Professional Documents
Culture Documents
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Functional strategy: HR Strategy
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Skills
Three related dimensions of HRM
•Communication
Functions •Legal
•Power
•Instructional
-The entry and •Interpersonal
exit processes •Cognitive
-The growth & •Technical
development of
employees
-The reward and
recognition HR
systems strategy
-The total
organizational Matching Ps
Philosophy
climate for how Policies
people are treated Processes
Practices
Programmes
Contingencies
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Certain definitions
• Philosophies: overarching values and guiding
principles adopted in managing people
• Strategies: direction in which HRM intends to go
• Policies: guidelines defining how these values,
principles and strategies should be applied and
implemented in specific areas of HRM
• Processes: formal procedures and methods used to
put strategic plans and policies into effect
• Practices: informal approaches used in managing
people
• Programmes: enables strategies, policies and
practices to be implemented according to plan
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Each HR strategy represent a distinctive HR paradigm,
or a set of beliefs, assumptions and values that guide the
managers . One example:
Acquisition of
Internal
employees External
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The Competency
Approach
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The Competency Approach
•Job or Role?
job: collection of tasks drawn together for
completion by a person. Tasks are fixed and ways of doing
the same are prescribed.
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Competencies
Outputs : measurable/observable results of
the behaviour exhibited ~ efficiency
What one knows, what one does & how one does that
leads to a positive outcome.
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The Competencies
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The Competencies
• It is a behavior, not a skill or knowledge.
• Specific as well as generic.
• Emphasis is on similarities that exist in
competencies to do many jobs.
• Ensure consistency across the organization
through the creation of a common language to
describe performance.
• These are a means of defining where the 20
percent of effort needs to be put in order to
achieve an 80 per cent return.
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The Competencies
Why do organisations use competencies?
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The Competencies
Competency template:
core and specialist.
Sample questions:
• Tell me about your most intellectually challenging or difficult problem. Why
was it difficult? How did you work through it? How did it turn out?
• Tell me how you went about learning the business at your last job. What
would you do to learn the business at Microsoft?
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The Competencies
A large pharma company set out its competencies as follows:
2. Personal qualities :
i. Personal accountability
ii. Personal organisation
iii. Self development
iv. Creativity and innovation
v. Flexibility
vi. Continuous improvement
• Planning to achieve :
ix. Gathering, analysing and interpreting data to produce
information
x. Problem solving and decision making
xi. Establishing a Plan
xii. Implementing and monitoring acheivement 15
The Competencies
4. Supportive Leadership :
vi. Effective leadership
vii. Empowering
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The Competencies
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Means Ends
Transformation
knowledge process results
skills measurements
attributes Behavior applied to task standards
attitude
or or
Competency-focused
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Psychological Contract
The notion implies that there is an unwritten set of
expectations operating at all times between every
member of an organisation and various managers and
others in that organisation.
Dynamic two-way exchange of perceived promises and
obligations between employees and firm.
Because this represent how people interpret promises and
commitments, both parties in the same employment
relationship can have different views.
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Psychological Contract
These are shaped by the social and economic context,
leadership, communication and HR practices.
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Human Resource Planning
• Linked with business strategy
• Longer term perspective
• Integration with business planning, centered on core
competencies.
• Looks at the broader issues of how people are employed
and developed.
– Resourcing plans, Flexibility plans and Retention plans
• How many people and what sort of people
Microsoft used to be a techy company till early 1990s, when Bill Gates
started consciously inducting managers with experience in a variety
of industry to bring in the market focus and effectiveness focus.
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Human Resource Planning
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Human Resource Planning
Generally, the model should have the flexibility of:
Ex:
Nurses in USA, UK (nursing schools in Kerala)
Fast-food industry – unskilled position but
turnover rates are 300 percent. (3 incumbents for
every job in a year)
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Recruitment
• Internal vs External
Internal
- irrational commitment to past “sunk costs”
- misdirected persistence
- escalation bias
External
- costly
- takes time to learn
- negative effect on morale of insiders
- less data available on candidature
Ex: Intel deliberately recruited an ‘external
architect of change’: its marketing head from
Samsung 26
Selection
• Selection: process of gathering and assessing information
about job candidates and ultimately making decisions
about personnel.
– Detailed standardised biodata, tests – aptitudes, psychological,
group exercises, interviews, assessment centers.
