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Page 1: Strategic Human Resource Management: Perceptions among North Carolina County Social Service Professionals

Strategic Human Resource Management: Perceptions Among North Carolina County Social Service Professionals Dennis Daley Michael L. Vasu Meredith Blackwell Weinstein

Strategic human resource management (SHRM) enhances productivity and the effectiveness of organizations. Research shows that when organizations employ such personnel practices as internal career ladders, formal training systems, results-oriented performance appraisal, employment security, employee voice/participation, broadly defined jobs, and performance-based compensation, they are more able to achieve their goals and objectives. Using a survey of North Carolina county social service professionals, this study examines (1) the extent to which strategic human resource management is perceived, (2) the relationship of these SHRM practices to demographic variables such as age, ethnic status, sex, education, supervisory status and tenure, and county population, and (3) the rela­tionship between SHRM and outcome assessments for welfare reform (unemploy­ment change and organizational report card measures). While SHRM practices are perceived to be present in North Carolina counties, they clearly are not a predomi­nant feature. Weak demographic influences, especially in terms of population and supervisory status and tenure, are evident. Especially disturbing are the influences those demographic influences have on employment security. Few relationships are found (and those only weak) involving outcome assessments.

The performance of organizations is the focus of intensive research efforts. How well an organization performs its mission and accomplishes its goals of pro­gram service delivery is the measure of all things. Administrative capacity is a

major component of this performance. Administrative capacity, which is, a resource-based view of an organization, focuses on factors that are actually within the power of the organization to change. Improving administrative capacity and, especially, improving those aspects of capacity that deal with human capital, offer the most promise for peak performance.

Combining human resource practices with a focus on the achievement of organi­zational goals and objectives can have a substantial effect on the ultimate success of the organization. Resource-based theory posits that competitive advantage and the imple­mentation of plans is highly dependent upon an organization's basic inputs, including

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its human capital (Wernerfelt, 1984; Barney, 1991; Boxall, 1996). Research on strategic human resource management (SHRM) offers empirical support that this relationship enhances productivity (Fitz-Enz, 1994; Delery and Doty, 1996; Ulrich, 1997).

This study examines the perception of strategic human resources practices (e.g., internal career ladders, formal training systems, results-oriented performance appraisal, employment security, employee voice/participation, broadly defined jobs, and performance-based compensation) held among North Carolina county social ser­vices professionals. It delineates the extent to which strategic human resource prac­tices are found to exist in ordinary public organizations. Secondarily, the study examines the relationships among SHRM perceptions and demographic characteris­tics (such as county population, age, education, ethnic status, gender, and superviso­ry status) and outcome assessments of how well welfare reform is achieving its goals (change in unemployment and a welfare reform report card).

Strategic Planning and Personnel Practices The modern public service is built on knowledge and expertise. Public service does not lend itself to a temporary workforce. Knowledge isn't gained overnight. It's earned the old fashion way — by hard work. Professional workers must be sought out and guaranteed an environment in which their careers can be nurtured and flourish.

For motivation and incentives to work, they first must be tied to a goal. An orga­nization must employ needs assessment and human resource development strategies in pursuit of its vision or mission. Needs assessment (of where an organization wants to go) and human resources development (of those who are to get it there) focus on the specific organizational and individual needs whose satisfaction will lead to enhanced productivity. The vision and path for fulfilling these tasks are derived from strategic planning and put into practical perspective through the use of macro-tools such as Total Quality Management (at the group-level) and Management by Objectives (at the individual-level).

Strategic planning is rational analysis (Nutt and Backoff, 1992; Klingner, 1993; Perry, 1993; Berry, 1994; Mintzberg, 1994; Ledvinka, 1995; Bryson, 1996) that takes "what is" and develops ideas of "what should be" along with plans for "how to get there." By using a realistic organizational strategy focused on what the future should look like, strategic planning provides the "road map" for fulfilling that future.

