Human Resource Management Basics

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Questions and Answers

What is one primary focus of an HR strategy?

Reducing hiring processes to minimum

Maximizing profit margins continuously

Strategic alignment of HR topics (correct)

Enhancing employee satisfaction at all costs

Which factor is NOT listed as a critical business challenge for CEOs?

Changing consumer segments

Increasing employee training costs (correct)

Decreasing purchase power

Technological advancements

What is emphasized as an emerging challenge in the business landscape?

Increasing market monopolies

Growing resource scarcity (correct)

Decreasing consumer preferences

Stable market growth

What role does the structural and cultural context play in HR strategies?

It forms the basis of strategic HR planning. Signup and view all the answers

Which of the following factors is linked to changing consumer behavior?

Emerging aggressive players Signup and view all the answers

What primary challenge relates to low-cost suppliers?

Cost pressure Signup and view all the answers

How does digitalization impact HR strategy?

By creating new opportunities for strategic alignment Signup and view all the answers

What is one challenge posed by global competition?

Need for innovative business models Signup and view all the answers

What characterizes a KEY-Function in a company?

It is crucial for the company's future competitiveness. Signup and view all the answers

Which approach focuses on the workforce needs of a business?

HARD Approach Signup and view all the answers

What is a key feature of the Soft HRM approach?

Focus on employee needs and roles. Signup and view all the answers

What kind of organizational structure is often associated with the HARD Approach?

Tall organizational structures. Signup and view all the answers

In a Soft HRM approach, what is preferable regarding employee motivation?

Greater use of non-financial methods. Signup and view all the answers

Which leadership style does the Soft Approach typically support?

Democratic leadership style. Signup and view all the answers

Which area is NOT included in the content outline for the lecture on HRM?

Financial Management Signup and view all the answers

What is an essential goal of the Soft HRM approach?

Maximize employee job satisfaction. Signup and view all the answers

Which component is included in the HR landscape as per the provided content?

Compensation & Benefits Signup and view all the answers

Which of the following is NOT a characteristic of the HARD Approach?

Focus on employee empowerment. Signup and view all the answers

What is one of the expectations from HR mentioned for managers?

Effective workforce planning Signup and view all the answers

Which of the following is a major focus within Talent Management?

Talent Acquisition Signup and view all the answers

What is the main orientation of operational HRM?

Individual personnel matters Signup and view all the answers

Which function is NOT part of operational HRM?

Strategic business alignment Signup and view all the answers

How is strategic HRM (SHRM) primarily characterized?

Integration of partial operational HR functions Signup and view all the answers

In the context of the employee life cycle, which of the following is included?

Layoff procedures Signup and view all the answers

What is a key focus of contemporary HR roles as indicated in the content?

Enhancing productivity Signup and view all the answers

What does the concept of 'HR as Change Agent' imply?

HR should drive organizational improvement and efficiency. Signup and view all the answers

How does strategic HRM relate to company targets?

It is aligned with company objectives. Signup and view all the answers

Which of the following roles does strategic HRM encompass?

Cross-functional integration of HR functions Signup and view all the answers

Which statement reflects the shift from traditional to future HR?

Future HR emphasizes strategic support and consulting. Signup and view all the answers

What is the categorization in HR that reflects improvement towards business efficiency?

Efficiency partner role Signup and view all the answers

What is the primary focus of the HR Triangle identified by Trost?

Balancing hierarchy with network capabilities Signup and view all the answers

Which of the following reflects a key aspect of developing an HR strategy according to Trost's models?

Evaluate market competition and strategic positioning Signup and view all the answers

In the context of HR, what does 'people-centered enablement' emphasize?

Empowering employees to make decisions Signup and view all the answers

How does Trost describe the interaction of stability and agility within HR strategies?

HR must balance both stability and agility to succeed Signup and view all the answers

What is an example of a fundamental strategic question for a company?

In which business segments do we want to operate in the future? Signup and view all the answers

What does the 'attitude of the founder' refer to in the HR framework presented by Trost?

The personal values and beliefs influencing the company's culture Signup and view all the answers

Which of the following is NOT a component related to institutionalization in HR strategy?

Encouraging spontaneous employee innovation Signup and view all the answers

What best describes the aim of strategic management systems within an HR context?

To proactively align HR practices with organizational goals Signup and view all the answers

What is a key requirement for future employees mentioned in the discussion?

Lifelong learning Signup and view all the answers

Which megatrend is associated with the need to manage strategic changes in HRM?

Value Change Signup and view all the answers

Which aspect is NOT typically addressed by modern HRM according to the content?

Employee punishment Signup and view all the answers

What challenge does HR face in the context of talent acquisition as per the given content?

Need for competitive advantages Signup and view all the answers

Which of the following is mentioned as a strategy for employee retention?

Creation of attractive working conditions Signup and view all the answers

According to the content, why is supporting diversity important in HRM?

