Lecture 3: People and Performance

Question 1

The Harward model of HRM

Answer 1

What’s new?
- add the importance of the stakeholders and state that unless HRM policies will be influenced by all stakeholders it will fail
Situational factors –> stakeholders (management/employee groups/unions/ government) –>HRM policy choice–>HR outcomes–> long term consequences

Question 2

Two views on stakeholders-employees relationships

Answer 2

1) mutual benefits - assumes that needs can be aligned

2) conflicting outcomes - assumes that needs are opposed

Question 3

Benefits of mutual benefit view

Answer 3

• ethical responsibility

- business benefits of focusing on well-beeing

Question 4

What context of the 21st-century influence HRM?

Answer 4

• Change in techn.
• 2008 financial crisis
• Social inequality
• Lack of optimism about the future

Question 5

What is the best practice in terms of the work system?

Answer 5

• High-performance work system

Question 6

High-performance work system components (3)

Answer 6

1) Ability (skill) enhancing –> builds human capital
2) Motivation enhancing
3) Opportunity (empowerment) enhancing)

Question 7

What does the ability (skill) enhancing entails?

Answer 7

• Comprehensive recruitment
• Rigorous selection
• Extensive formal and informal training

Question 8

What does motivation enhancing entails (5)

Answer 8

• promotion and career opportunities
• job security
• competitive compensation
• developmental performance managment
• performance- linked incentives

Question 9

What does opportunity empowering entails?

Answer 9

• flexible job design
• work teams
• info sharing practices

Question 10

Benefits of High-performance work system

Answer 10

• lower employee turnover
• grater productivity ( operational outcomes)
• corporate financial performance

Question 11

How does High-performance work system financial contribute to performance

Answer 11

Ability/motivation/oportunity enhancment –> Human capital and motivation–> low volantarly turnover/ high operational outcomes–> Financial performance

Question 12

HR value chain

Nishii & Wright 2008

Answer 12

Intended ppl management –> actual ppl mang practices –>precived ppl mang practices–> employees reaction—> org. performance
- not always linear ( managers and employees are active consumers and give feedback to management practices. Line managers are sometimes a skipped step)

Question 13

HR system strength

Answer 13

• consistency ( clear strategies that are aligned with business goals and the same over time )
• consensus ( do all the stakeholders agree)
• distinctiveness ( are polices understandable/ how are they perceived/ do they help me reach my goal?)

Question 14

Why does HR implementation vary?

Answer 14

Quality of HR training –> Perceived helpfulness of HR –> perceived supervisor support –> outcomes like motivation/ commitment/ turnover

Question 15

Other variables of line managers that affect employees outcomes

Answer 15

line managers:

• political skills
• competencies
• managers preception of HR strategies that influence the communication of HR strategies that influence employees preception

Question 16

HR attribution theories

Answer 16

• employees seek an explanation of why HR practices are in place.
• The can attribute it to either commitment or control attributions.

Question 17

Commitment attributions

Answer 17

wellbeing

performance

Question 18

Control attributions

Answer 18

cost-saving

exploitation

Question 19

How does commitment/ control attributions influence employees?

Answer 19

commitment –> org comitment(+), OCB (+) –> customer and staff satisf
–>job involvement –> emot. exaustion

Control —> work overload/ inntention to quit –> emot. exaustion

Question 20

What is in between perceived HR practices and employee reaction

Answer 20

Social exchange theory

Psychological contract

Question 21

What influence psychological contract

Answer 21

• Trust
• Fairness
• Delivery of the deal
• —–> has behavioral and attitudinal consequences

Question 22

Responses to the breach of psychological contract

Answer 22

• Voice ( active-constructive)
• Loyalty (passive- constructive)
• Exit (active- destructive)
• Neglect ( passive- destructive)

Question 23

Why do people choose to exit

Answer 23

• low procedural justice
• insufficient justification
• desirable alternative

Question 24

HR attributions effect on the employees’ attitude

Lepac, Nishii, Schn….

Answer 24

Attribution of quality and employee enhancement has a positive effect on attitudes
Attribution of cost and exploitation has a negative effect on attitude

Question 25

What practice has the most influence on human capital ?

Answer 25

• skill-enhancing strategy

Question 26

Which practices contribute the most to the employee motivation

Answer 26

• opportunity enhancing

- motivation enhancing

Question 27

When enhancing employee skills, which practices should the company focus on?

Answer 27

recruitment, selection and training ( skill-enhancing)

Question 28

When enhancing employee motivation, which practices should the company focus on?

Answer 28

• compensation and how to make work more meaningful ( opportunity and motivation enhancing)

Question 29

What are the outcomes of AMO practices

Answer 29

–> human capital and motivation grows–>positivley contribute to the operational outcomes and less turnover –> financial outcomes

Question 30

Nisheii at al.

explain the two levels of HR attributions

Answer 30

Attributions happened on two levels:

1. Regarding business goal ( cost reduction/ service quality)
2. Regarding HR philosophy ( well-being/ exploitation )

Question 31

Nisheii at al.

explain the chain HR attributions

Answer 31

HR attributions –>attitudes ( commitment and satisfaction) –> unit beh (OCB) –> Unit outcome ( customer satisfaction)
In case of Servise quality and employee well-beeing attribution all is well :)