Section 2:

Strategy and HRM

Business Model:

How business creates value for customers profitably?

Contribution Margin
o Cost price Variable cost
Gross Margin
o Number of pieces sold * Gross Margin

Strategic Management:

Artful planning and management

Skillful employment and coordination of tactics

Components of Strategic management process:

While trying to compete in the market, with what are we going to

compete? Is an important question to be addressed? Answer can be
Machines, people

Role of Human resources in providing strategic competitive advantage

Emergent Strategies
o Strategies that evolve from grass roots of organization, can be
thought of what organizations actually do, rather than intended to
do
Intended Strategies
o Rational decision making process by top level managers aimed
towards a predetermined goal

Legal Environment:

Exposure control plan

Osha Inspections:

o Reviews the employer records of illness, death, injuries

o Factory visit
o Interview to employees
o Talk to Employers
Citations and penalties

Identifying and communicating hazard

Reinforcing safe practices
Promoting safety internationally

Lower Back Disability LBD, Eye injuries

Activities of HRM:

Strategic Management of HRM Function:

Google Four pronged people operation strategy:

1.
2.
3.
4.

Find them , grow them and keep them

Put our users first
Put ur own oxygen mask before assisting others
Be ready for change

Measuring HRM Effectiveness:

Marketing the function

o Does HRM contribute towards the bottom line of the business?
Providing accountability
o Is HRM is solving its objectives efficiently using its budget?

Approach for Evaluating Efficiencies:

Internal Customer employees

Analytical approach
o Cost benefit analysis

Utility analysis
Estimates the financial impact of the employee behaviors
o Wellness program to reduce cost of healthcare
o This approach can increase the effectiveness of the firm
o But very complex to measure
Group people based on task performance and people performance
o

Improving HRM Effectiveness:

HRM Effectiveness can be improved through

Process Redesign
Though use of New technology HRM Information Systems

Section 3: Analysis and Design of Work

Job Analysis:

Analyses of existing jobs, to gather information for other human resource

management practices such as selection, training, performance appraisal,
and compensation.

Job Design

Redesigning of existing jobs to make them more efficient and motivating

to jobholders.

Workflow analysis and organization structure

Analysis work output

Analyzing work process
Analyzing work inputs

Organizational Structure:

Centralization
Departmentalization
Structural Configuration

Unpredictable markets Divisional

Predictable markets Functional
Organization should have a mix of both centralized and decentralized
o Shared service Highly centralized Eg: Payroll
o Center of Excellence Centralized
o Third decentralized subunit
Structure and Nature of Jobs:
o Functional jobs are narrow and highly specific

Job Analysis:

This is needed for

o Work redesign
o Human resource planning
o Selection
o Training
o Performance appraisal
o Career planning
o Job evaluation Dollar value for each job
Importance of Job analysis to Line managers
Job description
Job Specification Skills that a person should posses
Sources of job analysis information
o Subject matter experts
Job analysis methods
o Position analysis questionnaire

The occupational informational network

Job Design

Motivational approach
1.
2.
3.
4.
5.

Skill variety
Task identity
Autonomy
Feedback
Task significance

Biological Approach Physical capabilities and limitations

Perceptual Motor Approach

Mental capabilities and limitations

Human resource planning

Forecasting
Determining labor demand

Determining labor supply

Human resource recruitment process

Employment at will policies

Due process policies
Recruiters
o Functional area
o Traits
o Realism
o Enchasing Recruiter Impact

Section 4: Selection and placement

Standards for selection:
1.
2.
3.
4.
5.

Reliability
Validity
Generalizability
Utility
Legality

Reliability:
Eg: Measuring height example it varies all the time
Estimating Reliability Measurement
1. Intelligence
2. Integrity
3. Leadership ability
Correlation Coefficient

Degree to which the two sets of numbers are related

It gives the measure of strength of relationship in numerical form
It varies between +1 to -1
+1 -> Strong relationship, 0 no relationship , -1 Negative relationship
Plotting two sets of numbers on a two dimensional graph helps us to
understand the meaning of various levels of correlation coefficient.

