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Strategic and International HRM > Linking HR & Performance > Flashcards

Linking HR & Performance Flashcards

1
Q

What (or who) is HRM for?

A
  1. Human Capital

2. Balance between people and organizations.

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2
Q

What is the resource-based view? (Barney & Wright, 1998)

A

Human Resources are source of competitive advantage. Particularly when they are:
Rare
Valuable
Imitable
Non-substitutable
A competitive HR strategy therefore focuses more on these resources.

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3
Q 
Human Capital (Lepak & Snell, 1999)
What are the different configurations?
A
  1. Collaborative-based configuration: High Uniqueness & Low Value
  2. Commitment-based configuration: High Uniqueness & High Value
  3. Compliance-based configuration: Low Uniqueness & Low Value
  4. Productivity-based configuration: Low Uniqueness & High Value
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4
Q

Collaborative-based configuration

A

Collaborative-based configuration:

  • High & Low Value
  • Recruitment for specialist knowledge
  • Focus on team working
  • Team performance important and rewarded
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5
Q

Commitment-based configuration

A

Commitment-based configuration:

  • High Uniqueness & High Value
  • Employee flexibility
  • Internal promotion
  • Comprehensive continuous development
  • Extensive long-term benefits
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6
Q

Compliance-based configuration

A

Compliance-based configuration:

  • Simple jobs
  • Performance focused on rules
  • Training on procedures
  • Hourly pay and short-term outputs
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7
Q

Productivity-based configuration

A

Productivity-based configuration

  • Standard jobs
  • Sourcing many job candidates: there are many candidates available
  • Training on current job
  • Performance and incentives based on results: focus on them delivering the results
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8
Q

High uniqueness x High value:

A

the stars

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9
Q

Low uniqueness x Low value:

A

these are easy to replace employees.

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10
Q

Who is the HR department accountable to?

A

Need balance between different individuals

This is a challenging question

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11
Q

The Harvard Model of HRM – Beer et al. (1984)

A
  • Stakeholder interest (stakeholders management, employee groups, government, community, unions)
  • Situational factors (workforce characteristics, business strategy and conditions, management philosophy, labour market, unions, task technology, laws and societal values)
  • HRM policy choices (employee influence, human resource flow, reward systems, work systems)
  • HR outcomes (commitment, competence, congruence, cost-effectiveness)
    Long-term consequences (individual well-being, organizational effectiveness, societal well-being)
    –> healthy people helps society to function

“Unless [HR] policies are influenced by all stakeholders, the enterprise will fail to meet the needs of these stakeholders in the long run and it will fail as an institution”

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12
Q

What are the two different practices on HRM & Performance? (Guest, 2017)

A
  1. Conflicting Outcomes
    Assumes that needs are opposed
    - employees & business have different needs
    E.g.:
    -Work less vs. Work more
    -More pay vs. Cheaper workforce
    -Nice working environment vs. Less overheads
  2. Mutual benefit
    Assumes that needs can be aligned
    -alternative & helps the bottom-line
    E.g.:
    -Positive environment = Committed workforce
    -Personal development = Capable workforce
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13
Q

Why mutual gains?

A
  • Ethical responsibility
  • External, contextual threats to employee wellbeing
  • Business benefits of focusing on wellbeing
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14
Q

What is the context of the 21st century HRM?

A

Stakeholder agenda comes back (HRM came from the Victorian Age)

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15
Q

What is the context of the 21st century HRM?

1. Changes in Technology

A

Changes in technology

  • Automation of routine activities (e-HRM system)
  • Work from home (positive effect)
  • Virtual teams

:Consequences: skill obsolescence, job insecurity

=> Change in nature of work: replaced by technology & fundamental changes .

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16
Q

What is the context of the 21st century HRM?

2. 2008 financial crisis (+ Brexit + right-wing political agenda)

A

Focus on productivity in more advanced economics
-Increase workload but fixed wages.
=> Impact on economic way of working.

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17
Q

What is the context of the 21st century HRM?

3. Social inequality increasing

A

-Wage inequality
-Job precarity (=insecurity)
=> Impact on people who did not had the chance to study

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18
Q

What is the context of the 21st century HRM?

4. Lack of opportunism in the world

A
  • Threats to career prospects

- Job insecurity

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19
Q

What does the black box consist?

A

Opening the black box: HRM and Performance

  • Content….
  • Process
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20
Q

High-Performance Work Systems (HWPS) – Lepak et al. (2006) & Subramony (2009)

A 
HWPS: one way of looking at bundling practices. 
! Very important
Three bundles of practicing:
  1. Ability (skill) enhancing
  2. Motivation enhancing
  3. Opportunity (empowerment) enhancing
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21
Q

What do the ability (skill) enhancing practices entail?

