Download - HRM 2008 - Complete Mindmaps
Lesson 1 Understanding HRM
The Importance of External andInternal Contexts
External Context
Political and Economic Context
Government policy and stakeholder society
impact of EU legislation and socialpartnership with labour
economic growth vs recession
nature of corporate ownership and controlOutsider Systems
Insider Systems
job migration and outsourcing
Legal Context
state intervention and social and welfare issues
regulations on recruitment and selection,training, awards and equal opportunities
public policy to free up labour markets
changing legal context over time
Labour Markets
Business Sector
growth of global markets andmultinationals
changes to domestic industrial structure UK growth of the service sector decline ofmanual work
financial sector in UK
knowledge workers and female employees
workforce demographics and population pyramid
growth of the UK public sector andapplication of market criteria to workingenvironment
cash limits, business planning,performance related pay
Location
Hofstede and National Cultures
4 dimensions of national culture affectingbusiness practice
Trompenaars 1993
Universalism vs Particularismgeneral consensus vs contingency and situation
Individualism vs Collectivism
common goals and impacts on motivationand management
Neutral vs Emotionalexpression of emotions alphas vs gammas
Achievement vs Ascriptiondetermination of power hard work vs pazam
Internal Context
Management Style
individualism vs collectivism
difference of emphasis betweendeveloping relationships with employeesas individuals or as groups
Purcell 1986 4 Styles for managingemployee relations
Sophisticated HR employees as assetswith clear HR support mechanisms
Consultative recognition of unions andintegration into firm
Traditional labour viewed as factor ofproduction with assumed subordination
Constitutional unions recognised andaccepted as inevitable employeerelations based on stability and control
Internal Structure
significant influence on HR management
greatest impact by M form bureaucracies
corporate centre
divisions
operating plants
Links Between Business and HR Strategy
strategic choices associated with themanagement of people planned vsemergent
choices critically linked to organisational performance
Boxall and Purcell TheoreticalPerspectives on HR
Universalistic
Contingency
Resource based
The Role of Management in HR
HRM as a key element of all management activity
HRM as shared task with internal tensions
movement from bureaucracy to adoptionof HR perspectives has changedrelationship between management andHR function
HR Models Story 1992
Regulators HR function formulatesemployment rules and procedures
Change Makers employee relationsemphasise the needs of the business
Advisers internal consultancy roleallowing management to decide HRinitiatives
Handmaidens specialists operating insubmissive relationship with clients
The Changing Nature of theEmployment Relationship
shift from managing employment ofcontract to increasing performance
movement from bureaucratic structures toflatter and market based companies haveforced HR to reconsider the contributionof the individual
Insecurity of employment
flexible working
part time working and annual hours
employability vs job for life
The Gap between Policy and Practice
Policies as statements of principlesinforming strategy and practice
reduces dependence on individuals
clarify situations
produce consistent behaviour
significant gap between stated and policyfor a number of reasons
appropriateness of policy
different priorities of line management
different interpretations of policy
poor process of implementation
failure to monitor or evaluate
Lesson 1 Understanding HRM Mindmap.mmap 14/03/2008
HRM, Strategy andthe Global Context
Origins of HRM
Fombrun 1984 Matching Model
emphasis of links between strategy andHRM through the human resource cycle
selectiondevelopmentappraisalreward
to what extent does the cycle deliverimproved performance Devanna 1984
to what extent is there a fit between HRMprocesses and organisation strategy?
weakness of model: unitarist approachwith little room for strategic choice andpeople management driven byorganisational objectives Bratton & Gold2003
Beer 1985 Harvard Framework6 basic components of HRM
situational factors
workforce characteristics, labour marketsand wider operational environment
stakeholder intereststradeoffs between owners, employees and unions
HRM policy choicesemployee influence, reward and work systems
HR outcomes 4Cs Model
commitmentcompetencecostcongruence
long term impacts
individual well being, organisationaleffectiveness and societal goals
feedback loopmodel is not linear but cyclical
model assumes dominant direction andinfluence from environmental factors
HRM in the UK Bach & Sissons 2000 3 traditions
Prescriptive tradition
paternalistic model prescribing tools andtechniques for management use vocational in nature
Labour process school
critical approach to managementassuming its role was to subjugate
Industrial relations approach
HRM as a system of employmentregulation where internal and externalfactors shape the employmentrelationship
Additional model organisational psychology
recent approach considering link betweenstrategy and practice analysing theelements of the HR cycle
Hard vs Soft Models Storey 1989
Hard model
stresses link between HR and corporate strategyhuman resource viewed as factor ofproduction with labour having onlycommodity status
Soft model
management of 'resourceful humans'competitive advantage through skilled workersSubtopic
Storey 1992 Model of HRM insert diagram pp.7
International and Comparative HRM
Rubery & Grimshaw 2003 Convergence and Divergence
Universalist
gradual shift towards convergence acrossdeveloped nationsone best way to manage HR and associated practices ofjob design and quality controlapplication of lean production model
Culturalist
clear and unambiguous differencesbetween nations which endure
Hofstede 1980 analysis of 117,000IBM employees
power distance extent to which power isdistributed in organisationsuncertainty avoidance degree to whichsocieties feel threatened by ambiguoussituationsindividualism/collectivism balancebetween groups and individualachievementmasculinity/femininity extent to whichdominant factors are male i.e.assertiveness
critique of Hofstede model
representativeness based on single companyperpetuation of national stereotypesexplanatory power doesn't explain whydifferences existcomplexity no explanation of howcultures might vary
Institutionalist
differences between societies but are a product ofnumerous and competing forces on HRMdifferences in HR practices are caused by education, training,legal framework, political and social factors, family and supportnetworksshortcomings of model is that it is deterministic and static assuming that the impact forcesthemselves aren't open to influence
HRM in Multinationals
Bartlett & Ghoshal 1989 classification of MNCs
multidomestic company growth throughdiversification new subsidiaries adaptingto local conditionsinternational company exploitation ofparent knowledge through professionalmanagersglobal corporation world market asintegrated whole centralised hub withlimited delegation to subsidiariestransnational corporation mixture of the above
Adler & Ghadar 1990
organisational character as related toproduct lifecycle greater globalisation asthey mature
Perlmutter 1969 international HRM styles and cultures
ethnocentric managers recruited from home countrypolycentric local nationals appointed
geocentric managers appointed notaccording to country of origin
Femer & Quintanilla 1998 Complexitiesof HRM internationally sources ofisomorphic pressures
Local Isomorphism subsidiary behaves like local companies andadopts practices to fit into local norms IBM dealing with Irishunions
Cross National Isomorphism subsidiary expected to confirm tohome country HR practices embedded within wider institutionalstructures of that countryCorporate Isomorphism universalistic approach of MNC where HR practices areimposed regardless of location
Global Intercorpoatre Isomorphism where MNC breaks away from home country and adoptedprocedures similar to those in competitive market adopting a position beyond national borders
Business and Corporate Strategies
Classical Perspective Grant 1988 & Scholes 2002
establishment of long term organisational direction HR impacton future staffing needs of company
driving organisation forward to achieve sustained competitiveadvantage HR impact on what will drive performance
determining organisational scope and positioning in markets HRimplication of staff types in house vs subcontractedmatching of internal resources to environmental fit SWOT andPESTLE HR impact of adequate staffing to meet strategic goalsimpact of strategy on operations i.e. growth through IT customerservices will fail if staff aren't capable of meeting the need
values and expectations of decision makers attitude towardsunions and recruitment procedures
Strategy operates at 3 levels
corporate level scope, structure and financing
business level competition within given market and customer focusoperational level subunits of marketing, finance manufacturing etc
Emergent Perspectives Quinn 1980 &Mintzberg 1987
successful strategies emerge incrementally as part of ananalytical and iterative process
strategy is crafted through use of skills and judgements
Whittington 1993 Typology of Strategy
Classical Profit Maximising Deliberatestrategy as rational process of calculation and analysis
little room for devising HR procedures
Evolutionary Profit Maximising Emergent
strategy as product of market forces with most efficientcompany succeedinglittle reason for planning deliberate strategy as successis judged by evolutionary processes
maintenance of flexible HR procedures is important factor ofcompetitive advantage guided evolution Lovas & Ghosal2000
Processual Pluralistic/Emergent
people are too limited and careless to implement a calculated strategyimpossible to specify the strategy until after the event
logical Incrementalism Quinn 1980 emergence of strategy through internal decisions and external events
organisations are affected by internal politics and conflicting goals with behaviour seeking toachieve departmental goals
Systemic Pluralistic/DeliberateGranovetter 1985 strategy shaped by social system class, gender, regulation and education systems
institutional forces will differ between countries and have shaped HR processes
Stakeholders, Diversity andCorporate Responsibility
Balanced Scorecard andHuman Capital Reporting
strategy should consider more than financial returns to shareholders
wider base of stakeholders include customers, communities, theenvironment and staff/workers
Kaplan & Norton 1996/2001
financial perspective
customer perspectiveinternal business perspective
learning and growth perspective
scorecard allows for financial analysis along withbuilding capabilities for future growth
HR critique of model
assumption that HR practices are universally effective inincreasing performance
scorecard has a top down orientation with HR procedures prioritised ifthey fulfil strategic needs such as communicating the vision
Human Capital Reporting
influenced by Kingsmill Report 2003
requirement that by 2006 quoted companies will need toprovide strategic commentary on range of organisationalissues
size and composition of workforceretention and motivation
training and business /skills fitremuneration and fair employment policy
leadership and succession planning
Diversity at Work
main avenue for addressing equal opportunities including age,gender, race, ethnicity, sexuality and disability
business case has been made for company benefits rather thanindividual enhancement
Cassell 2001 and Anderson & Metcalf2003 business benefits;
improved customer satisfactionenhanced worker motivation
improved labour supplyavoidance of discrimination cases
Doubts
some employers will only have short run interestsmay be ignored for unskilled workers
internal pressure to retain the status quo
Goss 1994 Form of EO in organisations
depth of management commitment shallow to deep and principled
breadth of focus narrow list of practicesto driven by economic expediency toextensive
Corporate Responsibility
Holme and Watts 2000 the commitment to contribute to economic developmentworking with all stakeholders to improve quality of life
degree of scepticism regarding the actualrole of business (Friedman 1970)
CSR activities
charitable donations, human rights, ethical investment, fair tradinggrowing awareness of CSR mainly due to major scandals such asEnron and Bhopal etc
increase of legislative and regulatory pressures
motivation for adoption of CSR
business case and concern for lost customerssensitivity to criticisms and threats of boycotts
means of providing competitive advantagethrough differentiation
problems in defining what ethical issues are
HRM, Strategy and the Global Context Marchington Chapter 1.mmap 17/03/2008
Forces Shaping HRM at Work
The Changing Nature of Work
contested nature of w ork
mixture of conflict and cooperation Blyton 2002
conflict variation over time and countryhigh visible during times of industrialaction or collective bargaining
also affect recruitment and training of staff
perspectives ofemployment relationship
Braverman 1974 struggle for controlbetw een managers and w orkers
balance betw een control and cooperation introduction of ICT and mutual benefitsEdw ards 2003 structured antagonism interdeterminacy of employmentrelationship
contradictory management need toexercise control and tap creativity
antagonistic only w orkers can offer surplus value
w orkers posses tacit skills know ledgeand understanding gained through lifediff icult to codify Cooke 2004
employed as w eapon against employer
make w ork more tolerable devising gamesused to advance career promotions
job satisfaction
Maslow 1943 & Hertzberg 1966 factors intrinsic to w ork recognition and other motivators
Steers 2004 hygiene factors more important to those w ho do not hold w ork as central to life
Rose 2003 extrinsic factors helpinfluence those w orkers w ho seek tomove jobs
psychological contract Schein 1978
beliefs of each of the parties to theemployment relationshipw idely agreed that reciprocalarrangements have now disappeared
last 20 years are defined by uncertainty and imbalance
Uncertainty
evidence to show grater w ork insecurity and intensivity w ithUK w orkers putting in more hours Heery & Salmon 2000)
insecurity thesis has 3 major elements
transference of risk to w orkers throughtemporary contractsdamage of insecurity to the economy
w ider societal impacts
examples
those employed in supply chain forretailers or call centres suffer the w orstthose w orking from home feel untrustedby management
Doogan 2001 contrary theory thatpeople now have greater chance ofstaying in w ork than 20 years ago
Intensity
evidence that UK w orkers increase their speed and hours of w ork Burchell 1999
implications of intensif ication have been considerable stress,IBS, sleep problems
Labour Markets and Employment Patterns
sectoral shift from manufacturing to services
new industries low er trade unionisation,less formal HR systems and largeremployment units
10m in 1970s to 20m today largestgrow th in f inancial and business services
role of w omen
2004 saw 3m more than in 1985
comprise half of w orkforce but many morew orking part time in service sector w ithlow er status
full vs part time
19852004 part time w orkers doubled proportion of population at 2530%
higher proportion than most EU countriesand are regarded favourably byemployers
grow th in temporary employment in last25 years from 57%
UK has more temps than US but less than EU nations
discrimination
impacts on minority and disabled groups and w omen in termsof employment and salary rates6.2m disabled adults in UK w ith only 1.2mw orking numerous govt strategies toaddress this.
