Human resource management course


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Human resource management course

  1. 1. Emil Velinov ITC-Prague
  2. 2.        What is HRM? Theories and Evolution of HRM Why learn about HRM? Activities of Major HRM functions  Recruitment and Selection  Employee and Labor Relations  Safety and Health  Human Resource Development (HRD)  Compensation and Benefits  Performance Appraisal Strategic HRM (SHRM) Global HRM E-HR
  3. 3. Human Resource Management emcompasses those activities designed to provide for and cooreinate the human resources of an organization. Traditionally know as ”personnel administration” or ”personnel management”
  4. 4.  Soft HRM emphasizes the importance of high commitment, learning, enlightened leadership; human resources are valuable assets, not variable costs. Models and theories focus on tapping the human potential, based on organizational behavior theories (e.g. Maslow, 1954; Herzberg, 1966; McGregor, 1960)  Hard HRM emphasizes the calculative, quantitative and strategic management aspects of managing the workforce in a rational way (Storey, 1989).
  5. 5. Review Classical Theories of Organizations • • Taylor’s Theory of Scientific Management • Fayol’s Administrative Theory • Weber’s Theory of Bureaucracy Humanistic Theories of Organizations • • Human Relations Theory • The Hawthorne Studies • Chester Barnard • McGregor’s Theory X and Theory Y • Human Resources Theory • Likert’s Systems Theory (Four Systems of Management) • Blake and Mouton’s (Blake and McCanse) Managerial Grid
  6. 6. • • • • • • • Classical Theories of Organizations Taylor’s Theory of Scientific Management (tasks) Fayol’s Administrative Theory (mgmt) Weber’s Theory of Bureaucracy (org structure) All 3 theories attempt to enhance management’s ability to predict and control the behavior of their workers Considered only the task function of communication (ignored relational and maintenance functions of communication) Designed to predict and control behavior in organizations
  7. 7. Classical theories emphasized coercion, control, and punishment (FOCUS ON TASKS /PRODUCTION). • • • • • • • Maintain predictability and control Decision-making power at top of hierarchy Minimize input from lower-level employees Rely on science and rules to guide behavior Regulate communication to increase predictability and decrease misunderstandings Result: • Workers feel they have no control over their work situation • Management does not care about their ideas • Feelings and ideas of workers are unimportant • Humanistic theories were developed to promote the CONCERNS of the individual worker in an atmosphere that was too focused on production (FOCUS ON RELATIONAL & MAINTENANCE FUNCTIONS)
  8. 8. • • • • • • • Human relations theory is characterized by a shift in emphasis from TASK to WORKER Go beyond physical contributions to include creative, cognitive, and emotional aspects of workers Based on a more dyadic (two-way) conceptualization of communication. SOCIAL RELATIONSHIPS are at the heart of organizational behavior--effectiveness is contingent on the social well-being of workers Workers communicate opinions, complaints, suggestions, and feelings to increase satisfaction and production Origins (Hawthorne Studies & work of Chester Barnard) Human Relations School of Management - Elton Mayo (Harvard
  9. 9. “The Hawthorne Studies • Hawthorne Works of Western Electric Company • 1924 - Chicago • Research focus: Relation of quality and quantity of illumination to efficiency in industry • Four Important Studies •
  10. 10. Illumination Study (November 1924) • • • Designed to test the effect of lighting intensity on worker productivity Heuristic value: influence of human relations on work behavior Relay Assembly Test Room Study (1927-1932) • • • • • • Assembly of telephone relays (35 parts - 4 machine screws) Production and satisfaction increased regardless of IV manipulation Workers’ increased production and satisfaction related to supervisory practices Human interrelationships are important contributing factors to worker productivity Bottom Line: Supervisory practices increase employee morale AND productivity Interviewing Program (1928-1930) • • • • Investigate connection between supervisory practices and employee morale Employees expressed their ideas and feelings (e.g., likes and dislikes) Process more important than actual results Bank Wiring Room Observation Study (November 1931 - May 1932) • • • • Social groups can influence production and individual work behavior RQ: How is social control manifested on the shop floor? Informal organization constrains employee behavior within formal organizational structure
  11. 11. Illumination Study (November 1924) • • Relay Assembly Test Room Study (1927-1932) • • • Relationships between workers and their supervisors are powerful Human interrelationships increase the amount and quality of worker participation in decision making Interviewing Program (1928-1930) • • • Demonstrated powerful influence of upward communication Workers were asked for opinions, told they mattered, and positive attitudes toward company increased Bank Wiring Room Observation Study (November 1931 - May 1932) • • • The mere practice of observing people’s behavior tends to alter their behavior (Hawthorne Effect) Led future theorists to account for the existence of informal communication Taken together, these studies helped to document the powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects of organizing.
