Human resource management Flashcards
Human resource management is (definition
The sum of all strategic, policy, procedures and day-to-day acts that together aim to guide employment relations in organizations
Hr practices
Are all the policies and procedures used for managing employment relations experienced by people in the workplace. Used by managers, teams, project leaders and employees themselves
Employment relationship
A reciprocal relationship between those who perform work or services and those who offer employment in the aim of realizing organizational goals
Why dont all organizations do the same (management wise etc)
1) it doesnt fit (there are differences in organizations and HR practices are effective to different extents)
2) Because different stakeholders have different interests in HRM
3) because some methods are unethical
Research practice gap
Researches only know about half of the methods that are available
Evidence based HRM
A decision making method for practitioners to find effective interventions to manage human resource. By taking the best research evidence into account together with understanding the needs and requirements of stakeholders while upholding ethical standards for employees
Equifinality
Not one solution fits all, but equally effective solutions that lead to the same outcome in different ways
Quick fix
Immediate action on a problem (influenced by fads and fashion, limited understanding of the problem or inaccurate knowledge. (not evaluated often followed by another quick fix) (often harmful)
Evidence based HRM
Is a conscientious, explicit, and judicious decision making process to adress important people related issues in organizations by combining the best available research evidence with measurrable data and professional knowledge available in organizations
Validity (definition)
The evidence helps you understand the cause of the problem (check the quality of measure, research design and use good theory
Reliability
The findings reported in the evidence would be similar if we replicated the research
generalizability
We can use this evidence to say something about the targeted employees for the problem intervention
Ethicality
Do not harm
Benefits of evidence based HRM
A better understanding of problems in the organization
A culture of learning and curiosity
Reduction of organizational politics
When is EB-HR not useful
Arguable: in common, day-to-day management decisions and in crisis situations
Human resource management (definition)
Human resource management is the sum of all strategy, policy, procedures and day to day acts that together aim to guide employment relations in organization
–> towards the goal of organizations
While ensuring alignment with various contextual conditions such as organization characteristics, industry dynamics, competition, labor markets nad legal institutionsal settings
Operating performance
Productive sales quality and customer loyalty
Financial performance
Profits return on assets ROI tobins
Employee performance
Retention (opposite of voluntary turnover) , employee productivity, value added per employee
Innovation indicators
Eg, new products or services, patents
Resources
Are tangible and intangible features that enable actors to realize their goals
Resource based view (barney)
1) physical capital: money, offices/factories, machines and computers
2) organizational capital
a) structural organizational capital
b) social organizational capital
3) human capital (knowlege and skills the employees in the organization possess)
Which resource leads to competitive advantage
- sustainable
- Rare
- Non-transparent
- non-transferable
Social and human capital: highest value for unique capability… Why?
Because social organization capital and human capital are stored in the behavior and minds of people. Individuals who leave thake their skills knowlege and networkds with them. Transfer of skills knowlegde and social relations is difficult
Business case for HRM
Investing in HRM leads to unique capability for competetive advantage
Causality
An empirically observable relationship that suggest a mechanism through which a cause leads to an effect
Human capital
All knowledge, skills, ideas, abilities and health available in the people working within an organization
Human capital (economic view)
HC is a rare resource for individuals and for organization, that can be a unique capability for competitive advantage
Individuals: career income
Organizations: performance outcomes
Generic human capital
Broad diplomas, generic industry knowledge
Firm-specific human capital:
Non-transferable, firm specific knowledge
HC as individual differences (intelligence)
Speed with which people process, retrieve and combine information
Reliable tests
HC as individual differences (personality)
Relatively consistend style in which people think, act and feel
Reliable tests or interview
Structure of intelligence
The underlying factor g
Smaller aptitutes (e.g. memory, speed of retrieval, logical reasoning) all load positively on g
Scores are normally distibuted over the population
Scores are stable over a lifetime
Scores correlate high with performance
Structure of personality
Five dimesions (big five)
Openness, agreeableness, extraversion, conscienciousness and neuroticism (emotional stability)
Social capital theory
The potential that is generated by the network of social relationships in an organization and that can be used to enable actions
Social capital dimensions
1) structural social capital (network opportunity to meet)
2) Relational social capital (Bonding/friendship)
3) Cognitive social capital (organizational climate/shared understanding
Levels
Individual, team, organization and society
Social exchange theory (unleashing human and social capital)
Explains why people put effort at work, exchange mechanisms in the employment relationship
Social exchange theory (humans)
Relationships between people are based on exchange
Economic vs. social exchange relations
Does the relationship make me happy
Gouldner (social exchange theory)
The norm of reciprocity
Implicit expectation about fair repays