Standards for reliability:

Validity:

KPI has to actually measure the performance of the job

Criterion related validation:

Show the relationship between test scores and job performance scores

Content Validation

The validation coefficient concept can be applied only when the sample
size Is large
When the sample size is small , we use content validation method
Gives situation that can occur at job and asks the potential candidate how
he/she would respond
Simulation games, computer software for hiring
Limitations
o Person should have knowledge, skills, ability at the time of hiring
o Subjective judgement plays a large role , inferences from judges
should be minimum, judgement should be based on concrete and
observable behaviors

Generalizability:

Can SAT test be used for other graduate programs also? No, we need
GMAT, GRE etc. It cant be generalized.
Validity coefficients are not situation specific
Validity generalization is a three step process
o Specific test is valid predictor of this job
o Job is trying to fill is similar to job validated somewhere ( job nursing in small hospital to large hospitals)
o Use a test that has already been validated (large hospitals) , we can
use that for small hospitals.

Utility:

Degree to which the information provided by selecting methods, enhances

effectiveness of selecting person In real organizations
More reliable, valid and generalizable solution will have more utility value
Performance in job is not normally distributed but takes the shape of
power law

Legality:

All selection methods should confront to the laws and regulations

Eg: Racial discriminations huge cost involved, reputational damage
Minority purchasing power is rising

Federal Registration:

Civil rights act of 1991, extension of 1964

o Prevents discrimination against race, sex, color, religion, national
origin
Three significant difference from 1964 law
o Customer preference is not acceptable. Content validity or criterionrelated could not show any difference on any person or community,
if they show, then there has to be sufficient proof

Jury can decide for an individual who was emotionally injured due to
discrimination. This can result in huge cost and poor public relations
which will hinder their competition and growth in the market
o Preferential treatment among minority is not allowed.
o It does race norming so to have diversity in the institution or
organization becomes difficult
Employees should focus on maximizing performance and also focus on
diversity
Age discrimination in employment act in 1967
o If any neutral appearing process involves people only who are less
than 40, then employer has to show the proof of why above 40 year
people cant be employed.
American with disabilities act of 1991
o Employers should have reasonable accommodation to
accommodate people with physical and mental disorders
o

Executive orders:

It prohibits discrimination
Government can suspend all dealings with the company while
investigations are conducted.
Office of federal contract complaisance programs which issues guidelines
to help companies comply.

Types of Selection Methods:

Interviews
o Subjective selection method
o Costly

o Experience based and future based questions

o Train the interviewers
References, biographical data, and application blanks
o Background checks are not effective in most cases
Physical ability test
o Muscular tension, power, endurance
o Cardiovascular endurance
o Flexibility
o Balance
o Coordination

Females and disabilities people cant participate

Is the physical test really required?
Both civil rights act and ADA accepts employers to hire people who
can do the job, accepts written job description of essential functions
of the job
o There might be some risk involved if people are not physically fit
and might hurt them
Cognitive ability test
o
o
o

o Have adverse impact on minority groups

Personality inventories
o Ability test categorize people based on what they can do
o Personality inventories Categorize people based on what they are
like
o Validity coefficients with respect to personalities tend to be job
specific
o Emotional Intelligence
Self-awareness
Self-regulation
Self-motivation
Empathy
Social skills (manage emotions of other people)
o This is important because of globalization of the jobs
o High emotional intelligence and openness to experience are two
most important predictors of adjustments and performance
Adjustment failure results in huge costs.
o Disadvantages lower validity of self-reports are due to
People dont know what their own personalities are like
People personalities vary on different contexts
Context setting has to be done for job related
personality tests

Work
o
o
o

samples
Simulation of the actual job in the pre-hiring state
Temporary/ Contract jobs
Competitions
Google code jam
o Three drawbacks
Job specific
New test has to be deployed for each job/ non standardized
format, costly
Competitions attract mostly male crowd than female

o
o

Validity coefficients are higher for curvilinear prediction

instead of straight line prediction for ability
People can easily cheat by giving socially acceptable
Reponses
Using this we can reject low scorers but not hire high scorers

Among assessment centers the criterion validity tends to be very

high
o Problem solving ability is the most important skill tapped using this
method
Honesty test and drug test
o Polygraph act 1988
No Polygraph test
o Honesty test
Paper based test
Even if the candidate fakes, the test will show the future
possibility of theft

Section 6: Performance Management

Three parts
1. Define performance
2. Measure performance
3. Feedback performance

Practice of performance management:

Companies use performance management to employee performance and

make pay decisions
Reviews mostly dont help the employees future development

Process of performance management

Once or twice a year formal appraisal or evaluation review meeting

It is a process not an event
1. Set goals

2. Understand the process which helps to achieve the set goals.

Goals behaviors and activities should be measurable and part
of job description
3. Provide training, necessary tools , regular feedbacks to
employees
4. Performance evaluation Compare targeted goal and actual
performance
5. Identify what the employee can do to capitalize the
performance strength, address the weakness
6. Providing consequences for achieving performance outcomes.
Identify needs, adjusting types of feedback given, modifying
performance outcomes, and new areas of emphasis.
Ask regular feedback about the performance management system
Hilton developed a new performance management system where the
employer and employee can have continuous performance evaluation
process. This increase the employee satisfaction of the system by 37%.
In addition to criticism, recognition also should be in place.