Through environmental scanning, strategic planning sizes-up the existing orga­nization's capabilities and real world in which it exists. The planning process explores alternatives — both in terms of visions involved and the courses of action necessary to accomplish them. Finally, strategic planning helps an organization settle on one choice of direction and mesh it with the appropriate objectives and action plans. Strategic planning should also incorporate the human resources necessary for accom­plishing goals (Mesch, Perry, and Wise, 1995; Perry and Mesch, 1997).

The foremost advantage derived from strategic planning is that it helps improve organizational performance. Strategic planning focuses on the future — what should

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be. As such, it serves as a guiding star by which to steer the organization's develop­ment. Individual and team efforts can be devoted to accomplishing the organization's goals (Keen, 1994). Strategic planning also concentrates individual efforts into a team effort. It can assist in developing total quality management and objective-based per­formance appraisal systems. It can assign accountability for results. The strategic plan­ning process itself can serve as a team-building exercise. Finally, the process transforms perceptions away from separate and distinct projects and towards systemic viewpoints (Keen, 1994).

Perhaps the primary task of an organization's leadership is to provide vision. Too often, organization's are large, cumbersome entities with only vague, general notions of what it is they are supposed to do (i.e., the individuals assembled under its rubric have only vague, general notions as to what they hope to accomplish). It is the job of those individuals occupying top management positions to provide detail and sub­stantive direction. Here is where Osborne and Gaebler's (1992) analogy of "steering rather than rowing" is appropriate. It is management's vision that serves to bring together and reinforce people's sense of belonging to an organization. It makes them stakeholders and active, contributing participants.

In addition to leadership support, those engaged in strategic planning need to be aware of potential problems. As occurs with all management techniques, individu­als will need extensive training and refresher training (to answer unforeseen questions that arise in response to implementation). Conflict, confusion, and chaos will prevail initially and for some time thereafter. Only as individuals learn how to conduct SHRM and see its value will the benefits of strategic planning be realized (Merjanian, 1997).

The value of strategic planning is highly dependent upon those in the agencies that assemble and provide the data seeing that such planning also helps them do their jobs better. Excessive requests for information and data unconnected to an organiza­tion's mission undermine the strategic planning process. While such information is useful in a command and control environment, it is not useful in strategic planning for the more complex, knowledge-based organization's coaching and coordination. However, in such complex organizations, the nonlinear nature of management is rec­ognized. Strategic planning serves to define boundaries. The planning process is suc­cessful because it is useful to those involved (Merjanian, 1997).

In the modern, knowledge-based organization, strategic planning is quite clear­ly strategic human resources planning. In noting the impact o f strategic human resource management on organizational performance, John E. Delery and D. Jarold Doty (1996) identify seven general employment practices:

1. Internal career ladders 2. Formal training systems 3. Results-oriented performance appraisal 4. Employment security 5. Employee voice/Participation 6. Broadly defined jobs 7. Performance-based compensation

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Methods This paper analyzes data from a survey of county Department of Social Services employees in North Carolina conducted in spring 2000. It was conducted under a con­tract from the North Carolina Department of Health and Human Services to assess the effectiveness of the support provided by the state of North Carolina (NC) to coun­ty departments. Since prior research tended to focus on high performance, bench­mark organizations, and private sector businesses (the 1996 Delery and Doty survey replicated here was administered to bankers), this study tests for the presence of strategic human resource practices in an ordinary, public organization setting.

Each county Social Service director, as well as each supervisor from adult ser­vices, work first, child welfare, and child services was asked to complete the survey. In addition, a proportional sample of staff in each county based on estimated county population for July 1, 1999 was asked to complete the survey. A total of 100 directors, 500 supervisors, and 800 staff were sent survey instruments. The response rate includ­ed of 672 persons (48 percent) responding from 77 of the 100 counties.

