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Table of Contents

Introduction…………………………………………………………….3

RBG Strategy……………………………………………………………4

HR Structural Designs & Models relevant to Revolution Bars………….5 - 7

Line Manager’s (LM’s) Contribution to HR Strategy…………………. 8 - 10

Conclusion………………………………………………………………10

Figure 2 Proposed HR Structural Chart…………………………………11

References………………………………………………………………12
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Introduction

Walter Consulting has been hired to provide a detailed report to Revolution Bars Group
PLC (RBG). Initially a small private bar operator, founded in 1996 it has developed into a quoted
multimillion-dollar enterprise in 2016.Subsequently, after a string of failures in bids for
acquisitions, mergers, and shareholder endorsements, senior leadership has been reconstituted to
form a strategic emergent and prescriptive HR plan to address company needs. Employing over
3200 employees, several changes are occurring which demand proactive analysis of Human
Capital Management (HCM). The aim is that by reviewing the topics listed in our table of
contents we can provide an explanation and analysis of Revolution’s Strategic Human Resource
Human Management (SHRM) plan and how it may can be used to create future value through a
Balanced Scorecard (Kaplan & Norton, 1992) approach along with and other methodologies. We
will provide the following academic theories, models, and evidence to guide the overall decision-
making for long-term business success with context to the current and future HR strategy:

1. HR Approach and Business Strategies;( (Schuler, 1992), (Porter, 1980), (Torrington

et al., 2020).
2. Workforce Planning, HR Structures, HR Roles Key HR Knowledge, Skills and
Abilities (KSAOs)
3. Line Manager's Collaboration, Employee Engagement,
4. Recommendations for Future added Competitive Advantage
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RBG Strategy

The strategic approach to Human Resource Management (HRM) involves aligning HR

strategy with overall business strategy by developing action-based policies and procedures that
support the organization’s goals (Schuler, 1992). Revolution Bars Group (RBG) previously
employed a combination of soft and hard HR approaches, resulting in fragmented HR practices
that lacked alignment with the overall business strategy (Schuler, 1992). The organization's
decentralized structure hindered cohesive decision-making, leading to a top-down separation
approach to strategy (Torrington et al., 2020). The People Development Plan (PDP), while a
functional approach, failed to address long-term objectives and emerging challenges; such as
policies, succession planning, attrition, competency gaps and workforce diversity.

Recent initiatives, such as leadership structural changes and the appointment of a People
Development Officer (PDO), indicate a shift towards a more SHRM approach (Hofer &
Schendel, 1986). This involves integrating HR practices with organizational goals to leverage on
human capital as a competitive advantage (Porter, 1980). RBG now focuses on workforce
planning, Total Quality Management, and holistic HRM models to foster employee engagement
and a supportive organizational culture, aligned with business objectives.

The HR team's strategic execution involves various steps, including PESTLE and SWOT
analyses to identify improvement areas, aligning HR actions with organizational values,
engagement initiatives, addressing turnover and training deficiencies. Succession planning,
leadership development and recruitment programs aim to bridge competency gaps and build
future-ready talent pipelines (Torrington et al., 2020). Moving forward, RBG aims to foster
adaptability through an emergent (Lynch, 2015) and resource-based (Barney, 1991) HR
approach, intending to establish formal HR structures, promoting collaboration between line
managers, executive leadership and HR teams to meet evolving needs. By embracing SHRM
principles, RBG seeks to enhance organizational effectiveness and achieve long-term
sustainability in a dynamic business environment.
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HR Structural Designs, Models relevant to Revolution Bars

Dave Ulrich, is a prominent University Professor, Keynote Speaker and subject matter
expert on Human Resources and its organizational value. He has published numerous articles,
books and chapters on Human Resources since 1990. Through his work he formulated theories
on the best practice HR structures and roles that would efficiently, and strategically support
business objectives in lieu of a specialized transactional HR team. (Ulrich et al, 2008, 2009,
2012, 2017). According to Ulrich there was a significant demand that HR rise to the occasion of
being a Strategic Business Partner (SBP) and in order to do so HR would need to deliver HR
needs through specific Structures and Roles.