A

Focus on ensuring appropriately skilled employees, e.g.:
Comprehensive recruitment & Rigorous selection
- To get the right people

Extensive, formal and informal training
- In order to get feedback. This is a continuous process.

22
Q

What do the motivation enhancing practices entail? (individual focused)

A

Developmental performance management
- Grow & develop rather narrow feedback

Competitive compensation
- Compared to other companies

Performance-linked incentives
- To motivate individuals

Promotion and career opportunities
- Push them to take the risks

Job security

23
Q

What do the opportunity enhancing practices entail?

A

Focus on empowering employees to use skills and experience to achieve organizational objectives, e.g.:
Flexible job design
- To enable people to use skills in best way

Work teams
- Combine the skills

Employee involvement
- in decision making

Information sharing practices
- To operate effectively

24
Q

It all started with Huselid (1995). What did he say>

A

Influential paper on the idea of HWPS: really work for organizational performance.
Conclusion: investments in HPWP are associated with
- lower employee turnover and - greater productivity and
- corporate financial performance.
But he doesn’t explain why!

25
Q

Do HR practices predict organizational outcomes?

Jiang et al., 2012

A

HPWS (AMO-enhancing practices) impact employees KSO (human capital & motivation) which is turn has an association with voluntary turnover & operational outcomes, which is ultimately linked to financial outcomes.

26
Q

Do HR practices predict organizational outcomes?

Appelbaum & Batt, 1994; Jiang et al., 2012

A

HPWP –> Employees’ AMO –> Individual Performance –> Org Performance
But….

HPWP –> Work Intensification –> Stress
[This has a detrimental effect. For instance, there is individual performance pay, competition, strict selection criteria, it might have unintended negative implications due to forcing people to work harder).

Why? When does this happen? Then we have to look at the black box.

27
Q

What did Nishii & Wright (2008) suggested?

A 
HR Value Chain.
Intended people management practices
-  Intended = how it is designed
⇓ 1.1 IMPLEMENTATION
(Job group)

Actual people management practices
- not what people actually expected
⇓ 2.1 COMMUNICATION
(Job group)

Perceived people management practices
- varying perspectives in teams
⇓ 3.1 INDIVIDUAL DIFFERENCES
(Individual)

Employee reactions
⇓ 4.1 ORGANIZATION STRUCTURE
(Individual)

Organisational performance
- how employees react on change in organization structure
(Job group)

28
Q

What are HR system strength? Bowen & Ostroff (2004)

1st: Intended people management practices

A

Need a HR system to support a certain goal!
1. Consistency
🡪 Collaboration
- Is it clear what is expected from us?
- Is there a clear link between the organization’s goals and culture & the function of HR practices?
- Are practices valid (e.g. does performance management help people to perform better?)
- Are messages from HR communicated over time?
E.g. Nummi’s line management

  1. Consensus
    🡪 Understanding
    - Does everyone agree about the purpose of the HR practice (particularly managers and other decision makers)?
    - Are practices fair (in design and delivery)?
  2. Distinctiveness
    🡪 Different practices make a difference
    - Are the practices and policies clearly visible and understandable?
    - Low visibility = low distinctiveness??
    - Is HR (people management) taken seriously within this organization, particularly by those in power?
    Do HR practices help me to achieve my goals?
29
Q

Why is HR system strength important?

A

It provides clear and unambiguous messages about what is expected, valued, and rewarded by the organization

30
Q

What informs HR system strength?

A 
Design and (mostly) implementation of HR practices
- Most important: link between intended & actual implementation
31
Q
  1. What is actual People Management Practices associated with?
    (Communication)
A

HR Devolution

32
Q

What is HR Devolution?

A

Devolution: “Tasks formerly undertaken by the specialist are now allocated to line managers”
Op de Beeck et al. (2016)

33
Q

What does Human Resource Leadership suggest about the role of managers and aspects they are confronted with?

A

Human resource leadership: HR-practices to which all leaders i.e. line-managers (finance, marketing, operations, etc.) are confronted with.
Aspects:
1. Help define jobs: Define the tasks the employees need/do not need to do
“I love my job, I am so glad I chose this job”
“I hate my job, my leader gives me the worst tasks” – Employee IT

  1. Forecast HR needs: Anticipate who you need and get them on board
    “I don’t understand why my manager doensn’t hire additional staff- we are caving under pressure” – Employee in Finance
  2. Interview (and select) candidates: Select the person with the right knowledge, skills, and attitudes who would facilitate you in achieving the goals.
    “Hiring seems easy, but firing is a lot harder so maybe hiring is not easy” – Leader in marketing
  3. Appraise performance: Make sure that the employees help you to achieve the goals and guide where it is needed.
    “Employees don’t like to get performance evaluations & managers don’t like to give them” – Chief operations officer
  4. Provide training: Decide on whether the employees need to be trained
    “Train ‘em so they do leave” – R&D specialist
  5. Recommend pay increases and promotions: Assign the right reward (e.g. bonus) to retain and motivate employees
    “Pay is a manager’s worst nightmare – there is always someone who feels cheated” - CFO
  6. Motivate, with support from pay, benefits, and other rewards: Retain the good employees and lay-off the less good employees
    “The reality of being a leader never hits you as hard as having to fire someone” - CEO
34
Q

Why does HR Implementation vary?

