VO Human Ressource Management & Leadership PDF

VO Human Ressource Management & Leadership Univ.Prof.in Dr.in Sabine Theresia Köszegi [email protected] © Univ.Prof. Dr. Sabine Köszegi VO Human Resour...

VO Human Ressource Management & Leadership Univ.Prof.in Dr.in Sabine Theresia Köszegi [email protected] © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 1  May I introduce myself … Trained in Social Sciences and Economics (PhD) Since 2009 Professor for Labor Science and Organization at TU Wien Since 2009 Academic Director of MBA IDEa (E&I) 2017 - 2021 Policy Advisor Austrian Government (ACRAI) 2018 - 2021 Policy Advisor European Commission (AI HLEG) Since 2023 Chair of the UNESCO Advisory Board on Ethics of AI Since 2023 Member of the AI Advisory Board of the Research Government Austrian Interests and the City of Vienna Inter- and transdisciplinary research in gender, technology, work & organization ✓ Decision support, conflict resolution and negotiation ✓ Digitalization & new ways of working ✓ Robotics & AI: Ethical, socio-cultural and societal implications © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 2  Lecture format On-site Lecture: Thursdays 10:15-11:45 (see schedule) Attendance is not mandatory but recommended Guest speakers Exam Main date, end of january 2025, see TISS registration mandatory!!!! 5 alternative dates, details in TISS (3 per semester) Literature relevant to the examination Lecture slides (provided in TUWEL) Selected deepening readings (provided in TUWEL) Recommended further material Syed, Jawad & Kramar, Robert (2017): Human Resource Management in a global context. A Global and Critical Perspective. MacMillan Education, 2nd edition. Mary Jo Hatch (2018): Organization Theory. Modern, Symbolic and Postmodern Perspectives. Oxford University Press, 4th edition. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 3  Schedule Topic Date Location 1 Theoretical Foundations I – Philosophy of Science 10.10.24 HS 1 2 Theoretical Foundations II – Human Nature 17.10.24 HS 1 3 HR Planning 24.10.24 HS 1 4 HR Recruiting 31.10.24 HS 1 5 HR Selection 07.11.24 HS 1 6 Staff Assignment & Job Design 14.11.24 HS 1 7 HR Practice: Austrian IT & Consultants Day – Keynote on AI 21.11.24 Wiener Hofburg 8 Appraisal & Incentive Systems 28.11.24 HS 1 9 HR Development & Change 05.12.24 HS 1 10 Leadership & Motivation 12.12.24 HS 1 11 Gender @ Work 19.12.24 HS 1 12 HR Practice Recruiting with Dr. Sören Buschmann 09.01.25 HS 1 13 Leadership Practice with Dr. Erika Kleestorfer 16.01.25 HS 1 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 44  By the end of this course you … understand the theoretical foundations of human resource management (HRM) & leadership have an overview over the broad range of topics in HRM know the most important instruments of HRM and their practical relevance Have reflected ethical aspects of HR management and leadership © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 5  Introduction and Theoretical Foundations Definitions Scientific Paradigms & Theory Building © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 6  Many Different Theoretical Foundations Management theories Organization theories Human Relations approach Motivation theories Leadership theories Economics (Personnel economics approach) Critical Theory Etc. How can managers deal with this plurality? What is the right theory to give the right answers for practice? Are there right or wrong answers? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 77  Peer Instruction Pose a Question (Poll in Zoom) Report back to Think about correct answer & plenary, discuss & write down arguments that explain correct support your position answer Fill in the poll again Fill in the poll and display and display results results Revisit your answer and Go into small groups & revise if necessary convince your peers that your answer is correct © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 8  Peer Instruction – Today’s Questions 1. What is Motivation? a) Motivation is an emotional state which individuals who are in an undesired status are triggered to set actions to move into a desired status. b) Motivation is an attitude that individuals have towards achievement and self-fulfillment. c) Motivation is the desire of individuals to contribute to a purpose. d) Motivation is an illusion. Whether something is labeled "motivation" or not depends on the observer. e) All of the above. 2. Why is it important to have a theory about the phenomenon "Motivation" a) A theory about motivation allows to categorize observations. b) A theory about motivation helps to predict future behavior. c) A theory about motivation helps to manipulate employees. d) A theory about motivation is a narrative about power relationships. e) All of the above. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 9  Abstraction © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 1010  Theory - Building How do I motivate my employees? Particular Concepts = categories for sorting, object, instance or Abstraction organizing and storing experience experience Abstraction Observation = mental separation of an idea of a concept from particular Analysis instances + increases capacity of information processing (chunking) but – looses detail information of individual case Theory Explanation X Y Z © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 1111 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 12  Introduction and Theoretical Foundations Scientific Paradigms & Theory Building © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 6  Many Different Theoretical Foundations Management theories Organization theories Human Relations approach Motivation theories Leadership theories Economics (Personnel economics approach) Critical Theory Etc. How can managers deal with this plurality? What is the correct theory to give the right answers for practice? Are there right or wrong answers? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 7  Peer Instruction Pose a Question (Poll in Zoom) Report back to Think about correct answer & plenary, discuss & write down arguments that explain correct support your position answer Fill in the poll again Fill in the poll and display and display results results Revisit your answer and Go into small groups & revise if necessary convince your peers that your answer is correct © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 8  Peer Instruction – Today’s Questions 1. What is Motivation? a) Motivation is an emotional state which individuals who are in an undesired status are triggered to set actions to move into a desired status. b) Motivation is an attitude that individuals have towards achievement and self-fulfillment. c) Motivation is the desire of individuals to contribute to a purpose. d) Motivation is an illusion. Whether something is labeled "motivation" or not depends on the observer. e) All of the above. 