Figure 1

Ulrich’s (1998) HR Business Partner Three legged model

HR Business
Partners:
Strategic focus

Centers of
Shared Services:
Excellence
Transactional
Experts HR
HR
advice

Note. Sourced from Pilbeam and Corbridge (2010, p.25)

David Ulrich’s HR business partner (HBP) , Centers of Excellence (COE) and Shared
Services Centers (SSC), models as shown above, would structure HR departments in three tiers
offering valuable frameworks for RBG to strengthen its HR approach. Additionally Ulrich and
Brockbank (2005) delineate specific roles essential for HR practitioners such as Human Capital
Developer, Strategic Partner, Change Agent, Administrative Expert and Employee Champion.
These roles are critical in addressing future strategic goals, day to day operations, workforce
needs and processes for improvement as highlighted by Ulrich et al, (2013). RBG’s utilization of
Ulrich’s structural designs and Ulrich and Brockbank (2005) HR roles, is needed given its
 Page |6

organizational size, employee count, demographics and multitude of locations. Implementing

these models will be added value as the HR team continues align and adapt to business changing
needs. For instance, HR Business Partners (HBPs), play a pivotal role in each business unit,
acting as strategic consultants dedicated to helping Unit Managers achieve objectives.

HBPs

At RBG, the PDO acts as a strategic business partner juggling all roles of Employee
Advocate, Human Capital Developer, Functional Expert, and change agent. Foot and Hook
(2011) emphasize that “the effective HR leader will establish goals and will communicate these
clearly to all; they will manage change and show results in relation to the added value for
workers, shareholders, customers and the managers”(p.25). Fiona provides consultative strategic
advice and action items to her leadership colleagues based on both short and long-term business
needs. Through environmental scanning, she was able to identify and address the specific needs
and challenges and tailor remedial actions related to the employee life-cycle process, attrition
rates, leadership development, employee engagement, training and succession planning. Through
her efforts in innovation, activism, change agency and technological improvements, turnover has
decreased, recruitment has been streamlined, manager competency has improved, and cost
savings have increased by reducing in duplication of effort.

COE

Similarly, COEs (Ulrich et al., 2009) offer HR expertise for strategic implementation,
fostering culture evolution, and achieving business objectives, providing tailored solutions for
specific initiatives. Fiona is an example of COE in action, especially when it comes to training
and development. Her expertise by filling in the gaps in the RBG-specific training and policies.
She has implemented leadership development programs, succession planning initiatives,
analytics, an apprenticeship levy and redesigned the organization's training frameworks,
competencies, and appraisal processes. Recognizing the need for managers to upskill, Fiona led
the implementation of targeted leadership development workshops and providing for example,
some workshops focused on teaching managers how to motivate and retain staff by using the
Engaging for Success framework and the Dale Carnegie coaching principles. Fiona is also
demonstrating her dedication to tackling retention issues, and enhancing vital competencies,
 Page |7

throughout the company by a hiring talent development manager and recruitment specialists. In
addition to providing key performance improvement metrics (KPIs), knowledge exchange and
skill development, these actions support RBG's ongoing learning and development culture.
However, relying solely on the COE model may present challenges, including the need for
significant funds to hire subject matter experts and coordination complexities across different
company locations.

SSC

An SSC is HR division which conducts administrative processes and activities required to

preserve the employment relationship and endorse employee advocacy. These transactions are
repetitive in nature and processes may be outsourced, or provided through applications and other
technologies. (Ulrich, 1996, 2018). Examples include, Payroll Systems, and Employee Self
Service (ESS). RBG utilizes this optimization efficiently through streamlining recruitment,
employee onboarding and employee offboarding in the employee life cycle process. Leveraging
technology like applicant tracking software and updated career websites enhances efficiency,
responsiveness and reduces cost to hire. Exit interviews provide important trends and context on
decision to depart which in turn highlight KPIs. However, only using the SSC model may create
challenges due to RBG’s large workforce and numerous locations potentially leading to reduced
staff engagement and delayed service delivery. Line Managers would be left to provide first line
contact with employees for emergencies and local needs.
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Line Managers (LMs) HR Devolvement

Given RBG’s extensive scale, operational complexities, and dynamic market conditions,
integrating LMs into HR processes becomes imperative. It is important to train LMs as they are
the primary representatives during the employee induction process and exerting significant
influence on the “psychological contract” Barnard, (1938) a concept vital to organizational
cohesion (Guest & Conway, 2004). LMs directly affect the motivation of the staff they lead.
Research by Purcell et al. (2003) underscores the pivotal role of LMs in motivating staff and
driving productivity. Training LMs in key HR competencies, such as motivational theories and
employee engagement strategies, enables them to align HR strategies with business objectives
effectively. The psychological contract refers to “promises employees believe they have made
and what the employees believe the organization has promised in return” (Conway & Briner,
2005). RBG's emphasis on talent development and succession planning demonstrates the
importance of upskilling LMs to cascade HR strategies down to every employee, thereby
reinforcing alignment between individual expectations of the employment contract and
organizational goals.

