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Human Resource Management (HRM)

What?

… the functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits).

… all the activities related to the recruitment, hiring, training, promotion, retention, separation, and support of employees.

functions within a company that relate to people.

Why?

… is the effective use of human resources in order to enhance organisational performance.

… the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by

providing the right incentives and job environment, all with the goal of meeting the needs of the firm.

applying human resources within complex systems such that people succeed, performance improves, and human error

decreases.

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HRM practices

Job analysis and design

Recruitment and selection

Training and development

Performance management and

compensation

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Road map for both HRM courses

(Work process design, Leading teams)

Motivation Satisfaction Performance Personnel selection Performance appraisal / Pay Personnel development Task / Work process

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Road map for

HRM: Work Process Design

Motivation Satisfaction

Performance

Task /

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HRM: Work process design

Overview

23.9. Introduction

30.9. The role of HRM in strategic management 7.10. Tutorial Work process analysis - System level

14.10. Tutorial Work process analysis - Individual job level

21.10. Management of uncertainty as basis for work process design 28.10. Job design

4.11. Effects of job design: Stress/health, motivation, competence development 11.11. Coordination of work: Collaborative planning

18.11. Methods for analyzing work processes

25.11. Work process design embedded in organizational change 2.12. Integration of "fit task to human" and "fit human to task" 9.12. Disucsssion of student projects

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Organization of course

3 ETCS points (approx. 75-90 work hours).

Besides the lecture, the prerequisite for credits

points and exam participation is the completion of a

semester project in groups of 4 students.

Topic of semester project: Analysis and assessment

of job and organizational design in a company

inclu-ding a written report and feedback to the company.

The exam is written and open book;

provisional date: Jan. 13, 2009, 10:15-11:45.

Overall grade: 50% project & 50% exam.

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Semester project

 Assessment of job and organizational design in a company

based on the instrument KOMPASS

– work system analysis (focus on work processes and

handling of disturbances in the processes)

– job analysis (focus on job design criteria)

 Analyses involve 2-3 interviews with managers and

employees and .5 - 1 day observation of work tasks and processes

 To be carried out in groups of four either in a company of

your choice or in a company provided

 Please send an e-mail to Jacqueline Hohermuth by Sept. 29

([email protected]) with the names and e-mail addresses of the four people in your group, indicating also if you want us to provide a company and whether you can conduct the analyses in English and/or German

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Required reading

Noe, R.A. et al. (2005). Human Resource Management: Gaining a competitive advantage. Chapter 2 Strategic Human Resource Management (pp.56-91). New York: McGraw-Hill. (Sept. 30/Dec. 2) Schein, E. (1988). Organizational psychology (3rd ed.) (pp. 50-72 and 93-101). Englewood Cliffs, NJ: Prentice-Hall. (Sept. 30)

Grote, G. (2004) Uncertainty management at the core of system design. Annual Reviews in Control, 28, 267-274. (Oct. 21)

Parker, S.K. & Wall, T.D. (2001). Work design: Learning from the past and mapping a new terrain. In Anderson, N., Ones, D.S., Sinangil, H.K. & Visweswaran, C. (Eds.). Handbook of Industrial, Work and Organizational Psychology, Vol. 1 (pp. 90-109). London: Sage. (Oct. 28/Nov. 4)

Foster, J.J. (2000). Motivation in the workplace. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 302-326). Oxford: Blackwell. (Nov. 4) Le Blanc, P., de Jong, J. & Schaufeli, W. (2000). Job stress and health. In N. Chmiel (Ed.),

Introduction to work and organizational psychology - A European perspective (pp. 148-177). Oxford: Blackwell. (Nov. 4)

Windischer, A. et al. (in press). Characteristics and organizational constraints of collaborative planning: Cognition, Technology & Work. (Nov. 11)

Lees, C.D. & Cordery, J.L. (2000). Job analysis and design. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 45-68). Oxford: Blackwell. (Nov. 18) Senior, B. (2000). Organizational change and development. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 347-383). Oxford: Blackwell. (Nov. 25)