Performance measure criteria:

Job analysis one can analyze the job to determine what constitutes
effective performance.
Define ways to measure performance

Strategic Congruence:

Critical success factor(CSF) Behaviors towards CSF is measured

How to measure customer loyalty , employees satisfaction which directly
impacts profitability, These use non-functional performance measures
o Identify non-functional performance measure that links to
companys success
o Use datas from employee satisfaction surveys, customer
satisfaction surveys
o Do statistical analysis on the data and financial outcome
o Revisit the model and do necessary changes if required. This will
ensure model complies with the changing business requirements
and situations.
o Act on result of the analysis.
Appraisal system should be flexible and change with the changing
companies strategies.

Validity

Also known as content validity

Contaminated measures the irrelevant aspects of the job that are not
related.
Contamination should be tried to reduce to the maximum extent, but it
cant be completely eliminated. Thats beyond control
Eg: Sales persons sales depend on external factors also, which cant be
controlled.

Reliability

Interrater Reliability
o Two individuals rate the same employee and give the consistency in
the result they give on the employees performance
Internal consistency reliability
o Extent to which all items are internally consistent is important
Test retest reliability

Measure should be reliable over time

Acceptability

Many performance measures are reliable and valid , but consume so much
time, so they may not be used
Procedural, interpersonal and outcome fairness

Specificity

The system should specify what the employee should do to help the
company achieve the strategic goals.
It should also points out to the employees performance problems

Approaches to measuring performance:

Performance Feedback:
Managers role in effective performance feedback process:
Effective performance feedback gives the following recommendations:

Feedback should be given frequently, not once a year

o Employees know what to expect
o Managers can fix the deficiencies, so they wont have much
productivity loss
Create the right context for discussion
o Should find the correct place for discussion, may be not in the
managers cabin
o The meeting should be open dialogue
Ask the employees to rate his or her performance before
o It will help to find employees weakness,
o Argument can focus on where the disagreement exists
Encourage the employees to participate in the session
o Tell and sell approach Mangers tell their employees how they
have rated them and justify the ratings
o Tell and listen approach Mangers tell their employees how they
have rated them and ask their the employees side of story
o Problem solving approach Managers and employees work together
to find solutions to the problem
Recognize effective performance through praise
o Dont focus just on problems, focus also on good actions
Focus on solving problems

Dont try to punish the employees, that will decrease the employees
self-esteem, and increases defensiveness.
o Find the cause of the problem and solve it
Focus feedbacks on behavior or results and not on the person
Minimize criticism
Agree to specific goals and set a date to review progress
o Goal setting results in increased satisfaction, motivation to improve,
and performance improvement.
o

What mangers can do to dragonize performance problems and manage

employees performance?

Diagnosing the cause for the poor performance

Actions for managing employees performance

Choosing a source for performance information:

Performance information system should not rely just on the managers alone,
should get information on the performance on all the below people before
assessing an employee
1. Managers
2. Peers
a. 300 point score which can be given by employees to their peers.

3. Subordinates
a. Upward feedback

4. Self
a. Employees can project their good deeds and requests training for
their weakness
b. Managers are also happy because performance management is not
their whole responsibility anymore
c. Disadvantages: Employees can inflate their scores
5. Customers
o Expensive
o Effective
o To be used when
Employees job directly involves working with customer
Customers feedback on what products and services that the
customer wants.
360 degree appraisals are majorly done for managers

Use of technology in performance management:

Move to online performance system , paperless

Using twitter, Facebook and other social media to give immediate
feedback
Electronic tracking and monitoring systems to measure the efficiency of
work

Reducing rater errors, politics, and increasing reliability and validity of

ratings

We use simplifying mechanisms to make judgements, this results in rater

errors.

Appraisal Politics:

Evaluators purposefully distorts a rating to achieve personal or company

goals.

