HRM3704 STUDY NOTES.

HRM3704 STUDY NOTES. Contemporary Issues In Human Resource Management. Name and discuss the four distinct periods of change as identified by McKee Mechanisticperiod · 1940-50, manufacturing drive force in industry · Birth of personnel/industrial relations profession · Main focus ofHR administrative · Emergence of benefit programmes as are ofinterest Legalistic period · 1960-70, legislation insocial and employmentareas · Legislation had major impact on workplace and roles/responsibilities assumed by personnel officers · Regulation of workforce beyond union contractand company rules · Training/development separate are ofHRM · First HR informationsystems application Organisticperiod · 1980 · Globalization, mergers, acquisitions,re-engineering, downsizing · Radical changes in workplace,HRM functionfaced numerous challenges · Movement towardcost and profit centersimportant issue for HRM · More command-and-control policiesand procedures · Height ofHRM specialization Strategic period · 1990 · Strategic thinking and planning prominent activity todeal with continual change incorporate organizations · Structuresranging from websto networks and matrices · HRM functionhad to assist in struggle to remain successful and competitive · HRM became strategicpartner, reporting to CEO and interact with Board ofDirectors · HR professionals played active role indetermining future directionof organization Whichissues will play a major role in the catalytic period, d 2000? · Increase in cross-border employment · Workforce that will be comfortable in and with othercultures · Fewer organizations as result of continuedmergers and acquisitions · Use of just-in-time professional workers · Increase in outsourcing of administrative functions · Innovative compensation practices · More selective approach by employeesregarding careers · Telecommuting and other forms offlexible work being widely introduced · Teams playing major role Describe what the HR professional has to do in order to be successful in the changedrole of HRM · Become involved with line mangersinstrategy formulation/implementation resulting indesign ofHR strategies that will supportoverall company strategy · Become expertin way work is organized and executed · Become involved inreducing cost through administrative efficiency, while maintaining high quality · Become reliable representative for employees whenputting concernsto management · Become involved inefforts toincrease employees contribution to organization · Become agentfor continuoustransformation,shaping processes and culture to help organizationimprove their capacity for change Explain the multiple role modelfor HRM as proposed by Dave Ulrich Future/strategic focus(short-long term) 2 Processe s Cell1 Managementof strategic human resources Deliverable/outcome Executing strategy Activity Aligning HR and business strategy: "Organisational diagnoses" Role Strategicpartner Cell 3 Managementof transformation and change Deliverable/outcome Creating a renewed organization Activity Managing transformation and change: "Ensuring capacity for change" Role Change agent Peopl e Cell2 Managementof firm infrastructure Deliverable/outcome Building an efficient infrastructure Activity Reeengineering organization processes: "Shared services" Role Administrative expert Cell 4 Managementof employee contribution Deliverable/outcome Increasing employee commitment and capability Activity Listening and responding to employees: "Providing resourcesto employees" Role Employee champion Day-to-day/operational focus How would you describe the employee-employer relationshipin the changed work environment? · Psychological contract- what employees and employers want and expectfrom each other - will change · Psychological contact accomplishestwotasks: o Defines employment relationship o Manages mutual expectations · Lack of jobsecurity offeredto employees · Significant shift inemployees attitudes and valuesregarding career management,leadership style, motivation and working conditions · Workers want more opportunitiesfor development, autonomy,flexibility, meaningful experience · Psychological contractmore situational, short term, assumes each party muchless dependenton the other for survival and growth · When psychological contracts go unfulfilled or perceivedto have been violatedaggressive types of behaviour can impact negatively on organization · Two types of psychological violation: o Reneging, wheneither party to contract knowinglybreaks a promise to the other o Incongruence, when parties have differentunderstanding of obligationsin terms ofthe contract What are the questions that summarise the challenges of HRM? · How can we attract/retain peoplewho can live with and often thrive upon uncertainty? · How can we get/maintainloyalty/commitmentof employees whenjob security,promotion opportunities, career entitlements are declining? · How can we meet career expectations of employees who expectrapidpromotions inorganizations becoming flatter and leaner and are not expanding enough? · How can we encourage (older) employeesto take more responsibility for own personal/professional development? · How can we develop procedures/processesthat help managers/specialists understand/commit to working together? · How can we build organizationculture/structure inwhich employeesfeel satisfied, challenged,empowered? 