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					Samenvatting
   HRM
      Noe

  Marja Fictorie
    1334298
Inhoudsopgave

Inhoudsopgave ..................................................................................................... 2
H1. Human Resource Management: gaining a competitive advantage ......... 3
  1.1 Introduction....................................................................................................................... 3
  1.2 What responsibilities and roles do Human Resource departments perform? .................. 3
  1.3 How is the HRM function changing? ................................................................................ 4
  1.4 Competitive challenges influencing human resource management .................................. 5
  1.5 Meeting competitive challenges through HRM practices ................................................. 6
  1.6 Organization of this book.................................................................................................. 6
H2. Strategic Human Resource Management .................................................. 7
  2.1 Introduction....................................................................................................................... 7
  2.2 What is strategic management? ........................................................................................ 7
  2.3 Strategy formulation ......................................................................................................... 8
  2.4 Strategy implementation ................................................................................................... 9
  2.5 The role of Human resource in providing strategic competitive advantage .................. 12
H3. Syllabus Grooten ........................................ Error! Bookmark not defined.13
H4. The analysis and design of work ............................................................... 13
  4.1 Introduction..................................................................................................................... 13
  4.2 Work-flow analysis and organization structure .............................................................. 13
  4.3 Job analysis ..................................................................................................................... 14
  4.4 Job design ....................................................................................................................... 16
H5. Human Resource planning and recruitment ........................................... 18
  5.1 Intro................................................................................................................................. 18
  5.2 The human resource planning process ........................................................................... 18
  5.3 The human resource recruitment process ....................................................................... 21
H6. Selection and placement ............................................................................ 24
H7. Training ....................................................................................................... 25
H8. Performance management......................................................................... 26
H9. Employee development .............................................................................. 27
H10. Employee separation and retention ........................................................ 28
H11. Pay structure decisions ............................................................................ 29
H12. Recognizing employee contributions with pay ...................................... 30
H13. Employee benefits..................................................................................... 31
H14. Collective bargaining and labor relations.............................................. 32
H15. Managing Human Resources globally.................................................... 33
H16. Strategically managing the HRM function ............................................ 34
H1. Human Resource Management: gaining a competitive advantage

1.1 Introduction

Competitiveness = A company‟s ability to maintain and gain market share in its industry.
Competitiveness is gerelateerd aan company effectiveness, welke wordt bepaald door
hoeverre het bedrijf de wensen van belanghebbenden vervult. Onder belanghebbenden vallen
de aandeelhouders, klanten, werknemers en de omgeving.
Human Resource Management = Policies, practices, and systems that influence employees‟
behavior, attitudes and performance.
HRM practices omvatten:
- analyzing and design of work
- HR planning
- Recruiting
- Selection
- Training and development
- Compensation
- Performance management
- Employee relations
Al deze onderdelen zijn van invloed op de company performance.


1.2 What responsibilities and roles do Human Resource departments perform?

In tabel 1.1 staan de verantwoordelijkheden van de HR afdelingen weergegeven.

Employment and recruiting                   Interviewing, recruiting, testing, temporary
                                            labor coordination
Training and development                    Orientation, performance management skills
                                            training, productivity enhancement
Compensation                                Wage and salary administration, job
                                            descriptions, executive compensation,
                                            incentive pay, job evaluation
Benefits                                    Insurance, vacation leave administration,
                                            retirement plans, profit sharing, stock plans
Employee services                           Employee assistance programs, relocation
                                            services, outplacement services
Employee and community relations            Attitude surveys, labor relation, publications,
                                            labor law compliance, discipline
Personnel records                           Information systems, records
Health and safety                           Safety inspection, drug testing, health,
                                            wellness
Strategic planning                          International human resources, forecasting,
                                            planning, mergers and acquisitions
Tabel 1.1 Verantwoordelijkheden van de HR-afdelingen

De HR-afdeling kan de volle verantwoordelijkheid voor HR-activiteiten op zich nemen of de
rollen en verantwoordelijkheden delen met managers van andere afdelingen zoals financiën of
IT. De rollen en verantwoordelijkheden van de HR-afdeling zijn samengevat in figuur 1.1.
                                 Toekomst/ strategische focus
                Management van strategic         Management van transformatie
                      human resources                    en verandering
Processen            (strategic partner)                 (change agent)         Mensen
                    Management van de           Management van de werknemers
               infrastructuur van het bedrijf              contributie
                  (administrative expert)             (employee advocate)
                                Dag-tot-dag/ operationele focus

   Strategic partner
    - Een van de belangrijkste rollen van HRM
    - Verbinden van de HRM-strategie met de business strategie om deze laatste uit te
        kunnen voeren
    - Competenties:
        - Data-based decision-making
   Administrative expert
    - Vereist ontwerpen en afleveren van efficiënte en effectieve HRM-systemen, -
        processen and –praktijken
    - Dit omvat systemen voor selectie, training, ontwikkeling, waardering en beloning van
        werknemers
    - Competenties:
        - Legal compliance
        - Contract administration
        - E-HRM & HR information systems
   Change agent
    - Vereist dat HRM helpt de organisaties te transformeren om te voldoen aan de nieuwe
        competatieve condities. HR-managers moeten helpen met het identificeren en
        processen managen voor verandering.
    - Competenties:
        - Negotiations
        - Communications
        - Overcoming resistance to change
   Employee advocate
    - Deze zorgt voor commitment en contributies van werknemers. Deze rol is extreem
        belangrijk voor bedrijven die concurrentievoordeel willen behalen met behulp van
        mensen.
    - Competenties:
        - Counseling
        - Developing teams