ageism sited as cause of discrimination inthird of all cases
many retired people seeking to return to the job market
demographic trends w ill see olderw orkforce in the future
industrial action
number of w orking days lost hassignif icantly dropped from 10m in 1980 to500k today
number of w orkers involved in stoppageshas also signif icantly dropped
Institutions Affecting HRM at Work
Trade Unions and TUC
defined as craft or general, open or closed
overall number of unions has now declined alongw ith multiunionism and membership numbers
decline has been influenced by industrial sectorchanges increase in non manual and servicesector jobs
UK has one confederation w ith primary role ofTUC to lobby governments although itspolitical influence has now declined
Employers Associations
national associations or federations
specialist industrial bodies
small specialist associations
role of EA's
collective bargaining w ith trade unions
dispute resolution
advice and guidancemembership representation
CBI central body that represents over250k employers
Third Party Agencies
Acas main UK body w ith 6 key areas
resolving collective disputesarbitration and mediation
building employment relations
settling complaintsproviding impartial advice
promoting good practice
Central Arbitration Committee
independent body used to adjudicate onrecognition of trade unions
Equal Opportunities Commission
Commission for Racial Equality
Disability Rights Commission
Health and Safety Commission
Flexibility and Fragmentation in the Workplace
Atkinson 1984 Flexible Firm Model
Core Level
w orkers from primary labour market w ithgreater security through permanencyvertical f lexibility employees take ontasks higher and low er than recruitmentskill set
horizontal f lexibility employeesundertake w ider range of tasks at sameskill level
Periphery Level
Group 1 w orkers from secondary labourmarket but internal to organisation
Group 2 w orkers w ho cannot break intosecondary market part timers and temps
Group 3 w orkers external to theorganisation employed by others i.e.agency staff
doubts around f lexibility
concept
terminology and confusion betw eendescriptions and predictions
promotion of market deregulation bygovernment and introduction of leanprinciples
lack of clarity around core and peripheral elements
extensiveness
questions as to how far this has occurred and w hyimpact of coreperiphery model notsupported by data
costs and benefits
assumption that f lexible f irm is more eff icient
diff icult to estimate eff iciency of part timersquestions over effectiveness ofsubcontracted NHS w orkers
single employer status
model fails to note interorganisational relations
HRM no longer characterised by relationshipbetw een single employer and employee jointventures and strategic alliances
Fragmentation
increased fragmentation and blurring ofboundaries betw een organisations
old notions of skill career and learningnow replaced by short term visions
boundaries changed by restructure oforganisations and areas of activity
application of additional burdens andpressures on junior staff
models based on f lexible structure mayno longer be adequate in analysingchanges betw een different organisations
The Legal Framework
UK Influences
minor role of employment law mouldedby employers and unions
role of law in the UK 3 levels
auxiliary role provision of statutoryframew ork organised persuasion
restrictive role laying dow n of rulesoutlining w hat is allow ed and forbidden i.e. striking
regulatory role f loor of employmentrights for employees
volunteerism attacked in 1970s due toeconomic diff iculties leading to greaterstate intervention
industrial relations seen as UK diseasew ith UK dismantling of union protectionsto free labour market
1997 election of Labour led to adaptationof policy but not signif icantly 5 pillars ofpolicy
encouraging employment f lexibility
protecting minimum standards
promotion of family friendly policiessupporting partnership
supporting union recognition
prevailing economic view that marketf lexibility is good for grow th
EU influences
adaptation of EU Social chapter hasincreased the impact of initiatives from EU
EU law has number of sources
regulations immediate effect and binding to all statesdirectives binding but require memberstate legislation allow ing f lexibility
directions only affect specif ic partiessofter instruments recommendations,declarations and communications
evolution of social policy
1957 Treaty of Rome common action on economic progressand opening of barriers to goods1987 Single European Act increased use of quality majorityvoting to increase harmonisation of internal market
1993 EU Treaty joint commitment to achieving highlevels of employment
1998 Working Time Regulation UK opt out
2002 Employment Act requirement for employers toconsider f lexible w orking
1998 Human Rights Act considerableapplication to employment law
article 8 right to privacyarticle 9 freedom of thought
article 10 freedom of expression
article 11 freedom of assembly
Individual Rightsemployer w orker relations built aroundthe principle of the employment contract
express agreement betw een employer and employee
terms implied by common lawcollective agreements
w orks rules
custom and practicestatute
Collective Rights
19791997 reform of employerunion relations
central objective to w eaken union pow ers
move to reduce extent of collectivebargaining due to excess of union pow er
post 1997 has seen new statutoryprovisions w hile retaining Conservativereforms
efforts to dismantle to close shop havenow been completednow diff icult to arrange industrial actionthrough recently developed code ofpractice
Forces Shaping HRM at Work Marchington Chapter 2.mmap 20/03/2008
Lesson 2 The Case ofTeamwork
Debates on Teamworking
one of the most popular forms of HRM
WERS Survey 3/4 of workplacesinstituted some form of teamworking
Torrington 2005 varied dimensions of teamworking
time span
extent of interchangeable skillsrange of tasks expected
difference between production andservice environments
Geary 1995 Advanced Teamworking
autonomy over allocation of work tasks
limitation of direct supervisionmeans to discuss organisation
Applebaum & Batt 1994 Lean Production vsSocioTechnical Systems
Lean Production
simple task range
quality managed through procedureslimited worker autonomy
SocioTechnical Systems
following Volvo model
team of workers with long cycle times
discretion to allocate workelection of leaders and judge quality issues
appropriate to niche and specialist markets
Factors Promoting Teamworking
Technology
continuous process operations require teamwork
low skilled work can act as teamworkobstacle LP vs STS
PreExisting Culturesassembly lines do not provide teamwork basis
Role of Unions
more common in unionised environmentsalthough often introduced to undermineunion power
Role of Precipitating Event
impact of event affecting organisation canmotivate team working i.e. threat toexistence
National/Company Environment
role of unions, national bias towardscollectivism vs individualism
Applebaum & Berg 1996 Benefits forManagement and Rare Use of Teams
benefits are long term and contradictshort termism of many managers
investment in teams will reflect longrunindustries such as pharmaceuticals
fear that teams will underminemanagement authority
Extent of Teamworking
Osterman 1994
55% of establishments use self directed teams
41% of establishments claimed thiscovered half of workforce
WERS Survey 200472% of workplaces had some employees in teams
European Foundation 1997 Issue of Definition
33% of groups carried out work without reporting back
measurement of scope and autonomy =measure of intensity
only 5% measured high intensity
Lesson 2 The Case of Teamwork Mindmap.mmap 01/04/2008
High CommitmentHRM and
Performance
Defining and Measuring HighCommitment HRM
difficulties faced by range of recent studies
nature and type of HR practices
measures of performance
sector based issues
methods of data collection andrespondent base
Guest 1997 argued that many of theselack statistical rigour
Pfeffer 1998 High Commitment HR practices
Employment Security & Internal Labour Markets
fundamentally underpins all other practices
unrealistic to expect loyalty without security
are limits to security but can beenhanced by HR planning and structuring
layoffs can account for longterm strategic loss
Wood & Albanese 1995 definemeasurement of security
policy of no redundancy
use of temps to protect core workers
expectation that employees will remainwith the firm until retirement
alternatives to downsizing
(1) reduce working hours proportionally
(2) reduce wages to reduce labour cost
(3) freeze recruitment
(4) moving workers to sales increasing demand
Selective Hiring and Sophisticated Selection
Boxall 1996 capturing a stock of exceptional humanbeings to sustain competitive advantage
employers now seeking wider range of social andinterpersonal skills above technical ability
number of proxies used to measureselective hiring
(1) applicants per position
(2) proportion administered tests
(3) sophistication of selection procedures
caution must be given to not recruitingclones which may not encourage initiativeand diversity
Extensive Training, Learning and Development
Boxall 1996 new recruits need to remain at the forefront oftheir field in both professional expertise and interpersonal skills
growing recognition of the importance of learning as source ofsustained competitive advantage
learning must be about development rather than training to address crisis
important to measure and evaluate the concentration of training and learning
Employee Involvement and Information Sharing
critical importance
(1) open communications regarding finance andperformance ensures staff are informed
(2) teamwork will only succeed with key information toact as basis for contribution
(3) participation can provided legitimacyfor management actions
Information Sharing seen as key factor in best practice teambriefing or quality circles
Huselid 1995/Roche 1999 employee voice critical
Self Management and Team working
more prevalent in last decade and seen as fundamental component oforganisational success
key attribute sought by employers and looked for in CVs seen tosupport decision making and innovation
selfmanaged teams seen negatively as intrusive anddifficult to implement
Barker 1993 teams produce form of greater controlthan previous bureaucracy
Performance related Compensation
dual elements of higher compensationand performance related reward
despite criticisms this is listed as significant good practice however isless widespread in the public sector
