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Human Resource Management PART1 Personnel Management to Human Resource Management nRecognition of the need to take a more strategic approach to the management of people nBegan in the 1980s in the USA nUK followed quickly nConcept is a strategic approach to acquiring, developing, managing and gaining the commitment of the organisations key resource the people who work for it Armstrong 1991 Features of HRM n Management focussed and top management driven nLine management role key nEmphasises strategic fit integration with business strategy nCommitment oriented nTwo perspectives hard and soft nInvolves strong cultures and values nPerformance oriented nRequires adoption of a coherent approach to mutually supporting employment policies and practices nEmployee relations organic rather than pluralistic nOrganising principles are organic and decentralised nFlexibility and team building important policy goals nStrong emphasis on quality to customers nRewards differentiated by skill, competence or performance Features of HRM Fombrum, Tichy and Devanna Model 1984 Selection Performance AppraisalHRD Reward Warwick Model of HRM Business Strategy Context Inner Context HRM Content HRM Context OUTER CONTEXT Warwick Model content of the boxes nOuter context socio-economic, technical, politico-legal,competitive nInner context culture, structure, politico- leadership, task-technology, business outputs nBusiness strategy context objectives, product market, strategy and tactics nHRM context- role, definition, organisation, HR outputs nHRM content HR flows, work systems, reward systems, employee relations The Harvard Model Stakeholder Issues: Workforce characteristics Business strategy above standard; excellent etc nBelow standard performance can be used to generate development needs nCan provide forum for the identification of new/changing competence requirements nCan provide forum for setting acquisition of competence time scales nProvides a clear and agreed framework for performance evaluation and discussion Appraisal Development nProvides a framework for individual training needs nNo transfer problems as competence can only be demonstrated by on the job behaviours nDevelopment contributes directly to current performance nEncourages a broad based approach to development activities nEnsures line manager commitment to development nOffers common language to all participants in the development process nOffers transparent process to all stakeholders nFacilitates validation and evaluation of the development process Development Reward nPromotes flexibility nPromotes a development focused culture nProvides opportunities for advancement via skills nProvides opportunities for earnings enhancement on the basis of skills and flexibility rather than seniority nCan assist in addressing the technical/managerial divide nOffers a route for the reward of knowledge workers nCarries high face validity and felt fair perception nVia core organisational competencies can link reward directly to organisational strategy Reward Integration nVertical - integration with corporate strategy nHorizontal - the internal integration of the components of an HR strategy nIntra-gration the integration of the parts of a component of HR strategy e.g reward strategy base pay, variable pay and benefits all support each other Current HRM Issues looks nave in todays turbulent and global environment; still pursued in some sectors with long time horizons. Evolutionary: Natural Selection nEmphasis on environmental fit nProfit maximisation achieved by market competition nFit determined by chance rather than strategy nSurvival by short term strategies aimed at current fit nStrategy and illusion in unpredictable environment Evolutionary law of the jungle nHR key role in environmental scanning nPolicies and strategies aimed at flexibility and adaptability nMatching model nCritique markets more regulated than jungle; by government, law, international agreements nConcept of flexibility important Processual life is messy nConcept of bounded rationality nSubjective interpretation of data therefore strategy flawed and incomplete nWe take the first best option sufficing nOrganisations as coalitions consensus by negotiation nMinimum adaptation for survival rather than proactive change spare capacity as buffer nStrategy a comforting ritual Processual and HRM nHR policies evolving and reactive nSoft HRM nOD, best practice and development of internal competencies important nCritique lacks vision; may not be able to respond quickly enough to threats Systemic: socially grounded nMan makes decisions based on social factors not economic;Social networks define norms nInternal context of firm influenced by social groups, interests, resources and micro- politics nDifferent forms of organisation successful indifferent cultures nSystemic perspective includes national culture, family, gender, social groups nStrategy must be sensitive to these Systemic and HR nHR policies and processes will have to reflect local culture nManagement style and strategies for motivation and commitment reflect local and national culture nCritique focuses on difference at the expense of similarity and cross- cultural influences Resource-Based Theory of the Firm nPlaces HR at heart of strategy nCompetitive advantage stems from strategic core competencies built up over time nRecognises importance of leadership in building top team; fostering creativity and innovation; facilitate the learning process nEmphasises renewal aspect and dynamic capabilities of the organisation nCapacity of a firm to renew, adapt and augment its core competencies over time nSuccessful organisations combine multiple modes of strategy making with high levels of competence and astute leadership with employee involvement in strategy making Resource-Based Theory of the Firm Resource-Based Theory art Visible behaviours audible behaviours Values Basic assumptions: Human nature Human activity Relationships Perceived reality Environment Visible but not often decipherable What “ought to be; norm-based Taken for granted Invisible Pre-conscious Common Organisation Stories nCan employees break the rules? nIs the big boss human? nCan the little person rise to the top? nWill I get fired? nHow will the boss react to mistakes? nWill the organisation help me when I have to move? nHow will the organisation deal with obstacles? CULTURE: Socialisation: learning pre-arrival: “preconception” metamorphosis: “absorb” securitycommitmentproductivity encounter: “provisional” (H may conflict with espoused values and each other Culture Change nWhy change? Environment