Business Administration 4: Human Resources Management 2024 - ISM PDF

Bachelor of Science – International Management (English Trail) Business Administration 4 Human Resources Management (B4-1) Winter Semester 2024 M. Schlesinger (Berlin), M. Knappstein (Dortmund), F. Nickel (Frankfurt), A. Sinha (Hamburg), J. Reay (München), J. Lang (Stuttgart)...

Bachelor of Science – International Management (English Trail) Business Administration 4 Human Resources Management (B4-1) Winter Semester 2024 M. Schlesinger (Berlin), M. Knappstein (Dortmund), F. Nickel (Frankfurt), A. Sinha (Hamburg), J. Reay (München), J. Lang (Stuttgart) ISM 2024 1 Imprint The use of this script, whether in full or in part, outside of the ISM or ISM events is prohibited without the prior approval of the university. The author(s) is (are) responsible for the contents of this script. These scripts may not be cited in a scientific publication. ISM International School of Management GmbH Otto-Hahn-Str. 19 44227 Dortmund www.ism.de ISM 2024 2 Human Resources Management Module & Course & Exam Module: Principles of Organizational Theory and Organizational Structures in enterprises as well as Human Resources Management. Both courses are tought on the basis of „Introduction to Business Studies.“ The focus of the lectures is both on theory and its implementation in companies. Course: Human Resources Management introduces students to HR management and covers the basic concepts of HRM in companies. The class also explores how an HR strategy contributes to and influences the implementation of the company‘s strategy. Students are introduced to HR tools and concepts along the employee life cycle starting with HR planning, staff attraction, assessment, deployment, development, retention, and finally termination and transition. The class also offers the basics of labor law in English. Exam: Written exam (120 minutes) covering both HRM and Organization in equal portions. ISM 2024 3 Literature Recommended: Cascio, W.F. (2013): Managing Human Resources. Boston: McGraw-Hill. Mathis, J.; Jackson, J. & Valentine, S. (2014). Human Resources Management. Boston: Cengage Mello, J.A. (2010): Strategic Human Resources Management. 3rd ed., Boston: Cengage Additional Literature: Daft, R. (2015). Organization, Theory, and Design. Boston: Cengage. Torrington, D., et al. (2014): Human Resources Management. 9th ed., Harlow: Pearson. Wilton, N. (2016): Human Resources Management, 3rd ed., London: Sage ISM 2024 4 Human Resources Management Content 01 Human Resources Management 04 Remuneration 1.1 Nature of HR 4.1 Setting Pay 1.2 Strategic HR 4.2 Incentives, Benefits, Total Reward 1.3 Workforce Planning and Metrics 02 Resourcing 05 Transition / Exit 2.1 Recruiting 5.1 Ending the contract 2.2 Selection 5.2 Separation Management 2.3 Legal Framework of Work 5.3 Collective Labor Law 03 Performance and Talent Management 3.1 Performance Management 3.2 Talent Management ISM 2024 5 Human Resources Management 01 Human Resource Management 1.1 Nature of HR 1.2 Strategic HR 1.3 Workforce Planning and Metrics ISM 2024 6 1.1 Nature of HR Why bother studying HR? Discuss: Why is HR Management important Why should anyone in the company know about HR? Or should not? What do you think? Image: https://peopledevelopmentmagazine.com/ ISM 2024 7 1.1 Introduction Why bother studying HR? Importance of HR HR Management is important for organizations, managers as well as employees Knowing how to design maximally mutually rewarding and productive work relationships with employees is important to every manager’s success ISM 2024 8 1.1 Introduction 1) HR Management: Important for Organizations: Implementation of organization’s strategy Improvement of organization’s/company’s performance and profitability Compliance with laws and legislation Work/ employment in your HR department as a career step HR and Orga knowledge important for entrepreneurs and start-ups (if you do not want your start-up to go belly-up rather quickly) ISM 2024 9 1.1 Introduction 2) HR Management: Important for Managers and Executives: Possible challenges for managers/ executives: Keep employees highly motivated and correctly assess an employee's potential Avoid performance deficits Employee retention Legal questioning (e.g. concerning interview questions, parental leave) Responsibility of work security (Health/Safety) Development/ Training of employees Equal treatment of all employees (no discrimination) Collaboration with works council / unions ISM 2024 10 1.1 Introduction 3) HR Management/HR Department: Important for Employees: HR and managers help establish a connection with company mission, goal and purpose HR handles legal part of employment, healthcare, pay, vacation, and workplace wellbeing Source of employee development (e.g. training or deployment) Go-to for concerns with management/ colleagues Image: https://postlethwaiteco.com/possibilities-of-populism-and-employee-ownership/ ISM 2024 11 1.1 Introduction „The purpose and aim of the organisation is to make the people‘s strengths productive and their weaknesses irrelevant.“ Peter F. Drucker Peter F. Drucker (1909-2005), economist and philopspher „Without the talent of our employees, we would be an ordinary company.