Lecture 3: People and Performance Flashcards
The Harward model of HRM
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
Two views on stakeholders-employees relationships
1) mutual benefits - assumes that needs can be aligned
2) conflicting outcomes - assumes that needs are opposed
Benefits of mutual benefit view
- ethical responsibility
- business benefits of focusing on well-beeing
What context of the 21st-century influence HRM?
- Change in techn.
- 2008 financial crisis
- Social inequality
- Lack of optimism about the future
What is the best practice in terms of the work system?
- High-performance work system
High-performance work system components (3)
1) Ability (skill) enhancing –> builds human capital
2) Motivation enhancing
3) Opportunity (empowerment) enhancing)
What does the ability (skill) enhancing entails?
- Comprehensive recruitment
- Rigorous selection
- Extensive formal and informal training
What does motivation enhancing entails (5)
- promotion and career opportunities
- job security
- competitive compensation
- developmental performance managment
- performance- linked incentives
What does opportunity empowering entails?
- flexible job design
- work teams
- info sharing practices
Benefits of High-performance work system
- lower employee turnover
- grater productivity ( operational outcomes)
- corporate financial performance
How does High-performance work system financial contribute to performance
Ability/motivation/oportunity enhancment –> Human capital and motivation–> low volantarly turnover/ high operational outcomes–> Financial performance
HR value chain
Nishii & Wright 2008
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)
HR system strength
- 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?)
Why does HR implementation vary?
Quality of HR training –> Perceived helpfulness of HR –> perceived supervisor support –> outcomes like motivation/ commitment/ turnover
Other variables of line managers that affect employees outcomes
line managers:
- political skills
- competencies
- managers preception of HR strategies that influence the communication of HR strategies that influence employees preception
HR attribution theories
- employees seek an explanation of why HR practices are in place.
- The can attribute it to either commitment or control attributions.
Commitment attributions
wellbeing
performance
Control attributions
cost-saving
exploitation
How does commitment/ control attributions influence employees?
commitment –> org comitment(+), OCB (+) –> customer and staff satisf
–>job involvement –> emot. exaustion
Control —> work overload/ inntention to quit –> emot. exaustion
What is in between perceived HR practices and employee reaction
Social exchange theory
Psychological contract
What influence psychological contract
- Trust
- Fairness
- Delivery of the deal
- —–> has behavioral and attitudinal consequences
Responses to the breach of psychological contract
- Voice ( active-constructive)
- Loyalty (passive- constructive)
- Exit (active- destructive)
- Neglect ( passive- destructive)
Why do people choose to exit
- low procedural justice
- insufficient justification
- desirable alternative
HR attributions effect on the employees’ attitude
Lepac, Nishii, Schn….
Attribution of quality and employee enhancement has a positive effect on attitudes
Attribution of cost and exploitation has a negative effect on attitude
What practice has the most influence on human capital ?
- skill-enhancing strategy
Which practices contribute the most to the employee motivation
- opportunity enhancing
- motivation enhancing
When enhancing employee skills, which practices should the company focus on?
recruitment, selection and training ( skill-enhancing)
When enhancing employee motivation, which practices should the company focus on?
- compensation and how to make work more meaningful ( opportunity and motivation enhancing)
What are the outcomes of AMO practices
–> human capital and motivation grows–>positivley contribute to the operational outcomes and less turnover –> financial outcomes
Nisheii at al.
explain the two levels of HR attributions
Attributions happened on two levels:
- Regarding business goal ( cost reduction/ service quality)
- Regarding HR philosophy ( well-being/ exploitation )
Nisheii at al.
explain the chain HR attributions
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 :)
