HRM 2008 - Complete Mindmaps

Lesson 1 Understanding HRM

The Importance of External andInternal Contexts

External Context

Political and Economic Context

Government policy and stakeholder society

impact of EU legislation and socialpartnership with labour

economic growth vs recession

nature of corporate ownership and controlOutsider Systems

Insider Systems

job migration and outsourcing

Legal Context

state intervention and social and welfare issues

regulations on recruitment and selection,training, awards and equal opportunities

public policy to free up labour markets

changing legal context over time

Labour Markets

Business Sector

growth of global markets andmultinationals

changes to domestic industrial structure UK growth of the service sector decline ofmanual work

financial sector in UK

knowledge workers and female employees

workforce demographics and population pyramid

growth of the UK public sector andapplication of market criteria to workingenvironment

cash limits, business planning,performance related pay

Location

Hofstede and National Cultures

4 dimensions of national culture affectingbusiness practice

Trompenaars 1993

Universalism vs Particularismgeneral consensus vs contingency and situation

Individualism vs Collectivism

common goals and impacts on motivationand management

Neutral vs Emotionalexpression of emotions alphas vs gammas

Achievement vs Ascriptiondetermination of power hard work vs pazam

Internal Context

Management Style

individualism vs collectivism

difference of emphasis betweendeveloping relationships with employeesas individuals or as groups

Purcell 1986 4 Styles for managingemployee relations

Sophisticated HR employees as assetswith clear HR support mechanisms

Consultative recognition of unions andintegration into firm

Traditional labour viewed as factor ofproduction with assumed subordination

Constitutional unions recognised andaccepted as inevitable employeerelations based on stability and control

Internal Structure

significant influence on HR management

greatest impact by M form bureaucracies

corporate centre

divisions

operating plants

Links Between Business and HR Strategy

strategic choices associated with themanagement of people planned vsemergent

choices critically linked to organisational performance

Boxall and Purcell TheoreticalPerspectives on HR

Universalistic

Contingency

Resource based

The Role of Management in HR

HRM as a key element of all management activity

HRM as shared task with internal tensions

movement from bureaucracy to adoptionof HR perspectives has changedrelationship between management andHR function

HR Models Story 1992

Regulators HR function formulatesemployment rules and procedures

Change Makers employee relationsemphasise the needs of the business

Advisers internal consultancy roleallowing management to decide HRinitiatives

Handmaidens specialists operating insubmissive relationship with clients

The Changing Nature of theEmployment Relationship

shift from managing employment ofcontract to increasing performance

movement from bureaucratic structures toflatter and market based companies haveforced HR to reconsider the contributionof the individual

Insecurity of employment

flexible working

part time working and annual hours

employability vs job for life

The Gap between Policy and Practice

Policies as statements of principlesinforming strategy and practice

reduces dependence on individuals

clarify situations

produce consistent behaviour

significant gap between stated and policyfor a number of reasons

appropriateness of policy

different priorities of line management

different interpretations of policy

poor process of implementation

failure to monitor or evaluate

Lesson 1 Understanding HRM Mindmap.mmap 14/03/2008

HRM, Strategy andthe Global Context

Origins of HRM

Fombrun 1984 Matching Model

emphasis of links between strategy andHRM through the human resource cycle

selectiondevelopmentappraisalreward

to what extent does the cycle deliverimproved performance Devanna 1984

to what extent is there a fit between HRMprocesses and organisation strategy?

weakness of model: unitarist approachwith little room for strategic choice andpeople management driven byorganisational objectives Bratton & Gold2003

Beer 1985 Harvard Framework6 basic components of HRM

situational factors

workforce characteristics, labour marketsand wider operational environment

stakeholder intereststradeoffs between owners, employees and unions

HRM policy choicesemployee influence, reward and work systems

HR outcomes 4Cs Model

commitmentcompetencecostcongruence

long term impacts

individual well being, organisationaleffectiveness and societal goals

feedback loopmodel is not linear but cyclical

model assumes dominant direction andinfluence from environmental factors

HRM in the UK Bach & Sissons 2000 3 traditions

Prescriptive tradition

paternalistic model prescribing tools andtechniques for management use vocational in nature

Labour process school

critical approach to managementassuming its role was to subjugate

Industrial relations approach

HRM as a system of employmentregulation where internal and externalfactors shape the employmentrelationship

Additional model organisational psychology

recent approach considering link betweenstrategy and practice analysing theelements of the HR cycle

Hard vs Soft Models Storey 1989

Hard model

stresses link between HR and corporate strategyhuman resource viewed as factor ofproduction with labour having onlycommodity status

Soft model

management of 'resourceful humans'competitive advantage through skilled workersSubtopic

Storey 1992 Model of HRM insert diagram pp.7

International and Comparative HRM

Rubery & Grimshaw 2003 Convergence and Divergence

Universalist

gradual shift towards convergence acrossdeveloped nationsone best way to manage HR and associated practices ofjob design and quality controlapplication of lean production model

Culturalist

clear and unambiguous differencesbetween nations which endure

Hofstede 1980 analysis of 117,000IBM employees

power distance extent to which power isdistributed in organisationsuncertainty avoidance degree to whichsocieties feel threatened by ambiguoussituationsindividualism/collectivism balancebetween groups and individualachievementmasculinity/femininity extent to whichdominant factors are male i.e.assertiveness

critique of Hofstede model

representativeness based on single companyperpetuation of national stereotypesexplanatory power doesn't explain whydifferences existcomplexity no explanation of howcultures might vary

Institutionalist

differences between societies but are a product ofnumerous and competing forces on HRMdifferences in HR practices are caused by education, training,legal framework, political and social factors, family and supportnetworksshortcomings of model is that it is deterministic and static assuming that the impact forcesthemselves aren't open to influence

HRM in Multinationals

Bartlett & Ghoshal 1989 classification of MNCs

multidomestic company growth throughdiversification new subsidiaries adaptingto local conditionsinternational company exploitation ofparent knowledge through professionalmanagersglobal corporation world market asintegrated whole centralised hub withlimited delegation to subsidiariestransnational corporation mixture of the above

Adler & Ghadar 1990

organisational character as related toproduct lifecycle greater globalisation asthey mature

Perlmutter 1969 international HRM styles and cultures

ethnocentric managers recruited from home countrypolycentric local nationals appointed

geocentric managers appointed notaccording to country of origin

Femer & Quintanilla 1998 Complexitiesof HRM internationally sources ofisomorphic pressures

Local Isomorphism subsidiary behaves like local companies andadopts practices to fit into local norms IBM dealing with Irishunions

Cross National Isomorphism subsidiary expected to confirm tohome country HR practices embedded within wider institutionalstructures of that countryCorporate Isomorphism universalistic approach of MNC where HR practices areimposed regardless of location

Global Intercorpoatre Isomorphism where MNC breaks away from home country and adoptedprocedures similar to those in competitive market adopting a position beyond national borders

Business and Corporate Strategies

Classical Perspective Grant 1988 & Scholes 2002

establishment of long term organisational direction HR impacton future staffing needs of company

driving organisation forward to achieve sustained competitiveadvantage HR impact on what will drive performance

determining organisational scope and positioning in markets HRimplication of staff types in house vs subcontractedmatching of internal resources to environmental fit SWOT andPESTLE HR impact of adequate staffing to meet strategic goalsimpact of strategy on operations i.e. growth through IT customerservices will fail if staff aren't capable of meeting the need

values and expectations of decision makers attitude towardsunions and recruitment procedures

Strategy operates at 3 levels

corporate level scope, structure and financing

business level competition within given market and customer focusoperational level subunits of marketing, finance manufacturing etc

Emergent Perspectives Quinn 1980 &Mintzberg 1987

successful strategies emerge incrementally as part of ananalytical and iterative process

strategy is crafted through use of skills and judgements

Whittington 1993 Typology of Strategy

Classical Profit Maximising Deliberatestrategy as rational process of calculation and analysis

little room for devising HR procedures

Evolutionary Profit Maximising Emergent

strategy as product of market forces with most efficientcompany succeedinglittle reason for planning deliberate strategy as successis judged by evolutionary processes

maintenance of flexible HR procedures is important factor ofcompetitive advantage guided evolution Lovas & Ghosal2000