The survey adapted 21 items (grouped into seven sets or indices) employed by Delery and Doty (1996) that addressed strategic human resource management prac­tices (for Delery and Doty—the practices occurred in the banking industry). State DHHS executives and a focus group of county professionals were used to select and adjust items

Taking the average response for each respondent in each category created index scores. Index scores are taken out of a total of five points with a "4" being the most favorable condition. Index averages were found by determining the mean response for all survey respondents in each of the seven indices. Missing responses were elim­inated and averages were computed with remaining questions

Information on a series of demographic variables (gender, ethnic status, age, educational attainment, work area, and supervisory status) was also requested of respondents. Women represent 80 percent of respondents. Whites also compose 80 percent. In terms of education, 50 percent held college degrees while another 25 per­cent had graduate degrees. Those in supervisory positions composed 75 percent of the responses. These "usual suspects" represent factors (or proxies) which have typ­ically been found to exert a mediating or moderating affects upon relationships.

Finally, the study incorporates a series o f outcome assessments relevant to wel­fare reform. County and state support efforts need to be examined in light of pro­grammatic goals. The NC Department of Health and Human Services created a Work First Report Card in 1999 (DHHS 1999) in which each county was proportionately assessed in terms of its success at achieving four state-wide goals: (1) decreasing the number of people on welfare by 30 percent, (2) putting 23,359 welfare recipients to work, (3) having 85 percent o f former Work First participants stay off welfare, and (4) collecting 10 percent more child support. AExceeding a goal by 110 percent or more earned an A, reaching 90 to 109 percent o f a goal earned a B, reaching 80 to 90 per­cent earned a C, [and] for performance less than 80 percent, a corrective action plan

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[was] required to help [meet] their goals in the future (DHHS 1999)." The vast major­ity of counties earned A's and B's on all four goals.

Calculating the change in county unemployment rates between 1995 and 1999 incorporated an additional outcome assessment. Official, annual average unemploy­ment figures obtained from the NC Department of Commerce were used in making these calculations. Although this measure is somewhat unfair because of the many, many other factors affecting unemployment, it is a political goal of welfare reform. Since teachers and principals are often held accountable for student end-of-grade test scores, the cautionary use of unemployment figures is warranted.

Strategic Human Resources Practices Internal Career Ladder For government career ladders, a balance between inside and outside selection must be struck. Career services such as those associated with rank-in-person approaches virtually limit their recruitment to internal selection. The ideal of the rank-in-position approach, on the other hand, invokes images of external selection. Reality lies some­where in between. Even rank-in-position career systems (e.g., the elite French grands corps) have discovered the benefits of importing talented outsiders (or providing a career system is necessary to focus individual attention on the strategic issues facing an organization over the long term. Objectives and reward systems tied to the short-term lead to dysfunctional behavior and goal displacement. Government, with its 2-year, 4-year, and 6-year electoral cycles, has always suffered from this myopia.

A long-term perspective induces organizational commitment and loyalty. It enables individuals and organizations to invest in training and productivity improve­ments knowing they will reap the benefits from enhanced knowledge and technique.

Internal selection is also easier because the employee has already been attract­ed. The questions on whether an individual will fit in and adapt to an organization's culture are moot. The problems of orientation and socialization (which are fraught with disappointment and turnover) have been overcome. The not-inconsequential costs of recruitment (which are often an unfortunate, limiting factor with govern­ments) are dramatically reduced.

However, internal selection exposes an organization to the dangers of "inbreed­ing." While it promotes a more harmonious, homogeneous workforce, it also can blind the organization to what is going on in the world at large. Outside selection stirs up an organization. All the problems mentioned above that are avoided by internal selection are also lost opportunities.

As indicated from the items in Table 1 (next page), county social service profes­sionals generally perceive the existence of a career ladder. However, this ladder is seen as rather narrow within their organizations. Hence, career or promotional opportu­nities may lead outside of the organization.