A
  1. Differences in HR training
    - How do managers feel about this?
    - Is it flexible enough to adapt to work?
    - Tailoring to needs helps
    🡪 Managers believed that practices are flexible if they were more trained
    🡪 HR training = most important
    - Kuvaas et al., 2014:
    When managers think that the practice is helpful, they are perceived as more supportive. Training managers is important!!!!!!
  2. Line managers capabilities: Line manager’s competences = perceptions
    - Line manager’s HR competence
    - Line manager’s political skills
    🡪 these supports HR training
    - (Silkora et al. 2015)
  3. Communication
    - Perceptions: Do I experience those different HR practices?
    - Manager communication: Manager perception spill over on employee perception.
    - Den Hartog et al., 2013: Manager’s communication of HR practices play an important role in employee rated HRM.
35
Q
  1. What are HR attributions?

#Perceived people management practices- individual differences

A

HR Attributions: about why employees differ??
- Attribution theory: Individuals have the natural tendency to seek out explanations for observed phenomena or experiences. This informs their reactions.
Why do people do that? 🡪 Making causal attributions

  • HR attribution theory: Employees seek out explanations for why HR practices are in place (i.e. their intention). This informs their reactions.
36
Q

What are the different HR attributions? (Nishii et al. 2008)

A

INTENDED APPROACH
1. Commitment
GOAL: well-being & performance
EXPLANATION:
–> To help employees to be more satisfied with their work.
–> To help the organisation to run more effectively.

INTENDED APPROACH
2. CONTROL (Contingency approach)
GOAL: Cost-saving & exploitation.
EXPLANATION:
--> To get a better return on investment from employees
--> To make employees to work harder.
INTENDED APPROACH
3. EXTERNAL
GOAL: External compliance
EXPLANATION:
--> Because PRP is an expected way for organisations to reward people nowadays
37
Q

How do people form HR attributions?
OR
Why do people believe that HR practices are either there to support them or out to get them?

A
  1. Information
    (e. g. Do I think this practice is fair? How is it communicated?)
    - -> at the moment information acquired.
  2. Beliefs
    (e. g. How does the organization treat me, in general?)
  3. Motivation
    (e. g. Does this practice make any difference to my life or work? Why should I care?)
38
Q
  1. What are two types of

HR attributions –> Employee reactions & Performance (individual based)

A

Hewett et al., 2018

  1. Commitment Attributions: Organizational commitment, OCB, Job involvement (Mutual gains) –> Customer satisfaction with staff
  2. Control attributions: Work overload, Intention to quit (conflicting outcomes) & too much job involvement –> Emotional exhaustion

External attributions play a small role.

39
Q

Why do HR attributions influence employee reactions and performance?

A
  1. Social Exchange

2. The Psychological Contract

40
Q

What is the social exchange?

A

Social exchange: about less tangible exchange; non-tangible (🡨🡪 economic exchange)
=> Fundamental perspective
Positives or benefits
Negatives or costs

41
Q

What is the psychological contract?

A

Two types of contracts:
Formal contract: basic …
The psychological contract: unwritten expectations in employment relationship – distinct from informal, written expectations

Left: organizational expectations: time/hours, effort/ideas, performance, results, commitment, mobility, loyalty, supervision etc…

Right: employee expectations such as security, safety/care, training and development, recognition, qualifications etc..

42
Q

What is the model of psychological contract by Guest & Conway, 1997?

A

Model of the Psychological Contract – Guest and Conway (1997):
~This model shows how the psychological contract is articulated in three different ideas
- Fairness
- Trust
- The delivery of the deal: this is about expectations- about making the deal.
~ This in turn has consequences:
- attitudinal: org. commitment, job satisfaction, employment relations, security
- behavioural: motivation, effort, attendance/absence, organizational citizenship, intention to stay/quit.

43
Q

What is Norm of reciprocity?

A
  • It is about giving & taking
    ⇓
  • Psychological Contract Breach (PCB): Organization fails to meet the obligations of psychological contract (trust, fairness, delivery of the deal).
  • When these are violated, we feel a breach of psychological contract and letting down.
  • People will feel in different ways.
44
Q

What are the responses to a psychological contract breach? (Rusbelt (1988) and Turnley & Feldman, 1999)?