Processual Pluralistic/Emergent

people are too limited and careless to implement a calculated strategyimpossible to specify the strategy until after the event

logical Incrementalism Quinn 1980 emergence of strategy through internal decisions and external events

organisations are affected by internal politics and conflicting goals with behaviour seeking toachieve departmental goals

Systemic Pluralistic/DeliberateGranovetter 1985 strategy shaped by social system class, gender, regulation and education systems

institutional forces will differ between countries and have shaped HR processes

Stakeholders, Diversity andCorporate Responsibility

Balanced Scorecard andHuman Capital Reporting

strategy should consider more than financial returns to shareholders

wider base of stakeholders include customers, communities, theenvironment and staff/workers

Kaplan & Norton 1996/2001

financial perspective

customer perspectiveinternal business perspective

learning and growth perspective

scorecard allows for financial analysis along withbuilding capabilities for future growth

HR critique of model

assumption that HR practices are universally effective inincreasing performance

scorecard has a top down orientation with HR procedures prioritised ifthey fulfil strategic needs such as communicating the vision

Human Capital Reporting

influenced by Kingsmill Report 2003

requirement that by 2006 quoted companies will need toprovide strategic commentary on range of organisationalissues

size and composition of workforceretention and motivation

training and business /skills fitremuneration and fair employment policy

leadership and succession planning

Diversity at Work

main avenue for addressing equal opportunities including age,gender, race, ethnicity, sexuality and disability

business case has been made for company benefits rather thanindividual enhancement

Cassell 2001 and Anderson & Metcalf2003 business benefits;

improved customer satisfactionenhanced worker motivation

improved labour supplyavoidance of discrimination cases

Doubts

some employers will only have short run interestsmay be ignored for unskilled workers

internal pressure to retain the status quo

Goss 1994 Form of EO in organisations

depth of management commitment shallow to deep and principled

breadth of focus narrow list of practicesto driven by economic expediency toextensive

Corporate Responsibility

Holme and Watts 2000 the commitment to contribute to economic developmentworking with all stakeholders to improve quality of life

degree of scepticism regarding the actualrole of business (Friedman 1970)

CSR activities

charitable donations, human rights, ethical investment, fair tradinggrowing awareness of CSR mainly due to major scandals such asEnron and Bhopal etc

increase of legislative and regulatory pressures

motivation for adoption of CSR

business case and concern for lost customerssensitivity to criticisms and threats of boycotts

means of providing competitive advantagethrough differentiation

problems in defining what ethical issues are

HRM, Strategy and the Global Context Marchington Chapter 1.mmap 17/03/2008

Forces Shaping HRM at Work

The Changing Nature of Work

contested nature of w ork

mixture of conflict and cooperation Blyton 2002

conflict variation over time and countryhigh visible during times of industrialaction or collective bargaining

also affect recruitment and training of staff

perspectives ofemployment relationship

Braverman 1974 struggle for controlbetw een managers and w orkers

balance betw een control and cooperation introduction of ICT and mutual benefitsEdw ards 2003 structured antagonism interdeterminacy of employmentrelationship

contradictory management need toexercise control and tap creativity

antagonistic only w orkers can offer surplus value

w orkers posses tacit skills know ledgeand understanding gained through lifediff icult to codify Cooke 2004

employed as w eapon against employer

make w ork more tolerable devising gamesused to advance career promotions

job satisfaction

Maslow 1943 & Hertzberg 1966 factors intrinsic to w ork recognition and other motivators

Steers 2004 hygiene factors more important to those w ho do not hold w ork as central to life

Rose 2003 extrinsic factors helpinfluence those w orkers w ho seek tomove jobs

psychological contract Schein 1978

beliefs of each of the parties to theemployment relationshipw idely agreed that reciprocalarrangements have now disappeared

last 20 years are defined by uncertainty and imbalance

Uncertainty

evidence to show grater w ork insecurity and intensivity w ithUK w orkers putting in more hours Heery & Salmon 2000)

insecurity thesis has 3 major elements

transference of risk to w orkers throughtemporary contractsdamage of insecurity to the economy

w ider societal impacts

examples

those employed in supply chain forretailers or call centres suffer the w orstthose w orking from home feel untrustedby management

Doogan 2001 contrary theory thatpeople now have greater chance ofstaying in w ork than 20 years ago

Intensity

evidence that UK w orkers increase their speed and hours of w ork Burchell 1999

implications of intensif ication have been considerable stress,IBS, sleep problems

Labour Markets and Employment Patterns

sectoral shift from manufacturing to services

new industries low er trade unionisation,less formal HR systems and largeremployment units

10m in 1970s to 20m today largestgrow th in f inancial and business services

role of w omen

2004 saw 3m more than in 1985

comprise half of w orkforce but many morew orking part time in service sector w ithlow er status

full vs part time

19852004 part time w orkers doubled proportion of population at 2530%

higher proportion than most EU countriesand are regarded favourably byemployers

grow th in temporary employment in last25 years from 57%

UK has more temps than US but less than EU nations

discrimination

impacts on minority and disabled groups and w omen in termsof employment and salary rates6.2m disabled adults in UK w ith only 1.2mw orking numerous govt strategies toaddress this.

ageism sited as cause of discrimination inthird of all cases

many retired people seeking to return to the job market

demographic trends w ill see olderw orkforce in the future

industrial action

number of w orking days lost hassignif icantly dropped from 10m in 1980 to500k today

number of w orkers involved in stoppageshas also signif icantly dropped

Institutions Affecting HRM at Work

Trade Unions and TUC

defined as craft or general, open or closed

overall number of unions has now declined alongw ith multiunionism and membership numbers

decline has been influenced by industrial sectorchanges increase in non manual and servicesector jobs

UK has one confederation w ith primary role ofTUC to lobby governments although itspolitical influence has now declined

Employers Associations

national associations or federations

specialist industrial bodies

small specialist associations

role of EA's

collective bargaining w ith trade unions

dispute resolution

advice and guidancemembership representation

CBI central body that represents over250k employers

Third Party Agencies

Acas main UK body w ith 6 key areas

resolving collective disputesarbitration and mediation

building employment relations

settling complaintsproviding impartial advice

promoting good practice

Central Arbitration Committee

independent body used to adjudicate onrecognition of trade unions

Equal Opportunities Commission

Commission for Racial Equality

Disability Rights Commission

Health and Safety Commission

Flexibility and Fragmentation in the Workplace

Atkinson 1984 Flexible Firm Model

Core Level

w orkers from primary labour market w ithgreater security through permanencyvertical f lexibility employees take ontasks higher and low er than recruitmentskill set

horizontal f lexibility employeesundertake w ider range of tasks at sameskill level

Periphery Level

Group 1 w orkers from secondary labourmarket but internal to organisation

Group 2 w orkers w ho cannot break intosecondary market part timers and temps

Group 3 w orkers external to theorganisation employed by others i.e.agency staff

doubts around f lexibility

concept

terminology and confusion betw eendescriptions and predictions

promotion of market deregulation bygovernment and introduction of leanprinciples

lack of clarity around core and peripheral elements

extensiveness

questions as to how far this has occurred and w hyimpact of coreperiphery model notsupported by data

costs and benefits

assumption that f lexible f irm is more eff icient

diff icult to estimate eff iciency of part timersquestions over effectiveness ofsubcontracted NHS w orkers

single employer status

model fails to note interorganisational relations

HRM no longer characterised by relationshipbetw een single employer and employee jointventures and strategic alliances

Fragmentation

increased fragmentation and blurring ofboundaries betw een organisations

old notions of skill career and learningnow replaced by short term visions

boundaries changed by restructure oforganisations and areas of activity

application of additional burdens andpressures on junior staff

models based on f lexible structure mayno longer be adequate in analysingchanges betw een different organisations

The Legal Framework

UK Influences

minor role of employment law mouldedby employers and unions

role of law in the UK 3 levels

auxiliary role provision of statutoryframew ork organised persuasion

restrictive role laying dow n of rulesoutlining w hat is allow ed and forbidden i.e. striking

regulatory role f loor of employmentrights for employees

volunteerism attacked in 1970s due toeconomic diff iculties leading to greaterstate intervention

industrial relations seen as UK diseasew ith UK dismantling of union protectionsto free labour market

