HUMANRESOURCEMANAGEMENT Grundlagen Management Definition: Mostincommon:todosomethingnotunconciouslybutconciously. Activityisgoaloriented Toreachcertaingoals:applycertaintheories,methods,approaches HRM=dealwithpeoplebutmanagementmostlyhastodealwithpeople HRM=Basisformanagementactivity(notallbusinessactivity) HRM Definition: Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairnessconcerns. HRMiscommonlyusedintwoways. Roles& Objectives: Genericapproach:describesabodyofmanagementactivities Distinctiveapproachtothemanagementofpeople:distinctfrompersonnelmanagement HRM has 4 major objectives: staffing objectives, performance objectives, change managementobjectivesandadministrationobjectives Staffingobjectiveistoensurethatthebusinessisappropriatelystaffed Performance objective is to ensure motivation and commitment of staff Training and developmentkeyrolerewardsystemsattentiontoperformancetargetsassistindisciplinary systems Change management objective is to effectively manage change (important + difficult) sometimes Structural: re organization of activities or introduction of new people; Cultural: alter attitudes or norms (M&A) Recruitment and/or development of those with required leadershipskillstodrivechangeprocess Administrativeobjectivesincludetofacilitatesmoothrunningoftheorganization.Maintain accurateandcomprehensivedataon individuals complywithlegal requirementsadminister pay,sickness,taxation,leaveetc. Each of the four types of HR objective is important and necessary for organizations in differentways.however,atcertaintimesoneormorecanassumegreaterimportancethan theothers. 1
HRMConflict: Therearealsosomemajorroles: Generalists: Develop policy + take responsibility for HR issues across the organisation as a wholeoradivisionorpartofthecompany.smallerbusinesses>dontneed,orcannotafford HRmanagers>Consultantsandadvisers.Sizeofacompany ownhr manager?+250ma Line managers: Line manager plays a key role in hrm. Line manager = responsible for a department/areaofthefirm=amanagerwhohaspeopletolead=aleader>leadership=to dohr activities.havetocombinetheircommitmenttothetaskofhisdepartment+attention totheiremployees.function:therightperson,orientation,training,performance,creativity Workingrelationships,Policiesandprocedures,Laborcosts,Development,Morale,Protecting StaffManager:Lineauthority,Impliedauthority,FunctionalcontrolandEmployeeadvocacy HRMmustmeetstrategic&financialneedsofthebusiness,aswellaspeople`sinterests HRMPurpose: MajorpurposeofHRMistoensureemployeesperformance>meetalsopeoplesaspirations Development ofhrm: DevelopmentfromPersonnelManagementtoHumanresourceManagement Management Time Globalization, Technology, Demographic Developments and Attitudes of People influence HRMdevelopment 2
Process: Planning Organizing Staffing Leading Controlling/Monitoring Summary1: 1.HRMisfundamentaltoallmanagementactivities 2.GenericHRMdescribesabodyofmanagementactivities 3.SpecificapproachtoHRMsignifiesaparticularapproachtocarryingouttheseactivities 4.HRMmanagersareconcernedwithmeeting4distinctsetsoforganisationalobjectives 5.HRMactivitiesarecarriedoutinvariouswaysthroughtheorganisationalstructure 6.CurrentdebatesoverHRMgenerallyfocusontheextentandnatureofresponsesneeded tofacechangesinthebusinessenvironment 7. There are three main current HRM debates: psychological contract; best practice versus bestfitandthefutureofwork StrategicRole ofhrm: Strategy is the company s long term plan for how it will balance its internal strengths and weaknesseswithitsexternalopportunitiesandthreatstomaintainacompetitiveadvantage. MakingaSWOTanalysiscanstartthestrategicplanningprocess. Strategic human resource management: linking HRM with strategic goals and objectives to improvebusinessperformanceanddeveloporganizational culturesfostering innovationand flexibility. OneviewisthatHRisstrictlyoperationalandthatHRactivitiesarenotstrategicatall. Asecond,moreexpansive,viewisthatHR