• Selection process:
– Individual differences
– Prediction
• Selection methods:
– Reliability- consistency of measurement
– Validity: extent to which these predicts one or more
important criteria
– Utility: economic gains derived from using a particular
selection method. (eg, assessment centers? Usage of
internet to do campus recruitment?) 27
Selection
Psychometric tests: generally self-report questionnaires
that indicates traits, intelligence, values, interests, attitudes
and preferences.
There are no right/wrong answers but a range of choices
between possible answers.
It provides valid data that enable reliable predictions of
behavior to be made, and thus assist in the process of
making objective and reasoned decisions.
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Match competencies:
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Appraisal: a process that provides an analysis of a person’s
overall capabilities and potential, allowing informed
decisions to be made for particular purposes.
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• As part of employment contract, employer differentiates –
and appraisal system is one way to differentiate.
Ex: raja and his council of ministers
• Differentiation happens through usage of one or more criteria;
Performance is one of them.
Ex: ministry expansion.
• The common factors of all assessment systems is collection
of evidence.
Ex: formal or informal
• Review and analysis of evidence leads to a judgement and
may be, a decision.
Ex: Judgement: he is worthless so promote him so that others can also
find him out!
• Objectivity is expected.
Ex: but never assured.
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Means Ends
Transformation
knowledge process results
skills measurements
attributes Behavior applied to task standards
attitude
or or
HIGH
Cell 1 Cell 2
Behavior Or Output Outputs
Ability (manufacturing,
service orgn) (sales)
to
Measure
outputs Cell 4 Cell 3
(creative problem
LOW Behavior Solving)
(research)
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Performance Management
Performance Management System is a continuous, and
much wider, comprehensive and natural process of
management that clarifies mutual expectations, emphasizes
the support role of managers who are expected to act as
coaches rather than judges, and focuses on the future.
• agreement
• measurement
• feedback
• positive reinforcement
• dialogue
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Conflicts inherent in any PMS system
Organisation
seeking
information for Individual seeking valid
developing performance feedback
performance
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What constitutes
counselling ?
Asking & Development
Listening
Responding
Empathy
Feedbac
k Commu
Helping Mutuality
nication
Counselling
Autonomy
Positive
Identifi Influen Reinforce
ment
cation cing
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Reward Management
Reward refers to all of the monetary, non-
monetary
and psychological payments that an organization
provides for its employees in exchange for the work
they perform.
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Reward Management
Employment as a contract:
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Reward Management
• Reward people fairly, equitably and consistently.
• The amount of pay and way it is packaged & delivered ~
motivate, energize and direct behavior.
Eg IBM: redesign in late 1990s. Performance linked pay. HR makes the
framework, but day to day administration to line managers.
Redesign was aimed at changing the way IBMers thought about their
work, focused their energies and directed their performance.
• Shape the composition of workforce. Eg, Microsoft
• A good reward strategy can influence firm’s success:
• Motivates
• Equity feeling : Input, effort, performance, outcomes.
• Support, communicate, reinforce firm’s culture,
values, competitive strategy.
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Reward Management
Reward strategy has to take into account:
• context of particular management system and
philosophy
• tailored to particular work situations and internal
and external contexts
• high-probability estimates by employees
concerning their effort and their performance, and
their performance and desired outcomes.
• a system of trust
Reward Performance
management
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Integrated Reward Model: an example
Integrated model: individual
performance and satisfaction
Instrumentality: probability
that performance will
produce desired results
Individual Extrinsic
Attributes Rewards
Many studies prove that broad based ownership does make a difference.
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Case Summary : United Airlines
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Case Summary : United Airlines
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Case Summary : United Airlines
• Employees must think that the amount they hold can significantly improve
their financial prospects. Were they puzzled? Did they think as another
benefit?
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Case Summary : United Airlines
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Case Summary : United Airlines
• Does the reward strategy reflect corporate goals?
• Are the messages sent by the pay system aligned to other management
practices?
• Has the organisation been sharing profits in a way which creates a sense of
fairness at all levels of the company?
• What does people value with regard to pay and benefits?
• Salaries : competitive?
• Pay structure : segmented? Transparent?
• Job evaluation? Equity?
• Is reward only way to build up commitment to performance, teamwork, etc?
• Is the reward system flexible enough to cope with change?
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