If reward is very high –> extra effort to make up
If reward does not come –> anger, frustration and revenge
Social exchange theory (Blau)
Organizations although not human are assigned human like characteristics. Hence the norm of reciprocity applies as well
The social exchange should be in balance´if
The employer is good to their employees (more so than expected) then the employees will feel compelled to be an exemplary employee through a positive attitude and extra effort
Does social exchange pay off (research evidence)
Extra investing in employees increases
Job performance, willingness to do something extra (OCB), employee commitment
Longitudinal and meta-analytical evidence
Behaviors/attitudes induced by social exchange (OCB, commitment and satisfaction) result in better organizational performance
Essential goals of planned change
Change employees behaviour
Improve competitive advantage or service
External forces for change
Social (Including diversity, ageing workforce, changes in attitudes nad preferences)
Technological (eg. ict, online shopping)
Economic (competition from BRIC: low wage emerging economies)
Political (e.g. conflic in easern europe, privatisation of public sector organisations)
Legal (e.g. regulation of food additives, changes to employment law
Ecological (E.g. energy usage)
Internal forces for change
Performance (eg poor quality or service)
Innovation (E.g. production or product desing)
Human resources (E.g. commitment, high absenteeism)
Participation (E.g. Generate new ideas, ways of doing)
Leadership (E.g. new champion for change)
Conflict (e.g. inter department power shifts)
Safety (e.g. unsafe or unhealthy processes)
How can HRM and leadership help organizations to compete and survive in environment of continuous change
Change management strategy –> Theory that explains what happens here –> performance of the organization
Managing change
The process of planning and executing change to minimise the resistance, while maximising cooperation and the effectiveness of prcess
change agents
Can be managers to non-managers
Lewins theory of planned changet 3 stages
To reach desired state: increase driving forces, reduce resisting forces or combination of both
1)Unfreezing (thaw ways of doing)
2) Movement (modify behaviours by seeing organisation as a system of learning)
3) Refreezing (embed changes to avoid regression by positive reinforcement, by coaching, by revising rules governing behavior
Criticism of lewins three stage model
The third stage refreezing
1) In fluid/volative business situations, the concept of refreezign would not be in line with reality
2) refreezing is considered to be a quaintly linear and static concept
3) This migh furthermore undermine continuous learning
Kotters eight stage model
1) failure to create a sense of urgency
2) failure to create a powerful guiding coalition
3) Failure to recognise the power of vision
4) failure to communicate the vision
5) failure to remove the obstacles that block the vision
6) failure to plan for a nd create short-term wins
7) declaring victory too soon
8) failure to anchor the changes in the organisational culture
Kotters advise on how to practice change (building on lewins theory of planned change
1) unfreeze (establish sense of urgence)
2) Move (guiding coalition, change vision, communcate change vision, empower others to take action, generate short time wins)
3) Freeze (consolidate gains, promote change; Institutionalise new approaches)
Dynamic capabilities
The organizational competence in changein and adapting its resources to deal with dynamic environments
Resources that allow organizations to enterprise: seize oppertunities when they come along
Human resource scalability: the flexible firm
The speed with which an organization can adjust its work force
Quality (amount of employees)
Quanitity (The type of tasks that employees can do)
The flexible firm
Combining permanent and flexible employment methods
Organizational lerning capability
The capacity of the organization as a whole to access information from outside the organization, bring it in the organization, learn from it and convert that learning into new knowledge
Needed: Hr practices aimed at knowledge transfer and strong social ties within the organization and ouside the organization
Organizational capability for innovation
Management systems that encourage knowlege createion and proactive behavior at all levels of the organization, and a strategy oriented towards innovation.
The mechanisms of culture chagne
The techniques used to change culture cover the whole range of personnel management practice and have included initiatives in the following areas:
Recruitment, selection, induction, traning and development, communications, payment and reward, appraisal, employee relations, organization structure, counselling and redundancy and social activiteis
Change oriented leadership (4-tings)
Intellectual stimulation, Inspirational motivation, individualized consideration and idealized influence
Behavioral indicatios of individualized consideration
Recognizes differences, Enlarges individual discretion, creates strategy for continuous improvement, promotes self-development, ecnourages others to take initiative, coaches and counsels, Tragets areas to develop and to elevate individual needs
Transformational leadership (Idealized attributes)
I belive this is whats right not simple the right thing
General characteristis (Confidence in the vision, sense of purpose and trust)
Actions (Exhibits persistence in pursuing objectives, demonstrates dedication to followers)
Why multinational corporations (MNCS) go abroad
Market seeking behaviour:
To gain access to and to serve local or regional markets
Efficiency seeking behaivour:
Exploit international factor-cost country differences
The General field of HR
Major functions and activities ,HR planning, Staffing, performance management, training and development, compensation (remuneration) and benefits and industrial relations
Types of employees
Within and cross cultural workforce diversity, coordination and communication