HRM Lecture 1 PDF

HUMAN RESOURCE MANAGEMENT LECTURE 1: Strategic & Evidence-based HRM No organization without people Needed to run the company Source of competitive advantage What is Human Resource Management? Overall process of managing people in organizations A set of policies, p...

HUMAN RESOURCE MANAGEMENT LECTURE 1: Strategic & Evidence-based HRM No organization without people Needed to run the company Source of competitive advantage What is Human Resource Management? Overall process of managing people in organizations A set of policies, practices and systems that influence employees behavior, attitudes, and performance Strategic HRM (SHRM): Strategically focused to enable an organization to achieve its goals Employee lifecycle → HRM practices Evidence-based HRM underpins it o Making decisions on good quality evidence and being critical on the use of this evidence Recruitment and selection Learning & development o Develop knowledge skills and activities o Need for evaluation o Costly Performance management Reward management o Formal and informal recognition o Pay is fundamental § How much people are paid § How people are paid Employment relationship o Employee and employer o Trade unions HRM used to be administrative and now is more strategic Tasks formerly undertaken by the specialist HR department are now allocated to line managers Managers are increasingly responsible for: Defining job Skills people need o Do current employees have them § Hire?  § Train? How can knowledge about HRM help? Motivate Help employees feel included Communicate policies Recommend pay increases & promotions Evaluate performance Help select candidates Create development opportunities Provide training Forecast HR needs Help define jobs HRM needs to align with strategy: Organizational strategy HR Strategy Horizontal alignment (HR decisions are aligned with each other) o Recruitment & Selection o Learning & development o Performance management o Reward management o Employment relationship *Insert diagrams from presentation Key premise: Base (management) decisions on a combination of best available evidence, critical thinking and company information Evidence: (L) Facts and numbers Local context (E) Professional experience and expertise (S) Stakeholder perspectives (S) Scientific research Evidence based HRM: Effective use of scientific evidence and business information in HR decision making Basing HR decisions on a critical evaluation with empirical and scientific evidence that is relevant to the astir hand Best HR practitioners are able to take evidence based approached in every step of the HR employee lifecycle Human Resource Management: The overall process of managing people in organizations It is about: o Who should I hire? o How can I reward good performance? o Who is ready to take on more responsibility? Good HR is not only about “knowing” but also about the “doing” From Personnel Management: Specialization in functions (recruitment, training, payroll, etc) Employees mostly seen as a cost to the organization Human Resources Management: Resource-based view: Employees are considered a resource that is crucial for the competitive advantage of the organization Investing in people (D)Evolution of HRM: Transfer of responsibilities from HR specialists working in, and identified with, a centralized HR unit to line mangers in other units HRM → Resource-based view: o Employees are considered a resource that is crucial for the competitive advantage of the organization Strategic HRM: o Aligning HR-practices with one-another and with the organization’s strategy Evidence-based HRM: o Using scientific evidence as well as business information in making people- management decisions o Emerged from need to improved HR policies and practices and demonstrate their added value o Strongly influenced by approach to medicine and policy making o Allows quicker decisions tailored to employees What is the goal of the organization: What it hopes to achieve in the medium- to long-term Vision: what the organization expects to become at a particular time point in the future Mission: What the organization expects to do in order to become the organization it has envisioned Strategy: A plan of action designed to achieve a set of objectives o Cost leadership → Reduce costs  o Differentiation → Perceptions of difference Cost leadership: Narrow job roles → Maximize efficiency Hire and train specific skill sets Performance-based compensation Differentiation: Broad job roles → Maximize cross fertilization Hire people that cooperate, are creative, reflective Pay for market value of employee Determine the right strategy → SWOT: Internal analysis: Strengths & weaknesses of workforce? External analysis: untapped labor pools, labor shortages, who are the competitors for same labor? What human resources are needed to accomplish goals? Good SHRM = Good Alignment: Vertical alignment: Matching of HRM policies and practices with business strategy Horizontal alignment: Strong consistency and interconnections between HRM policies and practices Strategic choice = Stgy Implementation = Performance Mgmnt Stgy = Reward Mgmnt Stgy In strategic human resource management, HRM practices and policies are aligned with the strategy of the organization and HRM practices and policies are aligned with each other Strategic choice comes from the vision, mission and the SWOT analysis HR departments contribute to the SWOT analysis by assisting in the internal and external analysis of the workforce Evidence-based HRM (EBHRM): An approach to decision-making that concerns the effective use of scientific evidence as well as business information in making people-management decisions LESS o Can help ensure that your use the right evidence and use that evidence correctly, and it is relevant at every stage of the process  Stakeholders: o Employees are most important stakeholders o Leader-Member Exchange (LMX) → High quality manager-employee relationships are closer, friendlier & more trusting o Easier to develop high-quality LMX when employees are particularly talented o Similar characteristics → Be careful in recruitment process for value-based fit Local context → Facts and data Primary data: o Collected specifically to address our issue o Includes: § Satisfaction surveys § Focus groups on specific questions § Interviews with specific groups Secondary sources: o Databases: § Human Resource Information Systems (HRIS) § Customer DBs § External DBs o Policies, procedures and reports o Data collected with a different or no primary purpose in mind o Includes: § Absence levels § Time to recruit each job § Customer satisfaction by team § Information on policies and practices Scientific evidence: What is it? o Evidence of research conducted and reported using scientific quality standards § Empirical articles  § Review articles § Theoretical articles o Published in a peer-reviewed journals How to find it: o Peer-reviewed articles → Publishes scientific evidence § Scopus § Web of Science § Google Scholar” o How can I determine the (scientific) quality of evidence: § Directly by looking at the quality of the study § Indirectly, by looking at the ranking of the journal and the times the article is cited 5 A’s of Evidence-Based Practice: Comes from evidence-based medicine Can be used as guide in process of Evidence-based practice Ask: Identify the issues and formulate a problem statement Acquire: Search for evidence Appraise: Critically evaluate the quality and relevance of the evidence Apply: Integrate the best available evidence with your expertise & understanding of the organizational context and stakeholders’ interests to design the most effective strategy and create an action plan Assess: Monitor and review the outcomes to ensure the desired impact and make improvements as needed LESS → Relevant at each stage** Example → Google with selection in early 2000’s: Rapid growth Poor results from selection methods Bias Low fit Create a plan for how you want to monitor and review the outcomes, even if you are not the one implementing the action plan Job analysis:  Process to gather detailed information about the various tasks and responsibilities involved in a position The knowledge, skills, abilities, attitudes, and behaviors associated with successful performance in the role are also identified Common in recruitment and selection but also useful for other areas in HR When and why do a job analysis → Building block of many HR processes: Recruitment and selection → job description, people specification Performance management → Performance appraisal criteria Reward management → Compensation plans Learning and development → Training needs assessment Methods: Background information (online sources, organization charts, HR systems) Observation (watching what people do) Questionnaires Interviews Work diary or log Wearables Should incorporate: Education Experience Decision-making authority Basic functions and scope Work tasks Outcomes: Job description: Outlines the typical job duties, tasks, and responsibilities Person specification: Outlines the essential and desirable criteria of the person doing the job