3 Describe what is meant with "self-managed work teams" and how they could be applied in theHR environment · Methodof improving employee commitment, general well-being of organization · Teams inwork environmentresponsible for determining what they want to do, howthey want todo it, when they want to do it · Teams empoweredto use initiative in solving problems and managing themselves · Teams can respond quicklyto needs of a particular situation · Team members participate in decisions · HR professional becomes coach/counselor/advisor to team · Selectionand trainingof team membersdone interactivelybetween HR and team · Innovative compensation systems · Proceduresto determine critical factors of performance for teamsmustbe implemented · Development ofteam-based work system has potential to create more productive, creative, individual-fulfilling working environment, playing critical role innew challengesfacing HRM Define the term "alternative workplace" and describe the differentoptions as identified by Apgar · Moving work to theworker instead of theworker tothe work · Placing workers on different shifts or travelschedules o Enable workersto share same desk and office space · Replace traditional office with open-plan space · Implementing conceptof "hotelling" o Work space furnished , equipped and supported, can be reserved by the hour/day/week o Concierge provide employees with travel/logistic support · Creating satellite offices o Breaking large centralized facilitiesinto network of smaller workplaceslocatedclose to customer or employees home · Introducing telecommuting or virtual offices o Performing work electronically wherever worker chooses, supplementstraditional workplace rather than replacing it What is E-HRM? · Make company's HT policies/procedures available through intranet · Managing development/deployment of company's most strategic skills Distinguish betweenthe five stages of Web-deploymentwithin an organization · Information publishing o HR policies/procedures published for general scrutiny o Cost-effective way of making up-to-date company information available to employees · Database inquiry o User given opportunityto gain some personal informationfrom system o Reduces phone calls/emails to HR department · Simple HR transactions o Paperwork replaced with transactions using electronic input o Employees update personal information on HR database · ComplexHR transactions o Complexity ofinteraction between userand HR transactions being processed increase o Calculations or otherinternal processing of data take place · HR workflow overtheWeb o HR executives give employees/managers way to administer own HR data/processes withoutpaperwork or administrative support Define talent management and describe the best practicesthat are followed by organizations which excel in talent management · HRM activitiestoensure organization attracts, retainsmotivates,develops talented people it needs now and in future 4 · Bundling together activitiesto producemore coherent whole that can be vehicle for obtaining, developing, retaining talent organisation needs · Best practices: o Define talent management broadly o Integrate various elements oftalent management into comprehensive system o Focustalent management on most highly valued talent o Get CEOs/senior executives committed to talent-managementwork o Build competency modelsto create shared understanding of skills and types of behaviororganization needs and valuesin employees o Monitor talent needs within organization to identify potential gaps o Excel at recruiting, identifying, developing talent as well as at performance management and retention o Regularly evaluate results of talent managementsystem 5 Explain the term"competitive advantage" · A firm issaid to have a sustained competitive advantage when it: o Is implementing value creating strategynot simultaneously being implementedby any current/potential competitors o Other firms are unable to duplicate the benefits ofthis strategy Describe two assumptions on which the resource-based view is based · Companies withinan industry/groupmay be heterogeneous with respectto strategic resourcesthey control · Resourcesmay not be perfectly mobile across industry/group Distinguish betweenthe differentsources of competitive advantage and give applicable examples of each resource · Financial capital resources- debt/equity-retained earnings · Physical capital resources- physical technology.Machines, manufacturing facilities,buildings · Human capital resources- knowledge, experience, insight, wisdomof employees · Organizational capital resources- history, relationship, trust,organisational culture, formal reporting structure, explicitmanagement controlsystems, compensation policies Discuss the four questionsthat a manager can ask to determine the value of a resource Question of value · Do company's resources add value by enabling it to exploit opportunitiesand/or neutralise threats inits environment? · Managers link analysis of internal resources with analysis of environmental opportunities/threats · Resources of company cannotbe valuable invacuum, company must be able to exploit opportunities and/or neutralize threats Question of rarity · How many other companies alreadypossess valuable resources? · Valuable resourcesmust be rare among competing companiesin order to be source of competitive advantage · Common but valuable resource is also important Question of inimitability · Do companies withoutresource face prohibitive costdisadvantage obtaining resources other companies have? · If competitive company does not find ittoo expensive to imitate