changes: nBusiness mergers, technology, market nGovernment laws, H internally through intranet; internet site providers nInternet accessed globally, but only by those with access to and who use the technology nSpecialised sites available graduates,engineers, computers nWatch for cost, regular updating, on line sifting nAdvertising issues apply Handling Applications nInformation used to: nEnable self selection nSift candidates n CV ? Or nApplication form nDevelop image: nProfessional process nPsychological contract nMaintain interest nCandidate as customer Selection nThe importance: It is fairly easy to use selection to improve productivity by 6%. Under very favourable circumstances selection can bring about gains of 20% or more. Smith & Robertson 1993 nEthical issues: - principle of positive self regard - principle of informed consent - principle of competence - principle of confidentiality Common Selection Methods nApplication form and CV nReferences, recommendations and testimonials nGroup exercises nWork sample tests nSelection interviews nPsychometric tests Usage of Selection Methods Within the UK nInterview100% nApplication form98% nReferences97% nCV84% nPersonality tests58% nAbility/aptitude tests47% nAssessment centres 30% Choosing a Selection Method nPracticality nSensitivity nReliability nValidity - face - content - criterion (predictive or current) - construct Validity of Selection Methods nAssessment centres 0.2-0.4 nBiodata0.2-0.4 nAbility tests0.1-0.3 nWork sample tests0.1-0.3 nPersonality tests0.1-0.2 nInterviews 0.0-0.2 nReferences0.0-0.15 Psychometric Tests nMaximal versus Typical performance nMaximal performance - aptitude/attainment nTypical performance - personality - interests and values nMany countries have legal constraints on use Aptitude Tests nSpecific abilities - e.g. mechanical/spatial nSpecific occupations - e.g. clerical/computer nGeneral intelligence - numerical - verbal - abstract reasoning The Selection Interview nA conversation with a purpose to: nMake an assessment of a candidate in relation to an organisational role nInformation exchange nSell the organisation nSocial function Types of Selection Interview nIndividual nPanel nSequential nInformation gathering nStructured nSituational nBehavioural nStress nHypothetical Failures of Human Judgement nMemory nQuick decisions halo/horns effect nEmphasis on negative information nInconsistent evaluation of information nPerceptual selectivity nLike people like you nStereotyping nInformation overload nPrimacy nExpectancy Structured Interviewing nBase questions on job analysis or competence statements nEach candidate is asked the same questions nSystematic scoring procedure nIndependent assessment of candidates Interviewing as a Social Process nCreate appropriate physical environment nCreate appropriate social environment nCreate and meet candidate expectations nUse active listening nEnd the social encounter Questioning Techniques nOpen require fuller answer nClosed straightforward information nProbing follow up for further information or areas of uncertainty nLeading supply the candidate with clues to the best response nMultiple candidate will answer the easiest Assessment Centres nAn assessment centre is a programme of tests, exercises and interviews designed to measure and assess a wide range of different abilities, skills and behavioural characteristics and potential required for effective performance in the job Beardwell and Holden, 1994 Advantages of Assessment Centres nAllows more time to make an assessment nInvolves more measures better predictive validity nProjects a professional image nSpin offs e.g.developmental experience for assessors Disadvantages of Assessment Centres nCost nTime nDifficult to do nStressful for candidates nNeed to train assessors Designing an Assessment Centre nDefine competencies nChoose tests, exercises and measures each competency at least twice nTraining of assessors nPilot the centre nRun the centre nFeedback nEvaluation Choosing the Selection Tests and Exercises nTypes of techniques available nCovering the competencies nHow many should there be? nBuy in or devise yourself? nIssues in design Ensuring Competent Assessment nFamiliarisation/ownership of the assessment criteria nAssessment of performance criteria not performance in exercises nAssessment documentation nIndependent assessment nTraining and practise for assessors Performance management The various management processes by which standards of performance are addressed at both the individual and organisational level . the use of objective setting and performance reviews via employee appraisal Taylor (1998) Definitions of performance management The essence of performance management is establishing a framework in which performance by individuals can be directed, monitored, motivated and refined: and whereby the links in the cycle can be audited. (Mabey & Salaman, 1995) Performance management Performance Management as an Integrating Force Performance Management Reward Management Improving Individual and Organisational Performance Improving Managerial Effectiveness Developing Skills and Competences (Armstrong, 1996) Performance Management Cycle Organisational Objectives Individual Objectives Performance Review Development and Reward Monitor and Review Elements Of Performance Management nOrganisation has a shared vision of its objectives which it communicates to all employees. nOrganisation sets individual performance targets which are related to both operating unit and wider organisational goals. nOrganisation conducts a formal review of progress towards the targets. nOrganisation uses the review process to identify training, development and reward outcomes. nOrganisation evaluates the effectiveness of the whole process. Common Features nProviding Data on Contribution of Human Resources to Strategic Objectives nForming a Framework of Techniques to Secure Maximum Achievement of Objectives for Given Inputs nProviding a Means of Checking the Functioning of the Process Links which Deliver Performance Against Objectives (Mabey & Salaman, 1995) Clarifying Business Objectives Training & Development Performance & Potential Career Management Reward Systems Culture Change Individual or Team ? APPRAISAL PRP Bonuses Increments Assessment Succession Self-development Guidance & Counselling Role of Performance Management Criteria for Success nPerformance-oriented culture nTop management support and commitment nAppropriate training and development of two way responsibility - - line managers - individual employees nUtilise appropriate theories of social psycholog
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