  12. 12. • • • • • • • Not conducted with the appropriate scientific rigor necessary Too few subjects (N=5) No control groups Subjects replaced with more “cooperative” participants WORTHLESS GROSS ERRORS INCOMPETENCE
  13. 13. • • • • • Chester Barnard Considered a bridge between classical and human relations theories The Functions of the Executive (1938) Argues for . . . • strict lines of communication - classical theory • a “human-based system of organization” • The potential of every worker and the centrality of communication to the organizing process Six Issues Relevant to Organizational Communication • Formal vs. Informal Organization • Cooperation • Communication • Incentives • Authority • Zone of Indifference
  14. 14. Formal vs. Informal Organization • • Formal Organization - a system of consciously coordinated activities or forces of two or more persons. (definite, structured, common purpose) • • • • Persons are able to communicate with one another Willing to contribute action To accomplish a common purpose Informal Organization - based on myriad interactions that take place thourghout an organization’s history. • • • • Indefinite Structureless No definite subdivisions of personnel Results: customs, mores, folklore, institutions, social norms, ideals -- may lead to formal organization Cooperation • • • Necessary component of formal organization The expression of the net satisfactions or dissatisfactions experienced or anticipated by each individual in comparison with those experienced or anticipated through alternative opportunities Communication • • • • • • Critical to cooperation The most universal form of human cooperation, and perhaps the most complex, is speech The most likely reason for the success of cooperation and the reason for its failure System of communication: known, formal channels which are as direct (short) as possible, where the complete line of communication is used, the supervisory heads must be competent, the line of communication should not be interrupted, and every communication should be authenticated. Barnard’s system lacks relationship formation and maintenance mechanisms
  15. 15. Incentives • • • Should be available Not discussed in detail Authority • • • • Associated with securing cooperation for organizational members The interrelationship among the originator of the communication, the communication itself, and the receiver Authority of position OVER Authority of Leadership (knowledge & ability). Zone of Indifference - orders followed • • Marks the boundaries of what employees will consider doing without question, based on expectations developed on entering the organization. Barnard drew attention away from formal organizational structures toward communication, cooperation, and the informal organization. His work was integrated by other theorists in the human relations movement.
  16. 16. Douglas McGregor (1906-1964) • • • • • • • • • • Articulated basic principles of human relations theory The Human Side of Enterprise (1960, 1985) To understand human behavior, one must discover the theoretical assumptions upon which behavior is based Especially interested in the behavior of managers toward workers “Every managerial act rests on assumptions, generalizations, and hypotheses--that is to say, on theory . . . Theory and practice are inseparable.” Two Objectives: • Predict and control behavior • Tap Unrealized potential Theory X - Classical Theory Theory Y - Human Relations Theory FOCUS: Manager’s assumptions about HUMAN NATURE
  17. 17. Theory X - Classical Theory • • Three Assumptions • • • • The average human being has an inherent dislike of work and will avoid it. Most people must be coerced, controlled, directed, and threatened with punishment The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security. Neither explains nor describes human nature Theory Y - Human Relations Theory • • Assumptions • • • • • • • • Physical and mental effort in work is similar to play / rest. External control and the threat of punishment are not the only strategies Commitment to objectives is a function of the rewards associated with their achievement The average human being learns, under proper conditions, not only to accept but to seek responsibility The capacity to exercise a high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely distributed in the population Intellectual potentialities of the average human being are underutilized A more positive perspective of human nature The KEY to control and quality production is commitment to organizational objectives
  18. 18. Participative Management Two Central Features • • • • • • • • • Cost-reduction sharing for organizational members - sharing the economic gains from improvements in organizational performance Effective participation - a formal means of providing opportunities to every member of the organization to contribute ideas for improving organizational effectiveness. Must be implemented appropriately Wastes time and undermines managerial power? Magic formula for every organizational problem? CONCERN for RELATIONSHIPS in the organization. As the need to increase commitment grows, so does the need to develop strong, communication-based relationships among organizational members, particularly between supervisor and subordinate.
