ICPM-2012.

Crisis Management in the Time of Changing World

Human Resource Management: The Key to

Public Management Reform
Rangson Prasertsri
Vice President for Research and Development, Chaopraya University, Thailand,
(Email:rangsonpss@hotmail.com)

Abstract different from what it is today. Ghillyer begins

his book on management by stating that:
With much of the world concerned about the “Organizations today operate in a world of
problems of responding to the increasing constant change. Technology and society are
demands of an ever more-informed citizenry, changing more rapidly than ever before.”[2] It
the field of Public Management runs the risk of has been asserted that: “The dramatic growth
becoming, if not completely irrelevant, at least of the Internet in recent years probably
non-responsive to the needs of developing represents the single most important
societies. This article is an attempt to suggest environmental trend affecting organizations
areas that need to be considered by scholars of and their human resource practices.”[3] It is
Public Management in the years ahead, while important that universities that offer programs
paying particular attention to Human Resource in human resource development, when
Management and Thailand as a point of teaching about human resource management
reference. activities, “prepare managers for the future,
not managers who would have succeeded in a
Keywords: Public management reform, past that no longer exists.”[4] This, along with
importance of human resources, organizational research aimed at understanding how to best
change employ the advantages of governance to
achieve sustainable development, are the major
1. Introduction challenges facing the field of Public
Administration today. Because of this,
By and large, the history of Public developing “best practices” for human resource
Management has seen different scholars managers lies at the heart of effective PM
advocating different paradigms believed to be reform.
appropriate for public management in a
Western culture. One especially notable This paper stems from the belief that the
change has dealt with the importance of human most important resources of any organization
resources. Originally, and until fairly recently, are not its size (number of employees) or the
the human resource (HR) function (or number of people who are served by the
personnel management function) was viewed particular Department or Ministry, nor modern
as primarily a management role that fit machinery. As societies move from production
potential employees into pre-determined of things to production of information in the
positions. Ehrlich notes that “(t)he increased digital age, computers replace tool and die
importance placed on the effective shops, garment makers, and other
management of employees in world-class manufacturing facilities. In the United States,
companies, however, has re-defined that manufacturing jobs “...represent only 12%-
role.”[1] This is even truer for the public sector 15% of all U.S. jobs”[5] and the U.S. Bureau
and is the key to Public Management Reform. of Labor Statistics predicted that the
information and services industry will account
for more than 90 percent of the workforce
2. Change growth in the next 10 years.[6] That same
One thing about the future that almost transformation is also taking place in Thailand,
everyone can agree on is that the rate of change Singapore, Taiwan, Hong Kong and South
is increasing at an astonishing rate and the Korea.[7] In all cases, the most important
world as we know it will be substantially resources needed to compete in the modern