Reduction of Status Differential and Harmonisation
symbolic manifestations of equality within organisations uniforms and shared canteens
extension of employee share schemes
Basic definition: that a particular set of HR practiceshave the ability to bring about improved organisationalperformance
Bundles of Human Resource Practices
often linkages between HR practices EIwould be welcomed if job security existed
Greater synergy between bundles thegreater opportunity of organisationalsuccess
Wood & de Menezes 1998 lack ofconsistency and pick & mix approach toapplication of HR processes
Truss 1997 little evidence to showdeliberate coherence between HR activities
while principle of building works there canoften be conflicts between practices contradictions and tensions may arise
The Universal Application of BestPractice HRM
celebratory literature argues that bestpractice is applicable to all organisations
Marchington & Gruglis 2000 criticise this approach
best practice works on assumption thatemployers can take long term view
easier to engage in high commitment HR iflabour costs are low labour intensiveorganisations will struggle to increase pay rates
dependent on types of staff being recruited andmay be situational specific
growth of non standard contracts has raised the issue ofcompatibility between best practice HRM and the flexibleorganisation
some groups do seem to be benefiting from best practicesuggesting distinctions between long serving and short termworkers
HRM and Performance
Huselid 1995 survey of 1000 US organisations
employee skills/org structuresattitude surveys/hourstraining/employment tests
employee motivationproportion of staff with appraisals/numberof applicants per post
output measures labour turnover,productivity and corporate financialperformance
Patterson 1997
longitudinal study of 67 UK manufacturing organisations
HRM had greater impact on productivitythan strategy and R&D
17% variation in profitability explained byjob design and HRM practice
Guest 2000
theoretical model developed showing pathway linking business andHR strategy with performance outcomes
critical finding that small proportion of organisations actually usemore than 3 quarters of HR practices
also important to note that application does not equal effectivenessmeasures of effectiveness critical
West 2002
links between HR and performance in 61 NHS trusts
critical finding that 3 practices had strongimpact on performance
(1) training
(2) team working
(3) appraisal
Guest 2003
further work showed that there was positive relationships between HR and lowturnover but not higher performance
(1) use of AMO modelgreater performance requires Ability,Motivation and Opportunity
(2) operation of 'big idea' gluing together successes
(3) role of line management as point ofcontact for nonmanagerial staff
(4) application of performance measuresto organisational need Tesco
queue length data
stock availability
theft and stock errors
Questions about HRMPerformance Link
direction of causality and the black boxgreater research and case studies
little consistency of HR practice in bundlelist often the consequence of individual preferences
variations in proxies used to measurehigh commitment HRM
yes/no answers mixed with statistical data
variations in proxies used to measure performance
objective vs subjective assessments
measures of organisational performance such as profitabilitythat have weak linkages with individuals
dangers in relaying on HR self reporting scores
differences arise depending on expertise of respondents
personnel specialists lack detailed knowledge ofcompetitive strategies and proportion of sales derived
doubts about extent of autonomy organisationshave in decision making
all organisations are subject to forces thatshape HR procedures
PESTLE factors and application of highcommitment in different countries
Boselie 2001 12 of Pfeffers 16 factors are common inNetherlands but fewer in the UK
Ramsey 2000 higher levels of performance achieved through workintensification rather than HR processes
High Commitment HRM and Performance.mmap 20/03/2008
Designing HRM toFit Organisational
Goals
Best Fit HRM Contingency andConfigurational Ideas
number of attempts to link HRM withbusiness strategy build around notion of'external fit'
Kochan & Barocci 1985 Life CycleModels and HRM Application 4 StageModel
Startup
flexibility required for growth and development
ability to recruit and retain motivated staffis critical long hors and selfdevelopment
aim to gain employee commitment potential benefits as long term
little or no formalised HR practices unionisation unlikely
Growth
formal HR required to build on earlier successes
more sophisticated methods of recruitment andselection as well as development appraisal andpay
concern that informal procedure may leadto future problems
Maturity
maturing of markets with lower levels of growthand flattening of performance
range of formalised HR procedures operatingwith high commitment with significantcompromises between management and staff
increasing focus on the cost of labour andstraining relationships appear with unions.
Decline
decline period begins to exacerbate existing problemswith emphasis moving towards rationalisation andredundancy
HR policies reconsidered as employerseeks to reduce costs
Schuler 1989 Competitive Advantage Models
Cost Reduction Strategy
production of goods and services at acheaper rate to competitors
HR follows black hole model no systemsfor independent voice
ad hoc recruitment and selection minimum health and safetyand little staff empathymost commonly found in the UK
Quality Enhancement Strategy
aim to produce highest quality products and opposite to cost strategy
HRM follows best practice model with anumber of characteristics
systematic recruitment and selection
induction programmesempowerment
harmonisation and competitive pay
problems in ensuring this is transformedinto real practice
how sustainable will this be during economicdownturn/recession
Innovation Strategy
least common and assumed that groups of highly trained specialistswork together to develop complex and changing productsmuch greater emphasis on flexibility and problem solving groups andcommitment to broadly defined goals
Delery & Doty 1996 StrategicConfigurations
model developed to analyse HRprocedures against horizontal and verticalintegration 2 organisational types
Defenders
focus on efficiency in existing marketsand narrow product ranges
centralised organisational structuresbuilding portfolios carefully and over time
recruitment is through specific ports ofentry with internal promotion
Prospectors
inclined to change and adaptabilityexploring new markers and opportunities
HR strategies less internally oriented and seek to buy instaffing rather than grow internally
training less extensive than defender andfocused towards short term needsvery little participation and little unionisation with HR limitedto admin and support role possibly even outsourced
Converting HR Strategy intoPractice: Blockages and Barriers
Brewster 1983Espoused Policy
summation of proposals and objectives that seniormanagement hold of employees
may be formal or informal and may be broadphilosophical statements
Operational Policy
how senior management order industrial relationseither subconsciously or with intentreflected in managerial value systems
to implement strategies champions areused within organisations
managers with energy to implement new initiatives
mobile and career oriented individualsoften moving positionsmake use of impression management andthose left with responsibility don't feelownership
5 reasons why middle managers mightnot implement HR strategies
lack of identification with employer goals
managers may find themselves distinctfrom senior managers
persisting UK class divisions
doubts of validity of ideas
role ambiguity and insecurity
work overload
conflicting requirements and lack of rewards
job losses and de layering placeadditional pressures on management
McGovern 1997 three features
limited institutional pressures to carry out HR activities
short term nature of managerial work focuses onachievement of numbers rather than people
downsizing limits available time
limited investment in training and development
management training seen as a low priority
poor interpersonal skills whencommunicating with staff
value of retaining flexibility at workplace
Brown 1973
management by commission retainedflexibility to vary application of rules
Klein 1984
deal making provided discretion to management and allowingstaff to manage their time more flexibly
issue increased in complexity when organisational boundariesare blurred across networks or suppliers
failure to apply organisational rules
managers unaware they are breaking the rules
compliance with H&S but not aware it isbeing broken secretly
Resources Based andInstitutionalist Views
Definition : Penrose 1959 focus oninternal resources at the firm's disposalprovides a useful picture of performanceand capacity aside from external andenvironmental forces
best fit outside in RBV inside out
can be criticised for ignoring externalforces too much
Barney 1991 potential for sustainedadvantage requires 4 firm specificattributes
Value the resource must add value in some way
Rarity shortage of particular resources within market
Imperfect Imitability difficult or impossible to imitatethese valuable resources
unique historical conditions make imitation difficultdifficult to understand precise mixture of resourcesdue to tacit knowledge
resources may be very complex social phenomenon andbeyond management
Lack of Substitutes resources cannot be made easily obsolete
Oliver 1997 RBV application limited as itdoesn't consider social context whereresource decisions are made
argument for combining RBV withorganisation theory
firms influenced by forces of difference and similarity
Deephouse 1999 Strategic Balance Theory
achievement of balance betweendifferentiation and conformity
excessive differentiation may causelegitimacy challenges from customer base
need for legitimacy will affect the extent of differentiation
Application of RBV to HRM has identified 5 Major issues
Managers or workers as the key resource
does RBV relate to entire human capitalpool or simply senior management?
Mueller 1996 social architecture/complexitythat resides in organisation dispersing value
workers need to know how they contributeto performance with clear link betweenefforts and goals
Focus on people, practices or processes
does RBV relates to human resources orHR practices and processes?