  19. 19. • Difficult to adopt principles of human relations theory -- misapplications and misunderstandings of both classical theory and human relations theory led to Human Resources Theory • The key element to Human Relations Theory, participation, was used only to make workers feel as if they were part of the organizational decision-making processes • Key to classical and human relations theory is compliance with managerial authority • Workers are told that they are important but were not treated as such • Major Distinctions between Human Resources and Human Relations Theory • • • All people (not just managers) are reservoirs of untapped resources - manager responsibility to tap physical and creative resources Many decisions can be made more effectively and efficiently by workers most directly involved with their consequences Relationship between employee satisfaction and performance - improved satisfaction and morale contribute back to improved decision making and control
  20. 20. • Increased satisfaction is related to the improved decision making and selfcontrol that occurs due to participation that is genuinely solicited and heard • Two prevalent Human Resources Theories • • Rensis Liker Blake & Mouton (Blake & McCanse) Four Systems of Management: Rensis Likert (Figure 3.2, p. 56) • • • • • Management is crticial to all organizational activities and outcomes Continuum that ranges from more classically oriented system to one based on human resources theory Of all the tasks of management, managing the human component is the central and most important task High producing departments and organizations tend toward System IV; low producing units favor System I • • • • System I - Exploitative Authoritative System II - Benevolent Authoritative System III - Consultative System IV - Participative
  21. 21. Stresses interrelationship between production (task) and people Management’s main purpose is to promote a culture in the organization that allows for high production at the same time that employees are fostered in their professional and personal development Managerial Grid - now Leadership Grid (Blake & McCanse) (Figure 3.3, p. 59) FOCUS: Manger’s Assumptions about CONCERN for PEOPLE and CONCERN for PRODUCTION Concern for PEOPLE • • • • • • • • • Concern for PRODUCTION • • • • Degree of personal commitment to one’s job Trust-based accountability (vs. obedience-based accountability) Self-esteem for the individual Interpersonal relationships with co-workers Use of people and technology to accomplish organizational tasks Concern for is not about quantity or quality Assessment instrument does not represent personality traits of the manager -instead, indicate a specific orientation to production and people
  22. 22. •Authority Compliance (9,1) •Classical theory •Country Club (1,9) •Informal grapevine •Impoverished (1,1) •Laissez-faire •Middle-of-the-Road (5,5) •Compromise (carrot & stick) •Team (9,9) •Human Resources Approach •Promote the conditions that integrate creativity, high productivity, and high morale through concerted team action
  23. 23. • • Humanistic Theories of Organizations Human Relations Theory • The Hawthorne Studies • Chester Barnard • McGregor’s Theory X and Theory Y • Human Resources Theory • Likert’s Systems Theory (Four Systems of Management) • Blake and Mouton’s (Blake and McCanse) Managerial Grid • The principles of human resources theory attempt to integrate the concern for production from classical theory with the concern for the worker from human relations theory -- more effective and satisfying!
  24. 24. 1917-18: 1st formal personnel department created to deal with tight labor market, high turnover, waste and inefficiency, widespread strikes, union growth, government intervention, takeovers 1920’s: HR used to “win” worker cooperation, through ensuring job security, benefits, etc. 1930’-50’s: “Human Relations” recognizes that there are psychological and social influences to worker satisfaction, cooperation, performance; first focus on groups (not teams).