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Table 1. Internal Career Ladder (Percentages) N = 595 to 647

Strongly Strongly Internal Career disagree Disagree Undecided Agree Agree

1. Individuals in this job have clear career paths within the organization. 6 25 14 46 10

2. Individuals in this job have very little future within this organization. 14 54 12 16 5

3. Employees' career aspirations within the organization are known by their immediate supervisors. 3 22 19 51 6

4. Employees in this job who desire promotion have more than one potential position they could be promoted to. 15 45 8 28 4

Formal Training Systems The modern organization is indeed made up of its people and the knowledge they possess. We must recognize that this knowledge is, at best, only the beginning of a mystery. It can no longer be taken for granted that employees will arrive at work with all the requisite skills. Too much of what goes on in today's organization requires spe­cific adaptation. The most knowledgeable and skilled worker still requires training to fit into the organization and become a valuable contributor to the team (Quinn, Anderson, and Finkelstein, 1996).

The chief function of supervisors is the development of people in their units. Managers, who have often been promoted from a technical position, must remember that they are now coaches; others have the responsibility of caring out the plays on the field. The manager/coach can have the greatest effect only by assuring that the employee/player is truly prepared for action.

Unfortunately, training and development is one of the most neglected aspects of government. Well into the 1950s and 1960s, governments denied the value of train­ing and development. Individuals were hired for specific jobs and were assumed to already possess the skills needed. While the importance of training and development is now recognized, it remains a neglected area. Beginning employees, like the build­ings and equipment of government, are allowed to depreciate through an under investment in maintenance (Elmore, 1991; Gray, Hall, Miller, and Shasky, 1997).

North Carolina social service employees generally perceive that training is avail­able. However, as Table 2 (next page) indicates, training is focused on current job skills and not on employee development for future advancement.

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Table 2. Training (Percentages) N = 648 to 664

Training Strongly disagree Disagree Undecided Agree

Strongly Agree

1. Extensive training programs are provided for individuals in this job. 6 33 4 45 12

2. Employees in this job will normally go through training programs every few years. 4 32 4 51 10

3. There are formal training programs to teach new hires the skills they need to perform their job. 5 23 6 51 15

4. Formal training programs are offered to employees in order to increase their promotability in this organization. 10 42 13 29 5

Results-Oriented Performance Appraisal Performance appraisal is used as an aid in making judgment decisions pertaining to promotion, demotion, retention, transfer, and pay. It also is employed as a develop­mental guide for training needs assessment and employee feedback. Performance appraisal, along with a number of more general organizational functions, aids in vali­dating selection and hiring procedures, promoting employee-supervisor understand­ing, and supporting an organization's culture. Modern performance appraisal systems combine an objective appraisal instrument with the supervisory and employee train­ing in the proper use of that instrument. Two formats dominate the arena of objec­tive appraisal techniques: behaviorally anchored rating scales (BARS) and management by objectives (MBO). Behaviorally anchored rating scales and manage­ment by objectives approaches essentially involve the same components, however the objective components common in both approaches are introduced into the appraisal process in a different order. BARS appraisals work best with large groups and sub­groups of individuals whose job descriptions can be standardized; MBO, on the other hand, is more suited to cases that can be tailored to each individual job. MBO is best when it is focused on the results to be expected from job performance; BARS handles behavioral processes where outputs are more identifiable and assurable than out­comes. Both employ variations on participative management in order to guarantee their effectiveness. A somewhat more passive approach to participation guides BARS, while a more proactive style is found in MBO.

While the use of objective appraisal instruments is recommended, many juris­dictions still employ subjective graphic rating scales. Although invalid, for the most part, they are relatively inexpensive and prove to be adequate "paper systems" for jurisdictions where performance appraisal is not relied upon as an aid in decision mak-

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ing. Often effective and trusted supervisors can compensate for the shortcomings of appraisal systems. Unfortunately, supervisory and employee training in the proper use of the appraisal process lags significantly. This often results in systems failures in that the advantages of an objective appraisal are dissipated through various managerial mistakes and rater errors.