Boxall 1996
human capital advantage exceptional human talent
organisational process advantage evolved processessuch as learning and cooperation
Human Resource Advantage combination of abovecreating advantage through excellent people andprocesses
implication for HR is to ensure bothsystems and people provide advantagefor the firm
The importance of path dependencyBoxall 1996
RBV provides useful analytical framework throughrecognition of historical conditions and different paths takenby organisations and industries
informal relations that evolve over timeare hard to imitate
HR practices may look similar but combined withtacit issues provide advantage
Tackling neglect of institutional forces andnetworks beyond the firm
RBV approach ignores institutional issuesat national and industry level
some firms will have advantage due to theirlocation with better educational infrastructure
Boselie 2003
strong institutional mechanisms decreasethe impact of HRM on performance
increased degree of homogeneity of HRpractices in 3 cases
wide application of blueprints such aspsychometric tests
extent to which formalised educationimpacts on HRM
extent to which legislation and directivesat international level impact on HRM
Important to acknowledge individualorganisation has limited autonomy todetermine its futureimpact of other players such as suppliers
Viability and industry leadership
set of minimum standards are required tocompete in any market
firm resources are particularly rare andmay be needed to simply survive
Boxall & Steenveld 1999
distinction of HRM to provide 'crediblemembership' and 'industry leadership'
HRM strategies must ensure the viabilityof the firm as it faces challenges andchange
HRM strategies can be enacted to ensureindustry leadership
Limitations of Best Fit Model
Models are Deterministic and Top Down
many organisations don't have clearbusiness strategies and thereforeimpossible to claim HRM links
contingency approach suggests rationaldecision making takes place in logical andsequential way
relationship much stronger than classical modelnegating principle that HRM is independent specialistdepartment
Multiple Influences on a Company
each model places primacy on a singlecontextual factor
if different factors require different HR processes this suggestsdifferent organisational sections operate in different ways
rationale for HR style often influenced by environmental factors ratherthan employment relationship
Managerial Control
model suggest scientific management process assuming management knowand control all issues
bounded rationality suggests this is impossible and is unrealistic to suggest thatmanagers can make decisions about all scenarios
employee goals and visions not determined in a vacuum butemerge through negotiated processes
incorrect to assume that senior managers are free to make decisions withoutinfluence from other parts of the supply chain.
Models are Static
ignore the processes of internal change
evidence suggests that organisations donot follow the lifecycle model accurately
assumptions made about size shape and strength oforganisations in each stage of the lifecycle
need for a clearer focus on how change occurs and its majorinfluencers and obstacles
Neglect of how Institutional Forces Shape HRM
assumption made that employers are free agents makingdecisions on personal situation assessments
increasing role of EU legislation ofemployment relationsincreased consultation , working time and parental leave
Rubery & Grimshaw 2003 how institutional factors have shaped HRM in different countriesfirms are embedded in societies that regulate them
Categorisation of real Organisation can be Problematic
Cranshaw 1994 Sainsburys strategy ofgood food costs less stuck in the middlebut positively
difficult to assess the HR practices of twocompanies within a similar marketsegment
important not to focus on a single factoraffecting HR issues i.e. strategy andignore the influence of others
the mix of factors will be critical
Designing HRM to Fit Organisational Goals.mmap 23/03/2008
ChangingResponsibilities for
HRM
The Development of HR as a Specialist Function
the role of the HR function has evolved over time withearly roots in welfare
Alternative interpretations of the development of HRfunction with each new set of activities adding to theHR portfolio
Number of other HR Themes
Administration
transactional aspects of HR applications,induction and records
Negotiation
1960s1970s response to union growthand workplace bargaining
Legal Expertise1960s need to address employment legislation
Organisation Development
19801990s connected to principles ofchange management, learning andorganisational culture
Business Partner
common application strategic HRM andorganisational prominence
Development of the Professional Body
1913 Association of Employers
1931 Institute of Labour Management
1946 Institute of Personnel Management
2000 CIPD
Analysing the Role of the HR Function
Legge 1978 HR strategies for gaining powerConformist Innovation
HR managers relate work to dominant orgvalues and norms
Deviant Innovation
HR managers gain credibility by following social valuesrather than economic criteria equal opportunities
Tyson & Fell 1986 Building Site Continuum
Clerk of the WorksHR system provides admin support to management
Contracts Manager
trouble shooting role in formalised oftenunionised system
The Architect
most sophisticated model creating granddesigns and integrating HR into widerbusiness
reject notion that HR assumes greatermaturity at it moves along continuum
Storey 1992 Four Type Model
Change Agent
aims to establish new HR cultures mostprominent in forward moving visionaryorganisation
Adviser
most common role and major aspect of HR work
advisers operate at strategic level butwork to shape HR practices behind thescenes
Service Provider
low level operational role responding toroutine problems driven by demand
Regulator
operational factor but more prominent inrelationship with unions and other internalfunctions
Critique of Model
change agent while influential runs risk of significant costs
HR function may play more than one rolewithin single organisation
Ulrich 1997/98 Ineffective Role of HRand needs to adopt 4 Roles
Business Partner
partner in execution of strategy
defines organisational architecture
creating systems to deliver org success
Administrative Expert
expert in the organisation of work anddelivers efficiency
transactional work admin andadministration
improving efficiency will build reputation of HR function
Employee Champion
voice for employees to improvecontribution and representing views
Change Agent
agent of continuous transformation andshaping process to ensure capacity forchange
Changing Models of HR Service Delivery
last decade seen movement to assessvalue of internal HR function
2002 PWC survey showing 70% oforganisations outsourcing part of HRfunction
Problem: tendency to conflate differentforms of alternative delivery into one keyarea
Outsourcing may take different forms
shared service centre
joint venture between organisations
multiclient call centres
length of contracts may vary
Type of work may vary with differentarrangements for each HR function
training and development
executive selection
recruitment of temps
redundancy
Reliance on outsourcing depending onrange of factors
organisational size and complexity
product market uncertainty
importance of HR strategy to org
Range of Forces Guiding Outsourcing
Cost Savings
decisions to make or buy dependent ontransaction costs
start up costs must be considered as wellas consideration of long term costs
not always easy to secure performance improvementsand it may be costly to terminate project
outsourcing may increase new costs and rigidities along withadditional costs of external consultants
Expertise
outsourcing takes advantage of externalknowledge and skills
Greer 1999 You outsource when someone else canperform better than you
consultancies have resources to establish complexdatabases and provide global support
outsourcing may also deny the organisation criticalknowledge in house
in house approach contributes toorganisational learning
Tacit skills difficult to formalise andorganisation may become dependent onexternal providers
Immersing HR professionals in other elementsof business helps enhance HR contribution inthe longterm
Independence
expertise provided free from influence anduseful complex situations
external nature is not universal advantageand it is denied workplace culture andtraditions
subcontractors will have wider access todata but lack experience of what hassucceeded and failed in the past
Alternative Structure Shared Service Centre
creation of small HR professional group atcorporate centre while call centre alsoestablished to provide advice tomanagers
Positive implications
greater efficiency
higher customer service ratings
greater HR strategic contribution
integrated solutions and information management
Negative implications
lower levels of customer satisfaction
less interesting work
higher costs
Devolving HRM to Line Managers
significant criticisms of HRM by linemanagement in many firms
HR seen as out of touch with commercial realities
HR constrains autonomy of managers tomake key decisions
HR slow to respond to problems
HR keen to promote theoretical policiesthat are impractical
Legge 1995 Vicious circle of Personnel Management
due to problems identified evidenceshows that managers have taken greaterHR responsibilities
2004 IRS survey shows management responsibility
major responsibility team briefing,appraisals and absence
shared responsibility induction and training
little responsibility performance, pay and recruitment
in devolving greater responsibilityorganisations need to consider a range ofissues
Lack of Skills
weak levels of skills and competencies toperform HR aspect
faddish nature of managementinterventions means that new ideas or nottaken seriously
Disdain for HR
managers feel they don't need trainingand feel HR role can be easily done
HR skills seen as derived from idealisticview of human nature
Competing Priorities
HRM issues seen as less important thanother management roles
managers don't have sufficient time todevote to HR issues
Inconsistencies in Application
lack of clear procedures will result inmanagement inconsistencies
issue of compliance to employmentlegislation discipline and dismissal
2 arguments to encourage managementto take HR function seriously
cost of poor HR employment tribunal,loss of customers lapse in safety
value of good HR opposite to above
Measuring the Contribution of the HR Function
Guest & Hoque 1994 Reasons for HR Criticism
ambiguity of function cost and value
doubts enhanced by UK culture offinancial primacy and short termism
difficulty to quantify work of HR function
measure to raise awareness of HRfunction through role in corporate Boards
measurement through stakeholder analysis
Mayo 1999 HR influence enhancedthrough movement away from balancesheet approach
Tesco balanced scorecard
measurement through externalbenchmarking
mapping of hard data i.e. labour turnoverand training costs
ratio of HR staff to employees
percentage of staff receiving appraisals
speed and effectiveness to complaints and grievances
must consider national and industry differences
measurement through internal evaluations
service level agreements
SLA provide specific statement of serviceprovision against which measurementscan be made
danger of approach that satisfaction ofinternal customers may affect servicequality
Changing Responsibilities for HRM.mmap 23/03/2008
Motivation and PaySystems
Theories of Motivation and Reward
Content Theory fundamental human need
Process Theory psychological processes
Taylor Scientific Model
employees as rational and economic inapproach but lazy and motivated byrewards
highly criticised arguing that economicapproach self perpetuating in workers
Hawthorne Human Relations School
worker performance linked to observationand need of group membership andattentioncriticised for being unitarist in approach
Maslow Hierarchy of Needs
people motivated by hierarchy of issues aiming to satisfy one set of needs beforemoving onto the others
little evidence to prove hierarchy andpeople may demand different factors atdifferent times
McGregor 1960 Theory X and Y
X workers are lazy and require control
Y workers can be motivated through selfesteem and development
Hertzberg 1966 2 Factor Theory
no direct relationship between satisfactionand dissatisfaction
positive and negative hygiene factors
Vroom 1964 Expectancy Theory
management need to ensure that effort isrecognised and rewarded financially andnon
management need to establish schemesthat reward appropriate behaviour
Three central concepts
performance outcome expectancy employees recognise consequences forcertain actionsValence value to employee of outcomederiving from certain behavioureffort performance expectancy perception by employeeof likelihood of achieving desired objective
Nadler & Lawler 1979low motivation will exist in jobs with little control
Reward Management in Context
Political and Economic Context
1960s & 197s reward systems helped toincrease salaries
1980s & 1990s free market philosophyand cultivation of enterprise culture
lower levels of inflation and cost of livingenhanced annual pay increases
Factors Affecting Salary and Wage Levels
job size responsibility, level, knowledge,skills and competencies
individual characteristics age,experience and qualifications
labour market factors supply anddemand of skills
product market conditions and cost structures
remuneration philosophy of company
Influences of rewards on HR system
recruitment and retention
signals importance placed on behaviourand activities by employer
reward systems affect corporate culturescost structure service sector implications
Integration/Contradiction in Reward Structures
common for management aims to conflictand will impact on remuneration policy
differences in expectations of worker groups
New Pay Factor
need for understanding of organisationalgoals and objectives when formulatingreward strategy
business strategy of organisationdetermines behaviours of employeesseeking rewardassumption that strategy is known and top down!
