HRM Notes PDF

# HUMAN RESOURCE MANAGEMENT The effective management of people at work. ## HUMAN CAPITAL The sum of people's skills, knowledge, experience, and gentle attributes, such as the capacity to develop and innovate. ### Human Capital Categories 1. **Intellectual Capital** - skills/competences, intangi...

# HUMAN RESOURCE MANAGEMENT The effective management of people at work. ## HUMAN CAPITAL The sum of people's skills, knowledge, experience, and gentle attributes, such as the capacity to develop and innovate. ### Human Capital Categories 1. **Intellectual Capital** - skills/competences, intangible resources 2. **Social Capital** - knowledge generated by networking in/out the organization 3. **Organizational Capital** - knowledge detained by the organization ### Human Capital Advantages * Gives an organization value and rareness * Creates inimitability which helps translate into a competitive advantage ## HRM GOALS * High performance * Employee well-being ## HRM CHALLENGES * Internationalization of business * Important demographic trends * Technological developments * Managing change * Delivering sustainable performance * Artificial intelligence * Traditional HRM vs Strategic HRM ### Traditional HRM HRM is a responsibility for the specialists . ### Strategic HRM People management is the responsibility of any individual who is in direct contact with workers/line of managers. ## PERSONNEL MNGT vs HRM | PERSONNEL MNGT | HRM | |---|---| | Employee focused | Business partner | | Operational & administrative | Strategic | | Reactive | Proactive| | Fragmented & ad hoc policies | Integrated and coordinated policies and practices | | Focus on performance measurement | Focus on adding value | ## HRM: The Human Factor In organizations, the behavior of individuals depends on a wide range of factors. ### Individual Differences * Personality traits * Abilities and skills * Attitudes * Motivational orientations * Behaviors and cultural values ## ATTITUDE A characteristic way of thinking, feeling and intention to behave in relation to an object, idea, person, or group. ### Attitude Components * Cognitive * Affective * Behavioral ### Attitudes Lead to Behaviors * Job satisfaction affects attendance, performance, and organizational citizenship. * Job dissatisfaction leads to absenteeism and counterproductive behaviors. ### Job Satisfaction A pleasurable or positive emotional state coming from the appraisal of one's job and job experience. ## JOB SATISFACTION Job satisfaction leads to job performance. "Happy workers are productive workers!" ## TRAITS Characteristics that we are born with (normally they don't change). They can move from a high to a low score. ### The "Big Five" Personality Traits | Trait | Low Score | High Score | |---|---|---| | Openness | Practical/Conventional | Curious, wide range of interests, independent | | Conscientiousness | Impulsive, careless, disorganized | Hardworking, dependable, organized | | Extraversion | Withdrawn, quiet, reserved | Seeks adventure, outgoing warm | | Agreeableness | Critical, uncooperative, suspicious | Helpful, trusting, empathetic | | Neuroticism | Calm, even-tempered, secure | Anxious, unhappy, prone to negative emotions | ## Understanding Individual Personality Personality/trait theory was developed to better understand an individual's personality. ### Machiavellianism * Pragmatic * Emotional distance * Ends justify the means * Manipulate more ### Narcissism * Exaggerated sense of self-importance * Demands excessive admiration * Arrogant * Have distorted views of themselves ### Machiavellianism Workplace Considerations Make good employees in jobs requiring negotiation skills/offering significant rewards for success. Highly productive individuals. ### Narcissism Workplace Considerations Often considered less effective in tasks. Tend to be selfish and exploit others. Talk bad about others. ## RISK AVERSION/PROPENSITY * Take risks and make faster decisions. * Don't work in a slow-paced environment. ## SELF MONITORING * Ability to adjust behavior to external situational factors. * Highly sensitive to understanding environmental signals. * High adaptability. ### Self Monitoring Advantages * Have excellent performance reviews. * More flexible in their careers and receive more promotions. ## PROACTIVE PERSONALITY * Show initiative. * Create positive changes regardless of obstacles. * More likely to achieve success in careers. ### Proactive Personality Advantages * More likely to be seen as leaders. * Demonstrate persistence in the face of obstacles. ## PERSONALITY TYPE A/B * **Type A:** Competitive/in a hurry, impatient, multitasking, unappreciated leisure time, subject to deadline pressure (stress), high motivation, aggressiveness. * **Type B:** No feeling of urgency/impatience, appreciates leisure time. ## MOTIVATION An internal state that energizes, directs, and sustains an individual's behavior towards certain goals. ### Motivation Theories * **Content Theories:** What drives individuals? Needs, desires, motives. * Maslow's Hierarchy of Needs * Herzberg's Two-Factor Theory * **Process Theories:** "How's" of motivation. Psychological and behavioral processes that influence motivation: * Expectancy Theory (Vroom) * Equity Theory (Adams) * Goal-setting Theory (Locke & Latham) ### Content Theory - Maslow's Hierarchy of Needs * 5-stage pyramid of human needs. * As we satisfy basic needs, we start looking to satisfy higher order needs. * Once a need is satisfied, it is no longer a motivator. ### Content Theory - Two Factor Theory * "What do people want from their jobs?" * The opposite of satisfaction is not