The environment in which welfare reform has occurred involves extensive mea­surable goals and objectives. Table 3 shows that employees perceive that these orga­nizational goals and objectives have been transferred from the organization level into the individual performance appraisals.

Table 3. Results-Oriented Appraisals (Percentages) N = 605 to 609

Strongly Strongly Results-Oriented disagree Disagree Undecided Agree Agree

1. Performance is more often measured with objective quantifiable results. 3 22 15 53 8

2. Performance appraisals are based on objective, quantifiable results. 3 20 14 56 7

Employment Security

The knowledge-based environment also heightens the importance attached to employee rights along with the instrumental grievance and discipline system. Employ­ees are human beings and work better when that humanity is recognized and respect­ed. The employer-employee relationship is not that o f master and servant (although much of the legal system is based on that design). Foreshadowed by the work of Mary Parker Follett and commencing with the Hawthorne studies in the late 1920s, moti­vational research has clearly pointed this out. With the transformation of organizations into entities based on the skills of employees rather than the efficiency of machinery, this lesson becomes even more important. Employee rights and the mechanism for enforcing them (i.e., the grievance process) serve as a safeguard for assuring employ­ees are accorded the basic dignity every human being is entitled to. Like similar safe­ty devices, we hope that we never will need to use them. While most organizations would prefer to do without such legal and formal systems, reality requires them. If no past abuses had occurred, there would be no need for laws prohibiting such practices.

As indicated in responses in Table 4 (next page), job security remains a hallmark of public employment in the counties. This is advantageous in that it allows profes­sional employees to devote attention to doing the job rather than worrying about hav­ing the job.

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Table 4. Employment Security (Percentages) N = 532 to 646

Strongly Strongly Employment Security disagree Disagree Undecided Agree Agree

1. Employees in this job can expect to stay in the organization for as long as they wish. 2 12 10 61 17

2. It is very difficult to dismiss an employee in this job. 3 26 11 44 17

3. If the agency were facing economic problems, employees in this job would be the last to get cut. 5 24 23 37 11

Employee Voice/Participation In Exit, Voice, and Loyalty, Albert O. Hirschman (1970) proposes a typology of respons­es to dissatisfaction. The theory of individual self-interest that not only operates in the economic market but with respect to socio-political values is primarily an attempt to explain an organization's survival. Although Hirschman's theory focuses on decisions regarding the acceptance/rejection of an organization's products or services, it also can be interpreted with regard to decisions by an organization's personnel vis-a-vis the organization itself.

Exit is a conceptual representation of the market or economic system. The indi­vidual consumer chooses to buy or not buy; i.e., to stay or exit. By exiting a product line or service, individuals register their market judgment.

Similarly, an employee can express dissatisfaction with an organization by leav­ing it. For such a market system to work, basic economic assumptions need to be met. The consumer or employee must have viable alternatives from which to choose (as well as knowledge of those alternatives). Even so, Hirschman notes that the exit option, as such, is not made lightly. Hence, he suggests that prior to such a step a con­sumer or employee is likely to make other attempts to rectify perceived problems or dissatisfaction.

It is the effort to change the situation that gives rise to voice. Voice is seen to represent a political dimension, which can encompass a gamut of behaviors ranging from grumbling to participative management to full scale democracy. It represents a viable, non-market based means for assuring organizational survival. While voice focuses internally on the advocacy of reform, loyalty represents the employee's will­ingness to stand up for the organization. In this instance, advocacy is in response to outside criticism and is an expression of confidence in the organization.

In a series of articles Farrell, and Rusbult (Rusbult 1980; Farrell and Rusbult 1981; Rusbult 1983; Rusbult and Farrell 1983; Farrell 1983; Rusbult, Farrell, Rogers, and Mai-nous 1988) explicitly extend Hirshman's concept to personnel matters. As a result of a multidimensional scaling of job dissatisfaction, Farrell (1983) was able to demon-

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strate support for a modified version of Hirschman's typology. To the categories of exit, voice, and loyalty, Farrell added one for neglect. Neglect indicates a condition in which employees give up but stay to draw a paycheck. Neglect may involve absen­teeism and obstructionism or merely a passive "I don't care" attitude.