“ Bill Gates Bill Gates. Quit school, entrepreneur, programmer, patron, and one of the richest guys in the world ISM 2024 12 1.1 Introduction Why “Human Resource(s) Management” and not “Personnel”? Definition German: Personal = employees. Personalmanagement = ok but not great. Human Resource Management is better. English: The term personnel refers rather to the old- fashioned idea of people serving someone. However, it is still used by some institutions. The term HR is used all the time. If referring to the body of employees, “staff” can be used, especially in American English. Source image: https://janeaustensworld.files.wordpress.com/2011/01/downton-abbey-itv.jpg ISM 2024 13 1.1 Introduction Human Resources: Who is in Scope? Human Resources = All employees of a company Employees: Individuals performing work in return for financial compensation for an employer. They have a professional relationship with the employer based on an employment contract. + Blue / White Collar Employees Freelancers? Executives Temporary workers? Apprentice / Intern Subcontractors? Trainee Contingency workers? Full-time employees / part-time employees Employees on leave (parental / sabbatical) ISM 2024 14 1.1 Introduction What does the HR department actually do? What my friends believe What my parents believe What the employees that I do that I do believe that I do What the Board believes What I thought I would do What I actually do that I do in my job ISM 2024 15 1.1 Introduction What is Human Resources Management? What does it entail? – Discuss! Human resource management creates the system that acquires, motivates, develops, and retains talent and is a key source of competitive advantage. ISM 2024 16 1.1 Nature of HR The Development of HR until 1913 until 1945 until 1975 until 1995 until today in future Company Payroll office Personnel Human Strategic HR social services and staff management resources administration management Protective Professionalization Work conditions: HR controlling, (Strategic) Evidence-based function for the of administration specialized remuneration business partner, HR, agile HR, employees function within HR models to change agent, virtual HR (e.g. child labor) after circa 1970 leverage CoC/CoE, HR SSC productivity Source: Schafmann 2017 ISM 2024 17 1.1 Nature of HR Digression Living and working conditions 1815-1851 UK The shift from working at home to working in factories in the early 18th century brought with it a new system of working. Long working hours, fines and low wages were rife in the workplace. Exercise: 1. Go to: - Industry – textile factories and cool mines https://www.bbc.co.uk/bitesize/guides/zkxrxyc/r evision/2 - Living conditions - housing and food https://www.bbc.co.uk/bitesize/guides/z99m2v4 /revision/3 2. Read all chapters on life and working conditions 3. For fun: Take the test https://www.bbc.co.uk/bitesize/topics/z7vycdm ISM 2024 18 1.1 Nature of HR Digression www.bbc.co.uk/bitesize/guides/zwdqk7h/revision/1 ISM 2024 19 1.1 Nature of HR The Development of HR Digression New Lanark – HR landmark and UNESCO World Heritage Site New Lanark is a purpose-built 18th century mill village, set in a picturesque Scottish landscape, where in the early years of the 19th century, the Utopian idealist Robert Owen (1771-1858) inspired a model industrial community based on textile production. It was there that Owen first applied his form of benevolent paternalism in industry. He formulated his Utopian vision of a society without crime, poverty, and misery. New Lanark prospered under his enlightened management. The village was founded in 1785, and the cotton mills, powered by water-wheels, were operational from 1786 to 1968. At the turn of the 19th century the mill buildings formed one of the largest industrial groups in the world. The creation of the model industrial settlement at New Lanark, in which planning and architecture were integrated with a humane concern on the part of the employers for the well-being of the workers, is a milestone in social and industrial history. The moral, social and environmental values which underpinned Robert Owen's work at New Lanark provided the basis for seminal material and intangible developments that have had lasting influences on society over the past two hundred years. https://www.youtube.com/watch?v=XisMRpcKpEw (first 5 minutes) http://whc.unesco.org/en/list/429 ISM 2024 20 1.1 Nature of HR Line Function/ Leading Function vs. Distinct Functions of HR Which HR activites does a line manager perform and which HR activities does the HR deparment carry out / is responsible for? Source image: piweb.azureedge.net; static.vecteezy.com ISM 2024 21 1.1 Nature of HR 1) Line Function (Managers): Leading Function Tasks Employee placement Onboarding Training Performance Teamwork Processes, operations Labor costs Employee development Workplace atmosphere Workplace security Image: videohive.net/item/little-manager-animation-pack-2/18186679 ISM 2024 22 1.1 Nature of HR 2) „Distinct Function“/ HR department tasks – Roles in HR departments Procurement of HR instruments/ -systems Recruiting specialist Job analyst/ Compensation Manager Employment law Talent Management (Systems) Support/ Business Partner ISM 2024 23 1.1 Nature of HR HRM as Operational and Management/Line Functions Operations Management/ Line Responsible: Responsible: HR department Every manager Duties: Duties: Guidelines/ policies (e.g. Staff selection (with HR department) remuneration) Assessment and development Staff management/ Administration Performance evaluation Functional expertise (e.g. Motivation selection, processes, assessments) Health & safety Business partner for line management Compliance with laws and legilation ISM 2024 24 1.1 Nature of HR From HR department tasks to management-only tasks Responsibility of HR department Responsibility of Executives HR sole HR responsible HR responsible in Manager can only HR provides Executives act responsibility in coordination co-operation with act in support on independently with managers managers coordination with request HR Creating Granting Recruiting Application of Structuring Keeping additional pay HR tools management work employee files Deployment guidelines or service Organizational Distributing Reporting Development development Staff planning Development tasks Payroll Talent Mgmt. Staff reductions Individual Negotiating Occupational work agreement coaching safety Grading systems Pay systems ISM 2024 25  1.1 Nature of HR Example: Typical Division of HR Responsibilities: Figure 1.1 Selection Interviewing - Typical Division of HR Responsibilities: Selection Interviewing Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 26 1.1 Nature of HR Opinions on HR Departments Positive Negative Deal with the huge number of Too bureaucratic, detail-oriented, government regulations and costly and are comprised of Protects corporate assets against naysayers the many legal issues More concerned about activities than results What is your view / experience? Efforts are seen as seldom linking employee, managerial, and business performance What is your view / experience? Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 27 1.1 Nature of HR Mix of Roles of HR Departments : Past / Future Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 28 1.1 Nature of HR Roles of HR Departments (Dave Ulrich) "HR management must become a business partner for senior management – and therefore make a contribution to the value chain." Source: Ulrich 1997 ISM 2024 29 Human Resources Management 01 Human Resource Management 1.1 Nature of HR 1.2 Strategic HR 1.3 Workforce Planning and Metrics ISM 2024 30 1.2 Strategic HR ** Reminder: How strategy exerts control Typical forms of non-strategic actions Strategy-driven actions Roundabout routes Uncoordinated Stop and Sketch out the approaches in such 'muddling through' multiple routes restart a way that a define target (target system) can be reached without significant detours Source: Becker 2013: 141 ISM 2024 31 1.2 Strategic HR ** Reminder: SWOT analysis Environmental analysis Company analysis What is happening outside the What is happening inside the organization? company Assessment and definition of the starting situation Internal perspective ® Core competencies External perspective ® Strategic success factors ISM 2024 32 1.2 Strategic HR New: HR Factors in SWOT analysis Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 33 1.2 Strategic HR ** Explanation of the competitive advantages held by companies The search for attractive Determine the company's core product/market combinations competencies / strength Develop attractive Build the necessary resources product/market combinations Long-term company success Market-oriented Resource-oriented Research supports both positions and a combination of both ISM 2024 34  1.2 Strategic HR Types of Organizational Strength / Resources / Assets Human Resource (HR) Management Human Capital: Collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce Called intellectual capital to reflect following contributions of employees Thinking Knowledge Creativity Decision making Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 35 1.2 Strategic HR Organizational Core Competency Unique capability that creates high value in which an organization excels Differentiates an organization from its competitors Is a key determinant of competitive advantage HR department focus on using people as a core competency Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 36 1.2 Strategic HR ** The concept of three levels of strategy according to Hax and Majluf (1996) Corporate strategy Corporate philosophy In which business fields Defining the portfolio for the does a company want to strategic business fields be active? Business field strategy How will Competitive position in the competition be tackled in strategic business fields these business fields? Functional strategies How can the Fundamental decisions in the competition strategy various functional areas be implemented? (marketing, R&D, production, HRM, …) Source: Hax & Majluf 1996: 24 et seq. ISM 2024 37 1.2 Strategic HR Holistic HRM (Textbook-process) HR strategy Aligned with corporate Strategy/ Corporate goals strategy Mission Staff strategy HR processes Recruiting Business orientation and Ho Processes/ efficient alignment of HR lis Employment of staff processes tic workflows Employees pe HR development rso nn HR structures el Clear responsibilities ma Structures/ and reporting lines na Branches Organization ge Factories me Subsidiaries nt Organizational configuration... Instru- HR tools ments/ Knowledge Cognitive ability Standardized “tool box”; Systems Rsponsibility efficient IT systems HR information Assessment systems Employee talks payroll accounting system ISM 2024 38  1.2 Strategic HR Management of Human Objectives of Human Resource Management Capital in a company Design of formal systems in an organization to manage human talent for accomplishing organizational goals Economic aims: Appropriate staffing regarding quantity, qualification, time and place (Q-Q-T-P) Minimize staff costs Deploy performance potential of employees Social aims: Satisfy needs of employees (pay, work satisfaction, security, self-realization) Image: gallagherhrcc.com/human-resource-planning ISM 2024 39 1.2 Strategic HR ** Model for the link between HRM and performance HRM HRM HRM Behavior Performance Financial strategy practices outcomes outcomes outcomes outcomes Differentiation Selection Employee: Effort/ High: Profits (innovation) Motivation Productivity Training Commitment Quality Return on Focus Cooperation Innovation investment (quality) Appraisal Quality/ Competence Involvement Low: Cost Rewards Flexibility Organizational Absence (cost- Job design Labor reduction) citizenship turnover Involvement Conflict Status and Customer security complaints based on Armstrong 2006: 82, and Guest 1997: 270 ISM 2024 40  1.2 Strategic HR Influcences on HR Mergers & Aqcuisition New economic Innovation world order Network Organizations Shifting of centers of power Environment Scarcity of resources Terrorism Aging population Shortage of skilled labor Converging technologies „war for talent“ (NBIC-technologies) Diversity „Internet of things“ Value pluralism Robots Digitalization Center graph: Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 41 1.2 Strategic HR Dimensions of HRM: Application in Employee Life Cycle Attraction Marketing Identifi- Transition cation Exit Selection Leading- and Self- competence Perfor- Retention mance Engage- Remunera- ment tion Develop- ment Source: DGFP and CIPD; Weber ISM 