1997 election of Labour led to adaptationof policy but not signif icantly 5 pillars ofpolicy

encouraging employment f lexibility

protecting minimum standards

promotion of family friendly policiessupporting partnership

supporting union recognition

prevailing economic view that marketf lexibility is good for grow th

EU influences

adaptation of EU Social chapter hasincreased the impact of initiatives from EU

EU law has number of sources

regulations immediate effect and binding to all statesdirectives binding but require memberstate legislation allow ing f lexibility

directions only affect specif ic partiessofter instruments recommendations,declarations and communications

evolution of social policy

1957 Treaty of Rome common action on economic progressand opening of barriers to goods1987 Single European Act increased use of quality majorityvoting to increase harmonisation of internal market

1993 EU Treaty joint commitment to achieving highlevels of employment

1998 Working Time Regulation UK opt out

2002 Employment Act requirement for employers toconsider f lexible w orking

1998 Human Rights Act considerableapplication to employment law

article 8 right to privacyarticle 9 freedom of thought

article 10 freedom of expression

article 11 freedom of assembly

Individual Rightsemployer w orker relations built aroundthe principle of the employment contract

express agreement betw een employer and employee

terms implied by common lawcollective agreements

w orks rules

custom and practicestatute

Collective Rights

19791997 reform of employerunion relations

central objective to w eaken union pow ers

move to reduce extent of collectivebargaining due to excess of union pow er

post 1997 has seen new statutoryprovisions w hile retaining Conservativereforms

efforts to dismantle to close shop havenow been completednow diff icult to arrange industrial actionthrough recently developed code ofpractice

Forces Shaping HRM at Work Marchington Chapter 2.mmap 20/03/2008

Lesson 2 The Case ofTeamwork

Debates on Teamworking

one of the most popular forms of HRM

WERS Survey 3/4 of workplacesinstituted some form of teamworking

Torrington 2005 varied dimensions of teamworking

time span

extent of interchangeable skillsrange of tasks expected

difference between production andservice environments

Geary 1995 Advanced Teamworking

autonomy over allocation of work tasks

limitation of direct supervisionmeans to discuss organisation

Applebaum & Batt 1994 Lean Production vsSocioTechnical Systems

Lean Production

simple task range

quality managed through procedureslimited worker autonomy

SocioTechnical Systems

following Volvo model

team of workers with long cycle times

discretion to allocate workelection of leaders and judge quality issues

appropriate to niche and specialist markets

Factors Promoting Teamworking

Technology

continuous process operations require teamwork

low skilled work can act as teamworkobstacle LP vs STS

PreExisting Culturesassembly lines do not provide teamwork basis

Role of Unions

more common in unionised environmentsalthough often introduced to undermineunion power

Role of Precipitating Event

impact of event affecting organisation canmotivate team working i.e. threat toexistence

National/Company Environment

role of unions, national bias towardscollectivism vs individualism

Applebaum & Berg 1996 Benefits forManagement and Rare Use of Teams

benefits are long term and contradictshort termism of many managers

investment in teams will reflect longrunindustries such as pharmaceuticals

fear that teams will underminemanagement authority

Extent of Teamworking

Osterman 1994

55% of establishments use self directed teams

41% of establishments claimed thiscovered half of workforce

WERS Survey 200472% of workplaces had some employees in teams

European Foundation 1997 Issue of Definition

33% of groups carried out work without reporting back

measurement of scope and autonomy =measure of intensity

only 5% measured high intensity

Lesson 2 The Case of Teamwork Mindmap.mmap 01/04/2008

High CommitmentHRM and

Performance

Defining and Measuring HighCommitment HRM

difficulties faced by range of recent studies

nature and type of HR practices

measures of performance

sector based issues

methods of data collection andrespondent base

Guest 1997 argued that many of theselack statistical rigour

Pfeffer 1998 High Commitment HR practices

Employment Security & Internal Labour Markets

fundamentally underpins all other practices

unrealistic to expect loyalty without security

are limits to security but can beenhanced by HR planning and structuring

layoffs can account for longterm strategic loss

Wood & Albanese 1995 definemeasurement of security

policy of no redundancy

use of temps to protect core workers

expectation that employees will remainwith the firm until retirement

alternatives to downsizing

(1) reduce working hours proportionally

(2) reduce wages to reduce labour cost

(3) freeze recruitment

(4) moving workers to sales increasing demand

Selective Hiring and Sophisticated Selection

Boxall 1996 capturing a stock of exceptional humanbeings to sustain competitive advantage

employers now seeking wider range of social andinterpersonal skills above technical ability

number of proxies used to measureselective hiring

(1) applicants per position

(2) proportion administered tests

(3) sophistication of selection procedures

caution must be given to not recruitingclones which may not encourage initiativeand diversity

Extensive Training, Learning and Development

Boxall 1996 new recruits need to remain at the forefront oftheir field in both professional expertise and interpersonal skills

growing recognition of the importance of learning as source ofsustained competitive advantage

learning must be about development rather than training to address crisis

important to measure and evaluate the concentration of training and learning

Employee Involvement and Information Sharing

critical importance

(1) open communications regarding finance andperformance ensures staff are informed

(2) teamwork will only succeed with key information toact as basis for contribution

(3) participation can provided legitimacyfor management actions

Information Sharing seen as key factor in best practice teambriefing or quality circles

Huselid 1995/Roche 1999 employee voice critical

Self Management and Team working

more prevalent in last decade and seen as fundamental component oforganisational success

key attribute sought by employers and looked for in CVs seen tosupport decision making and innovation

selfmanaged teams seen negatively as intrusive anddifficult to implement

Barker 1993 teams produce form of greater controlthan previous bureaucracy

Performance related Compensation

dual elements of higher compensationand performance related reward

despite criticisms this is listed as significant good practice however isless widespread in the public sector

Reduction of Status Differential and Harmonisation

symbolic manifestations of equality within organisations uniforms and shared canteens

extension of employee share schemes

Basic definition: that a particular set of HR practiceshave the ability to bring about improved organisationalperformance

Bundles of Human Resource Practices

often linkages between HR practices EIwould be welcomed if job security existed

Greater synergy between bundles thegreater opportunity of organisationalsuccess

Wood & de Menezes 1998 lack ofconsistency and pick & mix approach toapplication of HR processes

Truss 1997 little evidence to showdeliberate coherence between HR activities

while principle of building works there canoften be conflicts between practices contradictions and tensions may arise

The Universal Application of BestPractice HRM

celebratory literature argues that bestpractice is applicable to all organisations

Marchington & Gruglis 2000 criticise this approach

best practice works on assumption thatemployers can take long term view

easier to engage in high commitment HR iflabour costs are low labour intensiveorganisations will struggle to increase pay rates

dependent on types of staff being recruited andmay be situational specific

growth of non standard contracts has raised the issue ofcompatibility between best practice HRM and the flexibleorganisation

some groups do seem to be benefiting from best practicesuggesting distinctions between long serving and short termworkers

HRM and Performance

Huselid 1995 survey of 1000 US organisations

employee skills/org structuresattitude surveys/hourstraining/employment tests

employee motivationproportion of staff with appraisals/numberof applicants per post

output measures labour turnover,productivity and corporate financialperformance

Patterson 1997

longitudinal study of 67 UK manufacturing organisations

HRM had greater impact on productivitythan strategy and R&D

17% variation in profitability explained byjob design and HRM practice

Guest 2000

theoretical model developed showing pathway linking business andHR strategy with performance outcomes

critical finding that small proportion of organisations actually usemore than 3 quarters of HR practices

also important to note that application does not equal effectivenessmeasures of effectiveness critical

West 2002

links between HR and performance in 61 NHS trusts

critical finding that 3 practices had strongimpact on performance

(1) training

(2) team working

(3) appraisal

Guest 2003

further work showed that there was positive relationships between HR and lowturnover but not higher performance

(1) use of AMO modelgreater performance requires Ability,Motivation and Opportunity