The responses reported in Table 5 show North Carolina county social services agencies as models of participation. The professional employees exercise a strong voice in the organization and are responsible for making many of the decisions.

Table 5. Participation (Percentages) N = 660 to 662

Participation Strongly disagree Disagree Undecided Agree

Strongly Agree

1. Employees in this job are allowed to make many decisions. 1 13 6 56 25

2. Employees are provided the opportunity to suggest improve­ments in the way things are done. 1 6 4 63 27

3. Supervisors keep open communi­cations with employees in this job. 1 7 7 59 27

Broadly Defined Jobs The "triumph of technique over purpose" is also evident here. The rigidity invested in the use of pay scales (and the concomitant job analyses upon which they are based) denies organizations the flexibility to adjust to and meet change. Individuals cannot readily be reassigned duties. This is especially a problem if those duties are from jobs officially designated as having lower grades. Even if pay remains constant, a lower-grade assignment might be seen psychologically as a career setback. Reward for excep­tional performance is thwarted by the formal attachment of pay ceilings or maximum salaries to specific job grades. Broadbanding has been introduced as a means to cut through the Gordian knot of classification. Whether using "broad grades" or "career bands," these tools management greater flexibility. The employee is seen to benefit from both more challenging and meaningful work assignments and the possibility of pay increases (Risher and Schay, 1994).

Broad grades are a re-calibration of the existing pay scales. For example, under broad grades a system of 50 pay grades might be collapsed into ten or twelve grades. Career bands are more innovative and dynamic. Career bands also reduce the num­ber of pay grades from, for example, 50 to ten or twelve, they do not impose internal step grade structure onto this new system. Managers are given the flexibility to freely assign (and reassign) duties and salaries (limited only by overall budget figures). Indi­viduals need not begin at the minimum starting salary nor serve a certain amount of time prior to receiving increases. Managers are often permitted to hire at any salary between the minimum and the range midpoint; offers above the midpoint would be permitted but require approval. Ideally, salary determination within broadbanding is

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calculated from a midpoint base. The market rates or competitive salary rates set the base, which should be the median or average salary.

While broadbanding may not be the case in North Carolina, position descriptions for county professionals are clearly state-of-the-art. From the responses displayed in Table 6, it is evident that welfare reform's transformation of the job from eligibility determiner to job counselor may have witnessed a "triumph of purpose through tech­nique."

Table 6. J o b Descriptions (Percentages) N = 617 to 666

Strongly Strongly Job Descriptions disagree Disagree Undecided Agree Agree

1. The duties of this job are clearly defined. 2 15 8 56 20

2. This job has an up-to-date job description. 3 16 5 57 20

3. The job description for this job contains all of the duties performed by individual employees. 6 32 7 45 11

4. The actual job duties are shaped more by employees than by a specific job description. 4 38 13 37 8

Performance-Based Compensation Strategic pay requires that all decisions relative to compensation and benefits are designed to attract, retain, or motivate employees. As such, the entire organization's reward structure is designed to fully serve its mission or purpose. In reality, most orga­nizations limit incentive pay to a portion of the compensation package. All employ­ees who perform satisfactorily are guaranteed a set base pay and benefits package. Even so, the added impetus of incentives guarantee serves to calm fears with regard to financial security and, hence, helps to attract and retain individuals.

Extrinsic incentives primarily use monetary rewards as a motivating factor. Career development and training opportunities that can lead to promotion or interesting, ful­filling assignments (which also provide intrinsic motivation through their recognition of merit) are another source of extrinsic motivation in the sense that in addition to higher compensation levels, they pay individuals power and responsibility.