Approaches to reduce Rater Errors:

Rater error training

o Show them video of where the rater error has occurred , and train
o Reducing rating errors can result in reducing accuracy also
Frame of reference training/rater accuracy training
o To emphasize multidimensional nature of performance
o To get raters understand and use the same idea of high, medium ,
low performance when making evaluations
o Give examples for each dimension and then say which dimension
does that example suite
o Raters are held accountable for their ratings, job related rating
scales are used
Calibration meetings
o Performance is evaluated across managers and to reduce influence
of rating errors and politics on appraisal process
o A way to discuss employee performance , with a goal of ensuring
similar standards are applied to their evaluations
o Meeting is attended by HR, manager, his manager and external
consultant. Manager has to justify his ratings
o Managers should

Approaches for measuring performance:

1. Comparative
a. Ranking
b. Forced distribution
c. Paired comparison
2. Attribute
a. Graphic rating scales
b. Mixed standard scales
3. Behavioral
a. Behaviorally anchored scales
b. Behaviorally observation scales
c. Competency models skills knowledge and abilities
4. Results
a. Objectives
b. Balanced scorecard Financial, customer, internal or operation,
learning and growth.
c. Productivity measurement and evaluation system
5. The Quality Approach
a. Customer orientation
b. Continuous improvement
c. A prevention approach to errors
Feedback Methods:
1. Subjective feedback
a. Managers feedbacks
2. Objective Feedback
o Feedback from work process itself using statistical tools

Best appraisal process should focus on

Section 7: Compensation and Benefits

Pay has

Impact on employees attitudes and behaviors

Significant organizational cost, so requires close scrutiny
It is a symbol of status and success to employees

Pay Structure

Focus:

Why this pay for this job

How individual salaries are decided

Equity theory and Fairness:

Equity Theory:

People evaluate fairness of their situation by comparing them with those

of the other people

If less, Under rewarded inequality results

If more, over rewarded inequality results
If equal, no change in attitude or behavior

Ways to restore equity: - Counterproductive

Reducing the input Not working as hard

Increasing ones outcomes such as by theft
Leaving the situation leaving the organization
People compare their pay with the others in the same field, relative pay
External Equity What employees in the other companies similar to their
work are getting paid Market pay survey
Internal Equity What employees within the company but with different
jobs are getting paid, they also compare what others doing the same job
as them are getting paid

Developing Pay Levels:

Market pressures:

Product market competition

Market price of any product depends on the cost of production
It plays an upper bound on the salary level
Cost of Labor -> resulted in increase in price of the car in US Big three
GE, Ford ,Chrysler
When the demand is elastic demand varies based on the price
Components that make Labor Cost
o Average cost per employee major
Direct wages, salaries and bonuses
Indirect Health insurance, social security and
unemployment compensation
o Few countries where the wages are really low, but productivity may
also be low. But even then it is profitable to more there
o China is becoming a less preferred place for manufacturing
Labor Market Competition

The amount that organization pay to compete against other companies

that hire similar employees.
It plays a lower level on the salary level

Employees as a resource

Employees are not just cost but resources

If employees are talented and it results in increase in revenue, its ok that
their salary is above the competitor in the market.

Deciding what to pay

Efficiency wage theory:

o Wage influences the workers productivity
The employees as they are paid more than the market rates, tend to work
more to retain that

Market pay surveys:

Benchmarking:

Comparing the organizations practice against those of competitors

Product market comparison are important when
o Labor cost is major of total cost
o Product demand is elastic
o Supply of labor is inelastic
o Employee skills are specific to product market
Labor market comparison
o Attracting and retaining employees is difficult
o Cost of recruiting replacements is very high
To find out what organizations are getting in return ,
o Revenue/labor cost
o Revenue/employees

Rate Ranges:

Different employees in the same job may have different pay rates
This happens in white collar jobs mostly

Key jobs and Non-key jobs:

Bench mark, used in pay surveys that have relatively stable content and
are common to many organizations. Both pay survey and job evaluation
can be done.
Jobs that are unique to organizations, and that cant be directly valued or
compared through the use of market surveys. Only job evaluation, no pay
survey.

Developing a Job Structure:

Relative worth of various jobs in the organization.

CIO and Managing director of one particular department if they are
performing jobs which are of same worth, then they have to be paid in a
similar way.

Job Evaluation:

An administrative procedure to measure internal job worth

Compensable factors
o The characteristics of jobs that an organization values and chooses
to pay for
Point factor system
o Job evaluation points for each compensable factors.
o For each factor, first the evaluate scores, then find weights
A priori weights Expert judgements about the importance of
the each factor.
Weights can also be derived empirically statistical methods

Developing a pay structure:

Market survey data:

Pay policy line:

Mathematical expression that expresses the relationship between job pay

and job evaluations

The curvilinear function:

Second Approach:

Pay policy line is used to derive pay rates for both key and non-key jobs

First Approach:

Pay policy line is used to derive pay rates for non-key jobs

Third Approach:

Pay grades:
o Jobs of similar worth or content grouped together for pay
administration purposes.