Lawler 2000 Strategic Design of Reward Systems
Structural Content Dimensions
Basis for rewards are people paid for what they door for skills and competencies?
Pay for Performance should staff bepaid for seniority or performance?
market position of companyinternal/external pay comparisons to whatextent does management value equity?centralised/decentralised reward strategy
degree of hierarchy reward based onposition or achievement
reward mix types of rewards provided to individuals
Process Dimensioncommunication policy open or closed?decision making practices involvement of staff or not?
reward systems need to fit with HR systems as awhole without fit there will be conflicts CONTINGENCY APPROACH
Types of Payment Scheme
Underlying Philosophy
Service Philosophy acquisition of experience
Fairness Philosophy right structures of differentials
critical that HR professionals see the linkbetween HR and organisational policy
Choice of payments must also reflectcircumstances of the organisations
(1) Time Rates
hourly, weekly or annual salary
flat rate or fixed scales
managerial/white collar workshift to simple wages systems problemswith incremental structures lack ofsystematic appraisal system
can be proliferation of job grades requiring restructures
(2) Payment by Results
link between reward and effort asmotivational factor
payment by output level or fixed sum onachievement of output
piecework common in textiles and engineering
commission based pay affected byscandals around directory enquiries
three issues for consideration
Control less personal supervision encouragement of speed not quality
Erosion schemes degenerate as resultof learning curve and fiddling
Complexity setting of performancestandards work study techniques
(3) Plant/Enterprise Schemes
encouragement of staff to identify more widely with organisational goalsScanlon Plans ratio of payroll costs to value of production
Rucker Plan difference between sale value output and cost ofmaterials commercial value of process of conversion
workers have little control over bonus size
schemes may encourage competitionbetween groups
progressive marginalisation of unions
(4) Performance Related Pay
greater emphasis on this approach andreflection of enterprise culture of 1980s
widely used in public sector
potential benefits (Armstrong 2002)
motivates staff and increases productivity
acts as leverage for changelinks reward to achievement of org goals
criticisms
risk of perceived biashigh costs of administration
subjectivity and consistency of appraisal
equal opportunitiescultural dimension PRP will varybetween countries and cultures
(5)Financial Participation and share Ownership
inclusion of staff in financial performance of organisation
schemes don't provide real involvementno linkage between effort and reward
In Search of the Happy WorkplacePecci 2003 characteristics of happy workplaces
reasonable workloads
reasonable levels of controljob security
wageeffort bargain
Motivation and Pay Systems.mmap 31/03/2008
Equity and Fairnessin Reward
Management
Job Evaluation
a process whereby jobs are placed in arank order according to demands placedupon them
degree of confusion regarding the process writing job description is central but notdesigned to evaluate job holder
widely used in 5075% of organisations
Arthurs 2002 Objectives for introducing job evaluation
establish rational pay structure
to reduce disputes and grievancesto create pay relationships between jobs
Non Analytical Evaluation Schemes
Job Ranking JD's placed in rank order toprovide league table
Paired Comparison systematiccomparison between all jobs
Job Classification grade numbersdecided and definition then producedCriticism highly subjective with implicitassumptions made
Analytical Evaluation Schemes
Points Rating breaking down of job into series of factorssuch as skill and judgement then applying a weighting formeasurement
Factor Comparison ranking of jobs andattachment of monetary values
Armstrong & Murlis 1998 transitional nature of Job Evaluation
equal pay legislation requires schemes tobe analytical and gender neutral
new technology is changing roles andintroducing new skills
greater flexibility of working arrangements
decisions now made lower down hierarchy
Criticisms of Job Evaluation
costly bureaucratic nature
difficulties in application to knowledge orteam based working
Broadbanding
compression of pay grades into wider bands
no more than 5 or 6 bands for all staff
emphasis on external relativities
less reliance on rigid job evaluation
Equal Value Considerations
Equal Pay Act 1970 and AmendmentRegulations 1983
implications for pay schemes must notreflect discriminatory values
Flexible Benefits
sick pay, company cars, health insurance and holidays
job security
Cafeteria Benefits
staff provided with core benefits and areoffered menu of others to add to them oftheir choice
strong overlap with motivation theory
Non Financial Rewards andRecognition
Hertzberg 1987 employees motivated by inherent need tosucceed at challenging tasks
Semler 1993 Brazilian Management Style howemployees accept responsibility following good treatment
Hackman & Oldham 1976 5 Core Job Characteristics forSatisfaction and Motivation
skill variety
task identity
task significance
autonomy
feedback
Crosby 1980 Recognition and Feedback
people don't work for money rather foracceptance and recognition
Kohn 1993
rewards and praise can have negativeimpact on creative jobs
Stredwick 2002 Two Types of FormalRecognition Schemes
suggestion schemes
rewards for exemplary and additional work
Involvement, Autonomy andResponsibility
job rotation
job enlargement
job enrichment
autonomous work groups
team working
Harmonisation
process of reducing differences betweenmanual and non manual workers andprovision of single status
1960s research identified disparities inworking hours, pay, holidays anddiscipline
1980s influences from Japanesecompanies symbolic egalitarianism
BP chemicals linkage of continuousimprovement and individualisingemployment relations
Factors increasing harmonisation
technology cuts across demarcation lineslegislation has narrowed differencesbetween workers
growth in single table bargaining
changes in employment structures
1997 harmonisation of 1.2m council workers
Pitfalls of Harmonisation
costly nature of equalising notice periods
workers unwilling to accept cash less benefits
confusion of goals of harmonisation with management
Pensions
form of deferred pay and wider fringe benefit
Defined Benefit Scheme pension calculated as percentage of final salary
Defined Contribution regular paymentsmade by employee and employer
Objectives of occupational pension provisions
recruitment, retention, improvement ofemployee relations and management ofretirement
research has shown that manyorganisations only use pensions forrecruitment purposes
Equity and Fairness in Reward Management .mmap 01/04/2008
PerformanceManagement
(1) Induction and Socialisation
process that begins with recruitment andleads into continuous development
recruits briefed on performancestandards, establish learning needs andundergo socialisation process
some induction processes will be morebasic than others may consist of rite ofpassage
informal processes may cause problemsof isolation, confusion and low morale
problems will create different types of cost for the company
Planning Inductions
understanding of pressures on new recruits
needs to be individually tailored inrecognition of individual need
role of line manager is critical and buildingpositive relationships will be beneficial forthe future
Induction Content
administrative orientation, H&S, culture and history
social integration importance of informalgroupings, partnering and mentors
cultural control educating employees oncompany values indoctrination?
(2) Reviewing and AppraisingPerformance
IRS Review 2003 Reasons for Appraisal
identify training needs
evaluate individual performance
identify good performance
ensure communications
identify and deal with poor performance
formal review takes place annually should provide honest and opendiscussion between colleagues
manager uses counselling skills toactively listen and offer feedback
appraisals undertaken by immediatemanager appropriate when rewards areconcerned
360 degree reviews
voluntary feedback from peers
rationale that's elf awareness increasedalong with improvement
Popular for number of reasons
multirater providing greater validity
facilitates open communication
framework for effective assessment ofpoor performers
Benefits of 360 degree
fosters spirit of continual improvement
enhances commitment of staff
fits with notion of involvement andempowerment
General Problems with Performance Reviews
un conducive cultureeffective in open and accepting cultures
conflicting aims
when issues of reward are consideredemployee unlikely to discuss in depth
Bureaucracycan be seen as expensive and time consuming
Validity
problems in terms of meaningfulnessobjectivity and accuracy
answering the phone is measurable but not valuable
distortions
Halo effect
Horn effect
Veblen effect central tendencies
Doppelganger effect
Recency effect
Management Training and Skills
management of diffiuclt people andwinder communication skills
PM review for Control
Redman 2001 review as part of control process
peer review systems used to undermineco workers appraisal as disciplinarygaze
Evidence of Success
assumption that employees will acceptfeedback but not enough evidence toprove this
Future of Performance Review
this will remain as organisational functionwith 70% of employees undertakingreview
review is not management panacea notall managers work well with this format
(3) Reinforcing Performance Standards
Managing Poor Performance
Capability
Lewis & Sargent 2004 skill aptitude,health or physical/mental quality
workers should only be dismissed afterseries of warnings
if capability issues is related to change injob this should be assessed bymanagement
Ill Health
consideration should be given to healthand work history
reference to process in ACAS handbook
DDA 1995 will have impact on dismissal issues
Managing Attendance
measure of corporate health and may bea good indicator of motivation
absence has significant cost to UKeconomy and UK has poor record ofworker health
much research has focused uponpreventable short term absence
first stage to address this is accurate data but may organisations are unfamiliar ofthis
following collection of data problems canbe defined and allow the creation ofperformance management systems
Strategies to deal with Absence
CIPD determined that disciplinary actionswere widely used
may include informal chats, counselling,medical support services
pilot exercises at Tesco removed pay forfirst 3 days of sickness
Rehabilitation and Health Management
UK historically poor at supporting people back to work
James 2002 no occupational therapy,reluctance by departments to take onredeployed staff
IRS employment review 2004 barriers to rehabilitation
capacity of NHS to support schemes
employee resistance to rehab
difficulty in finding other duties
persuading managers of rehab value
waiting for sick notes
mental health rehab even more complex
(4) Counselling and Support
Employee Assistance Programmesincrease availability of counsellingservices
increase of 40% in stress related illness inthe UK with 13.4m lost days in 2001
employers benefit through lower levels ofturnover and reduced absenteeism
Performance Management.mmap 24/03/2008
New Technology andEmployee
Involvement
Introducing Technological Change
changes can be incremental and not seenas a problem for managers andemployees