1.3 How is the HRM function changing?

HR-managers staan tegenover twee belangrijke uitdagingen:
1. Hun focus van huidige operations verplaatsen naar strategieën voor de toekomst.
2. Voorbereiden van niet-HR-managers op ontwikkelen en invoeren human resource
   activiteiten.
De rol van HRM als administratieve functie is kleiner aan het worden omdat veel
administratieve functies zijn overgenomen door technologie. De ontwikkelingen in
technologie hebben de rol van HRM verkleind tot het bijhouden van gegevens en zorgen voor
self-service voor werknemers.
Self-service = Giving employees online acces to HR information.
Het komt ook voor dat de administratieve rol uitbesteed wordt(outsourcing). Outsourcing
wordt gebruikt voor de administratie van de loonlijst en het trainen, kiezen en werven van
werknemers.
Traditioneel was de HRM-afdeling voornamelijk een administrative expert en employee
advocate. Hoewel dit in sommige bedrijven nog steeds zo is, de andere bedrijven geloven dat
HRM belangrijk is voor succes en hebben daarom de rol uitgebreid tot change agent en
strategic partner.
Een onderzoek betreffende HRM heeft het volgende uitgewezen: human resources is being
transformed from a specialized, stand-alone function to a broad corporate competency in
which human resource and line managers build partnerships to gain competitive advantage
and achieve overall business goals.
In tabel 1.2 staan een aantal vragen om te bepalen of HRM een strategische rol in het bedrijf
speelt. Als (het merendeel van) deze vragen nog niet in overweging zijn genomen, is het
hoogst onwaarschijnlijk dat:
1. het bedrijf voorbereid is om om te gaan met competatieve uitdagingen
2. human resources gebruikt worden om het bedrijf een concurrentievoordeel te geven

1  What is HR doing to provide value-added to internal clients?
2  What can the HR department add to the bottom line?
3  How are you measuring the effectiveness of HR?
4  How can we reinvest in employees?
5  What HR strategy will we use to get the business form point A to point B?
6  What makes an employee want tot stay at our company?
7  How are we going to invest in HR so that we have a better HR department than our
   competitors?
8 From an HR perspective, what should we be doing to improve our marketplace
   position?
9 What‟s the best change we can make to prepare for the future?
Tabel 1.2 Vragen gebruikt om te bepalen of human resources een strategische rol vervullen in
het bedrijf


1.4 Competitive challenges influencing human resource management

Er zijn vier concurrentie-uitdagingen waar bedrijven nu tegenover staan die de belangrijkheid
van HRM-activiteiten verhogen:

        1.4.1 Competitie in de nieuwe economie
-   E-business, telewerkenn, call centers
    - E-business: any process that a business conducts electronically. Het omvat kopen en
        verkopen, maar voorziet ook in service zoals:
        - Business to consumer transactions
        - Business to business transactions
        - Consumer to consumer transactions
-   War on talent(hoog opgeleide professionals, exacte vakken)
-   Structuur van de economie
    -  De arbeidsconcurrentie wordt beïnvloed door de groei en daling van industrieën,
       banen en beroepen. In bepaalde sectoren zullen veel banen vrijkomen als gevolg van
       groei en reorganisatie.
-   Toenemend belang kennis
    - Een groot deel van de waarde van een bedrijf bestaat uit het intellectuele kapitaal(*).
       Hierdoor zijn bedrijven op zoek naar knowledge workers(**). Om alles uit de kennis
       van werknemers te halen is een managementstijl nodig die focust op het ontwikkelen
       en empowering(***) van werknemers.
       - * creativiteit, productiviteit en service verleend door werknemers
       - ** employees who own the means of producing a product or service
       - *** werknemers verantwoordelijkheden en autoriteit om beslissingen te maken
           geven
-   Eisen betreffende vaardigheden
    - De vraag naar specifieke vaardigheden is vervangen door de vraag naar cognitieve,
       interpersoonlijke en technologische kennis.
-   Verandering psychologisch contract en werktijden
    - Excellente dienstverlening en hoge productiviteit
    - Flexibele roosters
    - Prima arbeidsomstandigheden, meer autonomie
    - Employability
    - Perifeer werk: uitzendarbeid, oproepcontracten etc.
    - Ploegendienst

       1.4.2 Competitie door globalisatie
-   expansie op buitenlandse markt
-   HRM-beleid dat competitiveness op buitenlandse markten vergroot(bijv. Job rotation,
    corporate culture)
-   Voorbereiden werknemers op een leven als expatriate

        1.4.3 De druk van de aandeelhouders

        1.4.4 Opkomst van high-performance work systems

SHEETS HC 2

Electronic business(e-business) = any process that a business conducts electronically. Het
omvat kopen en verkopen, maar ook dienstverlening zoals:
-




1.5 Meeting competitive challenges through HRM practices

1.6 Organization of this book
H2. Strategic Human Resource Management
2.1 Introduction

Business organizations can use a number of resources to compete with other companies:
- Physical           Plant, equipment, technology, geographic location
- Organizational Structure, planning, controlling and coordinating systems, and group
                     relations
- Human              Experience, skill and intelligence of employees

The role of HRM is to ensure that a company‟s human resources(organizational & human)
provide a competitive advantage. The competitive challenges mentioned in Chapter 1 require
companies to take a proactive, strategic approach in the marketplace.
To be maximally effective, HRM must be integrally involved in the company‟s strategic
management process:
1. Managers should have input into the strategic plan, both in terms of people-related issues
   and in terms of the ability of the human resource pool to implement particular strategic
   alternatives
2. Mangers should have specific knowledge of the organization‟s strategic goals.
3. Managers should know what types of employee skills, behaviors, and attitudes are needed
   to support the strategic plan
4. Managers should develop programs to ensure that employees have those skills, behaviors
   and attitudes.


2.2 What is strategic management?

Business organizations engages in generic strategies that often fit into some strategic type.
Different organizations within the same industry often have different generic strategies. These
generic strategy types describe the consistent way the company attempts to position itself
relative to competitors.
Strategic management is a process for analyzing a company‟s competitive situation,
developing the company's strategic goals, and devising a plan of action and allocation of
resources that will increase the likelihood of achieving those goals. This kind of strategic
approach should be emphasized in HRM.
SHRM = A pattern of planned human resource deployments and activities intended to enable
an organization to achieve its goals.