Range spread:
o The distance between the minimum and maximum levels in the pay
grades
Disadvantage
o Some jobs will be underpaid and some overpaid

Conflicts between Pay surveys and job evaluation:

More supply less demand Less salary than predicted by pay line

Less supply more demand More salary than predicted by pay line
Many a times external comparisons get more weight because of
competitive pressures

Monitoring Compensation Efforts:

Compa-ratio
o Index of correspondence between actual and intended pay

Compa pay is less than 1 -> actual pay is less than the policy
Compa pay is greater than 1 -> actual pay is more than the policy
Globalization, Pay Structure and Geographic Region:

Pay has to be in align with the purchasing power of that city

Living cost has to be factored in while deciding the pay levels while hiring

How does pay affect individual employees?

Reinforcement Theory:

Performance -> reward ; Very important

If a high performance is followed by a reward, future high performance is
very likely.

Expectancy Theory:

Motivation is a function of valence, instrumentality, expectancy.

Behaviors are function of expectation and motivation, motivation is a
function of valence, instrumentality, expectancy.
Increased amount of reward to performance will increase the motivation
and performance
This is questioned by cognitive evaluation theory -> monetary rewards
may increase extrinsic motivation (like rewards), but decrease intrinsic
motivation (like performing interesting work) Eg: Child reading book
example.

Agency Theory: - Risk and reward trade off

Principals:
o A person who directs other persons behavior owner
Agents
o A person who is expected to act on the behalf of the principal
managers
This incurs a lot of agency cost,
o Principals and agents might have different goals
o Principals might not have idea about extent to which the agent is
pursuing or achieving the principals goals

Behaviour based -> agent no risk

Outcome based -> risk is transferred to the agent
o This risk has to be compensated by wage increase

Organization and Compensation Strategy:

Growth Strategy: Innovation, risk taking, and new markets is liked to a pay
strategy that shares risk with employees

Low fixed income, but can have stock options, variable benefits based on
companys performance

Pay per performance programs:

Incentive intensity: Promise and peril:
Sales jobs -> High incentive outcome based
Programmer -> Performance based

Greater incentive , great motivation

Balance scorecard structured approach to balancing objectives. Pay
structure should not just focus on one KPI

Merit Pay:

Merit pay is based on the performance

There must be a balance between the individual and group objectives

Employees access fairness based on distributive how much they receive
and procedural what process was used to decide that

Profit sharing may not result in the required motivations, when there is
downturn. I did my job well, why my salary is cut now?
In manufacturing units like FORD, this will not work out
Helps to curb labor costs, when profits decline
Employee focuses on the organization benefits rather than selfish
individual benefits

Ownership:

Employee focuses on the organization benefits rather than selfish

individual benefits
This supports agency theory where managers are made to think like
owners
Financial accounting standards board companies should expense options
on their financial statements, this reduces the net income. This is less
favorable of companies to provide stock options.

An employee stock ownership plan (ESOP) is a retirement plan in which

the company contributes its stock (or money to buy its stock) to the plan
for the benefit of the company's employees
Difficult for employees if the company performs badly
Employers must pay high, as the risk is more
Encourages employees to participate in decision making process.

Gain Sharing, group sharing, Incentives and Team awards

More controllable nature of the performance and frequency of payout.

This is only for on group/department etc, it improves performance
Group incentives and Team awards

Balance scorecard:
Its better to have a mixture of all the above
Benefits:

Social insurance Legally required

o Old age
o Unemployment
To offset lost income during involuntary unemployment
To help unemployed workers find new jobs
To provide incentive for employers to stabilize jobs
To preserve investments in workers skills by providing income
during short term layoffs.
Size of tax depends on employers rating, based on layoffs
Taxable incomes
o Survivors workers compensation
Injuries and death
Disability income - Tax free
Cost to employer is based on the following:
Nature of work risk attached to it
State where work Is located
Employers experience rating
Disability insurance
o May be short term or long term

Needs to be coordinated with social security

disability benefits.

o Hospital
o Supplementary medical
Private group insurance
o Lower than the individual insurance bcoz of economies of scale

Retirement
Pay for time not worked
Family and friend policies
Defined Benefit:
o Guarantied benefit plan , special retirement benefit levels based on
combination of past salary, experience, age etc
o Prevents from investment risk

Defined contribution
o Not like defined benefits plan,
o Employer does not have to calculate age, salary etc to design the
retirement benefit plan
o It does not promise a specific benefit level upon retirement.