radical changes will require moreconcentrated changes around managerialroles, structure, training and employeecommunications
HRM considerations are likely topermeate technical changes if they are;
part of general business strategyneed to involve staff
Role of HR as Change Makers
Initiation Stage strategic perception of ITinvestment involvement dependent onrole of HR functionImplementation Stage degree ofinvolvement dependent on reaction ofstaff to changes
Many employees have welcomedtechnology changes
informal resistance to change has beenseen as workflow system issues ratherthan HR problem
Employee Involvement
extent of engagement and involvementwill influence response of employees tonew technology
top down approaches with lack ofcommunication may ignore impacts onstaff
Sewell & Wilkinson 1992
Types of Involvement Policies
EI Schemes involve 2 way flow of ideasand responsibility
EI expressed in a number of ways
Technological Change inNonUnion Environments McLoughlin 1993
absence of unions may be disadvantagebecause of importance in obtainingmeaningful management voice
Marchington & Wilkinson 1996reaching agreement with union can create legitimacy
Importance of Management Style
Purcell & Ahlstrand 1994 typology ofmanagement styles
Large Companies SophisticatedApproach formal consultation andextensive communication
Paternalistic/Traditional Companies little communication and engagement
McLoughlin & Clark 1994
managers have degree of discretion whenintroducing new technology
participatory or non approachtop down or bottom up
will result in differing perceptionsdepending on position of engagementwithin the firm
Role of the HR Function
WERS 1998 survey has shown low levelHR involvement around technical change
evidence suggests that in hi techcompanies the HR function was marginal
Legge 1993
result of investment into technologyregarded as routine
HR specialists have no natural role to playbusiness managers experiment with management
L4 Mindmap.mmap 09/05/2008
Managing Worker Voice
Management Role in Employee Relations
Edwards 2003
common and divergent issues betweenemployer and employees
both have vested interest in companysuccess with negative effects on profitaffect salaries and other benefits
are critical divergent interestsemployer seek to buy labour at lowest possible price
employee seeks to sell labour at highest possible price
employment relationship defined byconflict and cooperation
BUT notion of two sides is simplistic
neither side is consistently unified
management will have conflictingobjectives between layers anddepartments
conflicts between unions and hierarchy of membership
issue of 3rd party intervention bygovernment legislation and payregulation
Different context of management nature
sectoral differences
private business
public corporations
public sector
voluntary sector
size differences multi establishment vs single unit firms
impact of employee relations vs othercorporate issues
Kochan 1986 Strategic Choice Model
industrial relations policy as part of widerlong term corporate plans
reducing labour costs
channel discontent through official channels
increasing productivity and utilisation of labour
increase control over the labour process
short term solutions have been seen to be problematic although evidence showsmanagement have adopted pragmatic and opportunistic approaches
Fox 1966 Frames of Reference Model
key influences that shape management perception
Unitary view of firm as team striving for single goal
no room for factions and conflict seen as abnormal
Pluralist view sees the organisation ascomprising various groups with commonand divergent interests
Extent and Nature of UnionRecognition
issue of union recognition lies at heart ofemployee relations
policy and procedure has changed significantly
1970s assumed most employers wouldrecognise unions and support their work
1990s many firms introduced newpractices without consultation
Gall & McKay 1999 increase of newrecognition agreements
number of companies likely de recognisehave already done so
notions of partnership have become more popular
companies were waiting to se howlegislation was enacted
trade unions have increased resources toimprove their profile
employees have adapted to EU regulation on consultation
Smith & Morton 2001 Impact of 1999Employment Relations Act
regulation of freedom to dismiss workers
recognition of unions achieved by
Recognition by Agreement
Recognition from application to CentralArbitration Committee
Recognition Ballots
Increased distinction in UK between 3types of workplace
places with unions supported bymanagement arrangement
places where unions are being edged out
non union areas
Working with Unions
proportion of UK workplaces withrecognised unions fell to 45% in 1998
substantial sectoral variation 95% inpublic sector 25 in private
Brown 1998
recognition varies in scope and depth
employers will recognise unions forcertain activities such as grievance ordiscipline
non manual make up largest group ofmembers and fewer new firms are likely tohave unions
Reasons for Working with Unions
management may view unions as part ofcommunication process in larger firms
employees may decide it is moreimportant to achieve long term stability inrelations
unionisation as inevitable
lack of power to reduce the power ofunions in the workplace
Charlwood 2003
people join unions for instrumentalreasons such as protection from arbitrarymanagement decisions
instrumental approach explains whyunions are seen in local and economicterms
Millward 2000
reduced willingness to become unionmembers even when encouraged
Edging out the Unions
movement to marginalise or derecognise unions
often driven by disputes with unions overchanges needed
other firms have taken advantage ofsuperior power base to remove of restrictunion activities
in some cases this has been influencedby approaches to individualism andperformance related pay over collectiveapproaches
Changes associated with marginalisation
reductions in shop stewards
reduction of available time for union activity
lack of support for DOCAS arrangement
lower priority for collective bargaining
greater emphasis on individualism
WERS 1998 confirmed trend to hollow outcollective agreements with managersviewing certain HR issues off limits tounions
DeRecognition
complete withdrawal of collectivebargaining by unions within a firm
removal of bargaining rights for one ormore union in multi union environment
Managing Without Unions
Beaumont 1987
identified a number of 'household name'firms that were praised for employeerelations that attempted to offer more thanthe unions could
non unionism has a geographic elementwith greater representation in the SouthEast and certain sectors
Guest & Hoque 1994
argue that terminology of nonunionism is limited
categorised non union firms into 4 groups
Good
Bad
Ugly
Lucky
Good Firms
leaders in product market largecompanies with clear strategies
competitive pay in excess of market
comprehensive recruitment, induction,training processes
focus on employee communication and feedback
Bad and Ugly Firms
poor terms and conditions
deprivation of rights
low pay and limited rights
views communication as negative
CollectiveBargaining
significant component of employeerelations from 1920s1980s
prominence of bargaining has declined inrecent years and now takes place at awork level
Is concerned with substantive andprocedural issues
many blockages caused by managementof future relations
extent of bargaining has reduced in recentyears along with membership andrecognition
shape and size differs between sectorsand firms and bargaining level will differbetween workplace to multiemployer
Managerial prerogative is increased since1980s with many firms prepared to use it
multi employer bargaining hassignificantly reduced in the UK anddisappeared in the private sector
shift has moved towards greateremphasis on site and unit levelnegotiations
aim to encourage devolved responsibilityfor financial control
From Industrial Democracy toEmployee Involvement
1977 Bullock report addressed issues ofworker representation at Board level
union initiated and based on collectivist principles
wedded to principle of statutory employee rights
Employee Involvement
influenced by anticorporatism ofThatcher which encouraged firms toevolve measures best suited to them
individualist in approach and stresseddirect communication with workers
driven by business and 'bottom line' criteria
Practical Forms of EI
Upward Problem Solvingtapping employee knowledge and opinion
increase stock of ideas and encourage team working
Task Participation and Teamworkextension of tasks undertaken
Downward Communicationinform and educate staff of management plans
briefings and routine communications
Financial Involvementlinking individual reward to unit success
Employee Voice and SocialPartnership
Dundon 2004 Analysis of Worker Voice
two way dialogue allowing workers toinfluence events in workplace
HR managers play critical role in this process
external influences such as regulationallowing managers to think morecreatively about available choices
3 positive impacts of voice
valuing employee contributions
improved performance and productivity
improved managerial systems
Public Policy Context
EU concept of social dialogue centres onpartnership between employees and staff
Ferner & Hyman 1998 3 Characteristicsof Social Partnership
workers have different interests from managers
partnerships can be viewed at different levels
encourages representation
some employees view partnership as 'Union Trojan'
managers may view partnership asslowing down decision making andincrease costs
UK business environment focus onshorttermism creates less incentives forlonger term partnerships
Unions often have little choice but toaccept partnerships or face derecognition
Kelly 2004
companies with partnership arrangementshed jobs faster in declining industries
partnerships had no impact on wagesettlements and were unlikely to figure ascomponent of union revitalisation
European Works Council Directive (EWC)
requirement to establish works council iffirm exceeds 1000 employees
template provided for EWC in each firmas well as requirement for AGM
seeks to ensure that employees areconsulted about the organisation theywork in
EWC seen as opportunity formanagement to community elements ofcorporate strategy and facilitatediscussion of change
Managing Worker Voice.mmap 09/05/2008
Partnership Workingin Organisations
What is Partnership?
Partnership is a set of structured cooperativerelationships between management andemployees of an organisation
A psychological contract of mutual hightrust and high organisational commitment
Brown 2000 Major Characteristics of Partnerships
shared commitment to business goals
recognition of legitimate differencesbetween parties
ensures flexibility of firm is not a expense of job security
open and well informed dialogue and consultation
opportunities for staff development
seek to add value through staff motivation
Mutual Gains from PartnershipsEmployers
enhanced competitiveness throughemployer flexibility
greater staff identification with corporate goals
Staff
enhanced security and careerdevelopment based on training anddevelopment
Partnership in Theory and Practice
Partnership principle has become verycontroversial and it both lauded andcriticised
Analytical Implications
partnership stresses consensualapproach to industrial relations Sophisticated HRBUT employment relationship seen asbeing antagonistic in nature
Who are the Partners?
linked to analytical implications who is included?
is partnership with unions or employees directly?