  25. 25. 1960’s: Work design, rather than communication and cooperation in groups, is the key to increasing worker motivation. Small work group design leads to greater employee effort, group work provides opportunities for “self-actualization”; work is more interesting and fulfilling. 1970’s: Quality of Work Life (QWL): emphasis on the value of human resources. PM becomes HR. 1990’s-Present: TQM, reengineering, globalization, strategic HR, new technologies, diversity, contingency models, holistic approaches to HR. HRM models include “high involvement”, “high commitment”, “high performance work system”, “innovative work practices”. HR becomes HRM.
  26. 26.    HR issues are relevant to everyone in all organizations Provides understanding of systems and processes needed to develop and utilize talents of employees Staffing is the #1 issue for executives.
  27. 27. EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Employee & Labor Relations Safety & Health Staffing HR Management Functions Human Resource Development Compensation & Benefits
  28. 28.     Conducting job analyses to establish th specific requirements of individual jobs within the organization. Forecasting the human resource requirements the organization needs to achieve its objectives. Developing tand implementing a plan to meet these requirements. Recruiting the human resources to fill specific jobs within the organization.
  29. 29.  JA: the process of determining and reporting pertinent information relating to the nature of a specific job. Involves the determination of the tasks which comprise the job and of the “KSA’s” and responsibilities required of the person(s) holding that job, for successful job performance; defines the what, how, why of a job.  Methods of conducting JA: observation, motion and time study, interviews, questionnaires (off-the-shelf; custom)  JA leads to the job description (summary statement + duties and responsibilities) and job specifications (skills, education, experience required).  JA is the foundation for all traditional HR functions (as well as some others!).
  30. 30.  How do we know who will perform successfully?  The job description helps us know how successful performance of the job can be measured, “criteria of job success” (performance appraisals, production data, personnel data).  The job specification helps identify factors that can predict successful job performance, “criterion predictors” (education, work experience, test scores, interview data).  Validity: how accurately does a predictor actually predict the criteria of job success?
  31. 31.  Included in the reading packet for this class are samples of CV’s and job application forms, including explanations of the various elements and why they are (often) included.  Remember the content, style, and form of the CV and letter of application is highly dependent on geographical customs. If in doubt, ASK!
  32. 32.    Training is a learning process that involves the acquisition of skills, concepts, rules, or attitudes; designed to enhance performance (also through helping employees meet own objectives of job security, financially and intellectually rewarding work, recognition, status, responsibility, achievement). Orientation On-the job training; apprenticeships
  33. 33.     Intended to develop the experience, attitudes, and skills necessary to be an effective manager Should be tied to organizational objectives Often include team work, project work, and leadership training Methods include coaching, job rotation, project assignments, classroom training (case studies, role playing, in-basket techniques, business games.
  34. 34. On going formal effort to develop and enrich the organization’s human resources so as to meet both the organization’s and employees objectives; concrete action plan for the individual to meet these goals.  Increases attractiveness of company to job seekers  Supports retention  Addresses needs of minorities, women, >50 professionals  Mechanism for dealing with downsizing, reengineering, restructuring 
  35. 35.    PA is a feedback system that involves the direct evaluation of individual or group performance by a supervisor, manager, or peers. Used for performance feedback, pay administration, counseling and developing employees. Represents an importan link between goalsetting processes and reward systems.
  36. 36.       Goal setting (MBO) 360-degree feedback Work standards approach Critical-incident appraisal Graphic rating scales Behaviorally Anchored Rating Scale (BARS)
  37. 37.   Both intrinsic and extrinsic rewards received as a result of employment by the organization. Ideally, rewards are linked to performance. Rewards “cause” satisfaction  Rewards based on performance “cause” improved performance  Satisfaction does not (necessarily) “cause” better performance; performance “causes” satisfaction 
  38. 38.    Workplace support (flexible schedules, child care, etc), autonomy; meaningfulness; opportunities for leaning and advancement and job security are highly related to job satisfaction; pay and benefits have little effect on job satisfaction. Job satisfaction leads to organizational commitment; job dissatisfaction may lead to turnover, absenteeism, tardiness, accidents, strikes, grievances. Job satisfaction is NOT the same as motivation!