A
  1. Exit: Active & Destructive
    They quit
  2. Voice: Active & Constructive
    Speaking up e.g. for its promises
    I want to find a solution, I don’t want to leave the organisation
  3. Loyalty: Passive & Constructive
    Pretending it is not happening (it is in the ears)
    Come with excuses
    But still…
    Damaging for employee, doing nothing about the
    problem but keep on carrying working.
    Damaging for the person’s self-esteem
  4. Neglect: Passive & Destructive
    Doing absolute minimum & doing nothing
45
Q

When do people choose to exit in response to PC breach? (turnley & Fedman, 1999)

A
  1. Low procedural justice: they feel like the procedure is against them effectively
  2. Insufficient justification: there are no clear explanations and reasons for PC breach
  3. Desirable alternatives: they can go work somewhere else

=> This underpins how people respond differently & why they quit

46
Q

Does the HR value chain always apply? Is it really a linear process? (Kehoe & Han (2019) and Meijerink et al. (2016)

A

No, its not always linear.
Process = massive simplification
- The loop is much more dynamic: managers inform new things like design.
- Managers are not always involved.
- Employees are active consumers, not passive recipients. For example:

  1. Employee self-service: E.g. benefit selection
    - Employees select benefits: employees use an online system to change & select flexible benefits
    - Managers are not involved: they are left out of the picture.
  2. Project-based organizations – Keegan & Den Hartog (2018): multiple individuals are responsible for implementing HR practices, and this changes.. so more can sit with the employee themselves
    🡪 Complication picture in reality at step 2 (actual people management practices):
    - There are project managers
    - There are line managers
    - Employees are more active.
47
Q

What are some new forms of working? Duggan et al. (2019)

A

Gig economy = task focused work (examples: Deliveroo, Uber, Task Rabbit).

  • Different kind of work relationships
  • Indirect relationships
  • Involves an online platform
48
Q

What is traditional employment?

A

Employment: Organization has directive control. Traditional employment relationship exists. 2 parts:
1. Direct employment:
- Full directive control.
- Direct relationship involving two parties: employer & employee.
e.g.: full-time employees, part time employees, direct hire, temporary employees, on-call work.
2. Coemployment:
- Shared directive control.
- Indirect relationship involving three parties: client organization, third party agency and worker.
E.g. temporary agency workers, professional employee organizations.

49
Q

What is traditional contracting?

A

Contract Work: Organization lacks directive control.
3 types:
1. Direct contracting: Direct relationship between 2 parties: client organization . & workers. Fixed term contracts.
e.g. independent contracts, day labourers.
2. Subcontracting: indirect relationship involving three parties: client orgaization, third party (venor) and workers. Fixed term contracts e.g. vendor on premises.
3. Gig Work: indirect relationship involving a minimum of 3 parties: intermediary online platform, worker and customer.

50
Q

What are the types of gigwork?

A
  1. Capital Platform work: platforms used by individuals to sell goods or leave assets, e.g. airbnb, etsy.
  2. Crowdwork: Work-mediating digital platforms where labour is outsourced to a geographically dispersed crowd. E.g. Amazon Mechanical Turk, Fiverr.
  3. App Work: Service-providing platforms that display workers on-demand, where algorithms control and mediate work. E.g. Uber, Lyft, Deliveroo.
51
Q

What is management by algorithm?

A

Management-by-algorithm: a lot of managerial work is done by an app.

  • Duggan et al. (2008) identify ‘app work’ as a specific type of gig work.
  • The app replaces managers in terms of:
    1. Allocating work: …
    2. Facilitating performance feedback (via customer): …
    3. Paying: …
    4. Training & development: app based related to performance-based management
    5. Monitor adherence to policies & procedures: …

There are:
- Customer: End user of the service, who also generates demand on platforms y initially requesting services.
- Worker: Independent contractor who works flexibly on a piece-rate basis. Executes tasks in same geographic location as customer.
- Intermediary digital platform/app: this is the app and it does the role of the manager.
Supplier: Exists in certain app-work arrangements as an additional partner of the online platform/app. E.g. restaurant with Deliveroo.

52
Q

What are the key take-aways from this class?

A
  1. The complex link between HR practices & performance (and other outcomes!) can be explained through theories of HR content (e.g. AMO, high-performance work practices), and process (e.g. HR system strength, HR attributions)
  2. The process is complex, with many ways that the linear chain (if it is even that) can be ‘broken’
  3. Managers play a critical role.. but will that always be the case?

=> the complexity between practices & processes

Strategic and International HRM (6 decks)

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