different views across the world on whether unionsare best representatives of workers
UK and US see unions as oppositional innature and contest relationships withthem Traditionalist view
Alternative view sees changing nature of unionrepresentation mounting challenges and lower membershiphave forced them into consensual direction
shared interest in improvingorganisational performance
partnership structure may follow Purcell styles matrixPurcell 1986 4 Styles for managingemployee relations
Sophisticated HR employees as assetswith clear HR support mechanisms
Consultative recognition of unions andintegration into firm
Traditional labour viewed as factor ofproduction with assumed subordination
Constitutional unions recognised andaccepted as inevitable employeerelations based on stability and control
Consultation
Mechanism of engagement between staffand management
any critical arguments should beconsidered before final decisions aremade
in contrast to Negotiation which istargeted towards bargaining
process of informed debate anddiscussion preceding final decisions
process needs to be supported bysignificant information across a range oforganisational activities
Deeply embedded in EU but less so in UK
Significant implications for HR strategy to ensure strongconsultation systems are in place
Improved Organisational Performance
key focus of partnership is to improvecompetitive performance
employee security and competence willtheoretically lead to acceptance ofrequired change
evidence shows link betweenperformance and greater employeeimprovement
employee security can facilitate workreorganisation and technologicalinnovation
partnership however does not address issues ofconflict or pay and reward and focused towards highperformance outcomes
European Model of Partnership:Between Regulation and
Deregulation
Regulated Model
origin in Northern Europe in 1950s
combination of employment regulationand construction of strong centralisedinstitutions
collective bargaining andwidespread legal rights
criticised as inflexible and costly in global economy
but countries retain high labour productivity
Deregulated Model
few legal protections and unilateralmanagement prerogative
employment relations dealt at individuallevel with lower security but greatermarket flexibility
common in USA and Asian economies
UK
most deregulated Western European state
influenced by EU regulation and requiredto adopt parts of regulated model
partnership being introduced into weakerworking environment with lower levels ofregulation and weak unions
Many EU countries looking to deregulate markets with movementtowards to EU convergence that looks to combine benefits of bothmodels
Partnership in the UK
Context
partnership had limited application in theUK for many years
failure of traditional approaches to labour managementand rethinking of union strategy led to number ofpioneering partnerships in 1980s and 1990s
Labour victory in 1997 and 1999Partnership at Work Fund created a boomof partnership industry
TUC launched partnership institute
All stakeholders had interest in this approach
Government addressed strategy ofeconomy modernisation
Unions prospect of return to influentialposition in employer relations
Employers reason for scepticism andCBI gave guarded welcome
Legal Environment
Labour ending opt out of Masstrict Treatyand inclusion of provisions for collectiveemployee representation
impact of EU directive on information and consultation
2002 Information and Consultation ofEmployees (ICE) creation ofrepresentative structures
Trade Off between Flexibility andEmployment Security
explicit relationship established betweenflexibility and security
priority of security reflects performance ofworkers from reward to security
distinction between Employment and Job Security
UK collective agreements have no legal forces and UKemployers have fewer legal protections and security ishighly fragile
ramification of approach to security means that employers see unionrole as supporting organisational change undermining their historicalrole
Terry & Smith 2003 Partnership in the UK to date
partnerships introduced into largerorganisations with existing consultationand representation
significant number of agreements inpublic sector and privatised utilities
private service sector is mixed with somestrong examples such as Pizza Express
survey shows that well established and resourcessystem of communication and engagement wasessential for success of partnerships
required training and support
less evidence to show benefits to staff and employees
Future of UK Partnerships
UK management viewed as pragmatic and will adoptapproaches to employee relations as dictated byoperational needs
ideological hostility to collectivism is not as strong in UK asin USA but a significant shift is required
Ackers & Payne 1998 2 reasons whyPartnerships may work in the UK
Failure of current HR policies due to lackof union involvement
shifts in ideological moods reflect widersocial and political pressure
Kelly 2000
lack of legal regulation and hostility to collectivism means UKemployers unlikely to introduce continental partnership model
Lesson 5 Mindmap.mmap 10/05/2008
Business StudiesEducation: A
LearningOrganisation
The Learning Organisation
interest in LO stimulated by need toremain competitive in turbulentenvironment
LO concerned with ways in whichorganisations design themselves to valuemanage and enhance skills and careerdevelopment
Salaman 2001
conflict of organisation and learning oneseeks to organise and reduce varietywhile learning seeks the opposite
Can all Organisations beLearning Ones?
Findlay 2001
principle problem with LO concept islearning viewed as purpose oforganisation rather than means to an end
Keep & Rainbird 2000
ideals of LO have little in common withprivate and commercial sector work
only certain types of business strategysee learning as necessary but not thosewith cost reduction strategy
Who Wins from Learning?
individual and organisational views onuseful and beneficial learning will differsignificantly
Findlay 2001 Influences on employee perceptions
evaluation of learning benefits
effective organisational governance fairand trustworthy management
Management Style
traditional style unlikely to see learning asviable or attractive
Keep 1981 critical issue is extent towhich organisations want staff to learn
Employee Commitment and theLearning Organisation
Scarbrough 1998 Management of thePsychological Contract
what employees are prepared tocontribute to the organisation in exchangefor security
associated to factors such as reward and job security
senior managers believe innovation andcreativity can be achieved bycommitment
Affective Commitment: employees sharethe values and goals of an organisation
Myer & Allen 1984 Continuance Commitment
investments made by individuals overtime to organisation
lack of alternative substitutes to existingjobs individuals remain but may notshare values and goals
Herriot & Pemberton 1997
survival of organisation depends onrenegotiation of psychological contract
creation of fair exchange securingindividual commitment
Goffee & Scase 1992
increasing competitive environment hasled to competitive cost based strategyhaving a greater negative impact oncontracts
Knowledge Workers and Professionals
additional dimension to issues ofcommitment where these workers arefocused towards individual or professionalgoals rather than corporate ones
overcoming conflict requires betterintegration of knowledge workers withincorporate environment
Learning Through Social andOccupational Networks
people work and learn collaboratively withlearning taking place each day
incorrect assumption that learning is donein isolation evidence suggests learningis achieved through communities andoccupational networks
Wenger 2000 Features of Communities of Practice
members bound together by mutual andcollective understanding of communitynature
community built through mutualengagement participation acceptedthrough activities and actions
community produces repertoire ofcommunal resources language, routinestools etc
often ignored within the organisation
Challenge for the HR Function
critical challenge to establish anintegrated set of policies across theorganisation to support LO aims
at strategic level need for holisticrelationship between HR andorganisational strategy
important to reflect on the HR role inmaking the organisation a LO
HR Models Story 1992
Regulators HR function formulatesemployment rules and procedures
Change Makers employee relationsemphasise the needs of the business
Advisers internal consultancy roleallowing management to decide HRinitiatives
Handmaidens specialists operating insubmissive relationship with clients
devolution of HR function to managers how will this affect the creation of a LO?
Higher Education in the UK
Barry 2001
perceptions of university as ivory towerinhabited by scholars pursuing knowledgein rigorous ways
reality of universities similar to widerpublic sector with requirements to delivercost effectiveness through measurementof performance
1990s rapid growth in student numbersmirrored by reduction in funding bystudent
universities now forced to compete openlyfor resources targeted towards researchactivities
Personnel Management in UK Universities
traditional area of underdevelopment in UK institutions
Keep & Sisson 1992
review of personnel management during1980s found few examples of personalfunction
those responsible had little influence overprocesses and were focused towardadmin centre rather than staff
Jackson 2001
significant changes with most universitiescontaining personnel department
new universities are more managed than older ones
despite changes there is still little clarityon on the role played by personnel
Professional Communities
high levels of occupational rather thanorganisational commitment
links created between academics throughcommunities or networks of practice
Brown & Duguid 2000
knowledge can be sticky or leaky
knowledge critical to the organisationexists but cannot be located
knowledge leaks along networks of practice
knowledge sticks between differentorganisational practices
organisation will have different views toknowledge creation than that of itsemployees
further implication of knowledgemovement suggests that expertise inteaching skills may not be shared indifferent subject areas
Lesson 6 Mindmap.mmap 12/05/2008
Learning andDevelopment at
Work
Definitions and Terminology
Education
system aimed at developing intellectualcapability and conceptual understandingthrough learning process
Training
process to facilitate learning to increaseeffectiveness in aspects of work
Learning
changes taking place within individualand on the process whereby the learneracquires knowledge
Skills
aspects of behaviour practised in the worksituation that individuals are required toperform at an acceptable level
motor skillsmanual dexterity
social and interpersonaltechnical and analytical
Tacit Skills: ability to perform taskswithout awareness of doing so highlyvalued
Bloom 2004 Taxonomy of Learning Hierarchy
knowledge
comprehensionapplication
analysissynthesis
evaluation
Competency
Whiddett & Hollyfolde 2003
behaviours demonstrated by individualswhen undertaking job relevant skills
Management Charter Initiative management standards
breadth/awareness and strategic perspective
oral and written communicationleadership and assertiveness
Teamworkinganalysis and judgement
drive and flexibility
The Process of Learning
BF Skinner Behaviourist Approach
signal, stimulus and response learningclassical conditioning stimulus creates response
Operant conditioning desired responseis rewarded after delivery
Cognitive Learning
stimulusstimulus connections
insight experience and 'aha' momentpowerful reinforcer of learning case studies
Cybernetics
learning as information processing
signal with message passed acrosscommunication channel
Stammers & Patrick 1975
signals encoded for transmission
messages subject to noise which acts as obstaclelearning hindered by other stimuli andamount of information sendable is limited
Bandura 1977 Social Learning Theory
learning by imitation of othersenables transfer of tacit skills
allows for sharing of social andinterpersonal skills
doesn't incorporate feedback or evaluationindividuals can also learn negative orinappropriate skills
Kolb & Honey 1995 Learning Process ModelFormation of
AbstractConcepts
Generalisations
ConcreteExperiences
Observationand
Reflection
TestingConcepts in
newSituations
4 different learning models withindividuals having orientation to one ormore
Activists learning by involvementReflectors learning by review and reflection
Theorists learning through context oftheory and concepts
Pragmatists learn through linking newinformation and real life situations
4 Stage Training Process System
Identification of Training and Learning Needs
specification of needs at individual andorganisational level
training must represent the best solutionto existing problems and is not a cure forall organisational problems
3 Levels of Training Need
Organisational Training Need
global review of short and longer termobjectives to determine need
assessment of staff against objectivescompetence/performance managementapproach using JDs to determine requiredneedscritical incident focus on prioritising themain problem within organisation
Job Training Need
identification of specific training needs
range of methods for application
job specification
role analysistask observation
Personal Training Need
linked to job training need and includesidentical processes
linked to performance appraisal
Devising a Learning Plan
traditional approach seeks to determineclear aims and goals to approach
