In my last article, I presented the importance of HRM to first establish the nature of context before they provide any solutions to the challenges they face on a day- to -day basis. The big question is how can HR leaders determine the context? What tools can they use to tell the type of context, which in turn helps them to apply appropriate methodologies, frameworks, and approaches?
One approach that can be used is Snowden and Bonnie’s Cynefin approach which provides different types of contexts and descriptions that I believe would help HR leaders to determine and understand the contexts which in turn would enable them to apply the correct tools and methodologies to solve problems and make the rightful decisions for organizational sustainability.
In Figure 1 I present the Cynefin framework outlining the four domains: simple, complicated, chaos, and complex and the performance mindset that HR leaders should adopt against each type of context.
Figure 1: Cynefin Framework and Differences in Performance Management Mindsets
In Figure 1, I present that the leadership mindset under the ordered context that relates to on one hand, a simple domain which is guided by a general understanding that simple issues are minimal risk, low impact and low cost and that there is ample time to make decisions. In addition, the results are predictable. For example, disciplinary handling for an employee who is on a final warning for the same offence.
On the other hand, the complicated domain mindset is that the issues are borderline between low-to-moderate risk, cost, and impact. Leaders have control of the events and can dictate turnaround time while the results are also predictable. The decision-making context under the simple and complicated domains is stable and performance follows simple steps based on expert advice, in a structured manner, with clear medium to long term plans because leaders can predict the future with some degree of certainty. Within this domain, there is a relationship between cause and effect and HR leaders rely on technical expertise to guide on the best course of action to take against any challenges. The change mindset usually follows incremental structured steps. For example, dissatisfaction with a payroll system. HR would request for expression of interest from available payroll vendors, follow through with vendor assessment, selection and contract sign off. HR leaders would depend on expert advice from payroll specialists and training would be undertaken to ensure a smooth transition.
On the contrary, under the domains of chaos and complexity, the context is unordered and hence decision-making mindset changes drastically and so is the leadership performance mindset. Under a chaotic context, decisive, swift, and urgent action is crucial. Promptness of action is critical under extreme pressure as there is little room to maneuver. The situation pauses considerable risk, can be life threatening, people make decisions under extreme time and other resources constraints. Performance and action are based on instinct as the performance situation presents a matter of life-or-death situation. There is a small window of opportunity, and any missed opportunity may spell death. Since action is based on instinct, there are no rank or structured protocols that people follow, there is no leader/follower structure, heroes emerge out of people acting based on instinct. The mindset is to do everything possible to avert the situation. Performance results are predictable as the situation is usually a life-or-death situation. The consequences of slow action can be fatal. The performance mindset is that of radical change. For example, a sudden huge fire in a hospital setting with patients and staff inside.
Within the complex domain, the mindset is inquisitive against a lot of uncertainties around cause, cost implications, extent of impact and unknown turnaround times. Performance follows trend monitoring to establish patterns. There are a lot of unknowns due to a lot of new and emerging circumstances. Leaders make decisions under extreme pressure and decisive mindset is critical. Wieck (2021) posited that “complexity arises when there is a high number of interdependent factors in the system leading to confusing and seemingly chaotic behavior” (p.1). The author further contended that while HRM learned to control complicated systems by experimenting and applying incremental change, increasing complexity hinders leaders’ ability to derive lessons from their actions. The author argued that this is because under complexity effects are decoupled from their causes in time and space. For example, the Covid 19 pandemic left a trail of complex challenges, for example, severe staffing shortages especially healthcare across the globe including the United States wherein Pennsylvania for example, employers are offering sign-on and referral bonuses to manage the complex crisis
Against a complex context, performance planning should be short term and at times down to week by week or even day by day to hourly, with constant performance updates, and constant change of plans to accommodate new emerging patterns.
Regina Tendayi (DMgt., SCP-SHRM)
HRM & Executive Leadership
Author: Hands Off! Overcoming Sexual Harassment in the Workplace (2019)
My Boss, the Bully – A Chilling Revelation into Corporate Human Resources
Management (2018)
Look out for my next article where I make a comparison between prevailing HRM strategy formulation methodologies, tools, approaches, and frameworks versus Systemic HRM strategy formulation methodologies, tools, frameworks, and approaches. A must read for HR leaders who aim to impact the bottom line in a positive and sustainable manner!
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