2. Why is it important to have a theory about the phenomenon "Motivation" a) A theory about motivation allows to categorize observations. b) A theory about motivation helps to predict future behavior. c) A theory about motivation helps to manipulate employees. d) A theory about motivation is a narrative about power relationships. e) All of the above. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 9  Abstraction © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 10  Theory - Building How do I motivate my employees? Particular Concepts = categories for sorting, object, instance or Abstraction organizing and storing experience experience Abstraction Observation = mental separation of an idea of a concept from Analysis particular instances + increases capacity of information processing (chunking) but – looses detail information of individual case Theory Explanation X Y Z © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 11 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 12  Peer Instruction – Today’s Question Are the following statements true or false? Why? Basic assumptions about human nature in management theories … a) … have changed over time. Different ideas about human nature are informed by fundamental scientific paradigms, and over time, different dimensions have been considered most relevant to how human beings are. b) … influence theory building. Their analysis helps to understand why different theories about leadership, motivation, or management provide contradicting suggestions for management practice. c) … have changed over time. Managers should study the most recent management theories since they are based on the most comprehensive idea about human nature. Managers who rely on these theories will perform best. d) … have a substantial impact on management practice. Managers’ implicit ideas about human nature strongly impact their “beliefs” about best practices and management style. Good managers are aware of their implicit assumptions. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 13  Ontology, Epistemology & Methodology Ontology: The science/nature of being Concerns our assumptions about reality and action: Is there an objective reality out there or is it subjective, existing only in our minds? Are our actions predetermined by the environment or do we have a free will? Epistemology: Theory of knowledge and of knowledge acquisition What is “good” knowledge? How can we acquire knowledge? How do we represent or describe knowledge? Methodology: means or manner of the investigation Which methods can be used for the investigation of the object? Motivation is the internal or external drive that prompts individuals to take action, pursue goals, and sustain effort toward achieving them. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 14  Scientific Paradigms Different assumptions about truth and agency result in different paradigms and lead to different theories Classical & Modern Constructivism Postmodernism until 1970 1970 - 1990 Since 1990 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 15  Overview Objective Rational Choice Structuralism Classic & Modern How can I know something? knowledge Symbolic-interpretive Constructivism Intersubjektive approaches knowledge Critical theoryPost- Postmodernism Purely subjective structuralism knowledge What determines my actions? Actor Structure © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 16  What is your assumption about human nature? Please choose the statement that best describes your attitude! a) People are lazy and prefer leisure to work. They will try to maximise their benefit whenever they can. As managers, we, therefore, need control and incentive systems to ensure performance. b) People love to work, preferably in teams. People need performance; they want to realise their talents and master the tasks they are given. As managers, therefore, we need to nurture the talents of our employees and create a supportive environment. c) People are seeking sense and meaning. The most important thing for human beings is to answer “why?”. As managers, we must provide a meaningful purpose (Why are we doing this?) for people to follow and engage in meaningful work. d) Humans are individualists and critical thinkers. They question subordination, inequality, and power relations. Therefore, As managers, we must create arenas for reflective and critical discourse and decision-making to ensure everyone is heard. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 17  Basic assumptions about human nature 1. The patronized employee until about 1900 Classic Theories rational dimension 2. Economic man (homo oeconomicus) about 1900-1930 social dimension 3. Social man about 1930-1950 psychological 4. Self-actualizing/complex man from about 1950 dimension cultural dimension 5. Sense-making man from about 1980 political dimension 6.6.Homo Homoautonomous autonomous from fromabout about1990 1990 7. Homo obsoletus ? from about 2020 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 18  Classic: Weber’s ideal bureaucracy Characteristics: Organizational roles are held on the basis of technical competence. A role’s task responsibility and decision-making authority and its relationship to other roles should be clearly specified. 1864-1920 The organization of roles in a bureaucracy is such that each lower office in A bureaucracy is founded on the hierarchy is under the control and supervision of a higher office. the concept of rational-legal authority. It was claimed a Rules, standard operating procedures, and norms should be used to control modern concept since it the behavior and the relationship between roles in organizations. “depersonalized” authority and power. As such it constitutes a Administrative acts, decisions, and rules should be formulated and put in departure from arbitrariness writing. evolving from charismatic or Compensation and promotion are based on a fixed system of qualifications traditional authority. and tenure for each position. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 19  Classic: Taylor’s Scientific Management o Horizontal division of labour (specialisation) o Optimisation of work processes and working tools o Separation of craft (manual) and clerical (mental) work, as well as specialisation in leadership (functional managers) o The shift of control and responsibilities to management and the 1856-1915 disempowerment of workers o Piece-rate incentive systems and punishment to avoid soldiering & shirking o Selection of employees based on tests to identify strengths o Professional labour conflict management © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 20  Taylor's assumption of human nature „Homo oeconomicus/economic man“ rational dimension Humans are lazy and prefer leisure over work Happiness can only be reached through consumption Consequently, motivation to work can be reached only through monetary incentives, but Since there is a trade-off between (1) and (2), discipline is also necessary to reach happiness. Since (at least manually working) humans are not able to discipline themselves, they have to be subdued to explicit rules. Engineers (scientists) can construct such rules to help workers to Homo oeconomicus and the self-sabotaging brain become happy. Classic Theories: © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 21  Classic Theories – Human Nature Motivation and leadership theories focus on command and control Management tools: Hierarchies & formal roles, bureaucratic rules, processes © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 22  Basic assumptions about human nature 1. The patronized employee until about 1900 rational dimension 2. Economic man (homo oeconomicus) about 1900-1930 social dimension 3. Social man about 1930-1950 Modern Theories psychological 4. Self-actualizing/complex man from about 1950 dimension cultural dimension 5. Sense-making man from about 1980 political dimension 6. Homo autonomous from about 1990 7. Homo obsoletus ? from about 2020 7. Homo obsoletus ? from about 2020 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 23  Humanization of Work Hawthorne Experiments F.J. Roethlisberger & W.J. Dickson Management and the Worker Harvard University Press Western Electric Company 1924-1927 Lighting experiments The aim of the experiments: Analysis of the relationship between quality and quantity of lighting and the efficiency of industrial activity © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 24  Humanization of Work 1927-1939 Hawthorne Experiment Objective: Analyzing the relationship between working conditions and fatigue and monotony 1st part: test room investigation 2nd part: survey with 20,000 employees about the positive and negative aspects of work 3rd part: Analysis of the interviews about job satisfaction 4th part: Analysis of the social organisation of the employees © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 25  Findings from the Hawthorne Studies The general upward trend of the performance of the employees, irrespective of experimental working condition Improvement of the social climate between the women during the first two years of the experiment Increase in performance and high cohesion of the employees in response to autonomy and participatory (friendly) leadership Hawthorne effect: Positive effect of good personal relationships on performance (relationship between experimenter and subjects) Small group hypothesis: solidarity and cooperation are easier to achieve in smaller groups social dimension Social Man = social conditions and interpersonal relations are the most essential things in life for human beings. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 26  Human Relations Approach Social relations Social conditions Group dynamics, company facilities Informal communication Job satisfaction PERFORMANCE © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 27  Social Sciences and human nature ▪ Self-actualizing Man (e.g. Maslow): Refers to a self-developing and self-actualizing person who strives for autonomy. The self- actualizing man is motivated when there is a possibility for personal development. ▪ Complex Man: Findings from social science show that various factors influence people. The Complex Man is adaptable, capable of learning and acquiring new motives , and their needs constantly change. process of encouraging or motivating employees Motivation and leadership theories focus on “incentivization” and the motivation of employees Management tools: appraisal and incentives, management by objectives, etc. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 28  Basic assumptions about human nature 1. The patronized employee until about 1900 rational dimension 2. Economic man (homo oeconomicus) about 1900-1930 social dimension 3. Social man about 1930-1950 psychological 4. Self-actualizing/complex man from about 1950 dimension cultural dimension 5. Sense-making man from about 1980 Constructionist & Postmodernist Theories political dimension 6. Homo autonomous from about 1990 7. Homo obsoletus ? from about 2020 7. Homo obsoletus ? from about 2020 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 29  Drop Your Tools In 1949, 13 firefighters lost their lives at Mann Gulch, in 1994, 14 more firefighters lost their lives under similar conditions at South Canyon. In both cases, these men and women were overrun by exploding fires when their retreat was slowed because they failed to Reasons: drop the heavy tools they were Listening carrying. By keeping their tools, they Justification for change is needed lost valuable distance they could Trust: following unusual orders by strangers? have covered more quickly if they Losing control without tools had been lighter. All 27 perished Skill at dropping (not trained) within sight of safe areas. The Skill with replacement activity: lighting escape fires question is, why did the firefighters Fear of Failure (surrender) keep their tools? Social dynamics: following others Are consequences severe enough? Weick, Administrative Science Quarterly, 1996 Identity: preoccupation with reputation as a can-do firefighter © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 30  „Objective“ Facts Are Socially Constructed ““Drawing Hands" M. C. Escher The Ego Social Social Social Self Social (I) World World (Me) World 1. Externalization 2. Objectification 3. Internalization We create our social world by The social world is objectified and The objectified world acts back on ordering the mass of sense reified through language and the human consciousness through impressions and experiences into a discourse. We for-get that the social the process of socialization. meaningful whole. world is our creation. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 31  Sensemaking in Organizations How can I know what I think Karl Weick until I see what I say? Levels of Organizational Sensemaking Need for coping triggers sensemaking processes Intra-individual level: Identity negotiation Perception of Self Perception of one‘s role in the (social identity) organization (professional identity) Inter-subjective level: Negotiation of roles and expectations subordinates, supervisors, Image of others about colleages, stakeholders Role and Self Social/abstract level: structures, processes, behaviors accordint to standardized rules, norms, and culture 32 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 32  Homo Autonomous? Overview of working Generations http://fourhooks.com © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 33  Postmodern Organizations – Soulful workplaces Life is a journey of unfolding instead of pre-planned goals and routes The internal yardstick to grow into true nature and work toward your calling A life well-lived breeds success & profit, not vice versa Focus on strengths, not on failures and what’s wrong Wisdom beyond rationality “Both-and” thinking instead of “either-or” Integrating mind-body-soul Striving for wholeness with Self, others, life & nature Source: Frederic Laloux, Reinventing Organizations, 2014 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 34  Postmodern Organizations and human nature Motivation and leadership theories focus on the empowerment of employees, motivation is achieved through purpose, Management tools: stakeholder model, value-driven culture, distributed leadership, self-organization © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 35  Basic assumptions about human nature 1. The patronized employee until about 1900 rational dimension 2. Economic man (homo oeconomicus) about 1900-1930 social dimension 3. Social man about 1930-1950 psychological 4. Self-actualizing/complex man from about 1950 dimension cultural dimension 5. Sense-making man from about 1980 political dimension 6. Homo autonomous from about 1990 7. Homo obsoletus ? from about 2020 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Homo Obsoletus? Yuval Harari (2016): Homo Deus, a brief history of tomorrow © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 37  Change of HR-Role Personnel Personnel/HR Service Broker Administration Management Provider Legality Satisfaction Goals Labor productivity Economic efficiency Self-actualization Match-Maker Guiding Bureaucracy/Administration Market/Competition Individual/Well-being Creativity/Plurality Principle Sensemaking Man Human Nature Economic/Rational Man Social & Complex man Generation Y & Millennials Homo Autonomous Law, Engineering & Business Administration Postmodernism & Theories Administrative Sciences Behavioral sciences Constructivism critical theory Environment Static Dynamic Complex and dynamic Turbulent & fragmented Driving forces Legislator (Law) Competition Stakeholders Individuals Instructions and regulations Performance incentives Purpose, Distributed Participation, Culture & Instruments Hierarchy, Command & Control Planning and Management by Storytelling authority, struggle over Formal qualification Objectives, Team work meaning & power © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 38  Functions of HRM Qualitative & Quantitative Planning Leadership & Recruiting & Motivation Selection Incentives & Staffing & Remuneration Assignment Development & Training © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 39  HR Planning Ensures that the organization has the right number of people with the right skills at the right place to meet forecasted demands = © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 40  Peer Instruction – Today’s Question Are the following statements true or false? Why? a) For planning the quantitative human resources demand, analytical methods (time and motion studies) and statistical methods (based on empirical data) are similar to summative methods, which predict HR demand through personal judgment and experience. b) Organisations should seek a person-job fit, i.e., when a worker’s skills profile meets the job profile requirements. Person-team fit and person-organization fit are less relevant. c) For planning the qualitative staff requirements, an in-depth task analysis allows the development of job & skill profiles and identifying skill gaps in existing staff. Skill gaps should be closed by recruiting appropriately skilled staff. d) Disruptive technological shifts (e.g., Internet, AI, robotics, etc.) significantly change worker skill demands. Digital literacy and cognitive skills become more critical, while manual and personal skills become less important. e) Generative AI will leverage human skills and experience and not replace humans in the workforce. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Looking out for best employees? Best Fitting employees employees Person-Job Fit: knowledge, skills and abilities Person-Organization Fit: values and needs Person-Workgroup Fit: Interpersonal attributes and professional norms Werbel & Gilliland, 1999 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 42  Human Resource Planning QUANTITATIVE: HOW QUALITATIVE: WHICH TIME: WHEN? LOCATION: WHERE? IN MANY PEOPLE? QUALIFICATIONS? DEPARTMENTS,...? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 43 Eva HR Zedlacher Management and Leadership Process of Human Resource Planning How many employees with which qualifications are required for current tasks, at which time, and at which place? Identification of future requirement Recruitment Development Identification of Release current stock How many employees with which qualifications are currently available or will be available in the future? Source: Adapted from Holtbrügge 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 44  Example: Workforce Planning at Siemens − Workforce planning at Siemens (UK) involves obtaining answers to three fundamental questions: What do we have? What do we want? How do we fill the gap? − At the highest level, the corporate people strategy gives the context for workforce planning, the key objective of which is to ensure that Siemens has the right level of capability to execute its business strategy. In essence, the process of workplace planning is one in which the business strategy converges with the people strategy. − The workforce planning process starts with a review of the current workforce derived from SAP data (..) and onto this is overlaid the likely attrition. Future requirements are identified by means of a dialogue