dissatisfaction. ### Process Theory - Equity Theory * Motivated by a sense of fairness, resulting from social comparisons. * Compare the inputs and outputs * Equity: our ratio is equal to that of relevant others. ### Process Theory - Expectancy Theory * Motivation is an outcome of how much an individual wants a reward (valence). * The effort will lead to expected performance (expectancy). * Belief that the performance will lead to reward (instrumentality). ## GOAL SETTING Specific (clear and detailed goals) Measurable (monitor progress and assess if goals have been achieved according to criteria) Achievable (challenging but not impossible goals) Realistic (relevant goals, meaningful to individual's life) Timed (define the start and end date to create a sense of urgency.) ## AMO MODEL OF PERFORMANCE **Ability + Motivation + Opportunity = Individual Performance** * Ability = KSA (Knowledge, Skills, Abilities) * Motivation = Process and Content theories * Opportunity = Individual Environment ### AMO Model Breakdown Employees have to possess the necessary skills, they need appropriate motivation, and employers have to offer them the opportunity to participate. ## REVOLUTION & HAM * **Diversity Management** * **Values of participation and self-determination**. * **Less risk of exclusion/discrimination**. ### REVOLUTION & HAM Key Focuses * Workers eager for knowledge/updating - more adverse to traditional models of knowledge sharing and development. * Workers always connected - increasing virtualized and distant relationships. * Shared partnership and mutual development - leadership more anchored in model and example. Less in hierarchy, power, or expertise. ## CURRENT TRENDS ### Outsourcing * Companies hire other companies to perform certain services. * **Advantages**: More flexible for the company, can provide human capital at lower fixed cost, allows management of people to be centered on assets linked to activities that are essential. * **Disadvantages**: Loss of control over the process/result, companies providing the service aren't involved with the contracting company, possible threat to stability and effective job creation. ### Offshoring Strategic displacement of a company's activities from one place to another to obtain gains through the reduction of production costs. ### Offshoring Advantages * Reduction of production costs. * Increased wage productivity. * Increased employment rates at the implementation place. ### Offshoring Disadvantages * Greater external dependency. * Decline in employment rate in home country. * Offshore outsourcing: threat to stability and effective job creation. ## STEREOTYPE * Learned processes hard to change. * Based on personal experience, education, cultural environment. * Activated in our brains when we draw conclusions/judge people (cognitive based). ## PREJUDICE * Often based on stereotypes. * Lack of empathy based on exaggerated/flawed generalizations. * Displayed through emotions (anger, disgust, hate, affection based). ## DISCRIMINATION When someone belonging to a certain social *group is treated less favorably due to characteristics associated with that group*. ### Types of Discrimination * Direct: candidate favored/disadvantaged in a selection process for being X. * Indirect: neutral-seeming practices put certain people at a disadvantage. * Based on behavior. ## DIVERSITY Recognizing that visible/non-visible differences between individuals create a productive environment where everyone feels valued, and each person's abilities are fully utilized. * Superficial - age, race, disability. * Deep/Not observable - beliefs, attitudes, hidden characteristics, sexual orientation. ## EQUEITY Ensuring that every person is in equal conditions to others in the organization. ### Equity Advantages * Different perspectives. * Increased creativity. * Better decision-making. * Increased engagement. * Reduced turnover. ## INCLUSION The degree to which a worker feels they are a valued member of the work group, receiving treatment that meets their needs for belonging and uniqueness. ### Inclusion Advantages * Fairness in treatment promotes job satisfaction and organizational commitment. * Increases the sense of belonging to the organization, improves talent retention, and stimulates productivity. ## Ways to Reduce Discrimination in Recruitment * Blind reviews * Practical interviews * No photos on CV ## HRM & SUSTAINABILITY Organizational sustainability is the ability to pursue its objectives, creating value and integrating economic, environmental, and social challenges into its action strategies. ### Levels of Sustainability: * Environmental (related to the planet). * Social (society issues). * Strategic/Economic (long-term profits). * Psychological. ### Sustainable HRM Evolves Around Issues Like: * Showing sincerity to employees. * Providing decent work environment conditions. * Providing development opportunities. * Alert to employee's physical/psychological well-being at work. ### HRM Contributes to Organizational Psychological Sustainability by: * Providing workers with values and skills that allow them to act and transform the work project (job crafting). * Creating conditions for the individuals to invest in the organization/job. * Fostering conditions for worker's autonomy, decision-making, and entrepreneurship. * Ensuring individual organizational conditions for lifelong learning. * Fostering cohesion, development through diversity and collaboration (ethical management). ### Organizational Commitment to Workers * Organizations have to ensure: * Workers' employability * Work-life balance * Individual responsibility * Sustainable careers.