       2.2.1 Components of the strategic management process(SMP)
The strategic management process has two distinct yet interdependent phases:
1. Strategy formulation
   - The process of deciding on a strategic direction by defining a company‟s mission and
       goals, its external opportunities and threats, and its internal strengths and weaknesses.
2. Strategy implementation
   - The process of devising structures and allocation resources to enact the strategy a
       company has chosen.
This process does not happen sequentially, but entails a constant cycling of information and
decision making.
        2.2.2 Linkage between HRM and the SMP
The strategic choice really consists of answering questions about competition – that is, how
the firm will compete to achieve its missions and goals:

1. Where to compete?
   - In what markets(industries, products etc.) will we compete?
2. How to compete?
   - On what criterion of differentiation characteristic(s) will we compete? Cost? Quality?
      Reliability? Delivery?
3. With what will we compete?
   - What resources will allow us to beat our competition?
   - Who will we acquire, develop and deploy those resources to compete?

       2.2.3 Role of HRM in strategy formulation
Four levels of integration seem to exist between the RHM function and the strategic
management function:
1. Administrative linkage
   - HRM function‟s attention is focused on day-to-day activities.
   - The HRM department is completely divorced from any component of the strategic
       management process in both strategy formulation and strategy implementation.
2. One-way linkage
   - The firm‟s strategic business planning function develops the strategic plan and then
       informs the HRM function of the plan.
   - Although it does recognize the importance of human resources in implementing the
       strategic plan, it precludes the company from considering human resource issues while
       formulating the strategic plan.
3. Two-way linkage
   - The strategic planning team informs the HRM function of the various strategies the
       company is considering  HRM executives analyze the human resource implications
       of the various strategies, presenting the results to the strategic planing team  The
       strategic plan is passed on to the HRM executive, who develops programs to
       implement it.
4. Integrative linkage
   - Based on continuing interaction.
   - HRM function is built right into the strategy formulation and implementation
       processes.

2.3 Strategy formulation

Five major components of the strategic management process relevant to strategy formulation:
1. Mission
   - A statement of the organization‟s reason for being; often accompanied by a statement
       of a company‟s vision and/ or values.
2. Goals
   - What an organization hopes to achieve in the medium- to long-term future
3. External analysis
   - Examining the organization‟s operating environment to identify strategic opportunities
       and threats.
4. Internal analysis
   - The process of examining an origination‟s strengths and weaknesses.
5. Strategic choice
     - The organizations strategy; the ways an organization will attempt to fulfill its mission
        and achieve its long-term goals.
3&4 together are also called SWOT-analysis.
It is HRM‟s role to keep close tabs on the external environment for human resource-related
opportunities and threat, especially those directly related to the HRM function. An analysis of
a company‟s internal strengths and weaknesses also requires input from the HRM function.


2.4 Strategy implementation

For a company to have a good strategy foundation, certain tasks must be accomplished in
pursuit of the company‟s goals, individuals must possess certain skills to perform those tasks,
and these individuals must be motivated to perform their skills effectively.
Five important variables determine success in strategy implementation:
1. Organizational structure
2. Task design.
3. The selection, training and development of people.
4. Reward systems.
5. Types of information and information systems.

The role of HRM function becomes one of :
1. Ensuring that the company has the proper number of employees with the levels and types
   of skills required by the strategic plan.
2. Developing „control‟ systems that ensure that those employees are acting in ways that
   promote the achievement of the goals specified in the strategic plan.

   2.4.1 HRM practices
The HRM function can be thought of as having six menus of HRM practices, from which
companies can chose the ones most appropriate to implementing their strategy. Each of these
menus refers to a particular functional area of HRM:
1. Job analysis and design
   - Job analysis: The process of getting detailed information about jobs
   - Job design: The process of defining the way work will be performed and the tasks that
       will be required in a give job.
2. Recruitment and selection
   - Recruitment: The process of seeking applicants for potential employment.
   - Selection: The process by which an organization attempts to identify applicants with
       the necessary knowledge, skills, abilities, and other characteristics that will help it
       achieve its goals.
3. Training and development
   - Training: A planned effort to facilitate the learning of job-related knowledge, skills
       and behavior by employees.
   - Development: The acquisition of knowledge, skills, and behaviors that improve an
       employee‟s ability to meet changes in job requirements and in client and customer
       demands.
4. Performance management
   - Performance management: The means through which managers ensure that
       employees‟ activities and outputs are congruent with the organization‟s goals.
5. Pay structure, incentives and benefits
   - A high level of pay and/ or benefits relative to that of competitors can ensure that the
      company attracts and retains high-quality employees, but this might have a negative
      impact on the company‟s overall labor costs.
   - By tying pay to performance the company can elicit specific activities and levels of
      performance from employees.
6. Labor and employee relations
   - The general approach to relations with employees can strongly affect their potential
      for gaining competitive advantage.
   - Companies can choose to treat employees as an asses that requires investment of
      resources or as an expense to be minimized. The approach a company takes in making
      these kind of decisions can result in it either successfully achieving its short- and long-
      term goals or ceasing to exist.

        2.4.2 Strategic types
Various typologies are offered, but we will focus on the two generic strategies proposed by
Porter: cost and differentiation. Value can be created in one of two ways:
1. Value can be created by reducing costs; “overall cost leadership” strategy.
   - Constructing efficient large-scale facilities.
   - Provides above-average returns within an industry, and it tends to bar other firms‟
        entry into the industry because the firm can lower its prices below competitors‟ costs.
2. Value can be created by differentiating a product or service in such a way that it allows
   the company to charge a premium price relative to its competitors; “differentiation”
   strategy.
   - The perceived differentiation can come from creating a brand image, from technology,
        from offering unique features, or from unique customer service.
   - It will achieve above-average returns, and the differentiation may protect it from price
        sensitivity.

