HRM Practices and Elements

• HRM defines the people practice in an organization
• SHRM is not defined in the provided text

HRM Practices

• Analysis and design of work involves the tasks and responsibilities associated with a particular job.
• HR planning ensures that the organization has the right number of people with the right skills at the right time to meet its strategic goals.
• Selection is the process of choosing the best candidate for a particular job.
• Training and development provide employees with the knowledge, skills, and abilities they need to perform their jobs effectively.
• Compensation refers to the pay and benefits that employees receive in exchange for their work.
• Performance management is the process of setting goals, providing feedback, and evaluating employee performance.
• Employment relations involve the relationship between employers and employees, including issues such as labor laws, collective bargaining, and employee grievances.

Elements of HRM

• Strategy: Determining what work needs to be done.
• Job Analysis & Design: Designing the work.
• Planning, Recruitment, Selection: Getting the right people to do the work.
• Compensation: Paying people for the work.
• Performance management, training, development: Helping people do the work better.
• Retention and turnover: Keeping people and letting them go.

Competitive Advantages

• Valuable: Organization provides value.
• Rare: Most employees don't arrive prepared for the job.
• Cannot be imitated: Difficult to find out which employee brings advantages and how.
• No good substitutes: Well-trained, highly motivated employees who learn, develop abilities, and care about customers.
• An organization's greatest asset is its people, but they may also be its greatest liability.

Role of HRM

• HR department assigns and creates key practices, functions, and responsibilities within a company.
• Policies, practices, and systems that influence employee behavior, attitudes, and performance.

HR as a Business

• Administrative Services & Transactions deals with compensation, hiring, and staffing; resource efficiency and service quality.
• Business Partner Services develops effective HR systems, helps implement business plans, and manages talent; knows the business and has problem solving capabilities.
• Strategic Partner contributes to business strategy based on human capital, business capabilities, readiness, and HR practices; requires knowledge of HR, business, competition, the market, and business strategies.

HRM Responsibilities

• Job analysis & job description.
• Recruiting & interviewing
• Development & orientation programs
• Performance measures & feedback
• Wage & salary administration
• Attitude surveys & labor law compliance
• HR information system & record keeping
• Policies to ensure lawful behaviors & ethics
• HR planning & forecasting, talent management

Who Does HRM

• Depends on the size, type of industry and workforce, organizational culture and values and economy.
• Positions can include Top HR executive, Global HR manager, Employee benefits manager, Campus recruiter, Compensation analyst, Regional manager
• Supervisor of employees handles performance management, training, recruitment, selection.
• External HR specialists specializing in benefits, job analysis, selection, training, and development; most outsourced.
• Consultants or lawyers specialize in legal issues but certifications are costly.
• Employee roles depend on the job nature, flexible work arrangement ("FWA"), and path for personal career development.
• "i-deals" are idiosyncratic employment arrangements negotiated between individual workers and employers to benefit both.

Strategic HRM

• A pattern of planned human resource developments and activities intended to enable an organization to achieve its goals.
• Ensures that a firm's HR choices fit and support its strategy
• Strategy formulation is the process of deciding on a strategic direction.
• Having a Mission involves specifying the organization's reasons for being, who the customer is, the need satisfied, the value for the customer, and the technology used.
• Goals are the achievement of the organization in the medium/long term future, showing how the mission is operationalized.
• SWOT Analysis includes Strengths + Weaknesses (Internal) and Opportunities + Threats (External)
• Types of Strategies include either Cost leadership strategy or Differentiation Strategy

Strategy Implementation

• The process of devising structures and allocating resources to enacting the strategy a company has chosen.

HRM Trends

• Includes diversity and inclusion, and technology-based automated HR processes
• Also includes employees taking greater responsibility for their careers including employee control on HR transactions, and outsourcing by having another company manage certain HR functions
• Requires coping with the “new normal” through dynamic in-office and remote policies, Maintain company culture and employee engagement
• Requires focus on employee well-being, modifying employee benefits, dedicating resources to employee experience, and improved leadership training.

Evidence-Based HR

• Human resource practices correlate to (+) stakeholders

Economic Value Added (EVA)

• Measures profits that remain after the cost of capital has been deducted from operating profits
• EVA = net operating profit after tax - (Capital used X Cost of capital)

Return on Investment (ROI)

• ROI = (Return / Investment) = (Profit minus costs / Costs)
• Calculations can help evaluate the worth of training, outsourcing, benefits.

HR Analytics

• Involves the use of information to make informed HR decisions using HR databases (internal & external), financial statements, and employee surveys
• Also known as “workforce analytics"

Decisions Based on Metrics

• Involves decisions based on statistical models, attraction, selection and retention (ASR), and injuries or absenteeism

HRM Future

• Involves adapting to the changing role of HRM, including sustainability, globalization, and technology

Factors Influencing HRM Effectiveness

• Factors outside of the company: Globalization, societal culture, industry characteristics, technology development, workforce characteristics, and legal/ethical issues.
• Factors inside the company: Diversity of internal labor force and employees' psychological contract expectation
• Employees' psychological contract expectations involve unwritten expectations of employee contributions and what the company will provide in return.

