labor and cooperation. One is use interviews, observation, and questionnaire to complete a job analysis and write a statement of work by HR professionals, the line manager provide the necessary input, at present, most companies continue to adopt this practice; the other is line managers are responsible for job analysis and statement of work, HR professionals provide training and guidance of the relevant methods and techniques and at the final summarise and check the job. (Wright, Gardner, Moynihan, and Allen,2005)

The author much prefers the latter, because it not only conforms to the principle of asymmetric information theory, but also when the enterprise scale is increasing, increasing duties and the increasing complex works will be faced, HR professionals as a small number cannot be qualified for this onerous task. In fact, no matter what method they use, in order to complete job analysis successfully or write a good statement of work, it must be rely on good cooperate between HR professionals and line manager.

Recruitment and hiring

In corporate recruitment and hiring, the division of labor and cooperation between HR professionals and line managers is very clear and specific. Zhu (2005) claims firstly the line managers will identify recruitment needs for the department. Timely pass this demand to human resources department, then recruitment can be implemented after HR professionals confirm. In the process of selection and recruitment, firstly, HR professionals choose suitable candidates from job seekers through the interview and other testing methods, then, HR professionals recommend the suitable candidates to line managers, finally, line manager make a final decision.

Of course, HR professionals have a responsibility to provide the line manager skills training and consulting of interviewing, screening and hiring staff. Such division of labor and cooperation can effectively ensure that quickly hire the right staff when company need. In addition, when recruiting and hiring the core management and technical talents, generally, HR will corporate with executive and line mangers to finish.

Training and development

There are lots of work needs HR professionals and line managers to collaborate closely to complete in the process of training and development. But many line managers believe that the training and development are their own business, however, author does not agree. In fact, the line managers have dealings with employees directly, and they should play the role as a teacher, coach or assistor. (Kraut, Pedigo, McKenna and Dunnette, 1989)

Wright, Gardner and Moynihan (2003) believe that line managers are mainly

responsible for three tasks in training and development. First, identify the training and development needs, and then report to human resource department; secondly, to provide on-the-job training, such training including the line managers as teachers to participate in when HR professionals organise staff training and development, also including carry out guidance and help for the old and new staff in their daily work; the third is to ensure that the transfer of training, it means through a variety of methods to ensure knowledge and skills learned by employees in the training and development can be applied to the work.

Zhu (2005) points out the HR professionals are shoulder three tasks: Firstly, to organise and implement training and development. Secondly, after assess and confirm the needs of training and development which suggested by the line manager, and to gain the consent of the corporate executives, and then training and development can be organized and implemented. Thirdly, provide orientation training to employee. It means introduce to new employees about the company's history, current status, culture, rules and regulations; the fourth is to assess the training and development. It means to sum up and evaluate experiences and results of training and development in order to facilitate improvements.

In practical work, the role played by line managers in training and development is often overlooked and do not pay enough attention. In this regard, a new concept should be advocated, that is, line managers have a important role to play in training and development.

Performance management

Performance management is a core part of human resource management and is recognised as business management challenges. In order to establish a scientific performance management system and operate effectively, it cannot be done without the

HR professionals and line managers make joint efforts and collaboration. In general, HR professionals are responsible for development, implementation monitoring and evaluation and maintenance work of the entire performance management system. In addition, HR professionals should provide the line manager the performance management skills training and guidance, including coaching, assessment and communication skills. (Wright, Gardner, Moynihan and Allen, 2005)

Renwick and MacNeil (2002)state line manager not only give necessary assistance to the HR professionals in the system development process, in a performance management cycle, but also line managers need to complete the following four main tasks: first of all, to resolve and develop the performance goals with employees; then, to provide performance coaching to employees; next, to evaluate employees performances objectively and impartially; finally, line managers can discuss face to face with employees about the result of evaluation, and help employees to develop performance improvement plans.

Herzberg two-factor motivation theory-based division of labor and cooperation

Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes about work. He concluded that such factors as company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction.

In contrast, he determined from the data that the motivators were elements that enriched a person's job; he found five factors in particular that were strong determiners of job satisfaction: achievement, recognition, the work itself, responsibility, and advancement. These motivators (satisfiers) were associated with long-term positive effects in job

performance while the hygiene factors (dissatisfiers) consistently produced only short-term changes in job attitudes and performance, which quickly fell back to its previous level.

In summary, satisfiers describe a person's relationship with what she or he does, many related to the tasks being performed. Dissatisfiers, on the other hand, have to do with person's relationship to the context or environment in which she or he performs the The satisfiers relate to what a person does while the dissatisfiers relate to the situation which the person does what he or she does.

Herzberg Mausner and Snyderman (1959) point out Herzberg theory has an important influence in the management, staff salaries and benefits that belong to hygiene factors (external factors), and with the relevant achievement, recognition, promotion and responsibility which belong to motivation factors (internal factors). Lack of health factors will inevitably lead to the dissatisfaction of employee, but no amount of hygiene factors could bring satisfaction for employees, so as to stimulate performance.

Thus in the process of employee motivation, it is important to recognised that not only HR professionals need to do job which relating to hygiene factors, but also need the line manager need to do job which relating to motivation factors, All of work need them to work closely together to support each other in order to bring the best motivation to employees. This is the division of labor and cooperation based on the Herzberg two-factor motivation theory. The following will briefly discuss the division of labor and cooperation in staff motivation aspects for HR professionals and line managers from hygiene factors and motivation factors.

In terms of hygiene factors, the main tasks for HR professionals are responsible for development and design of companys salary and welfare system and the daily management of the system. It includes a lot of work, such as the development of

salary strategy under the guidance of the company's strategy, job evaluation, Payroll survey, the design of specific plans about salary and welfare and salary adjustment. (Ding, Goodall and Warner, 2000)

For motivation factors, the line manager's most important duty is through a variety of possible ways to motivate staff. For example, arrange challenging or interesting work to the employees, recognise and praise the achievements of employees in time and provide the opportunity of promotion to employees. (Ding, Goodall and Warner, 2000). Of course, HR professionals and line managers are not work alone in their respective areas, but support each other. HR professionals can provide motivation skills training and consulting to line managers; while the line manager can provide the necessary inputs and recommendations to HR professionals in the aspects of job evaluation and salary adjustment.

Conclusion

The above have a superficial summary and discussion about the division of labor and cooperation of the HR professionals and line managers form the main aspects of HRM. There is no doubt that when look to the future development of human resources management. The content and manner of division of labor and cooperation between the HR professionals and line managers will definitely change with the change of organisational structure and management model, but no matter how to change; scientific division of labor and cooperation always is the common responsibility and pursuit for HR professionals and line managers.

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