Section 5: Training and Employee Development

Continuous learning, Training(formal and informal learning), employee

management and knowledge management should be aligned to business
strategy
Formal and informal learning contributes to development of intangible
assets, eg: human capital
Informal learning complements formal training, thereby giving them
tactical knowledge which they cant acquire through formal training.
Knowledge contributes to informal learning.

Designing formal training activities:

Two types of training design process

o Instructional System Design (ISD)
o Analysis, Design, Development , Implementation, and evaluation
( ADDIE )

Training Process:

Training process should be systematic

Needs Assessment
o To determine if the training is necessary

Not all pressure points can be addressed by training.

Training Process:

Organizational Analysis:

Factors to be considered before choosing training as a solution to any pain point:

The companys strategic direction

Training resources
Support of managers and peers for training activities.

Person Analysis

If employees need skills and knowledge that can be obtained by training

But if they dont perform due to input, output, consequences, or feedback
is inadequate then training will not solve the problem

Training Methods:

Audio visual training DVD, internet, Video and audio for training, mobile apps
can be used for training

Behavior Modelling

For teaching interpersonal skills

Advice for choosing training methods

Special Training Issues:

Employee Development:

Its is future oriented

Not necessarily based on current job
Helps to move to other jobs in the organization

Career patterns

Expert career patterns

o Doctors, Lawyers
Other pattern
o Continuously change

Approaches to Employee Development:

Formal education

Assessment

Personality tests and Inventories

Assessment centre tests for management jobs and skills to work in

teams
personality skills
Administrative skills
Interpersonal skills

Job experiences
Interpersonal relationships

Protg

Benefits of Mentoring:

Section 8: Managing global human resources

Current Global Changes

European Union 15 countries

North American free trade agreement
The growth of Asia
General agreement on tariffs and trade
o World trade organization

Factors affecting HRM in global markets

Culture
o Hofstedes cultural dimensions

Political and legal

o Fair labor standards act
Minimum wage for many jobs
Economic system
o Socialism
o Communalism
o Capitalism

Managing Employees in a Global Context

Parent country
Host country
Third Country other than parent and host country
Expatriate

Types of Expatriates

Inpatriates: Managers from host countries becoming their corporate

headquarters staff
Multinational vs global:

Multinational develop identical products and distribute worldwide, Global

companies emphasize localization based on host countries market.

Managing Expatriates in global markets:

Selection of Expatriate managers

Characteristics of Global manager
o Self-dimension
o Relationship dimension
o Perception dimension

Cultural Quotient CQ for expatriate managers

Training and development of Expatriates

Compensation for Expatriates
Reacculturation of Expatriates

The process by which a person joins an unfamiliar social group by learning

its language, customs, and social processes
Reverse cultural shock happens Repatriation process
Two characteristics in transition process
o Communication
Amount of information he receives and recognizes changes
when he is abroad
o Validation
Amount of recognition when he returns home

Section 9: Employee separation and retention

Principles of justice

Managing Voluntary turnover

It is a function of values
Values are different to different employees and employers
Perception of the situation

Sources of job dissatisfaction

Unsafe working conditions
Personal dispositions

Tasks and roles Job rotation

o
Supervisors and co-workers
Pay and benefits

Measuring and monitoring job satisfaction:

Job Descriptive Index JDI

Pay satisfaction questionnaire
Survey feedback interventions

Labor Relations Framework

Goals and Strategy

Society US Capitalism
Management
Labor Unions

Union Structure Administration and Membership

National and International Unions

Local Unions
Union Security

Under 1947, Taft-Hartley act

Free riders:

Employees who are not part of union, but benefit from union activities

Union Membership has declined:

Structural changes in the economy

o Manufacturing to service
Increased employer resistance
o Foreign competition
Substitution with HRM
Substitution with government regulation
Worker views
o No much class distinction in US, comparing to Europe
Union actions and industry structure
o Corruption in unions
o Not changing according to the changes in economic structure

Labor relation outcomes

Strikes
Wages and Benefits
Productivity

Unions increase productivity

Voicing the problem rather than Exiting
Seniority based promotions less competitions and more
information sharing
Shock effect on management good standards and working
conditions
Profits and stock performance
o Increase Union , decrease profits
o