        2.4.3 HRM needs in strategic types
Different strategies require employees with specific skills and also requires these employees
to exhibit different „role behaviors‟.
Role behaviors: behaviors that are required of an individual in his or her role as a jobholder in
a social work environment.
Cost strategy:
- Employees are expected to exhibit role behaviors that are relatively repetitive and
    performed independently or autonomously.
- Companies rely on behavioral performance management systems with a large
    performance-based compensation component.
- Companies promote internally and develop internally consistent pay systems with high
    pay differentials between superiors and subordinates.
Differentiation strategy:
- Employees are expected to exhibit role behaviors that include cooperating with others,
    developing new ideas, and taking a balanced approach to process and results.
- Companies develop results-based performance management systems and divisional-
    corporate performance evaluations to encourage risk taking of the part of managers.
- The compensation system is geared toward external equity, as it is heavily drive by
    recruiting needs.
         2.4.4 Directional strategies
It is necessary to understand how increasing size(growth) of decreasing it(downsizing) affects
the HRM function.
Companies have used five possible categories of directional strategies to meet objectives:
1. Concentration strategy
     - A strategy focusing on increasing market share, reducing costs, or creating and
         maintaining a market niche for products and services.
     - Appraisals tend to be more behavioral because the environment is more certain, and
         the behaviors necessary for effective performance tend toe be established through
         extensive experience.
2. Internal growth strategy
     - A focus on new market and product development, innovation, and joint ventures.
     - The behavioral appraisal emphasis stems from the knowledge of effective behaviors in
         a particular product market, and the results appraisals focus on achieving growth
         goals.
     - Compensation packages are heavily weighted toward incentives for achieving growth
         goals. Training needs differ depending on the way the company attempts to grow
         internally.
3. External growth strategy
     - An emphasis on acquiring vendors and suppliers or buying businesses that allow a
         company to expand into new markets.
     - Attempting to integrate vertically or horizontally or to diversify, usually through
         mergers or acquisitions.
     - Mergers and acquisitions are on the increase, and HRM needs to be involved. HRM
         programs face problems in integrating and standardizing practices across the
         company‟s businesses.
4. Divestment(downsizing) strategy
     - The planned elimination of large numbers of personnel, designed to enhance
         organizational effectiveness.
     - In spite of the increasing frequency of downsizing, research reveals that it is far from
         universally successful for achieving the goals of increased productivity and increased
         profitability.
     - Challenges: HRM must surgically reduce the workforce by cutting only the workers
         who are less valuable in their performance. HRM must boost the morale of employees
         who remain after the reduction.
     - Opportunities: Downsizing often allows the company to „get rid of dead wood‟ and
         make way for fresh ideas. It‟s often an unique opportunity to change an organization‟s
         culture. Downsizing can demonstrate to top-management decision makers the value of
         the company‟s human resources to its ultimate success.

         2.4.5 Strategy evaluation and control
It is extremely important for the firm to constantly monitor the effectiveness of both the
strategy and the implementation process. In this process we see emergent strategies appear as
well as the critical nature of human resources in competitive advantage.
2.5 The role of Human resource in providing strategic competitive advantage

Human resources can provide a strategic competitive advantage in two additional ways:
1. Through emergent strategies
   We must distinguish between:
   - Intended strategies
      - The result of the rational decision-making process used by top mangers as they
           develop a strategic plan
      - The pattern or plan that integrates an organization‟s major goals, policies, and
           action sequences into a cohesive whole.
      - HRM‟s role is identifying for top management the people-related business issues
           relevant to strategy formulation and then develop HRM systems that aid in the
           implementation of the strategic plan.
   - Emergent strategies
      - Consist of the strategies that evolve from the grass roots of the organization and
           can be thought of as what organizations actually do, as opposed to what they
           intend to do.
      - A pattern in a stream of decisions or actions.
      - HRM plays an important role in facilitating communication throughout the
           organization, and it is this communication that allows for effective emergent
           strategies to make their way up to op management.
2. Through enhancing competitiveness.
   Human resources can be a source of competitive advantage through developing a human
   capital pool that give the company the unique ability to adapt to an ever-changing
   environment  learning organization.
   The role of human resources in competitive advantage should continue to increase
   because of the fast-paced change characterizing today‟s business environment.

        2.5.1 Strategic human resource executives
In the future, HR professionals will need four basic competencies to become partners in the
strategic management process:
- Business competence
    - Knowing the company‟s business and understanding its economic financial
        capabilities.
    - Being able to calculate the costs and benefits of each alternative in terms of its dollar
        impact and requiring that the non-monetary impact is considered.
- Professional and technical knowledge
    - Staffing, development, reward, organization design, and communication.
    - Being able to critically evaluate the new techniques offered as state-of-the-art hrm
        programs and use only those that will benefit the company.
- Ability to manage change
    - Diagnosing problems, implementing organizational changes, and evaluating results.
    - Having the skills to oversee the change in a way that ensures its success.
- Integration competence
    - Being able to integrate the three other competencies to increase the company‟s value.
    - Requires that a generalist perspective must be taken in making decision.
The new strategic role for HRM presents both opportunities and challenges. HRM has the
chance to profoundly impact the way organizations compete through people, but with this
opportunity come serious responsibility and accountability.
H4. The analysis and design of work


4.1 Introduction

The way a firm competes can have a profound impact on the ways job are designed and how
they are linked via organizational structure. In turn, the fit between the company‟s structure
and environment can have a major impact on the firm‟s competitive success. The organization
needs to create a fit between its environment, competitive strategy, and philosophy on the one
and, with its jobs and organization design on the other.