between HR business partners and business unit managers. This enables the skills in each job family to be matched to business initiatives and provides the basis for the workforce forecast. Source: Adapted from Armstrong, 2009 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 45  Human Resource Planning Business Plan: Forecast of Activity Level Analysis of requirements: Scenario Planning quantitative (numbers) & qualitative (skills) Demand forecast Supply forecast Forecasting Models = Forecast of future requirements: Deficit or Surplus ➔Recruitment ➔Promotion ➔ Training Personal und Führung Action ➔Downsizing ➔Retention ➔ Flexibility Planning Source: adapted from Armstrong, 2009 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 46  Example: Forecast of Future Demand Forecast 1 Current number employed 70 2 Average Annual level of turnover 10 % Expected drop-outs during year -7 3 Balance at end year (Supply Forecast) 63 4 Number required at end year (Demand Forecast) 75 5 Number to be hired during year 12 Source: Armstrong, 2009 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 47  Demand forecasting Methods: Business plan Summative methods: based on experience, managerial judgment (top-down or bottom- up) Analytical methods = work study technique: Forecasting Model tasks and time studies; process analysis, the time needed for the activity, planned output. Rosenkranz formula: combines summative and analytical methods Human Resources Statistical models: multiple-nonlinear Demand regression models, trend analysis Source: adapted from Holtbrügge, 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 48  Summative Methods o Key ratios: e.g. professor to student ratio; nurse to patient (beds) o Span of control: number of employees/supervisor, e.g. ideal span = 6 o Benchmarking: compare with other companies in the same industry o Expert survey: simple or Delphi, e.g., survey with department heads Source: Holtbrügge, 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 49  Example: Higher Education Source: Statistik Austria © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 50  Analytical Method Basic Structure: one type of operation m PB: Staff demand mt m: Number of operations = average frequency PB= T of the operation (planned output) t: Time required for operation T: Working time per person Different task categories: several types of operations mi PB: Staff demand mi: Number of operations of category i ti: Time required for operation of category i T: Working time per person Source: Holtbrügge, 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 51  Rosenkranz Formula (With Correction) PB: Staff demand (Personalbedarf) mi : Number of operations of category i ti: Time required for operation of category i T: Working time per person tv: Tasks without timing (miscellaneous) Necessary delay allowance f NV = product of - forgotten tasks fNAZ = 1,3 - fatigue and recovery fEZ = 1,12 - downtimes fAQ = 1,1 Actual delay allowance f TV = quotient of the target handling time and actual handling time) Source: Holtbrügge, 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 52  Example Call-center Mobile Operator 37 employees à 170 hours / month – Calls: 9.300/month, processing time 5 minutes – Emails: 2.000/month, processing time 15 minutes – New registrations: 1800/month, processing time 30 minutes – Contract terminations: 400/month, processing time 3 hours – Special cases: 50/month, processing time 5 hours – 200 hours miscellaneous activities Staff demand: Target handling time = 9.300*1/12+2000*1/4+1800*1/2+400*3+50*5 = 3625 Necessary delay allowance fNV = 1,3*1,12*1,1 = 1,6 Actual delay allowance fTV = 37*170/3625 = 1,74 PB = 3625/170 * 1,6 + 200/170 * 1,6/1,74 = 35,20 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 53  Statistical methods      Staff requirement       P = i xi  Influence(s) Source: Holtbrügge, 2007 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 54  Example: Regression Analysis 1. Statistically identify historical and significant predictors of workforce size Example: FTEs = a + b1 sales + b2 new customers 2. Predict future HR requirements, using equation (a) FTEs = 7 + 0.0004* sales + (b) Projected sales = $1,000,000 (c) HR requirements = 7 + 400 + 0.02 * new customers Projected new customers = 300 6 = 413 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 55  Advantages and Disadvantages of the Methods Summative Methods Analytical Methods Statistical Methods General experience Exact Empirical relation and standard values Time-and cost- Coefficients are Simple consuming estimated In addition to Coefficients come statistically economic goals, other from knowledge Uncertainty is taken (qualitative) objectives about production into account (processes) can be considered Requires historical Deterministic Based on past data performance Focused solely on economic efficiency © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 56  Qualitative Staff Requirement Which skills/knowledge/abilities are essential for a particular job? How can essential skills/abilities be defined? (How) can they be acquired through training? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 57  Skills of the Future © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 58  Qualitative Staff Requirement Job Analysis − produces systematic information about jobs, including the nature of the work performed, the equipment used, the working conditions, and the position of a job within the organization − Methods: interviews, questionnaires, critical incidents technique Job Description − contains an outline of the job, the tasks involved, the responsibilities, and the resources available − the basis for HR practices as well as for the determination of remuneration and training − “flexible” job descriptions © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 59  Generative AI Enhancement or Replacement of Human Skills? Quelle: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work Quelle: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Quelle: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work Efficiency increases up to 50 % with Gen AI Quelle: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work 61 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Who benefits most from GenKI? Low skilled and non-experienced workers benefit most! High skilled workers and experienced workers do not benefit from GenAI ➔Consequences? Source: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work © Koeszegi Quelle: Brynjolfsson, Li & Lindsay (2023) Generative AI @ Work 62 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Example: Productivity Type A: High productivity Type B: Low productivity Turnover: € 100,000 / month Turnover: € 70,000 / month Wage: € 9 / hour Wage: € 6 / hour Wage / month: Wage / month: 9 * 8 * 20 = 1,440 6 * 8 * 20 = 960 Employees for 700,000 Turnover: Employees for 700,000 Turnover: 700,000 / 100,000 = 7 700,000 / 70,000 = 10 Total wage costs: Total wage costs: 7 * 1,440 = € 10,080 10 * 960 = € 9,600 100,000 70,000 = 11,111 < 11,666 = 9 6 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Summary HR Planning Identification of future requirements vs. Identification of current stock and qualifications Summative, analytical, and statistical methods (advantages and disadvantages) Productivity vs. Efficiency Disruptive technological changes © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 64  Recruitment process of attracting a pool of candidates for a vacant position © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 65  Recruitment & Selection Where can we find suitable employees? How can we attract suitable candidates? How is it possible to identify unfitting applications while limiting hiring expenses for the organization? How is it possible to discourage unsuitable candidates from applying? How can we find out whether applicants are suitable? Should we offer a high or low starting salary? Should there be probation? If so, what should be the salary during that time? How much should the salary be increased subsequently? Should we offer performance-based wages (piece rate) or time wages? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 66  Peer Instruction – Today’s Question Are the following statements true or false? Why? a) For job seekers, the salary offered is more important to the attractiveness of a job than the perceived fairness of the recruiting process and the perceived suitability for the job. b) Stereotypes can not only influence recruiters but also discourage potential applicants from applying for a job. Already the wording of the job advertisement may trigger stereotypes and unwanted self-selection processes. c) Screening methods (screening candidates to identify hidden characteristics) are more effective than signaling methods (relying on self-selection mechanisms) in finding suitable candidates and reducing information asymmetry between employers and applicants. d) Human recruiters are very often biased against other humans. AI based recruiting software uses historical data to predict future behavior and therefore helps avoid human bias in the recruitment process. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 67 & Leadership 67  Targeting Intrinsic Motivation in Job Ads Antarctica Expedition – Recruitment: Sir Ernest Shackleton, 1914 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 68  The Hiring Funnel Source: Bogen et al (2018): Help Wanted, p. 13 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 69  Qualitative Staff Requirement Which skills/knowledge/abilities are necessary for a particular job? How can necessary skills/abilities be defined? Can they be acquired through training? Job Analysis … produces systematic information about jobs including the nature of the work performed, the equipment used, the working conditions and the position of the job within the organization Methods: interviews, questionnaires, critical incidents technique Job Description … contains an outline of the job, the tasks involved, the responsibilities, and the resources available basis for HR practices as well as for the determination of remuneration and training “flexible” job descriptions © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 70  Competence Models Person- Job Fit Person – Team/Org. Fit Which competences are Which competences are necessary given the necessary in the workgroup and job description? organization? Job description Applicant KSAO* Job KSAO* FIT *Knowledge, Skills, Abilities and Other Characteristics © Univ.Prof. Dr. Sabine Köszegi Eva Zedlacher VO Human Resource Management71& Leadership 71  Talent Search Contact direct indirect Direct recruitment Head hunter passive Campus recruiting Job centres (schools, colleges, Employee referrals Applicant universities) Job advertisements Job centres active Internet (digital Recruitment agencies recruiting) Executive search Casual callers agencies © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 72 &72Leadership 72  How to Find Suitable Employees Employees (candidates) o Employers (companies) o Knowledge, skills & abilities o Requirements of the job o Willingness to use these/motivation o Long-term perspective/prosperity Asymmetric information © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 73 &73Leadership 73  Attraction of Talent GOAL: Attract the “right” talents & keep unsuitable candidates away as efficiently as possible Two key ways to increase self-selection and reduce asymmetric information: 1. Screening (e.g., interviews, probation time, piece work) Efficient if unskilled workers have little chance to stay undetected during probation 2. Signaling (e.g., credentials, work samples, etc.) Efficient if credentials are easy to gain for skilled workers and difficult for unskilled workers © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 74 &74Leadership 74  Job previews/Job advertisments ▪ The more (target group-specific) information on the job and the organization is provided, the more credible the job is perceived ▪ Include information on the Company and USP (Unique Selling Proposition; cf. Employer Brand) ▪ Goals ▪ Values ▪ Fringe Benefits ▪ Include information on the position ▪ Main tasks of the job (formulate actively) ▪ Define: Which KSAOs are „must haves“ (have to be visible), and which are „nice to have“? ▪ Include the application procedure, application deadline, start, and contact details. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 75  Digital Search Examples: Online resumes, social media, webcam interviews Advantages: A greater pool of candidates Fast Inexpensive (and longer presence) (Worldwide) dissemination possible Information on the company at hand for the applicant Establishment of a professional HR-website Risk: Type and number of applicants? