HRM - lectures

Question 1

Human resource management

Answer 1

HRM related to the policies, practices and systems that influence employee’s behaviour, attitudes and performance (Noe et al. 2014). Boxall and purcell (2011) describe it as all activities associated with the management of work and people in organisations.

Question 2

Employee lifecycle

Answer 2

1. Recruitment & Selection
2. Learning & Development
3. Performance Management
4. Reward Management
5. Employment Relationship

Question 3

Two main reasons why HRM can make a crucial difference:

Answer 3

1. Skill development to become a better HR leader.
   -Even if you are not working in HRM yourself, you need to be able to identify and select, manage, reward and retain the right people to support your goals/agenda. You also need to be able to “speak HR” to get the HR support that you need.
2. External positioning for stakeholder management.
   - HR and Human Capital Reporting is critical for business strategy. To make effective business decisions you need to know about things such as: structure of HR organisation, permanent/temporary employees (number, competence profiles, age, tenure), management (spans of control, succession planning, non-compete-clauses), HR productivity (fluctuation, absenteeism, revenue/employee overtime).

Question 4

How can HR knowledge help?

Answer 4

• help define jobs
• Forecast HR needs
• Provide training
• Interview (and select) candidates
• Appraise performance
• Recommend pay increases and promotions
• Communicate policies
• Motivate, with support from pay, benefits and other rewards

Question 5

Evidence-based management

Answer 5

Evidence-based management finds its origins in medicine. In the medical world, findings must be proven by facts. Further, they must be able to be replicated in order to be valid. As an HR manager, one has to combine critical thinking with the best available evidence to make decisions, in order to engage in evidence-based management.

Question 6

The evidence-based management process:

Answer 6

1. Describe the essence of the problem and ask the right questions
2. Collect evidence addressing the question
3. Critically appraise/analyse evidence
4. Use results of appraisal/analysis to make decision
5. Evaluate performance.

Question 7

Various sources of evidence can be used while conducting evidence-based management:

Answer 7

1. Scientific evidence found in peer-reviewed journals;
2. Empirical data were obtained from primary sources (surveys, focus groups) and secondary sources (databases, policies, procedures and reports).

Then these sources are critically appraised.

Question 8

Different forms of evidence:

Answer 8

• Professional experience & Reflection: based on the impact of the decision, professional experience can be valid evidence;
• Organisational facts & figures
• Benchmarking (when done right)
• Research findings

Question 9

HR Analytics

Answer 9

a form of evidence-based HR with an increased emphasis on the data from the organisation itself. The next step within the evolution of HR is the development of analytical literacy in HR professionals. This require the following:

• An understanding of the analytical framework, which involves an understanding that business logic drives measurement and thinking in terms of causal relationships;
• Mastery of the analytical toolkit and the ability to use big data;
• Strong communication skills, including visualisation and storytelling

Question 10

Business logic: PICOC

Answer 10

It is important to employ business logic when conducting HR analytics. The PICOC method is a straightforward method to do so:

Population: who?

Intervention: what or how?

Comparison: Compared to what?

Outcome: What are you striving to accomplish, improve?

Context: in what kind of organisation, circumstance?

Question 11

There are several levels of analytics used in HRM:

Answer 11

1. Descriptive (describing present and historical data patterns)
2. Predictive (Using past data to make predictions about the future)
3. Prescriptive (Analysing data to predict outcomes and make decisions)

Question 12

Human Resource Leadership

Answer 12

Human Resource Leadership is guiding or being in charge of people, and influencing them in a way of a systematic process. It involves looking at the human resources pool and determining how to influence people in order to build a solid organisational structure. This is achieved through effective recruitment and selection.

Question 13

Effective recruitment and selection

Answer 13

Effective recruitment and selection provide a unique competitive advantage since good hires can add considerable value, which is difficult to replicate. Therefore, having a very good workforce represents a unique competitive advantage

Question 14

Strategic Recruitment & Selection

Answer 14

To conduct strategic recruitment and selection, the following structure must be followed:

=> Business Strategy: necessary to select the candidates that are most likely to contribute to the goals and objectives of the firm

=> Workforce planning: helps an organisation identify its needs in terms of people resources. Entails drawing up a plan that ensures that the right number of people with the necessary skills are employees at the right time and place.

=> Job analysis: involve gathering detailed information on tasks and responsibilities involved in a job. It can range from desk research to elaborate observation studies.

=> Recruitment: entails attracting applicants. In this process, it is necessary to know the core competencies for prospective employees.