sroleistofitoradapttothecompany sstrategy. HereHR sstrategicroleistoadaptindividualhrpractices(recruiting,rewarding,andsoon) tofitspecificcorporateandcompetitivestrategies. AthirdviewofHRmanagementisthatitisanequalpartnerinthestrategicplanningprocess. Here,HR sroleisnotjusttoadaptitsactivitiestothefirm sbusinessstrategy,nor,certainly, just to carry out operational day to day tasks like paying employees. Instead, the need to forgethefirm sworkforceintoacompetitiveadvantagemeansthathrmanagementmustbe anequalpartnerinboththeformulationandtheimplementationofthecompany sstrategies HR-Strategie HR-Strategie HR-Strategie Unternehmensstrategie Unternehmensstrategie Unternehmensstrategie HowHRhelpsstrategyexecution Execution has traditionally been the heart of HR s strategic role, and that makes sense. A firm s functional strategies should support its competitive strategies. For example, FedEx s competitive strategy is to differentiate itself from its competitors by offering superior customer service and guaranteed on time deliveries. This requires highly committed employees ones who ll go the extra mile to do their best. HR supports strategy implementation in other ways. For example, HR handles the execution of most firms downsizing and restructuring strategies by outplacing employees, instituting pay forperformanceplans,reducinghealthcarecostsandretrainingemployees. HR and Value Chain Analysis Strategy execution usually involves identifying and reducing costs, and therefore value chain analysis. A company s value chain identifies the primary activitiesthatcreatevalueforcustomersandtherelatedsupportactivities. Outsourcing lettingoutsidevendorsprovideservices isanotheroption. HR sroleinformulatingstrategyformulatingastrategicplanrequiresidentifying,analyzing, and balancing the company s external opportunities and threats, and its internal strengths andweaknesses.hrplaysarolehere,too. HowHRhelpsformstrategy Formulating a strategic plan requires identifying, analyzing, and balancing the company s 3
Personnel Planning& Recruiting externalopportunitiesandthreats,anditsinternalstrengthsandweaknesses.hrplaysarole here, too. HR management can help with what strategic planners call environmental scanning,identifyingandanalyzingexternalopportunitiesandthreatsthatmaybecrucialto thecompany ssuccess.thus,americanairlinesconsideredandthenrejectedtheopportunity to acquire USAir, a smaller and relatively weak airline. While American had several reasons forrejectingabid,hrconsiderationsloomedlarge.americanhaddoubtsaboutitsabilityto successfullynegotiatenewlaboragreements with USAir semployees,andfelttheproblems ofassimilatingthemmightbetoogreat. ValueChainApproach Influenceonbottomline? ImprovementsinkeyHRpracticescorrelatewithanincreaseinacompaniesmarketvalue. ItisonethingtoarguethatHRcanhelpcreate competitiveadvantage;therealquestionis: CanHRhaveameasurableimpactonacompany sbottomline? Thereisevidencethatthe answer is yes. A study by HR consulting firm Watson Wyatt Worldwide of Bethesda, Maryland, found that significant improvements in key HR management practices correlated withsignificantincreasesinmarketvalueinthe405publiclytradedfirmsstudied. IsTherea OneBestHRWay? 1. Followacompany soperatingandstrategicinitiatives 2. Allcompaniescanbenefitfrom Profitsharingprograms,Resultsorientedappraisals,Employmentsecurity,Fosterinformal relationships promoteworldwidecommunications,developglobalexecutives However, studies do suggest that some HR approaches are applicable to all or most companies.ontheotherhand,thereappearstobeno bestpractices magicbullet,except toorganizeafirm shrpracticestofit its strategyandto supportthefirm soperatingand strategic initiatives. In other words, dropping an HR practice into your firm just because it workedwellinanotherisrisky. Employment or personnel planning is the process of deciding what positions the firm will havetofill,andhowtofillthem InternalSourcesofCandidates:Successionplanning,... External Sources of Candidates: Advertising, Employment Agencies, Headhunter, Career exhibitions/collegerecruiting,temporaryagencies,datamining,e Recruitingetc. 4