© 2012. The authors - Published by Atlantis Press

43
digital world are a combination of knowledge In the public sector, the government
and bright, talented people with creative minds provides a vast range of programs, from
who understand that public organizations need medical services and education to police and
to change to be competitive in the future. fire protection. What “customers” (the public)
Developing human capital, much more than expect is information (feedback) that is crucial
machines, is the road to the future. for, as Promoth Sudjitporn, CEO of Asiasoft
stresses, it is important to “understand the
3. IT and Knowledge Management product from the customer‟s perspective.”[15]
Successful public managers of the future will
Much of what one learned in a Ph.D. program need to make use of the knowledge that exists
for Administration only 20-25 years ago is at all levels of the organization (and, also,
irrelevant today. It is estimated that the outside of it) to create a smoothly functioning
“global knowledge base has multiplied such organization capable of meeting the needs of
that ninety seven percent of the collective body tomorrow.
of knowledge in the world today, are things we
did not know fifty years ago.”[8] Today, some In the public sphere, the need is even more
businesses are using Knowledge Management pressing. “Knowledge must be treated as a
(KM) to “...turn best practice into normal public asset and made accessible to all because
practice.”[9] it is a powerful tool for eradicating poverty,
misunderstanding, and suspicion.”[16] Here,
Globalization is bringing about many the “role of universities is crucial as they are
changes, one of the most important is new at the very heart of the knowledge society. …
knowledge/ technology. “The „company man‟ (E)ducation and research (must) be closely
of the 1950s has become the „digital person‟ of connected with the knowledge transfer
the new millennium.”[10] A survey by the process.”[17] The Dean of the Carnegie
Society for Human Resource Management Mellon University Heinz School has stressed
found that the top resource trend identified the real IT revolution is: “...about people
was technology.”[11] This trend is increasing acquiring skills and knowledge turning those
at an ever-faster rate. “It has been estimated skills and knowledge into innovation and that
that there will be more technological change in innovation into economic growth and
the next 50 years than in the last 1,000 opportunity...not just for themselves, but a
years.”[12] Wees stresses that employees need large segment of the societies that they came
to be encouraged to think outside the box, to from.”[18]
find better ways to solve familiar problems.
They need to “...think critically about the 4. Human Resource Development
information” they receive and to talk “…to
other people to see how they solve these kinds Advances in information technology will prove
of problems.”[13] New technology facilitates to be of little value if an organization fails to
this process. It will be the job of PM scholars adequately develop the potential of its human
to transfer the knowledge gained from that new resources. This is the most important resource
technology to their students who will be the of all. “According to the Council on
administrators of tomorrow. Competitiveness human resources are the
key to global competitiveness.”[19] Or, put
In Bangkok, Imtiaz reports that “Advances another way, “HR technology has the potential
in information and communications to either increase or decrease an organization‟s
technologies (ICTs)...are set to play an worth.”[20]
increasing role in both reducing and managing
the growth still to come.”[14] It will provide an Jack Welch of General Electric noted that
administrator in Bangkok with up-to-date data increased productivity comes from
on provinces throughout the country. Much of “…challenged, empowered, excited, rewarded
this new technology is based on computers that teams of people. It comes from engaging
produce better information collection in less every single mind in the organization, making
time, but it also involves new ways of thinking everyone part of the action, and allowing
and new ideas. everyone to have a voice - a role - in the
success of the enterprise. Doing so raises

44
productivity not incrementally but by Being able to hire qualified, creative people is
multiples…”[21] only the first step. Smith and Mazin note:
“After you hire good people—you need to
One of the major changes that will be seen keep them working for your company and not
in the future is the type of people that are in the competition, and keep them content,
demand. For one thing, historically men filled motivated, and focused on the business.”[27]
most of the upper management positions in
Thai organizations. But, according to the One other important change Asian
Grant Thornton International Business Report government Departments and Ministries will
survey, today “…the percentage of Thai see in political cultures as more and more
women in senior management is the highest in people learn to compete in the global market is
the world at 45%, more than twice the global that individuals will no longer be tied to a
average.”[22] Also, in the past, a company or particular job. This has a lot to do with the
government Department hired a person changing nature of work. Before, it was
because he/she had a specific skill. That was manufacturing, but twelve years ago, the
OK for then. If your company made a pen or a Economist, citing a recent OECD study,
typewriter, it used the same technology (with reported that “more than half of the total
slight modifications) for fifty years. But, not GDP the rich economies is now knowledge-
many people use typewriters anymore. In the based(and) knowledge workersfrom brain
future, Organizations will have to “look for surgeons to journalists[now] account for
people who have the right attitude, as technical eight out of ten new jobs.”[28]
skills can be learned through on-the-job
training.”[23] Kriengsak notes, when climbing Today, smart, ambitious people (who have
up the corporate ladder: “The higher you climb, the creative minds that will be required in
the less technical skill is required. But you will tomorrow‟s digital world) are beginning to
need to sharpen your people skills in order to change jobs. In some cases it may be for more
influence others.”[24] money, but money and/or job security may not
be enough. Instead, Maslov‟s higher-level
If government Departments hope to be needs have moved to the fore. People leave
relevant in the future, they must make sure that: stressful situations for a more relaxed
1) they hire people who want to learn new atmosphere. Others change jobs to have more
skills; 2) the organization must provide those free time (to be with their families, or simply to
people with sufficient free time to learn, and; 3) play golf). They understand that THEY are in
people must be provided the opportunity demand. New companies with new ways of
(training) to learn. People in charge of human thinking are offering new opportunities. Smart
resource development in government agencies people will no longer be attached to the same
will need to hire people who can teach company or government office for life; they
themselves new skills, or, at the very least, will go where there is more opportunity, or a
people who can learn if they are provided with better work environment, or both.
new training. They also will have to be more
selective in the types of people they hire or In order to retain good workers,
promote to managerial positions. Just having governments will have to create better work
an MBA or an MPA is no longer a sufficient environments (better safety, more healthcare
qualification. Training is required to develop for employees, etc.) in the future. Smith and
the “…qualities in human resources that will Mazin note that:
enable them to be more productive and thus to “Today‟s workers bring a lot more to their
contribute more to organizational goal employers, but they also demand more in
attainment”[25] Leaders “…must make sure return. One of the expectations is to be given
that all employees have the appropriate more flexibility to be able to achieve their own
resources, including technology as well as personal goals, whatever they may be. The
personal development opportunities…”[26] pivotal elements in the „offer package‟ of
today focus on tailoring the job to the
5. Employee Retention individual needs of the employees… It is the
satisfaction of these lifestyle needs that make
the difference today in successful hiring and