=> Selection: the final step in the recruitment and selection process, in which the best candidate is choosen.

Question 15

Workforce planning

Answer 15

Workforce planning is the process of an organisation ensuring it has the right number of people with the right skills in the right roles, both now and for the future. Traditionally, workforce planning (HR planning) comprises the five stages of the human resource planning cycle.

Question 16

Human Resource planning cycle

Answer 16

1. Stocktaking

=> identifying the internal and external factors of the resource needs of the organisation. (This included the external economic climate, technological innovations - although these are outside the control of the firm, they do inform decisions regarding recruitment and selection.)
=> Internal factors include the number and the profile of the workforce, work conditions and performance reviews.

2. Forecasting

=> entails predicting future demand and supply for labour and competencies. Labour demand relates to current and future business demands. Labour supply relates to both the internal and external workforce (the labour market).

3. Develop action plans

=> Require the organisation to determine whether the competencies required are present, or can be developed, in the existing workforce or if new workers outside the workforce must be recruited.

4. Implementation

=> this links to all stages of the HR practices

5. Assess and adjust

=> entail verifying whether the desired results were achieved through the strategic action plan, did the firm recruit superior candidates in comparison to its competitors.

Question 17

Job Analysis

Answer 17

This is the process used to gather information on the tasks and responsibilities of a given position. The job analysis process identifies the competencies associated with successful performance in this position. It is used in recruitment and selection (e.g., job description, people specification), performance management (e.g., performance appraisal criteria), reward management (e.g., compensation plans) and learning & development (e.g., training needs assessment).

Methods of job analysis include gathering background information, interviews, observation, open-ended or structured questionnaires, work diary logs and wearables.

Question 18

The outcomes of job analysis for recruitment and selection are:

Answer 18

Job Description
=> outlines the typical job duties and responsibilities

Person specification
=> Outlines the essential and desirable criteria for the person doing the job.

Question 19

Top three effective attraction methods by different employee groups:

Answer 19

Wide nets:

=> Search consultants (senior managers/directors + professional/specialists)

=> Recruitment consultants (middle/junior manager)

Wide Trawls:

Commercial Job Boards (administrative/secreterial + technical + services + manual/craft

Question 20

Selection criteria

Answer 20

1. Legality/adverse impact;
2. Reliability - (achieved if the selection instrument consistently measures what it is set out to measure);
3. Validity (refers to the extent to which a selection method measures what is intended to measure, and whether it does so effectively).

Otherwise, most organisations hire the wrong person for a position because they rely on gut-feeling rather than evidence-based approaches.

Question 21

Best Selection instruments (job specific and general)

Answer 21

Job specific:
-Employment interviews (r = 0,42)
- job knowledge tests (0,4)
- biographical data (0,38)
- work sample tests (0,33)
- assessment centers (0,29)

General:
- Cognitive ability tests (0,31) (use with caution - possibility for adverse impact)
- integrity tests (0,31)
- Personality-based emotional intelligence (0,3)
- conscientiousness-contextualized (0.25)
- interests (0.24)

Avoid:
=> personality assessment
- openness to experience
- agreeableness
- neuroticism

=> Unstructured interviews

Question 22

The most effective structured interviews have the following characteristics:

Answer 22

=> Structured interview guidelines must be based on insights from the job analysis;
=> A mixture of situational, behavioural and job-related questions must be used
=> Candidate answers must be evaluated on anchored-rating scales
=> interviewers must be documented

Question 23

Importance of Learning and Development

Answer 23

=> essential in attracting and retaining talent;
=> lower turnover rates;
=> improves performance
=> better financial results
=> Immeasurable ROIs
=> maintaining competitiveness

Question 24

Learning

Answer 24

Activity:

=> Acquiring knowledge, skills, experiences, raising self-awareness

=> Range of formal and informal activities

Outcome:

=> Change in behaviour

Characteristics:

=> Underpins other concepts - formal, informal, incidental.