Work-Flow Analysis

• Involves analyzing the tasks for the production of a product or service, before assigning these tasks to a job category or person
• Work inputs – Work Processes – Work outputs
• Analyzing work and manufacturing realms

Work-Unit Activity Analysis

• Raw Inputs: What materials, data, and information are needed?
• Equipment: What special equipment, facilities, and systems are needed?
• Activity: What tasks are required in the production of the output?
• Output: What product, information, or service is provided and or by what standard?
• Human Resources: What knowledge, skills, and abilities are needed by those performing the tasks?

Analyzing Work

• Work processes are the activities that members of a work unit engage in to produce a given output.
• Work-flow analysis is a longitudinal overview; organizational structure is a cross-sectional overview.

Team-Based Job Design

• Medical teams that might include a nurse practitioner, physician's assistant, clinical pharmacist, plus a variety of technicians working alongside the primary physician
• Effective coordination & communication between team members is crucial

Organizational Structure

• The relatively stable and formal network of vertical and horizontal interconnections among jobs that constitute the organization.
• Two dimensions of organizational structure: Centralization and Departmentalization.

Organizational Structure: Centralization

• The degree to which decision-making authority resides at the top of the organizational chart

Organizational Structure: Departmentalization

• The degree to which work units are grouped based on functional similarity or similarity of work-flow (e.g., School of Management).
• Configurations include Functional structure and Divisional Structure

Functional Structure

• Functional departmentalization, e.g., HR, Marketing, & Accounting
• High level of centralization
• High efficiency
• Inflexible

Divisional Structure

• Low level of centralization
• Workflow departmentalization; Not efficient due to redundancy: Each group carries its own functional specialists
• Each group views the other groups as competitors
• Semi-autonomous: “boss-free"
• Flexible and innovative
• Sensitive to subtle differences across products/regions/clients
• Benefits: They can detect and exploit opportunities faster; (e.g., “fast fashion” industry such as H&M and Zara)

Which Structure Fits Better?

• Stable, predictable environments, where demand for resources can be well anticipated (Functional structures)
• Unstable, unpredictable environments, where it is difficult to anticipate demands for resources (Divisional structures)
• Organizations competing on differentiation or innovation (Divisional structures)
• Coordination requirements between jobs can be refined and standardized over consistent repetitions of activity (Functional structures)
• Coordination requirements between jobs are not consistent over time (Divisional structures)

Jobs in Functional Structures

• Jobs in Functional Structures... ✓ Are narrow and highly specialized with little decision-making authority ✓ Require lower cognitive ability because of the relatively smaller scope and routine nature of jobs

Jobs in Divisional Structures

• Require broader knowledge, more involvement and higher cognitive ability ➤The power distance and interpersonal relationships are also different ✓ In functional structures: people value rules and procedures ✓ In divisional structures: people value outcomes and interpersonal treatment

Job Analysis

• The process of getting detailed information about jobs in organizations.

Role of Analysis in HRM

• First, understand the job that employees will perform, how to recruit and select, how to train them, and on what basis to evaluate and compensate them.

Why it matters to a line manager or direct supervisors

• Understand workflow across all jobs
• Intelligent involvement in hiring decisions
• Performance evaluations
• Ensure safety

Types of info needed

• Job description: list of Tasks, Duties, and Responsibilities (TDR's).
• Job specification: list of Knowledge, Skills, Abilities, and other characteristics (KSAO's).

Who Can Provide Information?

• Job incumbents: Know best what is actually done; Accurate assessment of the time required and safety issues.
• Supervisors: More accurate source for rating the importance of duties; Less accurate at assessing risk/safety
• External analysts: May even use customers
• Do the task yourself

Job Analysis Tools

• Job element inventory
• Medical team as an example

The Changing Nature of Jobs

• In today's organizations, job analysis contains a critical additional step: Anticipating changes that will occur in the future

Job Design

• The process of defining the way work will be performed and the tasks that will be required in a given job.

Job Redesign

• The process of defining the way work will be performed and the tasks that will be required in a given job.

Different Approaches to Job Design

• Mechanistic Approach: based on industrial engineering.

Goal

• Identify the simplest way to structure work that maximizes efficiency

Motivational Approach

• Based on organizational psychology and management literature
• Goal = Enhance attitudinal outcomes; Positive attitudes = Job satisfaction; By enhancing psychological meaning and motivation potential

Biological Approach

• Based on the sciences of biomechanics, work physiology, and occupational
• Goals: Reduce physical strain, by structuring the physical work environment around the way the human body work, Reduce physical fatigue, aches and pains, and health complaints.