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Executive Summary

This report examines the role of human resources management function
in helping deliver the 'modernizing agenda' for ABC, a County Council
in England. The transformation process discusses the shift from a
bureaucratic and inefficient County to one that is customer driven and
values its employees. This is elaborated further in context of the
external environmental changes in the government. ABC had to cope with
two major reorganizations in six years.

A study of the impact of external change on the County Council,
especially in respect of its HRM strategy and policy, the report
analyses the overall Human Resource strategy of the case study
organization. This was further related to ABC's business strategy.

In the next part, the linkage between performance management and
reward policies and practices has been established with respect to
both core and peripheral workforce.

The last part of the report suggests collective measures for changes
in the linkage at both the core and the periphery. The concept of
these proposals adding value has also been established. This part also
suggests various steps under the heads of resourcing, performance
management, communications, rewards and recognition etc. A new
structure and hierarchy has also been suggested along with necessary
links with theory and models.


Introduction

ABC, a county council in England functions with a budget of over 500
million pounds, and employs about 3000 people (excluding schools) in
five locations. The County, under the local government has 4 district
councils below it, followed by the Parish Councils is a part of the
three-tier system.

ABC was rated 'good' on the Comprehensive Performance Assessments
(CPA) carried out by the Audit Commission and had a score of 3 on its
ability to improve. The Council's overall aims are to move on from a
CPA 'good' to 'excellent'. The intention is to lead for the benefit of
the whole community by being open and accountable, continuing to work
in partnership with other local agencies and improve the quality of
life in the area.

The local government could be characterized as bureaucratic,
inefficient and incompetent. There was a need to work across
boundaries and break away from the use of irrational traditional
controls.

The Conservatives legislation introduced the concept of compulsory
competitive tendering along with placing constraints on budgets and
spending caps on overly extravagant authorities. Also encouraged was
the involvement of parents' in the education of their children.


Impact of External Change especially on the HRM Strategy and Policy

HRM Strategy and Business Strategy

Two major reforms in six years had brought about a radical change in
ABC County. Changes in the Central Government Policy and the structure
had further led to a loss in revenue and major downsizing. In addition
to this there was a limited focus towards ones service area leading to
a "silo-mentality".

Policy making process was limited to the leader and a few powerful
council members. Senior managers had strong professional ties to their
areas of influence thus making it difficult to exercise control over
them. The boundaries between departments reflected the boundaries
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