Recruitiment&SelectionProcess: 1.Decidewhatpositionsyou llhavetofill,byengaginginpersonnelplanningandforecasting. 2.Buildapoolofcandidatesforthesesjobsbyrecruitinginternalorexternalcandidates. 3.Haveapplicantscompleteapplicationformsandperhapsundergoaninitialinterview. 4. Use selection techniques like tests, background investigations, and physical exams to identifyviablecandidates. 5.Finally,decidewhotomakeanofferto,byhavingthesupervisorand(perhaps)otherson theteaminterviewthefinalcandidates. ExternalRecruiting RecruitingYield InternalPromotion/ReplacementChart Testing& Selection: BUT:Dangerthatrejectedcandidatesmaylosemotivationorevenleavecompany Employeetestingandselectionistheuseofvarioustoolsandtechniquestoselectthebest candidatesforthejob.thesetoolscovertheselectionprocess,basictestingtechniques, backgroundsandreferencechecks,ethicalandlegalquestionsintesting,typesoftests,and worksamplesandsimulations. Selecting the right employees is important for three main reasons. First, your own performance always depends in part on your subordinates. Employees with the right skills andattributeswilldoabetterjobforyouandthecompany.employeeswithouttheseskillsor whoareabrasiveorobstructionistwon tperformeffectively,andyourownperformanceand thefirm swillsuffer.thetimetoscreenoutundesirablesisbeforetheyareinthedoor,not after. Second,it isimportantbecause it s costlytorecruitandhire employees.hiringandtraining evenaclerkcancost$5,000ormoreinfeesandsupervisorytime.thetotalcostofhiringa manager could easily be 10 times as high once you add search fees, interviewing time, referencechecking,andtravelandmovingexpenses. Third,it simportantbecauseofthelegalimplicationsofincompetenthiring.foronething(as we saw in Chapter 2), EEO laws and court decisions require nondiscriminatory selection proceduresforprotectedgroups. 5
BasicTestingprinciples:Validity&Reliability HowtoEvaluateaTest Howtovalidate: Step1. AnalyzetheJobThefirststepistoanalyzethejobandwritejobdescriptionsandjob specifications.here,youneedtospecifythehumantraits andskillsyoubelieveare required for adequate job performance. Some employers make the mistake of carefullychoosingpredictors(suchasmanualdexterity) whilevirtually ignoringthe questionofwhichcriteriabestpredictperformance. Step2. Choose the Tests Next, choose tests that you think measure the attributes (predictors) important for job success. Employers usually base this choice on experience,previousresearch,and bestguesses. Theyusuallydon tstartwithjust onetest.instead,theychooseseveraltestsandcombinethemintoatestbattery. Step3. AdministertheTestNextadministertheselectedtest(s)toemployees.Youhavetwo choices here. One option is to administer the tests to employees presently on the job. You then compare their test scores with their current performance; this is concurrentvalidation.predictivevalidationisthesecondandmoredependableway tovalidateatest.hereyouadministerthetesttoapplicantsbeforetheyarehired. Thenhiretheseapplicantsusingonlyexistingselectiontechniques,nottheresultsof the new tests you are developing. After they have been on the job for some time, measuretheirperformanceandcompareittotheirearliertestscores.youcanthen determine whether you could have used their performance to predict their subsequentjobperformance. Step 4. Relate Your Test Scores and Criteria The next step is to determine if there is a significant relationship between scores (the predictor) and performance (the criterion). The usual way to do this is to determine the statistical relationship between(1)scoresonthetestand(2)jobperformancethroughcorrelationanalysis, whichshowsthedegreeofstatisticalrelationship. Step5. Cross Validate and Revalidate Before putting