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 76  Search through Social Networks Survey of 300 hiring professionals showed: 91% of surveyed employers use some sort of social Networks to evaluate applicants 69% have reported rejecting an applicant because of unacceptable profile content SN allow the exchange of more information and greater interaction between companies and candidates Privacy rights? Bias through photos etc.? Source: Rebelo dos Santos et al., 2017 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 77  E-Recruiting in Germany … © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Online Recruiting – Gallup Survey © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 79  Employer Branding Development of a positive “brand image” of the organization Building on any aspect of the working experience that is distinct from that offered by other organizations competing in the same broad applicant pool Possible USPs − high pay − generous benefits package − flexible working arrangements − a friendly and informal atmosphere − strong career development potential − job security Torrington, Hall & Taylor, 2008, p. 159 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 80 &80Leadership  Employer Branding Data from Universum’s Employer Branding Insights 2021 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Employer Ranking 2019 (Universum) Engineering students: Business students: 1. Google (Non-mover) 1. Google (Non-mover) 2. Microsoft (Non-mover) 2. EY – Ernst & Young (3rd in 2018) 3. Apple (Non-mover) 3. PwC – PricewaterhouseCoopers (6th) 4. BMW Group (Non-mover) 4. Deloitte (Non-mover) 5. IBM (7th in 2018) 5. Apple (7th in 2018) 6. Siemens (8th in 2018) 6. KPMG (5th in 2018) 7. Intel (5th in 2018) 7. Goldman Sachs (2nd in 2018) 8. Samsung (9th in 2018) 8. Microsoft (10th in 2018) 9. Amazon (10th in 2018) 9. JP. Morgan (8th in 2018) 10. General Electric (6th in 2018) 10. McKinsey & Company (9th in 2018) Source http://universumglobal.com/rankings/world/student/2019 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 82  What influences job-organization attraction? Meta-analytic results: factors influencing job-organization attraction (i.e. job attraction, personal attraction to the prospective organization & attractiveness of the organization in general) Job characteristics r=30 (e.g. pay, type of work,..) Organizational characteristics r=37 (e.g. work environment, org. image, location,…) Recruiter behavior r=29 Job-organization r=40 Justice perceptions of recruiting process attraction r=45 Perceived fit (person-organization fit & person-recruiter fit) Hiring expectancies r=33 Recruiter demographics Perceived alternatives Chapman, Uggerslev, Carroll, Piasentin & Jones, 2005; p. 934 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Pre-Screening Formal requirements Application documents − Motivation letter − Curriculum vitae − Certificates (education & Training, former employments) Questionnaires © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Job References of Former Employers ✓ Verification of the facts (time of employment, position, etc.) ✓ Reporting relationship with the candidate ✓ Reason for leaving ✓ Key responsibilities of the candidate in his/her most recent position ✓ How many reporting staff did the candidate manage? Their roles? ✓ Candidate’s most important contributions to mission and goals ✓ Candidate's relationships with coworkers, reporting staff, and supervisors ✓ Attitude and outlook of the candidate ✓ Candidate's productivity, commitment to quality and customer orientation. ✓ Most significant strengths / weaknesses ✓ Overall assessment Questions that might be asked by reference seeking persons: ✓ We are hiring this candidate to (job title or quick description). Would you recommend him/her for this position? Why or why not? ✓ Would you rehire this individual? Why or why not? ✓ Are there additional comments you‘d like to make? Is there a question I should ask that I may have missed? © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & 85Leadership 85  Screening and Different Dimensions of Bias Interpersonal bias: e.g., prejudices, stereotypical ascriptions, liking (implicit & explicit) Bias in how people treat each other based on stereotypes or prejudices, either knowingly or unknowingly. Institutional bias: policies and workplace cultures benefit certain workers and Rules and practices in workplaces or organizations that disadvantage others. unfairly help some groups and harm others. Systemic (structural) bias: patterns of disadvantage stemming from contemporary and historical legacies (racism, unequal economic opportunity, segregation); e.g., access to education systems; OECD reports show that education is inherited to a great extent (children of academics are much more likely to become an academic too) Long-standing inequalities in society, like unfair access to jobs or education, that keep some groups at a disadvantage. The intersection of multiple identities (e.g., a gay, paraplegic Arab, a young white upper-class woman, etc.) © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Pre-Screening & Implicit Bias © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Pre-Screening & Implicit Bias The person knows they are being BIASED Explicit bias: https://implicit.harvard.edu/implicit/demo/selectatest.html Discrimination is Implicit Association Test: Gender & Career blatant: e.g., „Women Distribution: are not suitable for being construction engineers!“ Unconcionous Implicit bias Attribution of criteria to gender roles as well as different evaluations of criteria © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & 88Leadership 88  Traits attributed to men and women ildergebnis für implicit bias 71 % of the traits that are used to describe a „typical man“ overlap with the traits used to describe a „good manager“, while only 10 % of the traits used to describe a „typical woman“ overlap with the traits used to describe a good manager. Source: unconscious bias at work © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 89  Double-Bind: Hillary Clinton in „Situation Room“ „The Situation Room“ Photo source: Wikipedia © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 90  Pre-Screening – With Artificial Intelligence Source: HireVue © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 91 & Leadership  Pre-Screening – Data Driven Predictions © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management 92 & Leadership  The Unilever Challenge ➔ Outdated processes rooted in paper, phone screens and manual assessments. 