resource competitive edge willsoon disappear Question of organization · Is company organizedto exploit full competitive potential ofitsresources? · Formal reporting structure, explicitmanagement controlsystem, compensation policies · In combination with other resources, capable of releasing company's full competitive advantage Distinguish betweenthe terms "strategic fit" and "strategic flexibility" Strategic fit · Aligning strategy and resources with environment, company achieve superior performance Strategic flexibility · Ability of company to adjustto rapid external and internal changes Evaluate theHR componentagainst themeasures ofthe sources of competitive advantage Value ofHR · Heterogeneous demandfor labour · Heterogeneoussupply oflabour Rarity ofHR · Human resources with highlevels of abilityare rare Inimitability ofHR · Characterised by unique historical conditions, casual ambiguity, social complexity Substitutability ofHR · Company has highest-ability individuals Discuss in detailthe three paradigms that describe the contribution of HR to organisational performance Resource-based paradigm 6 · HR system can contribute tosustained competitive advantage by facilitating development of competencies that are company specific · Biggest problemis employee turnover · Design and implementturnovermanagement strategies · Allocate biggerportionof profits toemployees y means of gainsharing or share options · Culture of belonging can be created · Alignmentof individual interest with organisational goalsimportant o Degree to which behaviourhelps individualsto meet their goals o Relevance of each organisational goal to individual · High level of interest alignmentrealised at three levels of motivation by three interest-alignmentlevers: o Extrinsic motivation - most directly influencedby reward system , includesissuessuch as power and recognition o Hedonic intrinsicmotivation - enjoyment individual experience in completing task o Normative intrinsic motivation - driven by goal of engaging in behaviourthat is compliant with norms/values of organisation · Alliance partners can play a significantrole through network resources · Services thatresources provide, notresource themselvesthat generate value for company Best-practices paradigm · Implies directrelationshipbetween particular HR approaches and company performance · Bundles/systems ofHR practices have more influence on company performance than individual practises · Impactof HR practices on company performancemay be enhancedwhenpractices are matched with competitive requirementsinherentin company's strategic posture · Three primary perspectives: o Universal approach - assumes certain bestHRM practices will contribute toperformance of company, regardless ofstrategic goals of the company o Contingency approach - attemptsto link HRM systems/practicesto specific organisationalstrategies o Configurational approach - pattern ofHRM practices/systemsthat contributesto attainmentof organisational goals · Seven practices consistentlyconsidered to be strategic innature: o Internal career opportunities o Formal training systems o Appraisal measures o Profit sharing o Employment security o Voicemechanisms o Job definition Process paradigm · Anchored in bothresource-basedview (RBV) and best-practice theory · HRM processes deeply embedded in company-specific dynamic routines by which company attracts, socialises, trains, motives, evaluates, compensatesitsHR · HRM processes continuouslyevolving/adapting by drawing on past experience to refine effectiveness of processesto meet changing needs of organisation · HRM processes abouthow things are done, notwhat is produced 7 Define the term "leadership" · Activity ofinfluencing people to strivewillingly for group objectives · Process of influencing activitiesof individual or groupin effortstoward goal achievementin givensituation · Process of giving purpose to collective effort, causingwilling effort to be expended toachieve purpose · Activity of getting people to move indirections, make decisions, supportpathsthey would typically nothave selected · Process of making sense of what people are doing together, so they will understand and be committed · Process of articulating visions, embodying values, creating environmentwithinwhich things can be accomplished · Process not position · Involvesrelationshipbetween leader and followersin givensituation · Involvesinfluencing people · Leaders gain commitment and enthusiasm offollowers who are willing to be influenced · Influencesflowers to think notonly of own interest but interest of organisation · Involvesinfluencing followersto bring about change towarddesired future for organisation Explain the differences and the complementarities ofleadership and management Leadership Management Do notjust develop visions of what organisation is, develop visions of what organisation can be Manager who is not a leader will be bogged downwith day-to-day managerialmatters Do notjust informpeople of new vision, energise people to acceptand work towardmaking visions come true Manager with leadership qualities butno manager skills will have empty vision Do notjust formulate newprogrammes/policies, initiate improvementsthat last by changing organisational culture Withoutrequisite power, vision cannotbe turnedinto reality Do notjust manage organisations, seek waysto transform them Alertnessto opportunity,imagination, vision to exploit capabilities Creative problem solving, working with systems