most helpful objective are those thatdescribe expected behaviour butconditions under which they will occur
critical to recognise knowledge skills andabilities brought by staff to learning event
variation in drive and motivation to learnby different staff members
Delivering TrainingSnape 1994 4 Categories of Training Methods
Instruction
Self Managed
Lecture
Case Studies
Pedagogical
Andragogical
Individual Based Group Based
Instructional: used for basicprogrammable skills and transfer ofroutine information
tell showdoreview processes
early part of pilot course or assembly lines
Lecture: required from providing largenumbers of people with information
estimations show that 25% is recalledfrom this process
attention span 20 minscost effective way of providing information
relative to presenter communication method
Case Studies: team oriented approach tolearning allowing individuals to proposesolutions
trainer supports group and allows forconclusions to be met
allows for problem solving and addressingreal life situations
important for cases to be appropriatelength and content
approach often criticised for not providingright balance of content and length
Self Managed: learning by the individualincluding elearning and language labs
undertaken at required pace of individual needschoice of method will vary based on cost,situation and location factors
regarded as most effective way oflearning at work and most common
many organisations provide in housetraining and in certain cases professionalqualifications
Evaluating Outcomes
most critical step of training process andfrequently not carried out in many firms
Kirkpatrick 1967 4 Levels of Evaluation
Reaction Level: most commonly usedapproach providing feedback at the end ofthe session
Immediate Level: measure of trainingobjectives: exams, tests, projects andcases
Intermediate Level: impact on jobperformance and application toworkplace interviews, questionnairesand observations
Ultimate Level: impact of training onorganisational performance using numberof indicators
number of customer complaints
level of sales or productivitynumber of accidents
absenteeism or turnoverletters unanswered
The Strategic Dimension
critical that HR ensure learning is locatedwithin the organisational context
top 3 critical factors in promoting learning
ensuring culture is supportive or learningensuing management are committed to learning
providing employees with time to learn
Benefits from learning
helping faster integration of new staffavoidance of errors
increased staff flexibility
difficult to measure financial value oflearning to company
Costs associated with Learning
fixed costs including accommodation or equipment
salaries and on costs of trainersvariable costs depending on length andnature of training undertaken
opportunity costs harder to measure may include payments to employees costof wasted materials
Trends and Development in Learning
Coaching
personal assistance offered on a 11 basiscommonly used and seen as an effective learning tool
problems associated include it being usedin an ad hoc way and many coacherslack sufficient training
ELearning
learning delivered or enabled through etechnologyaccommodates access at different times and place
seen rapid expansion but not as much as predictedlack of PC access
lack of support and human interface
CIPD identifies effective elearning when;
content is concerned with knowledge
long term training needtrainees are scattered
expensive situations need simulation
Management Development
set in context of social and economicenvironment of organisation
continuous and rapid change andrequirements for management to respond
Burgoyne 1988 6 Levels of MD Maturity
No management developmentIsolated Tactical MD: ad hoc and reactive
Integrated and Coordinated MD: careerstructure and assisted learning
MD Strategy Implements CorporatePolicy: implementation of policy
MD Strategy Input into CorporatePolicy Formation
Strategic Development of Managementof Corporate Policy
methods for MD include MBA,management degrees, internal or externaltraining courses and action learning
Continuing Professional Development
enables integration of learning withexisting professional work in a meaningfulway
Essential Principles of CPD
needs to be continuousbe owened and managed by individual learner
driven by individual needs
have clear learning outcomesevaluate learning
be seen as essential part of professionaland personal life
Marchington Chapter 9.mmap 11/05/2008
OrganisationalRestructure and Job
Insecurity
Job Insecurity
increasing feature of modern working
resulting from changes in the economicenvironment due to M&A and otherchanges
Brockner 1991 Survivor Syndrome
impact of job losses and redundanciescan have negative impact on survivingstaff
survivors are more change averse,resentful and competitive developmentof long hours culture
can lead to a range of health relatedissues including depression andsubstance abuse
Psychological Contract
defines what employees are prepared togive by way of effort and contribution inexchange for job security
recent movements that withdraw securityfrom the contract has been shown to leadto increased turnover rates
while intentions to leave may not berealised due to lack of attractivealternatives this will impact on individualsperformance
Guest & Peccei 1992
survivor guilt leads to negativity andundermining employee commitment
Managing InsecurityGreenhalgh 1991 Coping Strategies formeeting insecurity
Preventative Strategies
preclusion of insecurity by keepingworkforce intact
finding alternative cost efficiencies natural attrition and reducing temporarystaff
however many firms will not be able tosource such alternative options as thisrequires alternative cost strategies
Ameliorative Strategies
minimisation of hardships by loser and survivors
notice given or grouping of job losses i.e. all in one go
reemployment assistance and continuedemployer support
Restorative Strategies
repairing of damage done to commitment of survivors
provision of guarantees to survivorsaround job security
important to not confuse good intentions with reality
General comments on strategies
approach will depend on organisationalbusiness strategy innovation vs costreduction
preventative strategies will require othermethods for savings
internal capital market within firms oftenleads to to short term cost focus
Lesson 7 Mindmap.mmap 29/05/2008
Managing a DiverseWorkforce
AntiDiscrimination Legislationand Equality Codes
interactions and attitudes betweenemployers and staff are influenced bylegislation
1975 Sex Discrimination Act
1976 Race Relations Act
1995 Disability Discrimination Act
Dickens 1994 Overview of UK Equal Opportunities
some improvements have developed inthis area but men are still prevalent inmany companies senior managementhigher levels of unemployment amongstethnic minorities
The Business Case for Equality
traditional argument for equality has beenbased on an ethical or coerciveframework
further argument was made in favour ofapproach equality from a businessperspective
equal treatment of women will lead to awidening of the employee pool
argument that discrimination was aneconomically inefficient method ofworking
this has lead in many cases to themarginalisation of HR and unions in UK
Changing Organisational Cultures
mainstreaming of EO has lead to a widerapplication of the process above that ofmanagerial decision making
wider issues included use of differentlanguages sexual harassment and stylesof working
increasing prominence of work life issues
Limitations of Business Case Model
has been difficult to convince bottom linebenefits for many firms
many changes are likely to be long termand costs of inequality are unlikely tohave been measured
problems have been most likely incompanies pursuing a cost strategy
stronger case made for firms pursuing aninnovation strategy particularly due tochanging demographics and increase ofwomen in the workforce
Other demographic trends includingageing workforce has led to changingperceptions
Managing Diversity
terminology entering UK discussion in1990s as equality approach dealingspecifically with minorities
significant disagreement about definition and meaning
diversity approach recognises that allemployees are different and workplacescan benefit from recognising thisdifference
organisation needs to fit its approach to this differences
requires firm to rethink its practices suchas movement away from long hoursculture to encourage home and fixableworking
business case approach to diversityargues the same as EO but addsadditional concepts such as diverseteams increase productivity
diversity cultures works to ensure that allpeople are empowered to meet their fullpotential
some organisations however see adifference between people based ongroup association or intrinsic nature
Can Diversity Management Succeed?
major criticism of EO has been that itfunctions as a process of organisationalgrowth
change is likely to be limited in times ofeconomic stagnation
approach requires significant culturalchange and many organisations will havewell established groups that will resist this
social expectations of fair treatment haveincreased and are well establishednationally
increasing number of women in theworkforce have also moved to shift thisissue into the open
Business pressures will force manycompanies to introduce this approach andconsider how diversity issues affect theircompanies
Lesson 8 Mindmap.mmap 29/05/2008
TheInternationalisation
of HR
Internationalisation of Economic Activity
role of globalisation in underminingdistinctive national economic andindustrial policy
influence of international financial marketsand monetary union
growth of MNC who have becomepowerful actors in the internationaleconomy and majority shareholders inareas of employment and output
20% of employees in developed worldwork in an MNC
intraenterprise trade within MNCs nowlargest source of economic interchange
Reasons for MNC evolution
access to markets and capital
economies of scale
transfer technical expertise
reduce exposure to currency risk andaccess low labour
emergence of MNCs as stateless playersshifting resources towards opportunities
rootless management structures withinternational cadre of management
however many MNCs often maintaincharacteristics of home country
'Country of Origin' Influence on MNC
concentration of operations in country oforigin means that MNCs retain nationalcharacteristics
important distinction between MNCs is theimpact of capital market structures onbehaviours
detached relationships betweenshareholders and companies often afeature of UK/US companies
German models see banks as keycompany stakeholders
AngloSaxon economies are fluid andallow easy take overs with managementfocused towards short term interests
In this model MNCs will adopt costminimisation approach to labourmanagement
Germanic and Latin systems have morestable shareholdings and are free topursue longer term goals prioritisingproduction function and openness inindustrial relations
employee development approach
employees as enduring assets
Business sector and geographic locationwill have an impact on MNC policies
industrial functions will have workingbases in a number of countries each ofthem with different HR regulations
MNCs will often defer HR policy tonational subsidiaries
International Integration and MNC
most MNCs will seek to achieve degree ofintegration in service or productionprovision
to achieve synergies MNCs are nowmoving towards international structuresand capture cross border linkages
single product MNCs may see singlemanagement structure across company
multiple product MNCs may applyinternational product divisions
approach has facilitated cross bordercollaboration within HR function
Ferner & Varul 2000 Challenges facingintegration and HR impacts
nature of the regulatory framework thatHR must interpret and implement
Institutions of collective bargaining andemployee involvement
orientation of company towards internal or external market
nature of system viz training and development
way in which management functions aredefined and differentiated within thecompany
Lawrence 1996 differences withininternational HR functions
US more proactive than Europeparticularly around employee benefitsreflecting tight labour markets
German model highly legalistic andreactive and more concerned with trainingfunctionsoften due to framework of labour regulation
Edwards 1993 balance betweencentralised and decentralised decisionmaking process
result of ongoing negotiations and tradeoffs between operational managementand HQ
many subsidiaries will fail to share bestpractice in order to maintain competitiveadvantage
many companies will attempt to overcomethis resistance by introduction docountervailing measures comparingsubsidiary performance through ICTsolutions
Implications for Managers and Employees
internationalisation will have a wide rangeof implications for the HR function andemployees
Ferner & Edwards 1995
HR management will include the creationof international structures to bring HRmanagement into one place
enabling information exchange anddevelopment of common HR policies
further challenges will includedevelopment of mobile managementcadre moving across the organization
Challenges of common labourmanagement policy
erosion of local autonomy
selling of new approaches such as PRP
comparison of employee performanceacross subsidiaries and different countries
The Motor Industry
characterised by international competition
product market characterised by importpenetration and MNC manufacturing
most successful have been Japanesecompanies and US companies haveemulated Lean strategies and approaches
movement to greater integratesubsidiaries and encourage competitionfor resources from corporate centre
Lesson 9 Mindmap.mmap 01/06/2008