(2) operation of 'big idea' gluing together successes

(3) role of line management as point ofcontact for nonmanagerial staff

(4) application of performance measuresto organisational need Tesco

queue length data

stock availability

theft and stock errors

Questions about HRMPerformance Link

direction of causality and the black boxgreater research and case studies

little consistency of HR practice in bundlelist often the consequence of individual preferences

variations in proxies used to measurehigh commitment HRM

yes/no answers mixed with statistical data

variations in proxies used to measure performance

objective vs subjective assessments

measures of organisational performance such as profitabilitythat have weak linkages with individuals

dangers in relaying on HR self reporting scores

differences arise depending on expertise of respondents

personnel specialists lack detailed knowledge ofcompetitive strategies and proportion of sales derived

doubts about extent of autonomy organisationshave in decision making

all organisations are subject to forces thatshape HR procedures

PESTLE factors and application of highcommitment in different countries

Boselie 2001 12 of Pfeffers 16 factors are common inNetherlands but fewer in the UK

Ramsey 2000 higher levels of performance achieved through workintensification rather than HR processes

High Commitment HRM and Performance.mmap 20/03/2008

Designing HRM toFit Organisational

Goals

Best Fit HRM Contingency andConfigurational Ideas

number of attempts to link HRM withbusiness strategy build around notion of'external fit'

Kochan & Barocci 1985 Life CycleModels and HRM Application 4 StageModel

Startup

flexibility required for growth and development

ability to recruit and retain motivated staffis critical long hors and selfdevelopment

aim to gain employee commitment potential benefits as long term

little or no formalised HR practices unionisation unlikely

Growth

formal HR required to build on earlier successes

more sophisticated methods of recruitment andselection as well as development appraisal andpay

concern that informal procedure may leadto future problems

Maturity

maturing of markets with lower levels of growthand flattening of performance

range of formalised HR procedures operatingwith high commitment with significantcompromises between management and staff

increasing focus on the cost of labour andstraining relationships appear with unions.

Decline

decline period begins to exacerbate existing problemswith emphasis moving towards rationalisation andredundancy

HR policies reconsidered as employerseeks to reduce costs

Schuler 1989 Competitive Advantage Models

Cost Reduction Strategy

production of goods and services at acheaper rate to competitors

HR follows black hole model no systemsfor independent voice

ad hoc recruitment and selection minimum health and safetyand little staff empathymost commonly found in the UK

Quality Enhancement Strategy

aim to produce highest quality products and opposite to cost strategy

HRM follows best practice model with anumber of characteristics

systematic recruitment and selection

induction programmesempowerment

harmonisation and competitive pay

problems in ensuring this is transformedinto real practice

how sustainable will this be during economicdownturn/recession

Innovation Strategy

least common and assumed that groups of highly trained specialistswork together to develop complex and changing productsmuch greater emphasis on flexibility and problem solving groups andcommitment to broadly defined goals

Delery & Doty 1996 StrategicConfigurations

model developed to analyse HRprocedures against horizontal and verticalintegration 2 organisational types

Defenders

focus on efficiency in existing marketsand narrow product ranges

centralised organisational structuresbuilding portfolios carefully and over time

recruitment is through specific ports ofentry with internal promotion

Prospectors

inclined to change and adaptabilityexploring new markers and opportunities

HR strategies less internally oriented and seek to buy instaffing rather than grow internally

training less extensive than defender andfocused towards short term needsvery little participation and little unionisation with HR limitedto admin and support role possibly even outsourced

Converting HR Strategy intoPractice: Blockages and Barriers

Brewster 1983Espoused Policy

summation of proposals and objectives that seniormanagement hold of employees

may be formal or informal and may be broadphilosophical statements

Operational Policy

how senior management order industrial relationseither subconsciously or with intentreflected in managerial value systems

to implement strategies champions areused within organisations

managers with energy to implement new initiatives

mobile and career oriented individualsoften moving positionsmake use of impression management andthose left with responsibility don't feelownership

5 reasons why middle managers mightnot implement HR strategies

lack of identification with employer goals

managers may find themselves distinctfrom senior managers

persisting UK class divisions

doubts of validity of ideas

role ambiguity and insecurity

work overload

conflicting requirements and lack of rewards

job losses and de layering placeadditional pressures on management

McGovern 1997 three features

limited institutional pressures to carry out HR activities

short term nature of managerial work focuses onachievement of numbers rather than people

downsizing limits available time

limited investment in training and development

management training seen as a low priority

poor interpersonal skills whencommunicating with staff

value of retaining flexibility at workplace

Brown 1973

management by commission retainedflexibility to vary application of rules

Klein 1984

deal making provided discretion to management and allowingstaff to manage their time more flexibly

issue increased in complexity when organisational boundariesare blurred across networks or suppliers

failure to apply organisational rules

managers unaware they are breaking the rules

compliance with H&S but not aware it isbeing broken secretly

Resources Based andInstitutionalist Views

Definition : Penrose 1959 focus oninternal resources at the firm's disposalprovides a useful picture of performanceand capacity aside from external andenvironmental forces

best fit outside in RBV inside out

can be criticised for ignoring externalforces too much

Barney 1991 potential for sustainedadvantage requires 4 firm specificattributes

Value the resource must add value in some way

Rarity shortage of particular resources within market

Imperfect Imitability difficult or impossible to imitatethese valuable resources

unique historical conditions make imitation difficultdifficult to understand precise mixture of resourcesdue to tacit knowledge

resources may be very complex social phenomenon andbeyond management

Lack of Substitutes resources cannot be made easily obsolete

Oliver 1997 RBV application limited as itdoesn't consider social context whereresource decisions are made

argument for combining RBV withorganisation theory

firms influenced by forces of difference and similarity

Deephouse 1999 Strategic Balance Theory

achievement of balance betweendifferentiation and conformity

excessive differentiation may causelegitimacy challenges from customer base

need for legitimacy will affect the extent of differentiation

Application of RBV to HRM has identified 5 Major issues

Managers or workers as the key resource

does RBV relate to entire human capitalpool or simply senior management?

Mueller 1996 social architecture/complexitythat resides in organisation dispersing value

workers need to know how they contributeto performance with clear link betweenefforts and goals

Focus on people, practices or processes

does RBV relates to human resources orHR practices and processes?

Boxall 1996

human capital advantage exceptional human talent

organisational process advantage evolved processessuch as learning and cooperation

Human Resource Advantage combination of abovecreating advantage through excellent people andprocesses

implication for HR is to ensure bothsystems and people provide advantagefor the firm

The importance of path dependencyBoxall 1996

RBV provides useful analytical framework throughrecognition of historical conditions and different paths takenby organisations and industries

informal relations that evolve over timeare hard to imitate

HR practices may look similar but combined withtacit issues provide advantage

Tackling neglect of institutional forces andnetworks beyond the firm

RBV approach ignores institutional issuesat national and industry level

some firms will have advantage due to theirlocation with better educational infrastructure

Boselie 2003

strong institutional mechanisms decreasethe impact of HRM on performance

increased degree of homogeneity of HRpractices in 3 cases

wide application of blueprints such aspsychometric tests

extent to which formalised educationimpacts on HRM

extent to which legislation and directivesat international level impact on HRM

Important to acknowledge individualorganisation has limited autonomy todetermine its futureimpact of other players such as suppliers

Viability and industry leadership

set of minimum standards are required tocompete in any market

firm resources are particularly rare andmay be needed to simply survive

Boxall & Steenveld 1999

distinction of HRM to provide 'crediblemembership' and 'industry leadership'

HRM strategies must ensure the viabilityof the firm as it faces challenges andchange

HRM strategies can be enacted to ensureindustry leadership

Limitations of Best Fit Model

Models are Deterministic and Top Down

many organisations don't have clearbusiness strategies and thereforeimpossible to claim HRM links

contingency approach suggests rationaldecision making takes place in logical andsequential way

relationship much stronger than classical modelnegating principle that HRM is independent specialistdepartment

Multiple Influences on a Company

each model places primacy on a singlecontextual factor

if different factors require different HR processes this suggestsdifferent organisational sections operate in different ways

rationale for HR style often influenced by environmental factors ratherthan employment relationship

Managerial Control

model suggest scientific management process assuming management knowand control all issues

bounded rationality suggests this is impossible and is unrealistic to suggest thatmanagers can make decisions about all scenarios

employee goals and visions not determined in a vacuum butemerge through negotiated processes

incorrect to assume that senior managers are free to make decisions withoutinfluence from other parts of the supply chain.