4.2 Work-flow analysis and organization structure

Work-flow design: the process of analyzing the tasks necessary for the production of a
product or service, prior to allocating and assigning these tasks to a particular job category or
person.
Organization structure: the relatively stable and formal network of vertical and horizontal
interconnections among jobs that constitute the organization.
Both work-flow design and organization structure can be leveraged to gain competitive
advantage for the firm, but how one does this depends on the firm‟s strategy and its
competitive environment.

       4.2.1 Work –flow analysis
Work-flow process: clearly identify the outputs of work, specify the quality standards for
those outputs, and analyze the processes and inputs necessary for producing outputs that meet
the quality standards.

Analyzing work outputs
An output is the product of a work unit and is often an identifiable thing, but can also be a
service. We often picture an organization only in terms of the product that it produces, and
then we focus on that product as the output. An important determinant of the effectiveness of
any organization is the efficiency and effectiveness with which it produces the many products
within the various work unit.
Once these outputs have been identified, it is necessary to specify standards for the quantity or
quality of these outputs. ProMES focuses attention on both identifying work-unit outputs and
specifying the levels of required performance for different levels of effectiveness.
The identification of work outputs has only recently gained attention among HRM
departments. Without an understanding of the output of a work unit, any attempt at increasing
work-unit effectiveness will be futile.

Analyzing work processes
Every process consists of operation procedures that specify how things should be done at each
stage of the development of the product.
To design work systems that are maximally efficient, a manager needs to understand the
processes required in the development of the products for that work unit. Understanding the
tasks required allows the manger to specify which tasks are to be carried out by which
individuals and eliminate tasks that are not necessary for the desired end. This ensures that the
work group maintains a high level of productivity.
Although not all employees respond positively to technological changes in the nature of work,
such changes are becoming increasingly critical in competing in the contemporary business
environment.

Analyzing work inputs
Inputs can be broken down into:
- Raw materials; the materials that will be converted into the work unit‟s product.
- Equipment; the technology and machinery necessary to transform the raw materials into
    the product.
- Human skills needed to perform the task. If the work that needs to be done is highly
    complex, no single individual is likely to have all the required skills. In these situations,
    the work may be assigned to a team, and team-based job design is becoming increasingly
    popular in contemporary organizations. For teams to be effective, it is essential that the
    level of task interdependence matches the level of outcome interdependence.
A flawed product can be caused by deficiencies at any phase in production!

       4.2.2 Organization structure
Organization structure provides a cross-sectional overview of the static relationships between
individuals and units that create the outputs.
Two of the most critical dimensions of organization structure are:
- Centralization
    - Degree to which decision-making authority resides at the top of the organizational
       chart.
- Departmentalization
    - Degree to which work units are groups based on functional similartiy or similarity of
       work flow.
Two common configurations of organization structure tend to emerge in organizations:
- Functional structure
    - Functional departmentalization scheme with relatively high levels of centralization.
    - Tend to be inflexibly and insensitive to subtle differences across products, regions, or
       clients.
    - Very efficient.
    - Most appropriate in stable, predictable environments.
    - Jobs need to be narrow and highly specialized, and people tend to work alone and
       have little decision-making authority or responsibility.
- Divisional structure
    - Work-flow departmentalization scheme with relatively low levels of centralization.
    - More flexible and innovative.
    - Not very efficient.
    - Most appropriate in unstable, unpredictable environments.
    - Jobs need to be more holistic, with people working in teams that tend to have greater
       decision-making authority.

4.3 Job analysis

Job analysis: the process of getting detailed information about jobs.
For society(or an organization) to succeed, it must have detailed information about the
requirements of jobs(through job analysis) and it must ensure that a match exists between the
job requirements and individuals‟ aptitudes(through selection).
Almost every human resource management program requires some type of information that is
gleaned from job analysis:
- Selection
- Performance appraisal
- Training and development
- Job evaluation
- Career planning
- Work redesign
- Human resource planning

Job analysis is important to line managers for the following reasons:
1. Managers must have detailed information about all the jobs in their work group to
   understand the work-flow process.
2. Managers need to understand the job requirements to make intelligent hiring decisions.
3. A manager is responsible for ensuring that each individual is performing satisfactorily(or
   better).

Two types of information are most useful in job analysis:
- Job descriptions: A list of the tasks, duties and responsibilities that a job entails(TDRs)
  - Observable actions
- Job specifications: A list of the knowledge, skills abilities and other characteristics
  (personal traits such as motivation) that an individual must have to perform a job
  (KSAOs).
  - Only observable when individuals are carrying out the TDRs of the job.

Who should make up the group of incumbents that are responsible for providing the job
analysis information? Whatever job analysis method you choose, the process of job analysis
entails obtaining information from people familiar with the job(subject-matter experts).
Job incumbents and supervisors are the most obvious and frequently used sources of job
analysis information, but other sources can be helpful, particularly for service jobs.
It is important to understand the usefulness of different sources of job analysis information
because this information is only as good as the source. Research has revealed some interesting
finding regarding various sources of job analysis information, particularly regarding job
incumbents and supervisors:
- Incumbents pay provide the most accurate estimates of the actual time spent performing
     job tasks and supervisors may be a more accurate source of information about the
     importance of job duties.
- Research at present seems inconclusive regarding the relationship between the
     performance level of the job analyst and the job analysis information she or he provides.
     - When conducting a job analysis, you should take steps to ensure that the incumbent
         group responsible for generating the job analysis information represents a variety of
         gender, racial, and experience-level categories.

There are various methods for analyzing jobs and no „one best way‟. We will mention three.
1. Position analysis questionnaire(PAQ)
PAQ is the broadest an most well-researched instrument for analyzing jobs.
PAQ is a standardized job analysis questionnaire containing 194 items, which represent work
behaviors, work conditions, and job characteristics that can be generalizes across a wide
variety of jobs. They are organized into six sections:
- Information input
- Mental processes
- Work output
- Relationships with other persons
- Job context
- Other characteristics
The job analyst is asked to determine whether each item applies to the job being analyzed and
rates the item on six scales: extent of use, amount of time, importance to the job, possibility of
occurrence, applicability, and special code.
Research has indicated that the PAQ measures 32 dimensions and 13 overall dimensions of
jobs and that a given job‟s scores on these dimension can be very useful. Another advantage
of the PAQ is that it covers the work context as well as inputs, outputs and processes.
A problem of PAQ is that to fill out the test, an employee needs the leading level of a college
graduate. A second problem is that its general, standardized format leads to rather abstract
characterizations of jobs.