Benefits of LM Devolvement

 Refocusing the HRBPs to a consultation instead of an administrative role which would

allow for more time spent on strategic effort (Ulrich, 1997).
 Enrichment of knowledge which would provide more confidence in handling
employment relationship issues and responsiveness to staff needs, reducing compliance
variables if effective. (Marchington et al, 2008. Townsend, 2014).
 Increased employee engagement and leadership competency due to having technical
knowledge and closer rapport with staff that traditional HR. “Leadership is not
domination, but the art of persuading people to work toward a common goal.” (Goleman,
1995, p. 45). By developing a greater understanding of HR principles, managers become
more aware of their emotional intelligence and ability to utilize motivation to improve
organizational synergy, culture and value.
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Drawbacks of LMs HR Devolvement

Several concerns arise from devolving RBG’s HR responsibilities. Torrington et al (2014) and
Marchington and Wilkinson (2012) highlight variability in HR practices, stemming from LM
judgment and potential lack of understanding in strategic, cultural, and legal contexts.

 Substantial variance in the execution of HR practices (Townsend, 2014). For instance,

Line Managers exercise discretion when prioritizing employee concerns, weighing them
against business objectives, production, or cost measures (Donaghey et al., 2011;
Mowbray et al., 2015).
 Due either inexperience, inadequate competence or in some cases low emotional
intelligence the psychological contract may be violated. Research based evidence
suggests that violations of the psychological contract leads to heightened desires to leave
the company, reduced job satisfaction (Tekleab & Taylor, 2003), reduction in perception
of fairness and trust (Robinson, 1996), negative mental states (Conway & Briner, 2002;
MacLeod et al., 2009), and less organizational commitment.
 Furthermore, challenges in coordination with the HR team, as observed due to
organizational complexity and varying schedules, may hinder effective LM decision-
making.

Suggestion of RBG LM Devolvement and Practical Issues affecting Buy-In

To ensure buy-in from LM’s at RBG, initiatives should include:

 Support from and active commitment of the executive team will be necessary to secure
buy-in. Leading by example encourages corporation, role modeling of behaviors and
improved performance. (Hermalin,1998; Potters et al., 2007)
 HR services agreement and manual that provide actionable training guidelines and
instructions on common HR pitfalls. Example would be the attrition of RBG kitchen
staff.
 Continuous training with a focus on Human Capital Management (HCM) can illustrate
LM contributions to the bottom line.
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 HBP’s should emphasize LM internal stakeholder importance, integrate business culture

of customer service into HR strategy, and incentivize successful HR adaptations during
employee appraisals or succession plan reviews.

Conclusion and Recommendation

To address RBG specific challenges and optimize HR service delivery, a centralized

hybrid approach combining HR business partners, COE, and SSC is recommended. Leadership
efforts to distribute and coordinate, fostered by intuitive collaboration (Bolden, 2011), will strike
a balance between autonomy and alignment, empowering units with independent operation
within a cohesive framework. Additionally, RBG can leverage a Balanced Scorecard to align HR
goals with organizational strategy, measuring performance across multiple dimensions. This
approach ensures effectiveness, timeliness, and responsiveness across all RBG locations. Per a
2023 CIPD and Hibob survey results, in referencing HR staff ratios, (CIPD, 2023, para. 16) “For
the middle 90% of respondents, the global HR to employee ratio ranged between 1:17 and
1:255.” Using the mean percentile outcome of the UK-based HR leaders’ study, RBG’s HR
department has 29 members to adequately support 3200 employees. Figure 2 illustrates a
proposed HR department structure, incorporating Ulrich's models. By aligning HR structures
with organizational goals and leveraging HBPs, COE, and SSC, RBG can effectively address
current challenges and position itself for future success in a dynamic business environment.
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