2024 42 Human Resources Management 01 Human Resource Management 1.1 Nature of HR 1.2 Strategic HR 1.3 Workforce Planning and Metrics ISM 2024 43 1.3 Workforce Planning and Metrics Challenge Shortage of qualified staff; arises due to fluctuation, structural changes of environment, change in strategy, seasonal impacts. Lead time for external recruiting or internal training required. Result Early anticipation of future action à planning Necessity for staff planning in particular during start-up, growth, adjustment processes. ISM 2024 44 1.3 Workforce Planning and Metrics Definition: Workforce Planning Define the operational and HR goals of the Analyzes and identifies the need for organization and availability of people so that Collect data related to the organization can meet its Create strategies external factors for retaining and and cyclical strategic objectives. attracting talent variables affecting HR Strategic Ensures right number of human Workforce resources with the right capabilities, Planning at the right times, and in the right Collect internal places Identify gaps data and define operational needs Identify the current and forecast the future demands ISM 2024 45 1.3 Workforce Planning and Metrics HR Planning Process Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 46 1.3 Workforce Planning and Metrics Forecasting and Forecasting Methods Using information from the past and the present to identify expected future conditions Estimates The rule of thumb Judgmental Methods The Delphi technique (can you guess what that is?) Nominal groups Statistical regression Simulation models Mathematical Methods Productivity ratio Staffing ratios Short-range plans - Forecast for the immediate HR needs of an organization Planning Periods Intermediate-range plans - Project one to three years into the future Long-range plans - Extend beyond three years ISM 2024 47 1.3 Workforce Planning and Metrics Quantitative approach Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 48 1.3 Workforce Planning and Metrics Turning vision into planning Philips & Gully (2014). ISM 2024 49 4 1.3 Workforce Plannign and Metrics Qualitative approach Current and Future Job Audits Employee and Organizational Capabilities Inventory Existing jobs Employee demographics Number of individuals performing Career progression each job Reporting relationships Performance data Vital KSAs (knowledge, skills, abilities) Jobs needed to implement future organizational strategies Characteristics of anticipated jobs Anything else? ISM 2024 50 1.3 Workforce Planning and Metrics Factors influencing Forecasting Forecasting External Supply of Employees Net migration into and out of the area (Brain-drain in rural areas) Individuals entering and leaving the workforce (pension age?) Individuals graduating from schools and colleges (Gen Z) Changing workforce composition and patterns (Aging population) Economic forecasts for the next few years Technological developments and shifts (Digitalization) Actions of competing employers (Best place to Work, E-Quality) Government regulations and pressures (Equal opportunity) ISM 2024 51 1.3 Workforce Planning and Metrics Vacancy management Recruiting planning (measure to cover shortages on the internal, external and business-related labour market) Deployment and promotion planning (allocation of staff to openings by means of new hire, promotion and career path development Development (coverage of qualitative shortages with existing employees by appropriate training courses) Termination (socially acceptable reduction of surplus staff) Planning the costs connected to the individual HR Costs management measures ISM 2024 52 Human Resources Management 02 Resourcing 2.1 Recruiting 2.2 Selection 2.3 Legal Framework of Work ISM 2024 53  2.1 Recruiting Recruiting Considerations and Process Require- Labour Employ- Employer ment market Sourcing Selection Onboarding ment analysis analysis Branding Engagement Source image: www.topdraw.com ISM 2024 54 2.1 Recruiting Components and Tips for effective Recruiting 1. Know the industry and where to successfully recruit 2. Identify keys to success in the labor market 3. Cultivate relationships with sources of prospective employees 4. Promote the company brand 5. Use recruiting metrics to measure the effectiveness of recruiting efforts Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 55  2.1 Recruiting Employer Branding Definition Internally and externally promoting your Employer Value Proposition, with the objective of retaining existing and recruiting new qualified personnel Social Media Tools Web (Homepage) Internet appearance Graduate fairs Job ads Apps Contents EVP: Attractiveness of company (highlighting e.g. sunrise industry, pioneer in technical, social and ecological issues, Corporate Citizenship àImage EVP: Attractiveness of workplaces (challenging tasks, pleasant working environment, good career and further training possibilities, chance for promotion, competitive salary and employee benefits) Image: upload-magazin.de/27303-erfolgreiches-employer-branding ISM 2024 56 2.1 Recruiting ** Positioning your company – Creating an Employer Value Proposition Employer‘s Target group‘s Competition‘s EVP strength choice strength A A A B B B C C C D D E E E authentic relevant distinguishing Quelle: Prof. Dr. Armin Trost, HR Tech Europe, 24. Oktober 2013, Amsterdam ISM 2024 57 2.1 Recruiting Most important elements of employer brand for attracting candidates (respondents could select up to 3 options) (%) Source: CIPD (2022), Resourcing and Talent Planning Report 2022 ISM 2024 58 2.1 Recruiting ** Example – Employer Brand Value Proposition by DHL Interesting or boring? Source: DHL Employer Branding Handbook ISM 2024 59 2.1 Recruiting Most popular employers 2024 2024 Trendence Ranking Overall 2024 Trendence Ranking Students (Economics) *Die „Mercedes-Benz Group“ ist 2024 erstmalig unter diesem Namen getrennt von „Daimler Truck“ gelistet. 