2. Task analysis inventory
TAI is the process of identifying the tasks, knowledge, skills and behaviors that need to be
emphasized in training.
Task inventories focus on providing detailed information about the work performed in a given
job. This can be helpful in developing both selecting exam plans and performance appraisal
criteria. Although a task inventory might indirectly suggest the types of KSAOs people might
need to perform the job, these KSAOs do not come directly out of the process.

3. Fleishman job analysis system(FJAS)
This approach defines abilities as enduring attributes of individuals that account for
differences in performance. The system is based on a taxonomy of abilities that adequately
represent all the dimensions relevant to work; it includes 52 cognitive, psychomotor, physical
and sensory abilities. Substantial research has shown the value of this general approach for
human resource activities such as career development, selection and training.

Jobs tend to change and evolve over time. For this reason, in addition to statically defining the
job, the job analysis process must also detect changes in the nature of jobs. These changes in
the nature of work and expanded use of „project-based‟ organizational structures require the
type of broader understanding that comes from an analysis of work flows. Firms seeking to
use their employees as a source of competitive advantage must balance the need for flexibility
with the need for legal documentation.


4.4 Job design
Job design: the process of defining the way work will be performed and the tasks that will be
required in a given job.
Job redesign: the process of changing the task or the way work is performed in an existing
job.
In order to effectively design jobs, one must thoroughly understand the job as it exists and its
place in the larger work unit‟s work-flow process. A manger then has many alternative way to
design a job. This can be done most effectively through understanding the trade-offs between
certain design approaches.
Research has identified four basis approaches that have been used among the various
disciplines that have dealt with job design issues:
1. Mechanistic approach
- Roots in classical industrial engineering.
- Focus:
     - Is identifying the simplest way to structure work that maximizes efficiency.
     - On designing jobs around the concepts of task specialization, skill simplification and
         repetition.
- Example: scientific management
- Reduces the need for high-ability individuals and thus organizations become less
     dependent on individual workers.
2. Motivational approach
- Roots in organizational psychology and management literature
- Focus on
     - The job characteristics that affect psychological meaning and motivational potentials,
         and it views attitudinal variables as the most important outcomes of job design
     - Increasing the complexity of jobs through such interventions as job enlargement, job
         enrichment, and the construction of jobs around sociotechnical systems.
- Example: Herzberg‟s Two-factor theory
- More complete model of how job design affects employee reactions is the “Job
     Characteristics Model”.
     - Jobs can be described in terms of five characteristics: skill variety, task identity, task
         significance, autonomy, feedback.
     - These five job characteristics determine the motivating potential of a job affecting the
         three critical physiological states of „experienced meaningfulness‟, „responsibility‟ and
         „knowledge of results‟.
- Job design interventions emphasizing the motivational approach tend to focus on
     increasing the motivating potential of jobs.
3. Biological approach
- Roots in sciences of biomechanics, work physiology and occupational medicine, and is
     usually referred to as ergonomics.
- Goal: minimize physical strain on the work by structuring the physical work environment
     around the way the human body works.
- Has been applied in redesigning equipment used in jobs that are physically demanding.
     - Often aimed at reducing the physical demands of certain jobs so that anyone can
         perform them.
     - Redesigning work to make it more worker-friendly also leads to increased efficiencies.
4. Perceptual-motor approach
- Roots in human-factors literature.
- Focus: human mental capabilities and limitations.
- Goal: design jobs in a way that ensures they do not exceed people‟s mental capabilities
     and limitations.
     - Tries to improve reliability, safety, and user reactions by designing job to reduce theri
         information-processing requirements.
In designing jobs it is important to understand the trade-offs inherent in focusing on one
particular approach to job design. Managers who seek to design job in a way that maximizes
all the outcomes for jobholders and the organization need to be aware of these different
approaches, understand the costs and benefits associated with each, and balance them
appropriately to give the organization a competitive advantage.
H5. Human Resource planning and recruitment


5.1 Intro


Two of the major ways that societal trends and events affect employers are through (1)
consumer markets and (2) labor markets. Reconciling the difference between the supply and
demand for labor present a challenge for organizations, and how they address this will affect
their overall competitiveness.
There are three keys to effectively utilizing labor markets to one‟s competitive advantage:
1. Companies must have a clear idea of their current configuration of human resources.
2. Organizations must know where they are going in the future and be aware how their
    present configuration of human resources relates to the configuration that will be needed.
3. Where there are discrepancies between the present and future configuration, organizations
    need programs that will address these discrepancies.


5.2 The human resource planning process

The human resource planning process consists of three steps.
1. Forecasting
2. Goal setting and strategic planning
3. Program implementation and evaluation

1. Forecasting
Forecasting: the attempts to determine the supply of and demand for various types of human
resources to predict areas within the organization where there will be future labor shortages or
surpluses.
Forecasting, on both the supply and demand sides, can use either statistical methods or
judgmental methods.
Typically, because of the complementary strengths and weaknesses of the two methods,
companies that engage in human resource planning use a balanced approach that includes
both statistical and judgmental components.

        Determining labor demand
Once the job categories or skills are identified, the planner needs to seek information that will
help predict whether the need for people with those skills or in that job category will increase
or decrease in the future.
At the most sophisticated level, an organization might have statistical models that predict
labor demand for the next year given relatively objective statistics on leading indicators from
the previous year.
Leading indicator: an objective measure that accurately predicts future labor demand.
Statistical planning modes are useful when there is a long, table history that can be used to
reliably detect relationship among variables. However, these models almost always have to be
complemented by subjective judgments of people who have expertise in the area.