To reflect societal changes Signup and view all the answers

Which megatrend addresses the importance of an aging workforce?

Demography Signup and view all the answers

What role does HR play in the context of global competition?

Building succession plans Signup and view all the answers

How does lifelong learning benefit employees according to HRM strategies?

Enhances adaptability to changes Signup and view all the answers

Which of the following functions is part of the HR landscape mentioned?

Talent development Signup and view all the answers

Study Notes

Human Resource Management (HRM) Basics

HRM is a planned and controlled activity of an organization to build and maintain the relationship between the organization and its employees. This relationship aims to fulfill business objectives and employee expectations.
HRM encompasses all processes, from defining a strategy to operational implementation and control.
HRM often involves key aspects like legal, psychological, sociological, and educational considerations related to the people being managed.

Assessment Scheme

The total assessment score is 100 points.
Case studies (group work) contribute 60 points, drawn from 6 topics taught in the lecture.
A final multiple-choice online test (Moodle Quiz) contributes 40 points, scheduled on January 13th, 2025.
Case study evaluation criteria: no copying from presentation slides, relevant answers, realistic proposals/ideas, and correct grammar/spelling are important.

HRM Landscape

HRM involves strategy & planning, talent management & development, competency management, change management, diversity, compensation & benefits, retention, and HR organization & controlling, and HR-IT.
HRM functions are interconnected.

Content for Lecture

The lecture covers introduction to HRM, defining HR, and HRM strategy, HR organization, workforce planning, talent acquisition, employer branding, candidate selection, diversity management, talent management, talent development & retention.

Warming Up

The session started with prompting students about their initial understanding and expectations related to Human Resources (HR).

Definition of HRM

HRM is a set of planned and controlled activities that an organisation undertakes to establish and maintain a suitable connection between employees and the organization so as to meet both business objectives and employee expectations.
HRM involves processes from developing a strategy to the operational roll-out and control.
Important aspects of HRM include legal, psychological, sociological, and educational considerations

Targets of HRM

HRM targets economic and social goals, but these can sometimes be conflicting.
The goal is to optimize the intersection between both areas.

Economic Targets of HRM

Reducing people costs.
Reducing absence and turnover.
Incorporating improvement processes.
Increasing employee flexibility.
Optimizing production factors.

High income.
Social security
Development and self-actualization at the workplace.
Good employment conditions.
Agreeable working atmosphere
Learning opportunities
Career opportunities
Social contacts
Participative leadership
Social status
Work-life balance
Unity of family and work life
Employee participation
Flexible working times
Social benefits
Company pension schemes

Operational vs. Strategic HRM

Operational HRM is focused on employees/jobs, individual personnel, mainly short-term oriented, and has a high degree of detail.
Strategic HRM is an abstraction from singular employees and jobs. Its focus is on the company's overall targets and is part of the company strategy; it involves integration of partial operational HR functions (cross-functional), and usually includes a longer planning horizon

Sub-Functions of Operational HRM

HR policies (strategy based).
Personnel planning.
Personnel recruitment.
Personnel deployment.
Personnel management (off-the-job activities).
Personnel support.
Personnel administration.
Personnel controlling

Employee Life Cycle

Employer Branding, Recruitment, Engagement & Retention, performance management, Talent and Deployment (development and onboarding of employees within an organization), Organizational Culture, and People Strategy are part of the employee life cycle.

The HR Journey at a Glance

HR's evolution over time, highlighting key milestones (e.g., 2nd Industrial Revolution, World Wars, and Globalization) and corresponding shifts in focus/structures
Evolution of HR functions over time; early HR was centered around welfare, evolved to managing labor, personnel, and human resources effectively, finally to a strategic partner role focused on adding value to the business.

Development of HRM

The role of HR has changed over time. This can be from the ‘Welfare officer’ of the earlier days, developing to the ‘Personnel Management’, and evolving even further to becoming a key part of the ‘Strategic functions’ now. HR’s role in collective bargaining, policy formation, and management

From Traditional to Future HRM

Traditional HR was heavily focused on administration, with strategy, consulting, and support as minor components. Future HR prioritizes all these components.

Context for HRM

The context of HR involves understanding disruption, digital transformation, and securing future success, emphasizing change, and highlighting the need for business and societal relevance in HR methodologies

Discussion in Small Groups

Discussions should center around key changes, challenges for HR today, requirements of future employees, and implications on the HR function.

Megatrends Determining Future HRM Challenges

Innovation (acquiring and rewarding right talent).
Demography (leveraging employee potential, supporting diversity, and building successors).
Globalization (knowledge retention and attraction, and attractive working conditions).
Web 2.0 (managing changes and using latest technologies).
Value change (using suitable HR technologies and policies).