2023 wurde noch unter dem gemeinsamen Namen „Daimler / Mercedes-Benz“ abgefragt.6 Source: 2024 Trendence Ranking ISM 2024 60  2.1 Recruiting Job description – identification of tasks, Duties, and responsibilities of a job 1. Job description, consisting of - job description (major activities) and - organizational set up (place in organization, reports to, title, pay band, authority of position) 2. Experiences(work and educational), competences and skills (personal) (KSAs)determined by questioning superior, colleagues, incumbents (and sometimes also supplier and customers) 3. Indicator of what the job accomplishes and how performance is measured ISM 2024 61 2.1 Recruiting Job description: Sample content Identifier Knowledge Physical Requirements Department Professional Training Vision / Hearing Cost Center Education (college) Height (e.g. flight attendents) Employee ID Language Skills Manual skills Job description Industry experience Job grading Professional experience Cognitive skills Work conduct Social skills Analytical skills Reliability Communication Skills Language skills Diligence Delegation Decision making skills Learning Agility Role Modeling Creativity Independence Motivation Planning skills Focus Empowerment ISM 2024 62 2.1 Recruiting Job description: Basis for many HR systems and processes ISM 2024 63  2.1 Recruiting Job description: Sample requirements for Consulting Competences Function and responsibility Acquisition skills Contributions to business system Customer relations Project management Problem solving skillls Team skills Processing competence C SC M PP AP P C= Consultat, SC=Senior Consultatn, M=Manager, P= Partner ISM 2024 64 2.1 Recruiting Labor market analysis External and Internal labour market 1st Segmenting of labour market under step consideration - Feasability/availability (internal – external) - Function (skillled worker– executives) - Geography (local market – national market) - Time (status quo – forecast) - Competition (structure analysis) Analysis of Supply and Demand 2nd step - Define information requirement - Identify information sources - Evaluate data ISM 2024 65 3.2 Recruiting The [German] Equality Act (AGG) / UK: EOL / US: EEO “Anti-discrimination Act” (2006): prohibition of discrimination due to ethnic origin sex, gender religion and ideology disability age sexual identity/ sexual orientation Impact on wording of job ads, rejections, interviews, selection process: Do not write “young and flexible” …! No birth date required (illegal in some countries) No photo required (illegal in some countries) ISM 2024 66 3.2 Recruiting Digression Race ? – Jena Declaration (Univeristy of Jena, 2019) “Even today, the term ‘race’ is still frequently used in connection with human groups. However, there is no biological basis for races, and there has never been one. The concept of race is the result of racism, not its prerequisite. … Instead of definable boundaries, genetic gradients run between human groups. Among the 3.2 billion base pairs in the human genome, there is no fixed difference that separates, for example, Africans from non-Africans. To be explicit, not only is there no single gene that underpins ‘racial’ differences, but there is not even a single base pair. External features such as skin colour, which are used to classify types of people, are an extremely superficial and changeable biological adaptation to existing local conditions. Skin colour alone has frequently changed in the course of human migrations and has become darker and lighter according to local solar radiation or diet. … So, let us ensure that people are never again discriminated against on specious biological grounds and remind ourselves and others that it is racism that has created races and that zoology/anthropology has played an inglorious part in producing supposedly biological justifications. Today and in the future, not using the term race should be part of scientific decency.” www.uni-jena.de/unijenamedia/universität/abteilung+hochschulkommunikation/presse/jenaer+erklärung/jenaer_erklaerung_en.pdf ISM 2024 67 2.1 Recruiting ** HR Marketing: Channels ISM 2024 68 2.1 Recruiting ** Company perspective: Preferred recruting channels Quelle: Hays (2024): HR-Report 2024 ISM 2024 69 2.1 Recruiting Internal recruitment - Promoting from within an organization After Learning and Development activity (new skills) Transfer (horizontal or vertical) Adapting of employment contract (part-time in fulltime or temporary in permanent) Promotion because of good performance Expatriate deployment Prerequisite: Internal Talent Management System (often linked to core HR-IT system) Information on existing employees like knowledge, skills, and abilities (KSA) Employee data sorted by occupational fields, education, areas of career interests, previous work histories, and other variables Internal job posting For motivation, retention and possible legal reasons: Always promote from within! Image: https://sloanreview.mit.edu/article/betting-big-on-employee-development/ ISM 2024 70 2.1 Recruiting Business related recruitment - Promoting from close-by Type Description Re-hiring Contacting former employees and recruiting them again to work for an organization Referral Employee referral program (possibly with monetary rewards): Friends, business partners, ex-colleagues, relatives Trainee & Interns (e.g. Beiersdorf B2B) Networks Professional associations Private contacts (e.g. alumni) ISM 2024 71 2.1 Recruiting External recruitment options Employment agencies Public and private recruiting source (in some countries) – Public employment agencies Operate branch offices in cities throughout the states Do not charge fees to applicants or employers – Private employment agencies Operate in some countries for a fee collected from either the employee or the employer Headhunters Focus their efforts on executive, managerial, and professional positions – Executive search firms split into Contingency