       Determining labor supply
Determining the internal labor supply calls for a detailed analysis of how many people are
currently in various job categories within the company. This analysis is then modified to
reflect changes in the near future caused by retirements, promotions, transfers, voluntary
turnover, and terminations. One type of statistical procedure that can be employed for this
purpose involves transitional matrices: matrix showing the proportion(or number) of
employees in different job categories at different times.
Matrices such as these are extremely useful for charting historical trends in the company‟s
supply of labor. More important, if conditions remain somewhat constant they can also be
used to plan for the future. As with labor demand, historical precedents of labor supply may
not always be reliable indicators of future trends. Thus statistical forecasts of labor supply
also need to be complemented with judgmental methods.

        Determining labor surplus of shortage
Once forecasts for labor demand and supply are know, the planner can compare the figures to
ascertain whether there will be a labor shortage or labor surplus for the respective job
categories. When this is determined, the organization can determine what it is going to do
about these potential problems.

2. Goal setting and strategic planning
The purpose of setting specific quantitative goals is to focus attention on the problem and
provide a benchmark for determining the relative success of any programs aimed at redressing
a pending labor shortage or surplus. The goals should come directly from the analysis of labor
supply and demand and should include a specific figure for what should happen with the job
category of skill area and a specific timetable for when results should be achieved.
Once these goals are established, the firm needs to choose from the many different strategies
available for redressing labor shortages and surpluses. This stage is critical because the many
options available to the planner differ widely in their expense, speed, effectiveness, amount of
human suffering, and revocability.
Most used strategies for surplus or shortage are respectively downsizing and hiring temporary
employees or outsourcing.

        Downsizing
Downsizing: the planned elimination of large numbers of personnel designed to enhance
organizational effectiveness.
Surveys indicate four major reasons that organizations engaged in downsizing:
1. Reducing costs.
2. Closing outdated plants or introducing technological changes to old plants, reducing the
    need for labor.
3. Many mergers and acquisitions reduced the need for bureaucratic overhead, displacing
    many mangers and some professional staff members.
4. Changing location of where they did business for economic reasons.
Some early indications are that the results have not lived up to expectations. One study shows
that most firms that announce a downsizing campaign show worse, rather than better,
financial performance in the following years. There seem to be a number of reasons for the
failure of most downsizing efforts:
1. Although the initial cost savings are short-term plus, the long-term effect of an improperly
    managed downsizing effort can be negative.
2. Many downsizing campaigns let go of people who turn out to be irreplaceable assets.
3. Employees who survive the purges often become narrow-minded, self-absorbed and risk-
    averse.
    - Motivation levels drop off.
    - Many employees start looking for alternative employment opportunities.
   -   Negative publicity can hurt the company‟s image, making it more difficult to recruit
       employees later.

     Early retirement programs
Another popular means of reducing a labor surplus is to offer an early retirement program.
Several forces fuel the drawing out of older workers‟ careers:
- the improved health of older people in general, in combination with the decreased
     physical labor in many jobs, had made working longer a viable option.
- This option is attractive for many workers because they fear Social Security will be cut.
- Age discrimination legislation and the outlawing of mandatory retirement ages have
     created constraints on organizations‟ ability to unilaterally deal with an aging workforce.
Although an older workforce has some clear advantages for employers in terms of experience
and stability, it also poses problems:
- older workers are sometimes more costly than younger workers because of their higher
     seniority, higher medical costs, and higher pension contributions.
- Because older workers typically occupy the best-paid jobs, they sometimes prevent the
     hiring or block the advancement or younger workers.
In the face of such demographic pressures, many employers try to induce voluntary attrition
among their older workers through early retirement incentive programs. These programs
come in an infinite variety.
For several reasons many organizations are moving from early retirement programs to phased
retirement programs. Phased retirement programs allow the organization to tap into the
experience of older workers while reducing the number of hours they work(and hence
reducing costs).

        Employing temporary workers
Hiring temporary workers and outsourcing has been the most widespread means of
eliminating a labor shortage. Temporary employment affords firms the flexibility needed to
operate efficiently in the efface of swings in the demand for goods and services. Several other
advantages are:
1. The use of temporary workers frees the firm from many administrative tasks, and financial
    burdens with being the „employer of record‟.
2. Small companies that cannot afford their own testing programs often get employees who
    have been tested by a temporary agency.
3. Many temporary agencies train employees before to sending them to employers, which
    reduces training costs and eases the transition for both the temporary workers and the
    company.
4. Because the temporary worker ahs little experience in the host firm, she brings an
    objective perspective to the organization‟s problems and procedures that is sometimes
    valuable. The can sometimes help employers to benchmark and improve their practices.
There is often tension between a firm‟s temporary and its full-time employees, which can lead
to low levels of cooperation and, in some cases, outright sabotage if not managed properly.
There are several keys to managing this problem:
1. The organization needs to have bottomed out first in terms of any downsizing effort
    before it starts bringing in temporaries.
2. If the organization is concerned about the reactions of full-time workers to the
    temporaries, it may want to go out of its way to hire „nonthreatening‟ temporaries.
3. Firms can create their own nonthreatening temporary pool staffed by full-time employees
    who move from unit to unit.
Of course, in attempting to convince full-time employees that they are valued and not about to
be replaced by temporary workers, the organization must not create the perception that
temporary workers are second-class organizational citizens. There are several keys to
managing the concerns of temporary employees:
    1. Treat temporary employees the same way as full-time employees, as far as possible.
    2. Ensure that the temporary agency provides benefits to the temporaries that are at least
        minimally comparable with those enjoyed by the full-times workers with whom they
        interact.