Models are Static

ignore the processes of internal change

evidence suggests that organisations donot follow the lifecycle model accurately

assumptions made about size shape and strength oforganisations in each stage of the lifecycle

need for a clearer focus on how change occurs and its majorinfluencers and obstacles

Neglect of how Institutional Forces Shape HRM

assumption made that employers are free agents makingdecisions on personal situation assessments

increasing role of EU legislation ofemployment relationsincreased consultation , working time and parental leave

Rubery & Grimshaw 2003 how institutional factors have shaped HRM in different countriesfirms are embedded in societies that regulate them

Categorisation of real Organisation can be Problematic

Cranshaw 1994 Sainsburys strategy ofgood food costs less stuck in the middlebut positively

difficult to assess the HR practices of twocompanies within a similar marketsegment

important not to focus on a single factoraffecting HR issues i.e. strategy andignore the influence of others

the mix of factors will be critical

Designing HRM to Fit Organisational Goals.mmap 23/03/2008

ChangingResponsibilities for

HRM

The Development of HR as a Specialist Function

the role of the HR function has evolved over time withearly roots in welfare

Alternative interpretations of the development of HRfunction with each new set of activities adding to theHR portfolio

Number of other HR Themes

Administration

transactional aspects of HR applications,induction and records

Negotiation

1960s1970s response to union growthand workplace bargaining

Legal Expertise1960s need to address employment legislation

Organisation Development

19801990s connected to principles ofchange management, learning andorganisational culture

Business Partner

common application strategic HRM andorganisational prominence

Development of the Professional Body

1913 Association of Employers

1931 Institute of Labour Management

1946 Institute of Personnel Management

2000 CIPD

Analysing the Role of the HR Function

Legge 1978 HR strategies for gaining powerConformist Innovation

HR managers relate work to dominant orgvalues and norms

Deviant Innovation

HR managers gain credibility by following social valuesrather than economic criteria equal opportunities

Tyson & Fell 1986 Building Site Continuum

Clerk of the WorksHR system provides admin support to management

Contracts Manager

trouble shooting role in formalised oftenunionised system

The Architect

most sophisticated model creating granddesigns and integrating HR into widerbusiness

reject notion that HR assumes greatermaturity at it moves along continuum

Storey 1992 Four Type Model

Change Agent

aims to establish new HR cultures mostprominent in forward moving visionaryorganisation

Adviser

most common role and major aspect of HR work

advisers operate at strategic level butwork to shape HR practices behind thescenes

Service Provider

low level operational role responding toroutine problems driven by demand

Regulator

operational factor but more prominent inrelationship with unions and other internalfunctions

Critique of Model

change agent while influential runs risk of significant costs

HR function may play more than one rolewithin single organisation

Ulrich 1997/98 Ineffective Role of HRand needs to adopt 4 Roles

Business Partner

partner in execution of strategy

defines organisational architecture

creating systems to deliver org success

Administrative Expert

expert in the organisation of work anddelivers efficiency

transactional work admin andadministration

improving efficiency will build reputation of HR function

Employee Champion

voice for employees to improvecontribution and representing views

Change Agent

agent of continuous transformation andshaping process to ensure capacity forchange

Changing Models of HR Service Delivery

last decade seen movement to assessvalue of internal HR function

2002 PWC survey showing 70% oforganisations outsourcing part of HRfunction

Problem: tendency to conflate differentforms of alternative delivery into one keyarea

Outsourcing may take different forms

shared service centre

joint venture between organisations

multiclient call centres

length of contracts may vary

Type of work may vary with differentarrangements for each HR function

training and development

executive selection

recruitment of temps

redundancy

Reliance on outsourcing depending onrange of factors

organisational size and complexity

product market uncertainty

importance of HR strategy to org

Range of Forces Guiding Outsourcing

Cost Savings

decisions to make or buy dependent ontransaction costs

start up costs must be considered as wellas consideration of long term costs

not always easy to secure performance improvementsand it may be costly to terminate project

outsourcing may increase new costs and rigidities along withadditional costs of external consultants

Expertise

outsourcing takes advantage of externalknowledge and skills

Greer 1999 You outsource when someone else canperform better than you

consultancies have resources to establish complexdatabases and provide global support

outsourcing may also deny the organisation criticalknowledge in house

in house approach contributes toorganisational learning

Tacit skills difficult to formalise andorganisation may become dependent onexternal providers

Immersing HR professionals in other elementsof business helps enhance HR contribution inthe longterm

Independence

expertise provided free from influence anduseful complex situations

external nature is not universal advantageand it is denied workplace culture andtraditions

subcontractors will have wider access todata but lack experience of what hassucceeded and failed in the past

Alternative Structure Shared Service Centre

creation of small HR professional group atcorporate centre while call centre alsoestablished to provide advice tomanagers

Positive implications

greater efficiency

higher customer service ratings

greater HR strategic contribution

integrated solutions and information management

Negative implications

lower levels of customer satisfaction

less interesting work

higher costs

Devolving HRM to Line Managers

significant criticisms of HRM by linemanagement in many firms

HR seen as out of touch with commercial realities

HR constrains autonomy of managers tomake key decisions

HR slow to respond to problems

HR keen to promote theoretical policiesthat are impractical

Legge 1995 Vicious circle of Personnel Management

due to problems identified evidenceshows that managers have taken greaterHR responsibilities

2004 IRS survey shows management responsibility

major responsibility team briefing,appraisals and absence

shared responsibility induction and training

little responsibility performance, pay and recruitment

in devolving greater responsibilityorganisations need to consider a range ofissues

Lack of Skills

weak levels of skills and competencies toperform HR aspect

faddish nature of managementinterventions means that new ideas or nottaken seriously

Disdain for HR

managers feel they don't need trainingand feel HR role can be easily done

HR skills seen as derived from idealisticview of human nature

Competing Priorities

HRM issues seen as less important thanother management roles

managers don't have sufficient time todevote to HR issues

Inconsistencies in Application

lack of clear procedures will result inmanagement inconsistencies

issue of compliance to employmentlegislation discipline and dismissal

2 arguments to encourage managementto take HR function seriously

cost of poor HR employment tribunal,loss of customers lapse in safety

value of good HR opposite to above

Measuring the Contribution of the HR Function

Guest & Hoque 1994 Reasons for HR Criticism

ambiguity of function cost and value

doubts enhanced by UK culture offinancial primacy and short termism

difficulty to quantify work of HR function

measure to raise awareness of HRfunction through role in corporate Boards

measurement through stakeholder analysis

Mayo 1999 HR influence enhancedthrough movement away from balancesheet approach

Tesco balanced scorecard

measurement through externalbenchmarking

mapping of hard data i.e. labour turnoverand training costs

ratio of HR staff to employees

percentage of staff receiving appraisals

speed and effectiveness to complaints and grievances

must consider national and industry differences

measurement through internal evaluations

service level agreements

SLA provide specific statement of serviceprovision against which measurementscan be made

danger of approach that satisfaction ofinternal customers may affect servicequality

Changing Responsibilities for HRM.mmap 23/03/2008

Motivation and PaySystems

Theories of Motivation and Reward

Content Theory fundamental human need

Process Theory psychological processes

Taylor Scientific Model

employees as rational and economic inapproach but lazy and motivated byrewards

highly criticised arguing that economicapproach self perpetuating in workers

Hawthorne Human Relations School

worker performance linked to observationand need of group membership andattentioncriticised for being unitarist in approach

Maslow Hierarchy of Needs

people motivated by hierarchy of issues aiming to satisfy one set of needs beforemoving onto the others

little evidence to prove hierarchy andpeople may demand different factors atdifferent times

McGregor 1960 Theory X and Y

X workers are lazy and require control

Y workers can be motivated through selfesteem and development

Hertzberg 1966 2 Factor Theory

no direct relationship between satisfactionand dissatisfaction

positive and negative hygiene factors

Vroom 1964 Expectancy Theory

management need to ensure that effort isrecognised and rewarded financially andnon

management need to establish schemesthat reward appropriate behaviour

Three central concepts

performance outcome expectancy employees recognise consequences forcertain actionsValence value to employee of outcomederiving from certain behavioureffort performance expectancy perception by employeeof likelihood of achieving desired objective

Nadler & Lawler 1979low motivation will exist in jobs with little control

Reward Management in Context

Political and Economic Context

1960s & 197s reward systems helped toincrease salaries

1980s & 1990s free market philosophyand cultivation of enterprise culture

lower levels of inflation and cost of livingenhanced annual pay increases

Factors Affecting Salary and Wage Levels

job size responsibility, level, knowledge,skills and competencies

individual characteristics age,experience and qualifications

labour market factors supply anddemand of skills

product market conditions and cost structures

remuneration philosophy of company

Influences of rewards on HR system

recruitment and retention

signals importance placed on behaviourand activities by employer

reward systems affect corporate culturescost structure service sector implications

Integration/Contradiction in Reward Structures

common for management aims to conflictand will impact on remuneration policy

differences in expectations of worker groups

New Pay Factor

need for understanding of organisationalgoals and objectives when formulatingreward strategy

business strategy of organisationdetermines behaviours of employeesseeking rewardassumption that strategy is known and top down!