firms: Charge a fee after the candidate is hired Retainer firms: Charge a fee whether or not the candidate is successfully hired ISM 2024 72 2.1 Recruiting External recruitment options continued Labor unions Labor pool is available through a union Workers can be dispatched from the hiring hall to particular jobs to meet the needs of employers Job fairs Help bring employers and potential job candidates together School / College recruiting Cooperative programs (Students work part-time while attending school / college) Summer internships Mentoring programs Creative recruiting Can be used to generate a pool of qualified applicants quickly ISM 2024 73 2.1 Recruiting Advantages of Recruiting Channels External Internal Business- related Better selection from larger Promotion Transparency through pool reference and Retention of employee recommendation “New blood“ Transparency of performance High degree of familiarity New ideas/impulses capacity Improved work climate No staff dependencies Cost-effective Recruiting Utilization of expert Withdraw good employees Employee knows company knowledge from competition Incentive for high Networking No involvement on earlier performance (internal decisions competition) ISM 2024 74 2.1 Recruiting Disadvantages of Recruiting Channels External Internal Business-related Performance ? Limited selection Nepotism Time and cost-consuming Business „tunnel vision“ Asymetric balance of power search and selection Shifting, not solving of recruiting problem Strained relationship with High adaptation costs and risk Mere „rotation“ „friendly“ company of higher fluctuation Re-training cost Dependencies on failure Demotivation of internal Disappointed rejected applicants internal candidates Domino effect , i.e. Battle for succession “recommending Mobbing by internal employee” also leaves applicants Managers are insulted or „praise“ the employee away Less diversity of ideas Higher salary costs due to Lack of acceptance with “change premium” colleagues ISM 2024 75 2.1 Recruiting ** Preferred and accepted recruiting channels Which channels do you accept? Which channels do you prefer? Source: Kienbaum Communications & Staufenbiel Institut (2017): RecruitingTrends 2017: 11/ ISM 2024 76 2.1 Recruiting ** What HR pays attention to: What do you look at right away? How do you feel about pictures? CV Cover Letter Portrait References Work sample What is the most important part of an application CV Structure References Cover Letter Portrait Work sample Creative Design Source: Kienbaum Communications & Staufenbiel Institut (2017): RecruitingTrends 2017: 13f./ Image: Image: VectorStock ISM 2024 77 2.1 Recruiting Recruiting Evaluation and Metrics Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 78 2.1 Recruiting Recruiting Evaluation and Metrics Longer-term measure of recruiting effectiveness is the success rate of applicants Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 79 2.1 Recruiting ** Candidate Experience Management Candidate experience describes the individual experience of recruiting processes – sum total of the conscious and subconscious perception of a potential employer Systematic management of the candidate experience at defined touch points all points of contact – transform all of a candidate's points of contact with the potential employer into a positive and motivating experience Desired results - Increase the number of applicants - Minimization of the attrition rate during the application process - Recommendations and better reputation Not only the customer, but also the job applicant is king! What are your experiences with applications? It has been a long time since you wrote to me. Source: Athanas & Wald 2015: 5; www.Grusskartenkoenig.de ISM 2024 80 3.2 Recruiting Ethical Recruiting How to recruit Sharing only appropriate information, maintaining confidentiality, and providing timely information and feedback to candidates and hiring managers Common Ethical Issues Poaching talent from competitors and misleading recruits about the nature of the job or about their chances of getting a job ISM 2024 81 2.1 Recruiting Modern Recruiting Technologies: Chat Bot Recruiting What is Chat Bot Recruiting? A recruitment chatbot – or “conversational agent” – is a software application designed to mimic human conversational abilities during the recruiting process. Similar to virtual personal assistants such as Alexa, Siri, and Google Now, a recruitment chatbot uses AI technology such as natural language processing to understand a person’s messages and know how to respond. How does it work? A chatbot can be used within various media: Email SMS social media profiles like Facebook messaging apps like Slack specific software such as an ATS ISM 2024 82 2.1 Recruiting Modern Recruiting Technologies: Chat Bot Recruiting What are some challenges? Are companies already using chat bot recruiters? The major challenges of using a Organizations that are chatbot in recruiting include the pioneering the use of lack of standardization in texting, recruitment chatbots include how “human” a chatbot should be, Georgia State University, the U.S. and not knowing how candidates Army, and Sutherland - an IT will react. service providers. ISM 2024 83 Human Resources Management 02 Resourcing 2.1 Recruiting 2.2 Selection 2.3 Legal Framework of Work ISM 2024 84 2.2 Selection Candidate Placement Objective Fitting a person to the right job Selection and placement activities focus on: Competency profile Applicant's knowledge, skills, and abilities (KSAs) Job fit Degree to which candidates match situations experienced both on the job and in the company “First-class managers hire first-class employees, second-class superiors prefer third-class employees“ True or False? ISM 2024 85 2.2 Selection ** Types of Job Fits Person- Environment Fit Person-Job Fit Person-Organisation Fit Fit of a person‘s abilities Fit of a persons values, behaviors and and job requirements organisational