4-6 months to shift through 250,000 applications to hire 800 individuals. o To meet rapidly changing and dynamic consumer demands, Unilever recognized the need to attract talent from around the globe, appealing specifically to the millennial workforce. Melissa Gee Kee, Strategy Director to CHRO and Global HR4HR Director, explains, “Our executives expect that 60 percent of our workforce to be Millennials by 2020. With this in mind, we needed to engage with this generation through innovative technology that is engaging, dynamic and able to move quickly.” o Unilever's recruitment transformation began with its Future Leaders Programme, a highly selective programme for recent college graduates that selects 800 individuals from a pool of 250,000 applicants. o Through HireVue Assessments, artificial-intelligence was able to filter up to 80% of the candidate pool, using data points including facial expressions, body language and keywords, ultimately surfacing those candidates that are most likely to be successful at Unilever. Source: www.hirevue.com © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 93  Exemplary AI applications in recruiting − Analysis of data from social media to pre- select suitable candidates according to qualifications, values, salary expectations, etc. − Analysis of application videos and texts for selection into the shortlist − Analysis of visual material and videos to determine so-called "inner states" such as emotions, motivation, honesty... − Analysis of behaviour in serious games to predict future performance behaviour Source: https://recfaces.com/articles/emotion-recognition#14 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management94& Leadership  Recruiting Trends – AI Technology Study "Recruiting Trends 2020" by the University of Bamberg 0 % of companies use a robot recruiter - fully automated recruiting 3 % of companies use HR chatbots to answer inquiries from applicants 13% of companies use recommender systems to identify suitable candidates 9% of companies have digital screening systems to automatically match applications with the job profile Quelle: https://www.haufe.de/personal/hr-management/recruiting-die-mitarbeitergewinnung-wird-digitaler_80_524598.html © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  The Black Box Problem of Algorithms © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Challenge of BIAS in AI SYSTEMS An analysis of 133 AI systems from different industries in Europe shows that every second system has a gender bias and every fourth system has both a gender & a racial bias Source: Smith et al. 2021 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & 97 Leadership  Why AI is increasing inequality © Koeszegi 98 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  BIAS in AI-Systems A study by Bloomberg (2024) reveals strong racial and gender bias of OpenAI’s GPT-3.5 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  „Berufsinformat“ in Austria I am a 25 year old man and have a high school diploma. What professions would you recommend? Based on your high school diploma and your age of 25, there are various career opportunities open to you. Based on your interests and skills, professions such as software developer, restaurant specialist, retail salesperson, warehouse worker, production assistant, cook, {...} could be of interest to you. These professions were in particularly high demand in Austria in 2022 and could, therefore, offer good career opportunities... I am a 25 year old woman and have a high school diploma. What professions would you recommend? Your high school diploma opens up many career opportunities for you. You could work in health care, IT, office management, trade and sales, beauty care, or the creative, design, fashion, and design industries based on your interests. Quelle: https://futurezone.at/digital-life/chatbot-ams-chatgpt-berufsinfomat-kritik-sexismus-stereotype-kosten-mangel/402729334 100 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Important Conclusions − Recruiting consists of a series of cumulative decisions for which AI systems are used in different roles; bias and distortions can accumulate throughout the process. − Automated decisions can be used at all stages of the hiring funnel. − AI systems reflect institutional, systemic, and socio- cultural values and are not necessarily more "objective" or "fair." − Developing transparent, reliable, fair, and effective AI screening systems requires high-quality data and expert knowledge. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Acceptance of AI Recruiting − Ethics: Privacy, autonomy, fairness and non- discrimination are fundamental rights; − Trustworthiness: lack of transparency & explainability make systems untrustworthy. − Human oversight: responsibility and autonomy are undermined − Sustainability & Learning: Implementation of AI decisions not necessarily successful © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership  Selection Selection: = The technique of choosing a new employee from among the available candidates. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 104  Assessment – Recruitment Interview Google Pics, access 10/2013 © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 105  Peer Instruction – Today’s Question Are the following statements true or false? If so, why? a) The main purpose of assessing applicants is to predict their future behaviour and performance BEFORE they start work. The validity of the predictive methods is less important as long as they are reliable. b) Even if recruiters are aware of their cognitive biases, they cannot eliminate them completely. The best strategy to avoid human bias is to use objective testing methods such as standardised personality tests, simulation games, predictive analytics, etc. c) Unlike personality tests, ability and concentration tests are more accurate at predicting future performance. They are also less susceptible to gender or race discrimination. d) Simulations and serious games are increasingly used in recruitment processes. However, the problem is that candidates are quickly immersed in the game/simulation and therefore have to show their true selves. In addition, these methods tend to favour candidates who are familiar with the genre. e) Specific incentive systems (performance-related pay and probationary contracts) are not only efficient in attracting only qualified candidates, but also result in comparatively lower wage costs for the company. © Univ.Prof. Dr. Sabine Köszegi VO Human Resource Management & Leadership 106  Criteria for a good selection process High validity Correlation between the selection criteria (e.g. grades) and the expected performance of the candidate (e.g. qualifications, achievement potential, motivation). High reliability Selection methods produce the same results at different times and by different raters.