Net-centricity and New Nomadic Tribes: New Challenges for HRM

Human Resource Management is constantly evolving in line with the rapid changes of the organisational environment. Technological advancements have a crucial influence over HRM.

Our discussion on Virtual Teams (VTs) during past two columns led us to identify a new need for HRM. That is to support the VTs in managing their performance. Let’s explore this need in detail.

Nature of Net-centricity

There is a growing dependence on the internet. Net-centricity refers to the “power of digital networks to connect a global wealth of people, information assets and services” (Howard, 2000). Technology is connecting the world across time and spatial differences in order to facilitate teams functioning virtually.

HRM has to facilitate this flexible working arrangement, firstly by being flexible. This is in fact nothing new. As Eden (1996) elaborates, in pre-industrial working life there was little choice but to work freelance and on short-term contracts. The accounts of the weavers, lace-makers, tinkers and casual labourers easily translate to our current assembly of part-time, self-employed, subcontracted workers. What has happened is a re-emergence of such flexible work arrangements with the rapid advancement of technology.

New Nomadic Tribe

Without one physical office where all team mates meet and work, they can be globally scattered but in contact. Thackray (1005) coined the term Normadic Tribe in describing the geographically flexible nature of working. It is a case where trust has to be build without touch. Performance expectations have to be fulfilled without physical meetings.

With regard to how this Nomadic tribe has to perform, Prasad and Akhilesh (2002) show us some salient aspects. As shown in Figure 1, the starting point is the strategic objectives of the VT.  They should be appropriately linked to the broader organisational objectives.  

Work characteristics essentially contain the features associated of being “net-centric”. As discussed earlier, the technology-driven connectivity and how the VT members interact with each other using technology are the key focus here.  

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(Dr. Ajantha Dharmasiri is a Senior Faculty Member and a Management Consultant attached to the Postgraduate Institute of Management, University of Sri Jayewardenepura. He also serves as an adjunct faculty in International Human Resource Management at the Price College of Business, University of Oklahoma, USA. He has over two decades of both private and public sector working experience in diverse environments including Unilever and Nestlé. He has engaged in consultancies in more than 10 countries. He is a Commonwealth AMDISA Doctoral Fellow and Fulbright Postdoctoral Fellow. He holds a Ph.D. and an MBA from the Postgraduate Institute of Management, University of Sri Jayewardenepura and a B.Sc. in Electrical Engineering from the University of Moratuwa. He is also a member of the Chartered Management Institute, UK.)

Net-centricity...

Situational constraints may arise such as resource limitations, cost containments etc. that can influence the VT functioning. Eventually the VT has to deliver, in meeting or exceeding performance expectations.

How can HR support for VT performance? How can HR assist the new nomadic tribe with net-centricity? It poses several critical challenges for HR.

New HR Challenges

In discussing the key HR challenges in ensuring the performance of VTs, I would propose five Vs, visibility, volume, variety, variation and value. Let’s discuss the details.

Visibility

My on-going research on global VTs has shown that there is an acute visibility challenge for HR. VT members complains that their HR functions are coordinated by either the VT leader or another appointed person, depriving them to directly interact with the HR team.

From a global, centralised HRM point of view, such a delegated approach towards VTs might be seen as cost-effective, but the perception of VT members might not be the same. Hence the HR involvement towards VT should be “seen” by the VT members. Regular communications supported by occasional meetings should be the norm.

  2.Volume

A common complaint from HR professionals is the increase volume of work with rapid business expansions. VTs have also contributed to the volume increase of HR work. The challenge is how to cope with the rise of needs with not having the luxury of expanding the HR team.

Outsourcing the routine activities might give more quality time for HR professionals to focus on more strategic aspects. Yet, the decision to select the right outsourcing partners and to ensure that they deliver up to the specific standards is crucial.

Variety

With the diversity of global VTs, the variety of HR needs also have increased. It can be on cross-cultural communication, for an example. HR has to coordinate training programmes on this aspect in order to ensure the effective functioning of the VT comprising members from different cultures.

Such a challenge broadens the scope of HR and also taps the creativity of HR professionals.

Variation

This refers to a varying demand of HR services. There can be times where the demand from all fronts reaches a peak. The particular period of the year where the performance appraisals are conducted, for an example. The challenge is to be flexible and adaptable, with the limited staff in HR, to cope up with a varying workload.

Value

HRM is ultimately judged by its value addition. This is true in the case of VTs. Has the VT got the right membership with required competencies? Is the VT getting the regular support by way of training, remuneration and other aspects? Do VT members perceive that HR is adding value to their performance? These are some of the fundamental questions that may arise with regard to HR value addition.

The above five Vs are interrelated and interconnected, paving way for HR to have an integrated approach towards overcoming challenges.

Way Forward

In the context of a rapidly changing business world, focus on net-centricity and proliferation of new nomadic tribes will be inevitable. HR challenges in supporting VT performance, as identified as five Vs offer interesting insights as to how the future would shape, paving the way for humane results.