  39. 39.  Skill-based pay plans   All salaried workforce   Timex, BFGoodrich, Westinghouse Performance-based pay (indiv, group, org)   IBM, Gillette, Dow Chemical Lump-sum salary increases   General Mills, General Foods, Northern Telecon American Express, DuPont Gain Sharing  Georgia Pacific, GE
  40. 40.  Legally mandated   Traditional   Health insurance; paid vacations Recent   Unemployment; workers’ compensation Child care; parent leave; education; retirement plans Based on position vs ”Cafeteria-style”
  41. 41.  Administration of discipline and grievancehandling procedures.  Organizational discipline: action taken against an employee who has violated an organizational rule or whose performance is below satisfactory.  “Should be” viewed as a learning opportunity for the employee and a tool to improve productivity and human relations.
  42. 42.  Most industrial countries have formal agencies for the purpose of planning, monitoring, evaluating, and ensuring employee safety.  Safety most often measured by accident frequency and severity.  Organizational safety programs emphasize accident prevention, from standardizing operating procedures to redesigning work to establishing “contests”, holding periodic safety workshops, seminars, etc., clearly posting safety rules and regulations.
  43. 43.  Occupational diseases may cost industry as much or more than occupational accidents.  Number of job-related accidents has decreased; number of job-related illnesses has risen.  Many diseases and health-related problems that are not necessarily job-related may affect job performance (alcohol & drug abuse, AIDS).  Many companies now offer wellness programs, including fitness centers, EAP programs.
  44. 44.  Stress is the mental and physical condition that results from a perceived threat of danger (physical or emotional) and the pressure to remove it. Sources include: Threat of job loss; job mismatch; conflicting expectations; role ambiguity; role overload; fear/responsibility; working conditions; working relationships, alienation.  Signs of stress in the workplace include absenteeism, job turnover, lower productivity, and increased mistakes. Stress-related disorders include tension and migraine headaches, coronary heart disease, high blood pressure, sleep disorders, problems with concentration, appetite, etc.  Burnout: work is no longer meaningful
  45. 45.  Fewer and fewer HR departments have retained or are limited to traditional, standard HR functions.  Corporate universities are becoming common place; HRM supporting the “Learning Factory”; outsourcing often used for benefit and training functions; staffing being delegated to line managers and autonomous teams.
  46. 46.  “The process of linking HR practices to business strategy” (Ulrich, 1997, p. 89); “the process by which organizations seek to link the human, social, and intellectual capital of their members to the strategic needs of the firm” (Bamberger & Meshoulam (2000, p. 6).  Affirms the importance of the effective management of people as a source of competitive advantage.
  47. 47.  GHRM: utilization of global human resources to achieve organizational objectives without regard to geographic boundaries.  “Going Global” has a major impact on all HRM functions, from planning, recruitment, and selection to compensation and benefits, to human resource development, to safety and health issues, to employee and labor relations. Each of the various functions has an even greater impact on organizational performance than in domestic companies.  Additional challenges include: political and legal factors, cultural/language issues and maintaining corporate identity/culture, economic factors, and labormanagement relations.
  48. 48.  E.HR: the application of conventional, web, voice and mtechnologies to improve HR administration, transactions and process performance. “Speed” and “agility” have become key words for HRM.  E-HR survey in 91 international organizations: 76% have redesigned or introduced new HR technologies/systems in the past year and 90% of the remaining expect to do so within the coming year.  While very cutting edge, total e-HR is expensive and time consuming. Many companies focus on recruitment, web training and web approaches to reporting, appraisal, and reporting.    1998: 17% of Fortune Global 500 companies recruited on the net; 1999, 45% $1.7 billion on recruitment in 2003 Estimated 2.5 million resumes on the internet