Risk-taking, creativity, change, vision Procedures, control, regulations Innovate,inspire, change status quo Administer, control, accept status quo Discuss the 10 managerial roles that a leader needs to perform in order to read the organisation objectives Interpersonal roles Figureheadrole Represent organisation/departmentin legal, social, ceremonial,symbolic activities Leader role Performing management functionsto operate managers organisation unit effectively Liaison role Interactwith people outside organisational unit Informational role Monitor role Gatherinformation Disseminator role Sendinformation toothers inorganisational unit Spokespersonrole Provide informationto people outside organisational unit Decision roles Entrepreneurrole Innovate and initiate improvements Disturbance-handlerrole Take corrective action during crisis or conflictsituation Resource-allocator role Schedule,request authorisation, performbudgeting activities Negotiatorrole Represent organisational unit during routine/non-routine transactionsthat do not include setboundaries such as pay of employee Differentiate between the numerous individual and the group models of leadership · Individual models ofleadership o Traits-based approach - focuses on traits/characteristics(physical and mental) ofindividual leader o Behaviour-based approach- founded on premise that leadership styles would be effective across situations o Situation-based approach- expansionof traittheory but includestasks to be completed, factors affecting situation of both leader and flower, personal traits of followers · Groupmodels of leadership 8 o Cross-functional teams- as result of different backgrounds of teammembers, normally creative in generating variousideas, providing interesting solutions to problems o Self-managed teams- responsibility and authorityfor making management decisionsturned overto team o Executive teams- set of executivestakes on responsibility for providing leadership to whole organisation Discuss the various organisational models of leadership Transactional-based approach · Leaders characterised by contingent-reward and management-by-exception styles of leadership · Lasts only as long as needs of both leaderand followersatisfiedby continuingchange process · No relationship thatbinds leader and followertogether inmutual/continuing pursuit of higher purpose Transformational-based approach · Raises both leaders and followerstohigher levels of motivation and moralitywith view to changing present situation by focusing on external environment · Four behavioural components: o Charisma - process through which leaderarouse strong emotionsin followers o Inspiration - behaviourssuch as articulating appealing vision o Intellectual stimulation - encouragesfollowersto be creative in solving problems o Individual consideration - expressing appreciation for job well done Charismatic-based approach · Keep followers weak and dependent · Instil personal loyalty rather than commitmentto ideals · Non-business organisationssuch as religious or politicalmovements Managerial-based approach · Combination oftransactional and traditional approaches with situational sensitivity · Enable manager todiagnose organisationalsituation, deployappropriate leadership response Strategic-based approach · Persons ability to anticipate, envision, maintain flexibility,think strategically and work with othersto initiate changes that will create viable future for organisation · CEO's have to cease viewing leadership positionas onewith rank and title, positionsignificant responsibility to range of stakeholders · Six key leadership practices: o Determine company's purpose or vision o Exploit/maintain core competencies o Develop humanintellectual capital o Sustaineffective organisational culture o Emphasise ethical practices o Establish balanced organisational controls Institutional leadership · Critical during periods of discontinuous organisational change · Four different types of change: o Tuning - incremental change, maintains/enhancesfit between strategy and organisation o Adaptation - takes place as result of external conditions and isreactive innature o Reorientation - initiates changes as result of emerging environmental shift,redefining company's identity, vision, mission o Recreation - change all basic elements of organisational system to survive · Two types of leadership required o Heroic - excite employees,shape aspirations, direct energy o Instrumental - make sure individualsthroughoutorganisation behave ways needed for change to occur · Extend leadership role beyond individual leader · Three groups: o Senior team o Broader senior management group o Entire organisation Leveragingthe senior Institutionalised leadership Instrumental leadership Broadeningsenior management 9 team Structurin g Heroic leadership Monitorin Envisioning g Enabling Energising Rewarding Developing leadership in the organisation E-leadership approach · Social influence processmediated by advancedinformationsystemsto produce change in attitudes, feelings, thinking, behaviour, performancewith individuals, groups and/or organisations · Occur at any hierarchical level, involve both on-to-one and one-to-many interactions · Operates within contextof advancedinformationtechnology Identify and discuss techniquesthat can be applied to leadership training and development · Create a compelling future · Letthe customerdrive the organisation · Involve every mind · Manage work horizontally · Build personal credibility.