Question 25

Education

Answer 25

Activity:

=> Acquiring knowledge, skills and experience

=> Period of study

Outcome:

=> qualification (e.g., degree)

Characteristics:

=> Time: medium term;
Focus: broad (many jobs/roles); prescribed curriculum

Question 26

Training

Answer 26

Activity:

=> Acquiring knowledge, skills and attitudes

=> Instructional process

Outcome:

=> Perform a job/role effectively

Characteristics:

=> Time: short term;
Focus: narrow (one role);
formal or informal provided by organisations

Question 27

Development

Answer 27

Activity:

=> Gradual growth of an individual

=> Range of activities

Outcome:

=> Growth of an individual

Characteristics:

=> Self-directed, individual responsibility

Question 28

Human Resource Development

Answer 28

Activity:

=> Field of practice: helping employees to learn and develop

=> Training and development; career development

Outcome:

=> Improve organisational effectiveness

Characteristics:

=> Focus: organisations

Question 29

Three schools of learning

Answer 29

Cognitivism:

focuses on how learners absorb, store and retrieve information in the brain. Cognitive learning is creating associations between sources of information. This is stored in the form of mental schemas.

outcome - change in mental schemas

Behaviourism:

Focuses on observable behaviour and regards the internal learning mechanism as a black box. It focused on the punishment and rewards to affect behaviour. Punishment discontinues behaviour, rewards supports a specific behaviour. This builds on receiving feedback during practice opportunities to constructively improve one’s behaviour.

outcome - change in behaviour

Experiential learning:

Composed of a four-stage learning cycle: concrete experience (feeling), reflective observation (watching), abstract conceptualisation (thinking), and active experimentation (doing).

outcome - learning through experience

Question 30

David Kolb made four learning styles for experiential learning

Answer 30

Reflector - diverging, feel and watch (reflective observation - watching)

Theorist - assimilating, think and watch
(abstract conceptualization - thinking)

Pragmatist - converging, think and do
(active experimenting - doing)

Activist - accommodating, feel and do
(concrete experience - feeling)

Question 31

ADDIE Model

Answer 31

This model provides a simple and effective approach to ensure the effective alignment of learning and development with organisational goals.

The different stages of the model are:

Analysis:
can be regarded as a gap analysis between the current and desired state of needs

Design:
Involves formulating learning objectives; planning of assessment strategy, determining levels, types and difficulty, selection of delivery methods

Develop:
Involves the drafting, producing and testing of learning materials

Implement:
The stage at which the program is made available to the learner

Evaluate:
Assessing whether the benefits justify the investment.

Question 32

Kirkpatrick’s Four-level model

Answer 32

The most widely used training evaluation model in training and development is Kirkpatrick’s Four-level model. The four levels:

Reaction (78% use)

=> Affective reactions, such as enjoyment, perceived relevance, linking of the training
=> “Happy sheets”; verbal feedback
=> Collected immediately after training; easy to obtain; relevant to know if participants disliked a training but no insights on actual impact of the training

Learning (32% use)

=> Measurement of skill enhancement, attitude change
=> knowledge tests; interviews; surveys
=> collected ~ 26 days after the training; more difficult to measure learning; relevant to know whether participants met the learning objectives of the training

Behaviour (9% use)

=> impact of training on job-related behaviours (e.g., training transfer, performance change)
=> longitudinal observation, surveys, or interviews
=> collected ~134 days after the training; supervisor ratings (i.e., other-ratings) need to be obtained in assessing behavioural change

Results (7% use)

=> Measurement of objective return of investment (e.g., complaints, failures, quality ratings, sales)
=> reporting tools already in place
=> collected ~159 days after the training
=> requires sophisticated utilisation and analysis of data; direct link between training and outcome can be difficult to prove.

Question 33

Mobile learning

Answer 33

learning by means of portable devices such as phones and tablets. Currently, only 10% of organisations are using this form of learning (the least mature form of learning). However, more organisations are trying to provide accessible, engaging, bite-sized learning that is available anywhere and anytime.

Question 34

Social learning

Answer 34

Learning through digital interactions with others by means of blogs, wikis, video chat, etc. 59% of organisations employ social learning in their training and development. However, only 24% testify to its effectiveness. The goal of this form of learning is to foster collaboration, knowledge sharing, and building a strong learning culture.

Question 35

Adaptive learning

Answer 35

achieved through personalised programs and entails the use of data mining to put together individualised learning content. This offers many advantages as it respects individuals’ learning styles, skill gaps, and interests.

Question 36

Performance management

Answer 36

the process through which managers ensure that employees’ activities and outputs contribute to the organisation’s goals.

Question 37

Traditional performance management model:

Answer 37

Performance plan:

=> translate organisational goals into individual goals
=> determine what will be measured to determine performance

Feedback:
=> Provide feedback to employee about performance

Mid-year Evaluation:
=>Discuss incremental goal attainment
=> redefine goals if necessary

Year-end performance appraisal
=> Formal performance rating
=> discuss goal attainment and areas for improvement

Question 38

Key purposes of performance management are as follows:

Answer 38

=> Strategic: direct employee activities should contribute to the achievement of organisational goals;

=> Administrative: provide a basis to inform decisions about salary, benefits, recognition, as well as termination and payoffs. e.g., explain to employees when and how to get bonuses.