Pay-for-performance is an application of expectancy theory. Employee motivation is deemed to be extrinsic and follow the outlines of B. F. Skinner's (1904-1993) Oper­ant Conditioning models. Expectancy theory posits that employees will be motivated to the extent of the desirability of the rewards, the effort required to perform the tasks, and the probability of successful performance (and of the organization paying-off). Pay-for-performance schemes concentrate on providing or determining the right balance between extrinsic reward (pay) and required effort (performance).

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A wide array of extrinsic pay-for-performance schemes exists. The modern scheme builds upon a base-pay system. The salary or wage put "at risk" is at an amount to encourage or motivate the worker without jeopardizing his or her basic financial security. Overall individual performance or specific instances can be addressed; focus can be on group performance at the organizational or team level. Individual systems based on merit pay step increases, annuities, bonuses, and suggestion awards as well as skill- or competency-based approaches abound. In addition, group or organization rewards are the focus of gain or goal-sharing programs. Performance appraisal systems are the trigger for operationalizing pay for performance. The individual performance rating is used to determine which employees are eligible for individual and group awards as well as the amount of reward to which an individual is entitled. Manage­ment by objectives systems also may serve as the measurement instrument for a pay-for-performance system (appraisal-by-objectives formally incorporates MBO into the performance appraisal process).

While Table 7 includes but one item, it presents a relatively clear message. Pay for performance is not widely practiced in the public sector. Similar to most other public organizations, counties in North Carolina have not linked their missions to their compensation systems.

Table 7. Pay for Performance (Percentages) N = 648

Strongly Pay for Performance disagree Disagree Undecided Agree

Strongly Agree

1. Individuals in this job receive pay based on the job performance. 22 36 7 31 4

A Summary of Descriptive Statistics The multiple responses in Tables 1 to 6 and the item in Table 7 above were used to construct summary indices. These are presented in Table 8 (next page). Using the metaphor of an academic grade point average (GPA), the indices exhibit "grades" from a high of B for participation to a low of D in pay for performance. The other indices earn C + (results oriented appraisal, employment security, and job descriptions) and C (career ladders and training) grades. The cumulative GPA of 2.33 registers as a C + .

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Table 8. Descriptive Statistics

Practices N Mean Standard Deviation

Career 663 2.20 .75

Training 667 2.20 .89

Results Oriented 615 2.43 .94

Employment Security 658 2.53 .78

Participation 662 3.00 .71

Job Descriptions 666 2.41 .81

Pay for Performance 648 1.56 1.24

Relationships with Demographics and Outcome Assessments Various demographic control variables are used in the survey as proxy measures to test for prior influences. Conditions both in the external environment and in the inter­nal organizational operation are examined for their effects on perceptions. The coun­ty population, along with an individual's gender, ethnic status, age, and educational attainment, are all factors that are both external to the organization, but pre-existing since the implementation of welfare reform. Supervisory status and tenure as a super­visor, while internal factors are also organizational conditions that, for the most part, precede the introduction of welfare reform. The correctional tests presented for these factors do not point to causal explanations. However, they serve to indicate areas in need of further examination and research.

The demographic correlations in Table 9 "light up" with statistically significant findings. Roughly a third of the relationships register statistical significance; however, this is not in itself sufficient to indicate the importance or substantive impact of these findings. Statistical significance merely sorts out which relationships merit further examination.

Table 9: Demographic Statistics (Correlations)