Lawler 2000 Strategic Design of Reward Systems

Structural Content Dimensions

Basis for rewards are people paid for what they door for skills and competencies?

Pay for Performance should staff bepaid for seniority or performance?

market position of companyinternal/external pay comparisons to whatextent does management value equity?centralised/decentralised reward strategy

degree of hierarchy reward based onposition or achievement

reward mix types of rewards provided to individuals

Process Dimensioncommunication policy open or closed?decision making practices involvement of staff or not?

reward systems need to fit with HR systems as awhole without fit there will be conflicts CONTINGENCY APPROACH

Types of Payment Scheme

Underlying Philosophy

Service Philosophy acquisition of experience

Fairness Philosophy right structures of differentials

critical that HR professionals see the linkbetween HR and organisational policy

Choice of payments must also reflectcircumstances of the organisations

(1) Time Rates

hourly, weekly or annual salary

flat rate or fixed scales

managerial/white collar workshift to simple wages systems problemswith incremental structures lack ofsystematic appraisal system

can be proliferation of job grades requiring restructures

(2) Payment by Results

link between reward and effort asmotivational factor

payment by output level or fixed sum onachievement of output

piecework common in textiles and engineering

commission based pay affected byscandals around directory enquiries

three issues for consideration

Control less personal supervision encouragement of speed not quality

Erosion schemes degenerate as resultof learning curve and fiddling

Complexity setting of performancestandards work study techniques

(3) Plant/Enterprise Schemes

encouragement of staff to identify more widely with organisational goalsScanlon Plans ratio of payroll costs to value of production

Rucker Plan difference between sale value output and cost ofmaterials commercial value of process of conversion

workers have little control over bonus size

schemes may encourage competitionbetween groups

progressive marginalisation of unions

(4) Performance Related Pay

greater emphasis on this approach andreflection of enterprise culture of 1980s

widely used in public sector

potential benefits (Armstrong 2002)

motivates staff and increases productivity

acts as leverage for changelinks reward to achievement of org goals

criticisms

risk of perceived biashigh costs of administration

subjectivity and consistency of appraisal

equal opportunitiescultural dimension PRP will varybetween countries and cultures

(5)Financial Participation and share Ownership

inclusion of staff in financial performance of organisation

schemes don't provide real involvementno linkage between effort and reward

In Search of the Happy WorkplacePecci 2003 characteristics of happy workplaces

reasonable workloads

reasonable levels of controljob security

wageeffort bargain

Motivation and Pay Systems.mmap 31/03/2008

Equity and Fairnessin Reward

Management

Job Evaluation

a process whereby jobs are placed in arank order according to demands placedupon them

degree of confusion regarding the process writing job description is central but notdesigned to evaluate job holder

widely used in 5075% of organisations

Arthurs 2002 Objectives for introducing job evaluation

establish rational pay structure

to reduce disputes and grievancesto create pay relationships between jobs

Non Analytical Evaluation Schemes

Job Ranking JD's placed in rank order toprovide league table

Paired Comparison systematiccomparison between all jobs

Job Classification grade numbersdecided and definition then producedCriticism highly subjective with implicitassumptions made

Analytical Evaluation Schemes

Points Rating breaking down of job into series of factorssuch as skill and judgement then applying a weighting formeasurement

Factor Comparison ranking of jobs andattachment of monetary values

Armstrong & Murlis 1998 transitional nature of Job Evaluation

equal pay legislation requires schemes tobe analytical and gender neutral

new technology is changing roles andintroducing new skills

greater flexibility of working arrangements

decisions now made lower down hierarchy

Criticisms of Job Evaluation

costly bureaucratic nature

difficulties in application to knowledge orteam based working

Broadbanding

compression of pay grades into wider bands

no more than 5 or 6 bands for all staff

emphasis on external relativities

less reliance on rigid job evaluation

Equal Value Considerations

Equal Pay Act 1970 and AmendmentRegulations 1983

implications for pay schemes must notreflect discriminatory values

Flexible Benefits

sick pay, company cars, health insurance and holidays

job security

Cafeteria Benefits

staff provided with core benefits and areoffered menu of others to add to them oftheir choice

strong overlap with motivation theory

Non Financial Rewards andRecognition

Hertzberg 1987 employees motivated by inherent need tosucceed at challenging tasks

Semler 1993 Brazilian Management Style howemployees accept responsibility following good treatment

Hackman & Oldham 1976 5 Core Job Characteristics forSatisfaction and Motivation

skill variety

task identity

task significance

autonomy

feedback

Crosby 1980 Recognition and Feedback

people don't work for money rather foracceptance and recognition

Kohn 1993

rewards and praise can have negativeimpact on creative jobs

Stredwick 2002 Two Types of FormalRecognition Schemes

suggestion schemes

rewards for exemplary and additional work

Involvement, Autonomy andResponsibility

job rotation

job enlargement

job enrichment

autonomous work groups

team working

Harmonisation

process of reducing differences betweenmanual and non manual workers andprovision of single status

1960s research identified disparities inworking hours, pay, holidays anddiscipline

1980s influences from Japanesecompanies symbolic egalitarianism

BP chemicals linkage of continuousimprovement and individualisingemployment relations

Factors increasing harmonisation

technology cuts across demarcation lineslegislation has narrowed differencesbetween workers

growth in single table bargaining

changes in employment structures

1997 harmonisation of 1.2m council workers

Pitfalls of Harmonisation

costly nature of equalising notice periods

workers unwilling to accept cash less benefits

confusion of goals of harmonisation with management

Pensions

form of deferred pay and wider fringe benefit

Defined Benefit Scheme pension calculated as percentage of final salary

Defined Contribution regular paymentsmade by employee and employer

Objectives of occupational pension provisions

recruitment, retention, improvement ofemployee relations and management ofretirement

research has shown that manyorganisations only use pensions forrecruitment purposes

Equity and Fairness in Reward Management .mmap 01/04/2008

PerformanceManagement

(1) Induction and Socialisation

process that begins with recruitment andleads into continuous development

recruits briefed on performancestandards, establish learning needs andundergo socialisation process

some induction processes will be morebasic than others may consist of rite ofpassage

informal processes may cause problemsof isolation, confusion and low morale

problems will create different types of cost for the company

Planning Inductions

understanding of pressures on new recruits

needs to be individually tailored inrecognition of individual need

role of line manager is critical and buildingpositive relationships will be beneficial forthe future

Induction Content

administrative orientation, H&S, culture and history

social integration importance of informalgroupings, partnering and mentors

cultural control educating employees oncompany values indoctrination?