=> Developmental: identify strengths and areas of improvement for employee development and train these.

Question 39

Goal-setting Theory

Answer 39

According to Latham and Locke, setting goals that are specific and challenging, yet attainable, can result in motivation to increase performance. Moreover, goals regulate performance as they direct the direction, intensity and duration of motivated action. Additionally, self-efficacy and feedback can strengthen the link between goal setting and performance.

The goal-setting theory comprises five principles:
1. Clarity
2. Challenge;
3. Commitment;
4. Feedback;
5. Task complexity.

Managers should follow the SMART (specific-measurable-attainable-relevant-timely) principle to ensure that set goals are clear. Moreover, managers can create ownership over goals by involving employees in the goal-setting process to increase their commitment. Additionally, research has shown that employees that receive feedback are more likely to attain their goals, making feedback an essential component of the traditional management performance cycle.

Question 40

Biases that Plague Performance Management:

Answer 40

Contrast effect:
=> raters make exaggerations about an employee’s performance based on the prior candidate assessed.

Primacy and recency effect:
=> Raters only use first or last impression to evaluate performance; performance at other times of the review period is ignored.

Halo effect:
=> Raters let their overall opinion of an employee influence the rating of specific performance-related aspects

Similar-to-me effect:
=> Raters assign positive performance ratings to employees because they exhibit similar characteristics as them.

Stereotyping:
=> Raters exhibit a tendency to make generalisations about particular types of people, which distorts their overall perception.

Question 41

Two classic approaches: ranking and rating

Answer 41

Ranking: Relative comparisons

=> Research has shown that rating is unpopular with employees. Also, it does not provide information on what “high performance means” what does not support employee development. Lastly, ranking promotes an aggressive culture since employees are competing for the best position in the performance hierarchy.

Rating: Absolute judgments

=> Has the advantage that it is easy to use but does not rely on relative comparisons between employees, which eliminates problems of internal competition. Nevertheless, rating can be very subjective and have a negative impact on employee development.

Question 42

Performance appraisal criteria or dimensions

Answer 42

Relative performance appraisal: people are compared to one another, and outcomes are thus dependent on other people.

Ranking: Compare groups to each other;

Pairwise comparison: group 1 to all other groups, Group 2 to all other groups, etc.,

Forced distribution: grades/rates will be distributed on a curve.

Question 43

Critical incident technique

Answer 43

Critical incident technique collects concrete behavioural examples of employee performance. It requires supervisors to record effective or ineffective employee behaviour at work, as such it can be quite costly and time-intensive for supervisors.

Question 44

360-degree feedback

Answer 44

360-degree feedback can be used to reduce reliance on the subjective rating of supervisors only. This feedback rating is derived as a composite of the feedback from self, peers, customers, subordinates and superiors. It can be a bureaucratic process to implement, but it does provide employees with a holistic, continuously updating feedback loop.

Question 45

Underperformance can be identified with the AMO model:

Answer 45

• Employees lacking knowledge and skills (Ability)
• lack of knowledge regarding expectations (Motivation)
• the working environment is non-conductive to performance (Opportunity)

Question 46

Armstrong identified five basic steps to manage underperformance (2009):

Answer 46

1. Identify and agree on the problem;
2. Establish reason(s) for the shortfall;
3. Decide and agree on required action;
4. Resource the action;
5. Monitor and provide feedback.

Question 47

Strategies to address underperformance are:

Answer 47

1. Goal setting - entails checking employee commitment to SMART goals and involving employees in the goal-setting process;
2. Coaching - entails assigning a coach to employees and using the GROW model to facilitate performance improvement.
3. Training - entails providing training to inrease knowledge and skills, to which employees often reciprocate with positive attitudes and behaviour
4. Role redesign and job rotation - entails redesigning roles or assigning employees to different roles and aims to increase job and employee fit.