Generational Changes in Values, Expectations and Goals

Megatrends in HRM, Demographic Consequences

Generation development: organizational knowledge transfer between senior and junior employees.
Qualification: focusing on workforce and life long learning.
Retention: securing employability throughout life cycles.
Extension: integration of varied career models despite age.
Integration/Talent Management: integration of immigrants and appropriate talent management techniques.
Adaptation: adaptability of working conditions in various life phases/health

HRM Landscape - Updated

The diagram shows Talent Acquisition, Change Management, Candidate Selection, HR Organization, Strategy, and Planning, Talent Development, and Compensation and Benefits.
All of these aspects are interconnected and contribute to the overall HRM Landscape.

Key Questions

Relation between company strategy and HR strategy.
Key company functions which are of the highest priority in the HR strategy.

Definition of HR Strategy

A company's HR strategy encompasses all people-related approaches that address strategic business challenges and purpose. It aims to enhance the company's competitive advantage.
Moreover, the HR strategy outlines how various critical approaches synchronize with the organisation's structural and cultural context.

Company Development Within Two Hemispheres

The diagram depicts a balance between hierarchical stability and agility in organizational development.
Hierarchy and stability involve centralized responsibilities at top management levels.
Agility and networks imply decentralized responsibilities, with shared responsibilities.

Types of HR within HR Triangle

The visualization illustrates the diverse roles of HR professionals within an organization.
The roles are categorized into central planning & control, hiring & compensation, attitude & structure, and strategic management aspects, respectively.

Group Discussion

Building a HR Strategy

This is about identifying the people-related challenges/opportunities and connecting them to strategic HR topics and approaches. Key building blocks of an HR strategy include linking company strategy, people-related functions, and the strategic approach to HR.

Critical Business Challenges

These are the key issues that frequently occupy a CEO's attention. Topics covered include decreasing purchasing power, changing customer preferences, technologies, shifting consumer behavior, emerging aggressive players, globalization, political uncertainty, and new business models.

Competitive Advantage

Companies achieve competitive advantage by offering innovative products, high-quality services, advanced technology, better products, broader market access, and strategic communication.

Difficulties in filling key/expert positions.
Bottlenecks in filling positions, leading to disruptions.
Difficulty in leveraging employee potential.
Ensuring broad-based employability.
Keeping high levels of engagement.
Managing differences between generations in the workforce.

Potential HR Topics and Approaches

Talent acquisition and selection
Building Employer Branding
Candidate sourcing and relation.
Performance management and appraisal.
Setting objectives.
Talent Identification
Developing learning and knowledge.
Employee engagement & loyalty.
Employee Retention
Employee Compensation
Reward strategy

Strategic Priorities

Strategic priorities often cover Innovation, Branding, Price, Design, and Quality (identifying company examples in specific industries)

Function Importance

Core and supportive functions are distinguished to identify the most crucial business areas, including product management, research and development, design, production planning, marketing, sales accounts management, services/support, quality management, IT control/accounting, human resources, facilities/security, and public relations/communications.

Company Strategy and HR Strategy

HR strategy is closely related to and depends on the company's overall strategy.
HR strategy considers employee competencies, motivation, values, priorities (e.g., competitive advantage) and business vision, for successful recruitment, employee development, communication, and exit processes (layoffs).

Critical Key and Bottleneck Functions

Bottleneck Functions

Bottleneck functions are those in high demand that are difficult to fill due to current economic conditions or inadequate talent pools.
- There are fewer active job seekers than jobs available.
- Bottlenecks are often linked to a common pain (and/or need) across departments, locations, and subsidiaries within a company.
- For bottleneck functions, homogeneous target groups (e.g., engineers) are frequently used for selection purposes.

Key Functions

A key function directly affects a company's competitiveness in the marketplace and is frequently a focus for the CEO. High performance in a key function generates significant/dramatic differences in the firm's success.

Example: Adidas

Adidas' mission statement and guiding principles.
Adidas's group strategy and strategic choices.
Adidas's 3-pillar Human Resource strategy.

Dave Ulrich HR Model

Components include strategic partners (defining strategies), change agents (renewing organizations), administrative experts (efficient infrastructure building), and employee champions (increasing employee commitment/capabilities).

Dave Ulrich HR Roles

Strategic partner (Strategic HR Planning, HR as Business Partner, Culture & Image).
Change agent (Staffing, Organizational Design, Performance Management, Training & Development).
Administrative expert (Compensation, HR Information Systems, Compliance).
Employee relations expert (Employee relations, Labor Relations, Compensation, diversity/EEO).

Three-Pillar Model of Modern HR Organization

Includes a central coordination (HR business partner near to business), center of expertise (company-wide), and shared services center (delivery of standardized services) .

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Description

This quiz covers the fundamental concepts of Human Resource Management (HRM), focusing on the relationship between organizations and employees. It includes the strategic planning, legal considerations, and psychological aspects involved in HRM practices. Prepare to assess your understanding of how HRM meets both business objectives and employee expectations.