(2) Reviewing and AppraisingPerformance

IRS Review 2003 Reasons for Appraisal

identify training needs

evaluate individual performance

identify good performance

ensure communications

identify and deal with poor performance

formal review takes place annually should provide honest and opendiscussion between colleagues

manager uses counselling skills toactively listen and offer feedback

appraisals undertaken by immediatemanager appropriate when rewards areconcerned

360 degree reviews

voluntary feedback from peers

rationale that's elf awareness increasedalong with improvement

Popular for number of reasons

multirater providing greater validity

facilitates open communication

framework for effective assessment ofpoor performers

Benefits of 360 degree

fosters spirit of continual improvement

enhances commitment of staff

fits with notion of involvement andempowerment

General Problems with Performance Reviews

un conducive cultureeffective in open and accepting cultures

conflicting aims

when issues of reward are consideredemployee unlikely to discuss in depth

Bureaucracycan be seen as expensive and time consuming

Validity

problems in terms of meaningfulnessobjectivity and accuracy

answering the phone is measurable but not valuable

distortions

Halo effect

Horn effect

Veblen effect central tendencies

Doppelganger effect

Recency effect

Management Training and Skills

management of diffiuclt people andwinder communication skills

PM review for Control

Redman 2001 review as part of control process

peer review systems used to undermineco workers appraisal as disciplinarygaze

Evidence of Success

assumption that employees will acceptfeedback but not enough evidence toprove this

Future of Performance Review

this will remain as organisational functionwith 70% of employees undertakingreview

review is not management panacea notall managers work well with this format

(3) Reinforcing Performance Standards

Managing Poor Performance

Capability

Lewis & Sargent 2004 skill aptitude,health or physical/mental quality

workers should only be dismissed afterseries of warnings

if capability issues is related to change injob this should be assessed bymanagement

Ill Health

consideration should be given to healthand work history

reference to process in ACAS handbook

DDA 1995 will have impact on dismissal issues

Managing Attendance

measure of corporate health and may bea good indicator of motivation

absence has significant cost to UKeconomy and UK has poor record ofworker health

much research has focused uponpreventable short term absence

first stage to address this is accurate data but may organisations are unfamiliar ofthis

following collection of data problems canbe defined and allow the creation ofperformance management systems

Strategies to deal with Absence

CIPD determined that disciplinary actionswere widely used

may include informal chats, counselling,medical support services

pilot exercises at Tesco removed pay forfirst 3 days of sickness

Rehabilitation and Health Management

UK historically poor at supporting people back to work

James 2002 no occupational therapy,reluctance by departments to take onredeployed staff

IRS employment review 2004 barriers to rehabilitation

capacity of NHS to support schemes

employee resistance to rehab

difficulty in finding other duties

persuading managers of rehab value

waiting for sick notes

mental health rehab even more complex

(4) Counselling and Support

Employee Assistance Programmesincrease availability of counsellingservices

increase of 40% in stress related illness inthe UK with 13.4m lost days in 2001

employers benefit through lower levels ofturnover and reduced absenteeism

Performance Management.mmap 24/03/2008

New Technology andEmployee

Involvement

Introducing Technological Change

changes can be incremental and not seenas a problem for managers andemployees

radical changes will require moreconcentrated changes around managerialroles, structure, training and employeecommunications

HRM considerations are likely topermeate technical changes if they are;

part of general business strategyneed to involve staff

Role of HR as Change Makers

Initiation Stage strategic perception of ITinvestment involvement dependent onrole of HR functionImplementation Stage degree ofinvolvement dependent on reaction ofstaff to changes

Many employees have welcomedtechnology changes

informal resistance to change has beenseen as workflow system issues ratherthan HR problem

Employee Involvement

extent of engagement and involvementwill influence response of employees tonew technology

top down approaches with lack ofcommunication may ignore impacts onstaff

Sewell & Wilkinson 1992

Types of Involvement Policies

EI Schemes involve 2 way flow of ideasand responsibility

EI expressed in a number of ways

Technological Change inNonUnion Environments McLoughlin 1993

absence of unions may be disadvantagebecause of importance in obtainingmeaningful management voice

Marchington & Wilkinson 1996reaching agreement with union can create legitimacy

Importance of Management Style

Purcell & Ahlstrand 1994 typology ofmanagement styles

Large Companies SophisticatedApproach formal consultation andextensive communication

Paternalistic/Traditional Companies little communication and engagement

McLoughlin & Clark 1994

managers have degree of discretion whenintroducing new technology

participatory or non approachtop down or bottom up

will result in differing perceptionsdepending on position of engagementwithin the firm

Role of the HR Function

WERS 1998 survey has shown low levelHR involvement around technical change

evidence suggests that in hi techcompanies the HR function was marginal

Legge 1993

result of investment into technologyregarded as routine

HR specialists have no natural role to playbusiness managers experiment with management

L4 Mindmap.mmap 09/05/2008

Managing Worker Voice

Management Role in Employee Relations

Edwards 2003

common and divergent issues betweenemployer and employees

both have vested interest in companysuccess with negative effects on profitaffect salaries and other benefits

are critical divergent interestsemployer seek to buy labour at lowest possible price

employee seeks to sell labour at highest possible price

employment relationship defined byconflict and cooperation

BUT notion of two sides is simplistic

neither side is consistently unified

management will have conflictingobjectives between layers anddepartments

conflicts between unions and hierarchy of membership

issue of 3rd party intervention bygovernment legislation and payregulation

Different context of management nature

sectoral differences

private business

public corporations

public sector

voluntary sector

size differences multi establishment vs single unit firms

impact of employee relations vs othercorporate issues

Kochan 1986 Strategic Choice Model

industrial relations policy as part of widerlong term corporate plans

reducing labour costs

channel discontent through official channels

increasing productivity and utilisation of labour

increase control over the labour process

short term solutions have been seen to be problematic although evidence showsmanagement have adopted pragmatic and opportunistic approaches

Fox 1966 Frames of Reference Model

key influences that shape management perception

Unitary view of firm as team striving for single goal

no room for factions and conflict seen as abnormal

Pluralist view sees the organisation ascomprising various groups with commonand divergent interests

Extent and Nature of UnionRecognition

issue of union recognition lies at heart ofemployee relations

policy and procedure has changed significantly

1970s assumed most employers wouldrecognise unions and support their work

1990s many firms introduced newpractices without consultation

Gall & McKay 1999 increase of newrecognition agreements

number of companies likely de recognisehave already done so

notions of partnership have become more popular

companies were waiting to se howlegislation was enacted

trade unions have increased resources toimprove their profile

employees have adapted to EU regulation on consultation

Smith & Morton 2001 Impact of 1999Employment Relations Act

regulation of freedom to dismiss workers

recognition of unions achieved by

Recognition by Agreement

Recognition from application to CentralArbitration Committee

Recognition Ballots

Increased distinction in UK between 3types of workplace

places with unions supported bymanagement arrangement

places where unions are being edged out

non union areas

Working with Unions

proportion of UK workplaces withrecognised unions fell to 45% in 1998

substantial sectoral variation 95% inpublic sector 25 in private

Brown 1998

recognition varies in scope and depth

employers will recognise unions forcertain activities such as grievance ordiscipline

non manual make up largest group ofmembers and fewer new firms are likely tohave unions

Reasons for Working with Unions

management may view unions as part ofcommunication process in larger firms

employees may decide it is moreimportant to achieve long term stability inrelations

unionisation as inevitable

lack of power to reduce the power ofunions in the workplace

Charlwood 2003

people join unions for instrumentalreasons such as protection from arbitrarymanagement decisions

instrumental approach explains whyunions are seen in local and economicterms

Millward 2000

reduced willingness to become unionmembers even when encouraged

Edging out the Unions

movement to marginalise or derecognise unions

often driven by disputes with unions overchanges needed

other firms have taken advantage ofsuperior power base to remove of restrictunion activities

in some cases this has been influencedby approaches to individualism andperformance related pay over collectiveapproaches

Changes associated with marginalisation

reductions in shop stewards

reduction of available time for union activity

lack of support for DOCAS arrangement

lower priority for collective bargaining

greater emphasis on individualism

WERS 1998 confirmed trend to hollow outcollective agreements with managersviewing certain HR issues off limits tounions

DeRecognition

complete withdrawal of collectivebargaining by unions within a firm

removal of bargaining rights for one ormore union in multi union environment

Managing Without Unions

Beaumont 1987

identified a number of 'household name'firms that were praised for employeerelations that attempted to offer more thanthe unions could

non unionism has a geographic elementwith greater representation in the SouthEast and certain sectors

Guest & Hoque 1994

argue that terminology of nonunionism is limited

categorised non union firms into 4 groups

Good

Bad

Ugly

Lucky

Good Firms

leaders in product market largecompanies with clear strategies

competitive pay in excess of market

comprehensive recruitment, induction,training processes

focus on employee communication and feedback

Bad and Ugly Firms

poor terms and conditions

deprivation of rights

low pay and limited rights

views communication as negative

CollectiveBargaining

significant component of employeerelations from 1920s1980s

prominence of bargaining has declined inrecent years and now takes place at awork level