45
management processes The dissatisfied hardly ever tapped. Fifty years ago, Douglas
employee is highly mobile and can easily McGregor rejected the Classical approach to
search elsewhere.”[29] administration. He believed that people enjoy
intellectual challenges. They seek
Globalization will lead first to changes in the opportunities for responsibility and for self-
private sector. “Increasingly, employers are initiative. Most workers have the capacity to
finding that helping workers to create and exercise a relatively high degree of imagination,
maintain a balance between their home and ingenuity, and creativity in the solution of
work lives is the key to retaining the best organizational problems, but the intellectual
employees.”[30] These changes in ways of potential of the average worker in modern
thinking then will spread out into society as a industrial life is only partially utilized.[36] For
whole; and finally they will be adopted by the nearly half a century, the wisdom of people
public sector. like McGregor was ignored. However, in the
past 15-20 years that has changed, and changed
Preecha Watcharapai, Secretary-General of dramatically.
the Civil Service Commission noted: “If we
want talented workers, we have to compete
6. Conclusion
with the private sector and not wait idly by for
them to come to us.”[31] People with creative Public employees are comfortable with that to
minds can negotiate their salaries, for example, which they have become accustomed and thus
one million baht per year for three years. tend to resist changes in either an
Preecha stated that “The pay is determined by organizational structure or the development of
supply and demand.”[32] This is an human resource practices. But the external
acknowledgment that the environment has environment has changed, and, to remain
changed and that to be competitive in the competitive, governmental organizations need
future, bureaucracy must also change. to address the challenges of that new
environment. “HR professionals who realize
Human resource managers will need not and embrace the new technology are the ones
only to be aware of these coming changes, but who will succeed.”[37] According to Wolfgang
be ready and able to shape them in positive
Lux: “Most Asian companies(have) not
directions. Ulrich, Brockbank, Yeung, and
adopted the type of global thinking needed for
Lake found that “…the importance of
a fast changing business world.”[38] This is
understanding and being competent in the
even truer for the public sector. PM scholars
practice of managing organizational change for
can help to facilitate the evolution of
HR practitioners” was the most important of
management theory so that new public servants
the “critical competencies for HR practitioners
will be in a position to assist in the
to be effective in their jobs.”[33]
modernization of their Ministry or
According to Teerana Konglazae, the project Department.[39] If schools of administration
manager of the Hewitt Best Employers in are going to continue to be a leading force in
Thailand 2009 Study, “...executives should helping countries achieve sustainable
listen to employees and get along with staff at development, they need to teach the future
all levels, including labourers, to create a team administrators to understand the needs of
spirit, and learn about real problems facing tomorrow so they can successfully help guide
staff aside from reading only reports that may their home countries into that world. To
be misleading.”[34] Mary Parker Follett knew remain relevant to scholars in most of the
this years ago;[35] one does not need to world, the field of Public Management must
reinvent the wheel; what is needed is more help them address this need. This, above all
research based on such profound, but long- else, is the key to successful Public
ignored insights. Management reform.

At the beginning, it was stressed that the References

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recently, the human resource potential was Changing World”, Human Resource

46
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49