culture Attraction-selection-attrition (ASA) theory: Person-Group Fit Job candidates are attracted to Person-Supervisor Fit and selected by firms where similar Fit of employees and types of individuals are employed Fit of person and co-workers supervisor Source: Kauffeld & Grohmann 2014: 104 ISM 2024 86 2.2 Selection Job Performance, Selection Criteria, and Predictors Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 87 2.2 Selection ** Candidate Screening Candidate Screening Pre-screening Screening Analyse documents Job interview Tests (Cognitive ability, personality, Telephone Interviews integrity, Drugs, physical ability) Online-Assessment-Center CV based questionnaire CV based Interview Work sample Assessment Center Source: Own ISM 2024 88 2.2 Selection Candidate Selection / Screening „Goofy“ approaches? Exercise: Which other methods do you know? What about selecting people according to their zodiac sign? What about handing in a hand-writing sample? How valid is that? Are there cultural differences in selection tools? ISM 2024 89 2.2 Selection Diagnostic Method (Sarges 1995) Personal requirements Diagnostic method Biography Application documents Experience curriculum vitae, certificates, Education professional discussion / work sample Professional knowledge Interviews Intellectual skills Performance tests Knowledge Case studies Intelligence EDP simulations Problem-solving Manager disputations Making decisions References, assessment by superior Ability to learn Interviews Social skills Group task Communication Manager disputations Teamworking skills Personality tests Leadership References, assessment by superior Negotiation/solving conflicts Interviews Drive/ Motivation Interviews Leadership motivation Personality tests Execution Projective method Values Drive ISM 2024 90  2.2 Selection Assessment Center Multi-dimensional selection tool, which combines findings Behaviorally anchored from cognitive testing, personality inventories, and career aptitude test Multiple raters Multiple methods Usually group assessment, in order to achieve comparison of candidates and determine social skills Requirement based Observation and Evaluation Several hours or days usually with 8-12 participants of identical requirements in Different situations Simulations mirroring existing or future work situations Evaluation of candidates by several observers (superior, experts, external observer) Image: www.berufsstrategie.de/bewerbung-karriere-soft-skills/assessment-center-auswahlverfahren.php ISM 2024 91 2.2 Selection ** Research on job interviews Structured or semi-structured interviews are more reliable than unstructured interviews Unfavorable information influences interviewer more than favorable Interviewer judge candidates very early on. Following information enforces initial judgement. It is easier for interviews to explain why candidates are not suitable than why they are suitable Unconscious bias/interviewer bias influence evaluation® Halo-Effect, similarity bias, confirmation bias Benefits of Structured Interviews Ensures that a given Greater consistency in Individual work interviewer has the subsequent performance can be similar information evaluation of better forecasted on each candidate applicants Image: Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 92 2.2 Selection Research on job interviews Biographical Interview Focuses on a chronological assessment of the candidate’s past experiences Behavioral Interview Questions are designed to provide the interviewer results against which to measure the applicant’s response Competency profile - List of competencies necessary to do a particular job Competency Interview Applicants give specific examples of how they have performed a certain task Situational Interview Questions about how applicants might handle specific job situations Image: Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 93 2.2 Selection ** 10 Most common questions in interviews 1. Tell me about yourself. 2. What interests you about this opening? 3. What do you know about our company so far? 4. Why did you leave your last job? (Or why are you thinking about leaving your current job?) 5. Tell me about your experience at [your last job]. 6. What experience do you have managing [various responsibilities]? 7. Tell me about your strengths. 8. Tell me about a time when … (These will be situations relevant to the position. For instance: Tell me about when you had to take initiative … 9. What salary range are you looking for? 10. What questions do you have for me? http://money.usnews.com/money/blogs/outside-voices-careers/2011/01/24/the-10-most-common-job-interview-questions ISM 2024 94 3.3 Selection ** Questions on application forms that are considered illegal (EEOC) 1. Marital status 2. Height/weight 3. Number and ages of dependents 4. Information on spouse 5. Date of high school graduation 6. Contact in case of emergency Interview Questions that are considered illegal? Please provide examples! Mathis, J.; Jackson, J. & Valentine, S. (2014). ISM 2024 95  2.2 Selection Suitability Profile Profile of requirements Profile of skills Profile of suitability Existing, non-required skills Required, non-existent skills Source: Merkwitz (2015) Image: http://s1.dmcdn.net/ICABn/x240-4UC.jpg ISM 2024 96  2.2 Selection Suitability Profile: Example Consulting Professional+ Consulting skills1) Standard2) General Knowhow Structuring skills Master with “good” or better (with distinction“) Mastery of topic Analytic skills Dual qualification, i.e. MBA , doctorate or dual studies Quantitative orientation Problem-solving skills At least two internships (in Tool skills (Excel, Access etc.) „Going the Extra-mile attitude“ different companies) Several years work experience Business sense Resilience (compensates dual qualification) Grasp Team skills Good university, good Rhetoric Emotional intelligence professorship/institute, good professor Creativity Relationship building