the test into use, you may want to check itby cross validating,byagainperformingsteps 3and4onanewsampleof employees. Typesoftest Cognitive,Motorandphysicalability,PersonalityandinterestsandAchievementtestscanbe used. CareerSuccess Intrinsicsuccess isjobsatisfaction Extrinsic success Income and occupational status Employers should use personality tests cautiously, particularly if the focus is on aberrant behavior. One report concluded that psychological tests can help determine whether an employee s erratic behavior will pose a threattoworkplacesafety.however,theycanalsocreatelegalproblemsforemployers for instance,ifrejectedcandidatesclaimtheresultsarefalse,orthattheyviolatetheamericans withdisabilitiesactoremployees privacy. ResearchInsight:Aninterestingquestioniswhetherit spersonalityorintelligence(orboth) that drives career success. It would seem the answer is both. Researchers in one study defined career success in terms of intrinsic success (job satisfaction) and extrinsic success (incomeandoccupationalstatus).theirstudiessuggestthathardworkcertainlyseemstopay off: Conscientiousness positively predicted both intrinsic and extrinsic career success. Neuroticismnegativelypredictedextrinsicsuccess.Generalmentalabilitypositivelypredicted extrinsiccareersuccess. AssessmentCenter A management assessment center is a two to three day simulation in which 10 to 12 candidates perform realistic management tasks (like making presentations) under the observationofexpertswhoappraiseeachcandidate sleadershippotential Theinbasket These exercises confrontthe candidate withanaccumulation ofreports,memos,notesofincomingphonecalls,letters,and other materials collected in the actual or computerized in 6
basket of the simulated job he or she is about to start. The candidatemusttakeappropriateactiononeachitem.trained evaluatorsthenreviewthecandidate sefforts. Leaderlessgroupdiscussion Trainersgivealeaderlessgroupadiscussionquestionandtell members to arrive at a group decision. They then evaluate each group member s interpersonal skills, acceptance by the group,leadershipability,andindividualinfluence. Managementgames Participantssolverealisticproblemsasmembersofsimulated companies competing in a marketplace. They may have to decide, for instance, how to advertise and manufacture, and howmuchinventorytostock. Individualpresentations Trainersevaluate eachparticipant s communicationskillsand persuasiveness by having each make an assigned oral presentation. Objectivetests Acentertypicallyincludestestsofpersonality,mentalability, Theinterview OrganizationalBehavior Motivation: Howtomotivatepeopleintheworkplace? interests,andachievements. Most require an interview between at least one trainer and each participant, to assess the latter s interests, past performance,andmotivation. 1. Meetingbasichumanneeds 2. Designingjobsthatmotivatepeople 3. Enhancingthebeliefthatdesiredrewards canbeachieved 4. Treatingpeopleequitably However,toarousemotivation,employeemustbe: 1. attractedtojointheorganizationandremaininit 2. allowedtoperformthetasksforwhichtheywerehired 3. stimulatedtogobeyondroutineperformanceandbecomecreativeandinnovativein theirwork MotivationalProcess&Models Maslow`s NeedsHierarchy Asatisfiedneedceasestomotivatebehavior Severalneedsaffectaperson sbehavioratany onetime Lowerlevelneedsmustbesatisfiedbeforehigher levelneedsareactivated Morewaystosatisfyhigherlevelneedsthanlower levelneeds 7
