7. When Not to Implement Agile HRM: A Guide for HR Leaders

 

Agile HRM is an approach to managing people and processes that emphasises flexibility, collaboration, and iterative improvement. While Agile HRM has gained popularity in recent years, there are situations where it may not be the best approach. In this article, we will explore when not to implement Agile HRM and provide guidance for HR leaders facing these situations.

Assess Organisational Readiness

Before implementing Agile HRM, it is essential to assess organisational readiness. Sometimes, an organisation may not be ready to adopt Agile HRM due to cultural, structural, or strategic factors. For example, an organisation with a highly hierarchical structure may struggle to adopt the collaborative and flexible nature of Agile HRM. Similarly, an organisation with a highly regulated environment may face challenges implementing Agile HRM due to compliance requirements.

In such cases, it may be necessary to first address these factors before implementing Agile HRM. Harvard Business Review's "Agile Is not Just for Tech Anymore" notes that "before you can adopt agile, you need to create an environment where it can thrive" (Rigby, Sutherland & Takeuchi, 2016). This may involve restructuring the organisation, aligning the culture with Agile values, or adjusting the strategy to support Agile HRM.

Consider the Nature of HR Processes

While Agile HRM can be applied to many HR processes, some processes may not lend themselves to an Agile approach. For example, the Harvard Business Review article "When Agile Fails" notes that "HR functions like compensation and benefits can be difficult to convert to agile because they are more rules-based and require more upfront planning" (Kotter & Satell, 2019). Similarly, complex legal and compliance requirements may make implementing Agile HRM in some regions of HR challenging.

For instance, payroll processing is a highly regulated function requiring high accuracy and compliance. In such cases, an Agile approach may not be appropriate as it could compromise accuracy and compliance. It is essential to maintain a structured approach to ensure compliance with regulations.

Assess the Maturity of the HR Function

Agile HRM requires a certain level of maturity in HR processes and practices. Organisations with immature HR functions may struggle to implement Agile HRM effectively. In such cases, developing a solid foundation in HR processes may be necessary before implementing Agile HRM.

The Harvard Business Review article "Agile HR: It is Time for the Agile HR Revolution" notes that "for HR to become agile truly, it needs to move beyond basic process automation and into more advanced technologies and methodologies" (Schmid, 2017). For example, if an organisation still uses manual recruitment processes, it may not be ready to adopt Agile HRM. It may be necessary to automate HR processes first before implementing Agile HRM.

Consider the Organization's Culture and Values

Agile HRM requires a culture that values collaboration, transparency, and continuous improvement. Organisations that do not embrace these values may struggle to implement Agile HRM effectively. In such cases, it may be necessary first to address the culture and values of the organisation.

The Harvard Business Review article "The Agile C-Suite" notes that "agile is a mindset, not a methodology" (Rigby, Sutherland & Takeuchi, 2016). This means organisations must adopt an Agile mindset before implementing Agile HRM. For example, an organisation prioritising individual performance over team collaboration may struggle to adopt Agile HRM effectively.

Conclusion

Agile HRM can be a powerful approach to managing people and processes, but it is not always the best solution. HR leaders must carefully assess organisational readiness, consider the nature of HR processes, assess the maturity of the HR function, and consider the organisation's culture and values before implementing Agile HRM. Ensuring the organisation is ready for Agile HRM and aligning with its goals, culture, and values is essential.

 

In summary, Agile HRM is not a one-size-fits-all approach and may not be the best solution for every organisation. HR leaders must carefully assess the organisation's readiness, processes, and culture before implementing Agile HRM. By doing so, they can ensure that the organisation is well-positioned to reap the benefits of Agile HRM and improve overall organisational performance.

References:

Kotter, J. P., & Satell, G. (2019). When Agile Fails. Harvard Business Review, 97(5), 54-62.

Rigby, D. K., Sutherland, J., & Takeuchi, H. (2016). Agile Isn't Just for Tech Anymore. Harvard Business Review, 94(5), 96-104.

Schmid, P. (2017). Agile HR: It's Time for the Agile HR Revolution. Harvard Business Review Digital Articles, 2-5.

Rigby, D. K., Sutherland, J., & Takeuchi, H. (2016). The Agile C-Suite. Harvard Business Review, 94(5), 52-60.