Educa- Super- County Practice Gender Ethnic Age tion visor Tenure Population

Career .01 .04 - .00 .02 - . 1 5 * * .05 - .04

Training .02 .04 -.02 .02 - .03 - .03 .08*

Results Oriented Appraisal .05 .03 - .07 - .05 - .03 - . 1 3 * * - .04

Employment Security .12** - . 1 3 * * - .09* - .09* .03 - . 1 2 * * .04

Participation -.01 - .10* .03 .10* - . 1 7 * * .07 - . 1 0 * *

Job description .03 - .05 .07 .06 - . 1 1 * * .06 - .08*

Pay for Performance .01 - .06 .03 .06 - .02 .05 .36**

* p < .05 ** p < .01 N = 531 to 664

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Measured with bivariate correlations, the statistically significant substantive rela­tionships register magnitudes between + . 1 7 and + .36 with most between + . 1 0 and + .15. As such, they represent relatively weak relationships. In general, most of the demographic factors have little impact on perceptions of strategic human resources practices with the possible exceptions of supervisory status and county population. Supervisors are more negative in their assessment of what strategic human resources tools are available to them. Apparently, larger counties are somewhat more likely to afford training and pay for performance, but suffer difficulties in adjusting position descriptions and encouraging participation. With respect to individual strategic human resources practices, employment security and participation seem the most affected by demographic characteristics. This indicates unevenness among percep­tions, which warrants further examination.

Partial correlations (controlling for all the demographic variables) are also exam­ined between five outcome assessments and the county professional perceptions on strategic human resources management. While dramatic relationships are not to be expected (not much else but administrative capacity is involved here), the whole con­cept of strategic human resources management does indeed posit a positive rela­tionships between administrative capacity and the achievement of an organization's goals and objectives.

As Table 10 (next page) shows, few relationships are apparent; only a quarter registers as statistically significant. These, in turn, are all relatively weak (between + .09 and + . 1 1 in magnitude). Employee training apparently "contributes" to unemploy­ment (partial r = . 0 9 ) . Two possible explanations are suggested for this. First, in as much as training is focused on developing different skills, it directs the efforts of pro­fessionals away from the reduction of unemployment. Second, county professionals may not have accepted the political goal o f reduced unemployment as a valid and legitimate welfare objective. Elsewhere, county professionals have raised concerns in regard to the short-term focus of welfare reform. Neither does it appear that train­ing helps with the collection of child support payments (partial r = - . 0 8 ) . Again, this may indicate that training is focused on other areas. On the other hand, the employ­ment security enjoyed by county professionals apparently contributes to having indi­viduals stay off of welfare (partial r = . 0 8 ) . Both results-oriented appraisals (partial r = .11) and job descriptions (partial r = . 0 8 ) appear to focus employees toward achiev­ing a drop in the number of people on welfare. On the other hand, pay for perfor­mance (partial r = - . 0 9 ) isn't a sufficient reward or incentive in the goal of putting people to work. Individual incentives may be counterproductive in what has tradi­tionally been an intrinsic, team-oriented profession.

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Table 10: Outcome Assessment (Partial Correlations)

Practices Unemployment Collect Staying Off Going to Drop in Change child support Welfare Work Workfirst

Careers - .02 .00 -.01 - .04 - .04

Training .09 * - .08 * -.05 .07 .00

Results Appraisals -.01 - .03 .04 - .02 . 1 1 * *

Employment Security -.01 .09 * .08 * - .02 .03

Participation - .00 - .04 - .03 -.01 .06

Job Descriptions .01 -.01 - .06 .06 .08 *

Pay for Performance - .06 -.01 -.07 - .09 * * .01

* p < .10 ** p < .05 n = 486

Conclusion Since 1995, North Carolina counties have been engaged in the transformation of social welfare in America. The basic goals and objectives of our welfare system have been refocused. This process also has focused on the administrative capacity of the state and county agencies charged with these missions. As such, strategic human resources management should play an important role in the success of welfare reform. Yet, the human resources practices found among North Carolina counties show only moder­ate use of strategic human resources concepts. Furthermore, these apparently have but a few, weak connections with organizational achievement. However, these mar­ginal relationships hint at possibilities in as much as many personnel practices may not be strategically focused.

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Authors

Dennis Daley North Carolina State University College of Humanities and Social Sciences Raleigh, NC 27695

Michael L. Vasu North Carolina State University College of Humanities and Social Sciences Raleigh, NC 27695

Meredith Balckwell Weinstein North Carolina State University College of Humanities and Social Sciences Raleigh, NC 27695

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