Vertical alignment
How all the practices align with overall organizational structure
Horizontal alignment
Alignment between all the practices that create “bundles” and combinations that creates synergy
Evidence for the importance of vertical and horizontal alignment in High-Performance Work Systems
alignment found to be most important for “fast followers”, because developing the internal ability and motivation is important
not “first movers” because they need more flexibility
not for “ bench sitters” because they don’t require the same level of adaptability
Han, Kang…Lepak ( 2019)
High-Performance Work Systems are best for
“fast followers”, especially when it’s both horizontally and vertically aligned
Han, Kang…Lepak ( 2019)
Lepac, Snell
Benefits and drawbacks of internal employment
Benefits
- sustainability and predictability of the human capital
- lower transitional costs
Drawbacks
- higher bureaucratic costs
- inability to adapt to fast change ( lower innovation)
Lepac, Snell
Benefits and drawbacks of external employment
Bennefits
- more types and number of workers available
- allows for more innovation
Drawbacks
- hinders long term performance, because of most skills and capabilities migrate or outsourced
Lepac, Snell
HR configurations influence –> (3)
- Characteristics of human capital ( value and uniqueness)
- Employment modes a) internal ( develop+ acquire) b)external ( contract alliance)
- Employment relationship ( organizational/ symbolic// transactional/ partnership)
Lepac, Snell
Human capital theory
Human capital theory
- labor costs relative to the return on investment
- firms are concerned that the skills they develop will leave the company ( loss of investment)
- generic skills are developed by workers, specific are invested by the company
Lepac, Snell
Resource-based view
- There is a strategic value in the employees, therefore the skills preferred to be unique and valuable
- knowledge-based competencies should be develope internally since they are a point of competitive advantage
- other skills can be outsourced
Lepac, Snell
two dimensions of employee skills
value and uniqueness
Lepac, Snell
Quandrant 1
skills are unique and valuable
employee mode -internal development
employee relationship- an organization focused ( participation in decision making, investment in the development of skills
Hr configuration: commitment (skill-based pay, sponsoring the career)
Lepac, Snell
Quadrant 2
- high value, low uniqueness
employee mode- acquisition ( buying from the market allows to gain instant access to variety of capabilities)
Employee relationship- symbiotic ( continue relationship only if it is to mutual benefit)
HR configuration: market-based (not likely to receive training, productivity/ performace-based pay)
Lepac, Snell
Quadrannt 3
low uniqueness, low value
Employment mode- contracting (likely to be outsourced or have temporal contracts)
Employment relationship- transactional ( short term gains(
HR configuration- compliant (rules and regulations that makes workers comply/so if training is done it aims at company policies)
Lepac, Snell
Quadrant 4
High uniqueness, but low value
Employment mode: alliances ( mostly part-time outsourced, high knowledge workers such as researchers)
Employment relationship- partnership
HR configuration- collaborative ( so training is focused on team building, ect)
Morgoleson and Campion
name different bundles of HR practices
- Cost minimisers
- Contingent motivators
- Competitive motivators
- Resource makers
- Commitment maximizers
( from leas to most mechanistic in terms of HR)
Morgoleson and Campion
Describe cost minimizers
- least effort to adopt any HR bundles
- mostly control systems
- Has the least mechanistic structure in terms of HR bundles
Morgoleson and Campion
Describe contingent motivators
- rely on contingent pay to motivate their employees
Morgoleson and Campion
Describe competetive motivators
- buy approach
- motivate trough paying a market competitive wage
- also, use performance evaluation pay
Morgoleson and Campion
Describe Resource makers
- invest in recruitment and development
- emphasis on a momentary reward to motivate the employees
- enhance skills and capabilities
Morgoleson and Campion
Describe Comitment maximizers
- Full range of high-performance HR bundles
- select, motivate, develop
Morgoleson and Campion
Main takeaways from the article
- There should be vertical alignment
- Commitment maximizers are most innovative and people-oriented. They have adopted the most mechanistic structure. Cost minimizers are at the other end of the spectrum
- More mechanistic the organizational structure is, more likely that HR innovations are in place
- mechanistic structures might be better to implement new technologies, while organic structures are better for creating it
- commitment maximizers tend to outperform cost minimizers –> which is ann evidence for the importance of horizontal alignment and high-performance work systems
- Value
Human capital theory
- labour cost relative to the return on investment
- looks at generic vs specialized skills
rare/ inimitable/valuble/non-sustainable
The resource-based view of firm
- strategic relevance of knowledge in terma of a direct link to achieving competitive advantage
- Uniqueness
According to Resource-based view Human capital is source of competitive advantage when
they are:
- valuable
- rare
- inimitable
- non-sustainable
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Lecture 1 + literature25
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Lecture 2: literature only5
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Lecture 3: People and Performance31
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Lecture 4: Global Talent Management24
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Lecture 5: Compensation and benefit + key take aways from the literature11
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Lecture 6: HR analytics7
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Lecture 7: Ethical and sustainable HR19
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Q from the multiple choice3