     Outsourcing
Outsourcing: an organization‟s use of an outside organization for a broad set of services.
Reasons for outsourcing are:
 Cost control.
 Driven by economies of scale that make it more efficient to hand over work to an outside
     agent.
 When a firm does not have certain expertise and is not willing to invest the time and
     energy to develop it.
 In the area of manufacturing it often involves designing projects in the US and then
     shipping manufacturing responsibilities overseas.
 Technological advancements in computer networking and transmission have speeded up
     the outsourcing process and have also helped it spread beyond manufacturing areas and
     low-skilled jobs.
It is argued that outsourcing, if left unchecked, starts a downward spiral that prompts more
and more outsourcing until the firm itself produces nothing of value.

Program implementation and evaluation
A critical aspect of program-implementation is to make sure that some individual is held
accountable for achieving the stated goals and has the necessary authority and resources to
accomplish this goal. There also must be regular progress reports.
Bottom-line evaluation involves checking whether the company ahs successfully avoided any
potential labor shortages or surpluses. It‟s also important to see which specific parts of the
planning process contributed to success or failure.

The special case of affirmative action planning
Workforce utilization review: A comparison of the proportion of workers in protected
subgroups with the proportion that each subgroup represents in the relevant labor market. This
kind of review is critical for many different reasons:
1. many firms adopt „voluntary affirmative action programs‟ to make sure underutilization
   does not occur and to promote diversity.
2. They‟re legally required.
3. Affirmative action programs can be mandated by the courts as part of the settlement of
   discrimination complaints.


5.3 The human resource recruitment process

Human resource recruitment: the practice or activity carried on by the organization with the
primary purpose of identifying and attracting potential employees.
Recruitment activities are designed to affect (1) the number of people who apply for
vacancies, (2) the type of people who apply for them, and/ or (3) the likelihood that those
applying for vacancies will accept positions if offered.
Goal: ensure that the organization has a number of reasonably qualified applicants to choose
from when a vacancy occurs.
All companies have to make decisions in three areas of recruiting:
1. Personnel policies
2. Recruitment sources used to solicit applicants
3. The characteristics and behaviors of the recruiter.

1. Personnel policies
Organizational decision that affect the nature of the vacancies for which people are recruited.
- Internal vs. external recruiting
- Lead-the-market pay strategies
   - Paying higher-than-current-market wages
   - Organizations that compete for applicants based on pay do so using pay forms other
       than wages and salary, such as bonuses and stock options.
- Employment-at-will policies
   - Policies which state that either an employer or an employee can terminate the
       employment relationship at any time, regardless of cause.
   - Companies that do not have these, have due process policies.
      - Policies by which a company normally lays out the steps an employee can take to
           appeal a termination decision.
   - Research indicates that job applicants find companies with due process policies more
       attractive than companies with employment-at-will policies.
- Image advertising
   - Particularly important for companies in highly competitive labor markets that perceive
       themselves as having a bad image.
   - Other image advertising programs target specific groups within the overall labor
       market
   - Research clearly show that job seekers form beliefs about he nature of organizations
       well before they have any direct interviewing experience with those companies.

2. Recruitment sources
The sources which a company recruits potential employees are a critical aspect of its overall
recruitment strategy.
- Internal vs. external sources
    - Advantages internal sources
       - It generates a sample of applicants who are well known to the firm
       - These applicants are relative knowledgeable about the company‟s vacancies
       - Generally cheaper and faster
       - Can enhance job satisfaction of current employees by increasing their changes of
          promotion
    - Disadvantages internal sources
       - There may not be any internal recruits from which to draw
       - Bringing in outsiders may expose the organization to new ideas or new ways of
          doing business
- Direct applicants and referrals
    - These two sources share some characteristics:
       - Self-selection(with referrals it is aided self-selection)
-   Advertisements in newspapers and periodicals
    - Two questions to ask in designing a job advertisement are:
        - What do we need to say?
        - To whom do we need to say it?
            - Which medium to use.
-   Public employment agencies
    - Referrals are free of charge.
    - Excellent source for employers who feel they are currently underutilizing any of the
        subgroups.
-   Private employment agencies
    - Referrals are being charged for.
    - One doesn‟t have to be unemployed to use a private employment agency.
-   Colleges and universities
    - On-campus interviewing is the most important source of recruits for entry-level
        professional and managerial vacancies.
    - To effectively compete for the best students, many employers provide a college
        internship program and participate in university job fairs.
    - The ability to recruit individual who will be successful both at home and abroad is a
        growing concern.
-   Electronic recruiting
    - Use the organization‟s own Web page is an effective and extremely cost-effective
        practice for large organizations.
    - Interact with the large, well-know job sites.
    - Niche boards focus on certain industries, occupations, or geographic areas.
    - Videoconferencing allows applicants and employers to meet each other
        technologically face-to-face.

To evaluate the quality of the sources employers can develop and compare yield ratios. These
express the percentage of applicants who successfully move form one stage of the recruitment
and selection process to the next.

3. Recruiters
In many cases, by the time a recruiter meets some applicants, they have already made up their
minds about what they desire in a job, what the current job has to offer, and their likelihood of
receiving a job offer. For several reasons, recruiters‟ characteristics and behaviors seem to
have less impact on applicants‟ job choices than we might expect. Focus points are:
- Recruiters‟ functional area
    - Specialists in human resources of experts at particular jobs.
- Recruiters‟ traits
    - The most important two are:
       - Warmth
       - Informativeness
- Recruiters‟ realism
    - The level of realism that the recruiter incorporates into his message.
- Enhancing recruiter impact
    - Provide timely feedback.
    - Avoid behaviors that might convey the wrong organizational impression.
    - Recruit in teams rather than by individuals.
H6. Selection and placement
H7. Training
H8. Performance management
H9. Employee development
H10. Employee separation and retention
H11. Pay structure decisions
H12. Recognizing employee contributions with pay
H13. Employee benefits
H14. Collective bargaining and labor relations
H15. Managing Human Resources globally
H16. Strategically managing the HRM function

				
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