Question 48

The feedforward interview protocol

Answer 48

Step 1: Identify personal success story
=> only focus on positive experiences
=> let employees describe the nature of positive emotions

Step 2: Discover personal success code
=> Personal characteristics and actions
=> supporting actions of others
=> supporting organisational conditions

step 3: Align future with personal success code
=> Asking feedforward question

Question 49

Rewards in an organisation:

Answer 49

Financial rewards:

Direct pay and indirect pay

Under direct pay:
=> Base pay (inc. overtime and premiums)
=> performance related pay

Under indirect pay:
=> Statutory benefits
=> Organisation-specific benefits

Non-financial rewards:
=> job security
=> Career development
=> Recognition and awards
=> work-life balance

Question 50

Functions of rewards:

Answer 50

=> they attract people to apply
=> they encourage people to stay (retention)
=> They encourage people to put more effort into their jobs (motivation)

Question 51

Key decisions in reward management

Answer 51

=> amount to pay employees;
=> the use of financial incentives;
=> additional benefits to offer and what for;
=> level of transparency regarding decision-making and pay levels.

Question 52

Performance related pay (PRP)

Answer 52

PRP can be split into consolidated (added to base pay) and non-consolidated (one-off payment in addition to base pay) PRPs.

Performance-related pay aims to attract individuals to organisations, retain them, and motivate them to perform even better. This then contributes to the overachieving organisational goals.

Question 53

The sorting effect

Answer 53

The sorting effect results in both attraction and retention. As people who want their pay differentiated by performance will be attracted to organisations with PRP, and low performers will receive lower pay and thus are more likely to leave.

Question 54

The incentive effect

Answer 54

The incentive effect results in increased motivation, as increased pay signals to individuals that their effort is valued and appreciated.

Question 55

Three characteristics of motivation

Answer 55

Intensity of effort - short-term incentives increase intensity but do not encourage persistence;

Direction of effort - extrinsic vs intrinsic, short-term rewards can undermine intrinsic motivation;

Persistence of effort - long-term rewards are required.

Question 56

Direction of motivation

Answer 56

Intrinsic motivation occurs when employees put effort into a task that they found interesting.

Extrinsic motivation occurs when employees are motivated by an external reward.

Question 57

Flexible benefits

Answer 57

Flexible benefits are benefits where employees may choose from a variety of benefits, or choose from varying levels. Research suggests that flexible benefits increase satisfaction and awareness of benefits

Question 58

Pay Secrecy

Answer 58

This is a pay communication policy that restricts employees’ access to pay-related information and discourages discussion among employees regarding pay issues. Despite being illegal in many countries, it is still present in private companies.

Question 59

Types of pay secrecy

Answer 59

=> distributive pay non-disclosure: restrictions on sharing information on pay levels;

=> Pay communication restriction: stopping employees from speaking about their pay;

=> Procedural pay non-disclosure: restricting information on how decisions are made.

Question 60

Perspective on the Employment Relationship

Answer 60

1. The Unitarist view:
   From this perspective, employees and employers follow the same goals. Therefore, keeping employees happy benefits the whole organisation. Conflicts only arise due to personality clashed and communication issues;
2. The Pluralist view:
   From the perspective, conflicts are inevitable because it focuses on the differing interests of different parties. Management is responsible for balancing the conflicting interests fairly. Trade Unions are necessary and of high value.
3. The Marxist view:
   Is based on the pluralist view of differing interests. Conflict is a needed mechanism to further employee interest. Reducing conflict only benefits management.

Question 61

Voice mechanisms

Answer 61

Voice mechanisms are mechanisms that help employees raise concerns, solve problems, and contribute to workplace decision-making. Generally, voice mechanisms can be divided into direct and indirect mechanisms, as described in the table. The current trend shifts towards direct voice mechanism as trade unions decline (shift from pluralism to unitarism).

Question 62

Experimental design

Answer 62

Experimental design is robust but costly. In an experimental design measurements are taken before and after the training and employees in a training group are compared to employees in a control group that did not receive the training. There are three methods:
=> Post-test only design
=> Pre-post design
=> Pre-post controlled design

Question 63

Post-test only design

Answer 63

Easiest to use, where after the training a survey is given to the trainees to ask about their opinions on the training (includes affective reactions)

Question 64

Pre-post design

Answer 64

Most rigorous, the trainee are not only asked after the training but also before on their knowledge, and a positive trend can be concluded.

Question 65

Pre-post controlled design

Answer 65

Both a training and control group (i.e.: do not take part in the training) exist. Both are compared after the training to see if there was a change because of the training. Ultimately, the control group remains at their original performance level, and the trainees should have an increase in knowledge that can be evaluated at the end. The importance of the control group lies in being able to control for confounding factors, and the training influence can be isolated when testing people’s knowledge.