Copies of the texts will be availabe during the lectures on Oct. 21/28 (CHF 10)

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HRM: Work process design

Overview

23.9. Introduction

30.9. The role of HRM in strategic management 7.10. Tutorial Work process analysis - System level

14.10. Tutorial Work process analysis - Individual job level

21.10. Management of uncertainty as basis for work process design 28.10. Job design

4.11. Effects of job design: Stress/health, motivation, competence development 11.11. Coordination of work: Collaborative planning

18.11. Methods for analyzing work processes

25.11. Work process design embedded in organizational change 2.12. Integration of "fit task to human" and "fit human to task" 9.12. Disucsssion of student projects

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Strategic Management:

The basic questions

A clear sense of an organization`s objectives and of

how it will achieve these objectives

Facilitate the capability of an organization to create

unique value while facing an uncertain environment

Achieving and maintaining a strong competitive

advantage.

Application of corporate strategy to decisions

regarding all aspects of the organization

With greater empowerment, strategy becomes the

concern not just of directors but of employees at all

levels of the organization

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Effects of HRM compared to other

strategy decisions

HRM-practices (especially job design and

selection/ appraisal/training) better predict

company performance than R&D, QM,

strategy and technology

(West, 2001)

Empowerment better predicts company

performance than technology-based

management practices

(Patterson et al., 2004)

HRM-practices as cause and effect of

company performance

(Guest et al., 2003)

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Linkage HRM and company strategy

Administrative (no) linkage

– HRM as purely administrative task

One-way linkage

– HRM implements strategic goals, but is not involved in strategy formulation

Two-way linkage

– HRM executive shows human resource implications of different strategic choices, but does not directly

participate in strategic decision making

Integrative linkage

– HRM executive is integral member of senior manage-ment team and participates in all phases of strategy formulation and implementation

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Strategic HRM

"a pattern of planned human resource

deployments and activities intended to

enable an organization to achieve its goals"

(Noe et al., 2005)

Derive human resource needs (skills,

beha-viors, culture) from strategy formulation

Strategy implementation by means of HRM

practices, which further individuals'

capabilities and motivation as well as actual

performance

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HRM practices: Strategic choices

Job analysis and design

– simple vs. complex tasks, specific vs. generic job descriptions

Recruitment and selection

– external vs. internal recruitment, specific vs. general skills

Training and development

– current vs. future skills, train few vs. all employees

Performance management and compensation

– internal vs. external equity, input/behavior/output control

Labor and employee relations

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Contingencies in strategic HRM

(Snell & Youndt, 1995; Lepak & Snell, 1999)

Input vs. behavior vs. output control

– Input control most effective with high uncertainties

– Behavior control only works with low uncertainties

– Output control has no effect on performance in any condition

Uniqueness and value of human capital

– Traditional, loyalty based employment relationship

when knowledge and skills are firm-specific and of high competitive value

– Purely economic employment relationship when

knowledge and skills are neither firm-specific nor of high competitive value

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Consequences for job design

Input vs. behavior vs. output control

– Input control: Complex jobs with high discretion; emphasis on intrinsic motivation

– Behavior control: Simple jobs with low discretion; emphasis on extrinsic motivation

– Output control: Clearly prescribed job objectives; emphasis on extrinsic motivation

Uniqueness and value of human capital

– Firm specific knowledge/skills: Learning on the job

– Competitive value of knowledge/skills: Job crafting, career development

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Influence of normative assumptions on

strategic and operational HRM

Assumptions about human nature (Schein, 1988)

 Economic man: Employees will do whatever affords them the greatest economic gain

 Social man: Social needs are the prime motivator of human behavior, and interpersonal relationships the prime shaper of a sense of identity.

 Self-actualizing man: People seek a sense of accomplish-ment in their work and are primarily motivated and self-controlled

 Complex man: Human needs fall into many categories and vary according to stage of development and total life

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Example Google: HRM for innovation

Highly selective hiring

Generic job descriptions

In-house and on-the-job training

Intrinsic motivation as key driver

"Fringe benefits" as symbol of esteem for

employees

High task interdependence and cooperation

requirements

References

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