McClelland`s LearnedNeeds Inhisacquired needstheory,davidmcclellandproposed thatanindividual'sspecificneedsareacquiredovertime andareshapedbyone'slifeexperiences.mostofthese needscanbeclassedaseitherachievement,affiliation,or power.aperson'smotivationandeffectivenessincertain jobfunctionsareinfluencedbythesethreeneeds. McClelland'stheorysometimesisreferredtoasthethree needtheoryorasthelearnedneedstheory. Achievement:Peoplewithahighneedforachievement(nAch)seektoexcelandthustendto avoid both low risk and high risk situations. Achievers avoid low risk situations because the easilyattainedsuccessisnotagenuineachievement.inhigh riskprojects,achieversseethe outcome as one of chance rather than one's own effort. High nach individuals prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedbackinordertomonitortheprogressoftheiracheivements.theyprefereithertowork aloneorwithotherhighachievers. Affiliation: Those with a high need for affiliation(naff) need harmonious relationships with otherpeopleandneedtofeelacceptedbyotherpeople.theytendtoconformtothenorms of their work group. High naff individuals prefer work that provides significant personal interaction.theyperformwellincustomerserviceandclientinteractionsituations. Power:Aperson'sneedforpower(nPow)canbeoneoftwotypes personaland institutional.thosewhoneedpersonalpowerwanttodirectothers,andthisneedoftenis perceivedasundesirable.personswhoneedinstitutionalpower(alsoknownassocialpower) wanttoorganizetheeffortsofotherstofurtherthegoalsoftheorganization.managerswith ahighneedforinstitutionalpowertendtobemoreeffectivethanthosewithahighneedfor personalpower. Herzberg`sTwo FactorTheory Thetwo factortheory(alsoknownasherzberg's motivation hygienetheory)statesthattherearecertain factorsintheworkplacethatcausejobsatisfaction, whileaseparatesetoffactorscausedissatisfaction Vroom sexpectancymodel Theexpectancytheoryofmotivation issuggestedbyvictorvroom.unlike Maslow and Herzberg, Vroom does not concentrate on needs, but ratherfocusesonoutcomes. WhereasMaslowandHerzberglook atthe relationshipbetween internalneedsandtheresultingeffortexpendedtofulfilthem, Vroomseparateseffort(whicharisesfrommotivation),performance,andoutcomes. Vroom,hypothesisesthatinorderforapersontobemotivatedthateffort,performanceand motivation must be linked. He proposes three variables to account for this, which he calls Valence, Expectancy and Instrumentality. Expectancy is the belief that increased effort will leadtoincreasedperformancei.e.ifiworkharderthenthiswillbebetter.thisisaffectedby suchthingsas: Havingtherightresourcesavailable(e.g.rawmaterials,time) Havingtherightskillstodothejob Havingthenecessarysupporttogetthejobdone(e.g.supervisorsupport,orcorrect informationonthejob) 8
Instrumentalityisthebeliefthatifyouperformwellthatavaluedoutcomewillbereceived i.e.ifidoagoodjob,thereissomethinginitforme.thisisaffectedbysuchthingsas: Clearunderstandingoftherelationshipbetweenperformanceandoutcomes e.g. therulesofthereward game Trustinthepeoplewhowilltakethedecisionsonwhogetswhatoutcome Transparencyoftheprocessthatdecideswhogetswhatoutcome Valence is the importance that the individual places upon the expected outcome. For example,ifiammainlymotivatedbymoney,imightnotvalueoffersofadditionaltimeoff. Havingexaminedtheselinks,theideaisthattheindividualthenchangestheirlevelofeffort accordingtothevaluetheyplaceontheoutcomestheyreceivefromtheprocessandontheir perceptionofthestrengthofthelinksbetweeneffortandoutcome. So,ifIperceivethatanyoneoftheseistrue: Myincreasedeffortwillnotincreasemyperformance Myincreasedperformancewillnotincreasemyrewards Idon tvaluetherewardsonoffer...then Vroom s expectancy theory suggests that this individual will not be motivated. This meansthatevenifanorganisationachievestwooutofthree,thatemployeeswouldstillnot bemotivated,allthreearerequiredforpositivemotivation. Adams sequitytheory Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as oneofthejusticetheories.itwasfirstdevelopedin1963byjohnstaceyadams,aworkplace andbehavioralpsychologist,whoassertedthatemployees seektomaintainequitybetween the inputs that they bring to a job and the outcomes that they receive from it against the perceivedinputsandoutcomesofothers(adams,1965).thebeliefisthatpeoplevaluefair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co workers and the organization. The structure of equity in the workplaceisbasedontheratioofinputstooutcomes.inputsarethecontributionsmadeby the employee for the organization; this includes the work done by the employees and the behavior brought by the employee as well as their skills and other useful experiences the employeemaycontributeforthegoodofthecompany. O1/I1=O2/I2 EquityTheoryconsistsoffourpropositions: 1. Individuals seek to maximize their outcomes (where outcomes are defined as rewards minuscosts 9
2. Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members. Systems of equity will evolve within groups, and members will attempt to induce other members to accept and adhere to these systems. The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Thus, groups will generallyrewardmemberswhotreatothersequitablyandgenerallypunish(increasethe costfor)memberswhotreatothersinequitably. 3. Whenindividualsfindthemselvesparticipatingininequitablerelationships,theybecome distressed. The more inequitable the relationship, the more distress individuals feel. According to equity theory, both the person who gets too much and the person who gets toolittle feeldistressed.theperson whogetstoomuchmayfeelguiltorshame. Thepersonwhogetstoolittlemayfeelangryorhumiliated. 4. Individualswhoperceivethattheyareinaninequitablerelationshipattempttoeliminate theirdistressbyrestoringequity.thegreatertheinequity,themoredistresspeoplefeel andthemoretheytrytorestoreequity.(walster,traupmannandwalster,1978) OrganizationalBehavior Leadership: WhatisLeadership? 1. Developingideasandvision 2. Livingbyvaluesthatsupportthoseideasandthatvision 3. Influencingotherstoembracethemintheirownbehaviors 4. Makingharddecisionsabouthumanandotherresources TraitsModelofLeadership Intelligence Maturityandbreadth Achievementdrive Integrity SoWhat? Noconsistentpatternsbetweentraitsandleadereffectiveness Physicalcharacteristicsaremorelikelyrelatedtosituationalfactors Leadershipismorecomplexthanthetraitapproachassumes BehavioralModelofLeadership Focusesonwhatleadersactuallydoandhowtheydoit! Consideration: Extent to which the leader has relationships with subordinates that are characterized by mutual trust, two way communication, respect for employees ideas, and empathyfortheirfeelings.usedif:followersdesireparticipativeleadership,teammembers must learn something new, Involvement in decision making affects employees job performanceandfollowersfeelminimalstatusdifferencesshouldexistbetweenthemand theleader. Initiatingstructure:Extenttowhichaleaderdefinesandprescribestherolesofsubordinates inordertosetandaccomplishgoalsintheirareasofresponsibility.usedif:outputpressure isimposedby someoneotherthantheleader,employeesrelyonleaderfor directionand information, Employees are predisposed toward directive leadership, More than 12 employeesreporttotheleader. SituationalLeadershipModel Taskbehavior: Theextenttowhichaleaderusesonewaycommunication,spellsoutduties, andtellsfollowerswhere,when,andhowtodoit Relationship behavior: The extent to which a leader uses two way communication, listens, encourages,involvesfollowersindecisionmaking,andgivesemotionalsupport 10
Followerreadiness:Abilitytosethighbutattainabletask relatedgoalsandawillingnessto acceptresponsibilityforreachingthem Vroom JagoTime DrivenLeadershipModel Prescribesaleader schoice(s)amongfiveleadershipstylesbasedonsevensituationalfactors, recognizingthetimerequirementsandcostsassociatedwitheachstyle LeadershipStyle DecideStyle ConsultIndividuallyStyle ConsultGroupStyle FacilitateStyle DelegateStyle BUT: Most subordinates desire to participateinjob relateddecisions regardless of the model s recommendation Certain leader competencies are critical for the effectiveness of differentleadershipstyles Decisionsareassumedtobesingle process ratherthanmultiple cycle orpartofalargersolution Situationalvariables: Decisionsignificance ImportanceofCommitment Leaderexpertise Likelihoodofcommitment Teamsupport Teamexpertise Teamcompetence 11