skills English plus (not Esperanto …) Argumentative ability Network Something “special“ in CV (charity, sport, art…) 1 Depending on the der hierarchy level 2 Exceptions prove the rule, shortcoming can be compensated, interns usually have at least Bachelor (2 +) ISM 2024 97 2.2 Selection Exercise In a tandem, create a job description for the following positions, determine recruiting channels and testing 1. CFO (Asia/Pacific) of a global consumer product Company with a divisional structure (regional) 2. Manager of hotel chain in Germany 3. Chef in a gourmet restaurant in Hamburg 4. Junior Sales Manager in IT company 5. Head of an internet start-up (20 employees) ISM 2024 98 Human Resources Management 02 Resourcing 2.1 Recruiting 2.2 Selection 2.3 Legal Framework of Work ISM 2024 99 2.3 Legal Framework Hiring: 3 components Contract Negotiations Consent Works Council Formal Employment Contract ISM 2024 100 2.3 Legal Framework Hiring: Consent Work Council / Union (depending on national legislation) As a rule, the works council must give its consent before a person is hired, grouped, re-grouped or transferred in companies with more than twenty employees that are eligible to vote The works council / union has a right to: information on effects of planned measures application documents data sheet When consent denied (must occur within a week) the employer can request to replace the consent at labour court Source image: www.uni-europa.org/2018/01/conclusions-european-work-council-project-ewc-fit-change/ ISM 2024 101 2.3 Legal Framework Employment Contract Explicit employment contract: a written or oral employment contract. Oral contracts are as binding as written ones but more difficult to prove. Implicit employment contract: an understanding that is not part of a written or oral contract. A repetitive action of the employer (“Betriebliche Übung” like X- mas bonus.) Psychological Contract: Mutual expectations. ISM 2024 102 2.3 Legal Framework Employment Contract Contract of service that establishes the employee-employer relationship, which obliges both contractual parties as follows. Employee Employer to an activity subject to directives in to pay the remuneration return for remuneration, which to ensure welfare, i.e. equality, he/she must perform personally protection of person, wealth and to loyalty and obedience i.e. income integration in the company to employment ISM 2024 103 2.3 Legal Framework Making the Offer Given over the telephone Formalized letter is then sent to the applicant Offer document should be reviewed by legal counsel Terms and conditions of employment should be clearly identified Selected candidate should: – Sign an acceptance of the offer – Return the signed acceptance to the employer Employer should place it in the candidate’s personnel files (sound’s silly, but isn’t. You would be surprised where contracts or other HR data are kept) ISM 2024 104 2.3 Legal Framework Why successful Orientation / Socialization is important The first days of work often decide the long-term success of the recruiting Employee view Company view Wrong expectations through recruiting Misjudgement of quality of new process lead to disappointment employee (distortion through à early departure/internal resignation disappointment, conduct of manager) Inadequate conduct of manager Limited control time period (probation period) Sink-or-swim strategy à failure Too little time to take care of new staff à overload of onboarding Going easy strategy employees à bore-out, demotivation lack of feedback à unclear roles ISM 2024 105 2.3 Legal Framework ** How employers support onboarding Sample size of 600 certified Top Employers for 2016 in 102 countries around the world – only organisations with more than 3,000 employees locally or more than 5,000 employees worldwide were included Quelle: Top Employers Institute (2016): OnBoarding – HR Insights Report ISM 2024 106 2.3 Legal Framework Organizing Working Hours Definitions Working time: Time in which the employees must make themselves available to the employer. Time from starting work until finishing work without a break. The maximum permissible working time is governed by national laws. It does not govern when the employee is obliged to work or how the working time is remunerated. The weekly working time of employees results from national laws, collective labor agreements and the employment contract. ISM 2024 107. 2.3 Legal Framework Working Hours: Historic Development Check development since 1995 for IG Metall! What is the 2019 deal? What is the current debate in France concerning working hours? ISM 2024 108 2.3 Legal Framework Working Hours ISM 2024 109 2.3 Legal Framework Working hours and days: Example Germany Regular working time: The regular weekday working time must not exceed eight hours. It can only be extended to up to ten if an average of eight working hours will not be exceeded during six calendar weeks or within 24 weeks. Breaks and resting time: The working time must be interrupted by rest periods of at least 30 minutes after six working hours (for working times of eight hours: 45 minutes). Historic development of working days: ISM 2024 110 2.3 Legal Framework Vacation Paid free-time that serves to restore and preserve the power of the employee. Employee must not perform any gainful employment that is inconsistent with the holiday purpose during vacation. Legal basis: National law plus collective bargaining agreement / union agreements Duration of holiday: Germany: Minumim 24 working days. Workdays are all calendar days that are not Sundays or public holidays, so including Saturday if it is a 6-day week. Source image: alluscu.com ISM 2024 111 2.3 Legal Framework Vacation ISM 2024 112 3.1 Working Conditions Child Labor Laws (National Legislation) Set the minimum age for most employment : 16 years Individuals who are 14 or 15 years may work a maximum of 3 hours a day, 18 hours a week and only from 7AM- 7PM Minors (