Is concerned with substantive andprocedural issues

many blockages caused by managementof future relations

extent of bargaining has reduced in recentyears along with membership andrecognition

shape and size differs between sectorsand firms and bargaining level will differbetween workplace to multiemployer

Managerial prerogative is increased since1980s with many firms prepared to use it

multi employer bargaining hassignificantly reduced in the UK anddisappeared in the private sector

shift has moved towards greateremphasis on site and unit levelnegotiations

aim to encourage devolved responsibilityfor financial control

From Industrial Democracy toEmployee Involvement

1977 Bullock report addressed issues ofworker representation at Board level

union initiated and based on collectivist principles

wedded to principle of statutory employee rights

Employee Involvement

influenced by anticorporatism ofThatcher which encouraged firms toevolve measures best suited to them

individualist in approach and stresseddirect communication with workers

driven by business and 'bottom line' criteria

Practical Forms of EI

Upward Problem Solvingtapping employee knowledge and opinion

increase stock of ideas and encourage team working

Task Participation and Teamworkextension of tasks undertaken

Downward Communicationinform and educate staff of management plans

briefings and routine communications

Financial Involvementlinking individual reward to unit success

Employee Voice and SocialPartnership

Dundon 2004 Analysis of Worker Voice

two way dialogue allowing workers toinfluence events in workplace

HR managers play critical role in this process

external influences such as regulationallowing managers to think morecreatively about available choices

3 positive impacts of voice

valuing employee contributions

improved performance and productivity

improved managerial systems

Public Policy Context

EU concept of social dialogue centres onpartnership between employees and staff

Ferner & Hyman 1998 3 Characteristicsof Social Partnership

workers have different interests from managers

partnerships can be viewed at different levels

encourages representation

some employees view partnership as 'Union Trojan'

managers may view partnership asslowing down decision making andincrease costs

UK business environment focus onshorttermism creates less incentives forlonger term partnerships

Unions often have little choice but toaccept partnerships or face derecognition

Kelly 2004

companies with partnership arrangementshed jobs faster in declining industries

partnerships had no impact on wagesettlements and were unlikely to figure ascomponent of union revitalisation

European Works Council Directive (EWC)

requirement to establish works council iffirm exceeds 1000 employees

template provided for EWC in each firmas well as requirement for AGM

seeks to ensure that employees areconsulted about the organisation theywork in

EWC seen as opportunity formanagement to community elements ofcorporate strategy and facilitatediscussion of change

Managing Worker Voice.mmap 09/05/2008

Partnership Workingin Organisations

What is Partnership?

Partnership is a set of structured cooperativerelationships between management andemployees of an organisation

A psychological contract of mutual hightrust and high organisational commitment

Brown 2000 Major Characteristics of Partnerships

shared commitment to business goals

recognition of legitimate differencesbetween parties

ensures flexibility of firm is not a expense of job security

open and well informed dialogue and consultation

opportunities for staff development

seek to add value through staff motivation

Mutual Gains from PartnershipsEmployers

enhanced competitiveness throughemployer flexibility

greater staff identification with corporate goals

Staff

enhanced security and careerdevelopment based on training anddevelopment

Partnership in Theory and Practice

Partnership principle has become verycontroversial and it both lauded andcriticised

Analytical Implications

partnership stresses consensualapproach to industrial relations Sophisticated HRBUT employment relationship seen asbeing antagonistic in nature

Who are the Partners?

linked to analytical implications who is included?

is partnership with unions or employees directly?

different views across the world on whether unionsare best representatives of workers

UK and US see unions as oppositional innature and contest relationships withthem Traditionalist view

Alternative view sees changing nature of unionrepresentation mounting challenges and lower membershiphave forced them into consensual direction

shared interest in improvingorganisational performance

partnership structure may follow Purcell styles matrixPurcell 1986 4 Styles for managingemployee relations

Sophisticated HR employees as assetswith clear HR support mechanisms

Consultative recognition of unions andintegration into firm

Traditional labour viewed as factor ofproduction with assumed subordination

Constitutional unions recognised andaccepted as inevitable employeerelations based on stability and control

Consultation

Mechanism of engagement between staffand management

any critical arguments should beconsidered before final decisions aremade

in contrast to Negotiation which istargeted towards bargaining

process of informed debate anddiscussion preceding final decisions

process needs to be supported bysignificant information across a range oforganisational activities

Deeply embedded in EU but less so in UK

Significant implications for HR strategy to ensure strongconsultation systems are in place

Improved Organisational Performance

key focus of partnership is to improvecompetitive performance

employee security and competence willtheoretically lead to acceptance ofrequired change

evidence shows link betweenperformance and greater employeeimprovement

employee security can facilitate workreorganisation and technologicalinnovation

partnership however does not address issues ofconflict or pay and reward and focused towards highperformance outcomes

European Model of Partnership:Between Regulation and

Deregulation

Regulated Model

origin in Northern Europe in 1950s

combination of employment regulationand construction of strong centralisedinstitutions

collective bargaining andwidespread legal rights

criticised as inflexible and costly in global economy

but countries retain high labour productivity

Deregulated Model

few legal protections and unilateralmanagement prerogative

employment relations dealt at individuallevel with lower security but greatermarket flexibility

common in USA and Asian economies

UK

most deregulated Western European state

influenced by EU regulation and requiredto adopt parts of regulated model

partnership being introduced into weakerworking environment with lower levels ofregulation and weak unions

Many EU countries looking to deregulate markets with movementtowards to EU convergence that looks to combine benefits of bothmodels

Partnership in the UK

Context

partnership had limited application in theUK for many years

failure of traditional approaches to labour managementand rethinking of union strategy led to number ofpioneering partnerships in 1980s and 1990s

Labour victory in 1997 and 1999Partnership at Work Fund created a boomof partnership industry

TUC launched partnership institute

All stakeholders had interest in this approach

Government addressed strategy ofeconomy modernisation

Unions prospect of return to influentialposition in employer relations

Employers reason for scepticism andCBI gave guarded welcome

Legal Environment

Labour ending opt out of Masstrict Treatyand inclusion of provisions for collectiveemployee representation

impact of EU directive on information and consultation

2002 Information and Consultation ofEmployees (ICE) creation ofrepresentative structures

Trade Off between Flexibility andEmployment Security

explicit relationship established betweenflexibility and security

priority of security reflects performance ofworkers from reward to security

distinction between Employment and Job Security

UK collective agreements have no legal forces and UKemployers have fewer legal protections and security ishighly fragile

ramification of approach to security means that employers see unionrole as supporting organisational change undermining their historicalrole

Terry & Smith 2003 Partnership in the UK to date

partnerships introduced into largerorganisations with existing consultationand representation

significant number of agreements inpublic sector and privatised utilities

private service sector is mixed with somestrong examples such as Pizza Express

survey shows that well established and resourcessystem of communication and engagement wasessential for success of partnerships

required training and support

less evidence to show benefits to staff and employees

Future of UK Partnerships

UK management viewed as pragmatic and will adoptapproaches to employee relations as dictated byoperational needs

ideological hostility to collectivism is not as strong in UK asin USA but a significant shift is required

Ackers & Payne 1998 2 reasons whyPartnerships may work in the UK

Failure of current HR policies due to lackof union involvement

shifts in ideological moods reflect widersocial and political pressure

Kelly 2000

lack of legal regulation and hostility to collectivism means UKemployers unlikely to introduce continental partnership model

Lesson 5 Mindmap.mmap 10/05/2008

Business StudiesEducation: A

LearningOrganisation

The Learning Organisation

interest in LO stimulated by need toremain competitive in turbulentenvironment

LO concerned with ways in whichorganisations design themselves to valuemanage and enhance skills and careerdevelopment

Salaman 2001

conflict of organisation and learning oneseeks to organise and reduce varietywhile learning seeks the opposite

Can all Organisations beLearning Ones?

Findlay 2001

principle problem with LO concept islearning viewed as purpose oforganisation rather than means to an end

Keep & Rainbird 2000

ideals of LO have little in common withprivate and commercial sector work

only certain types of business strategysee learning as necessary but not thosewith cost reduction strategy

Who Wins from Learning?

individual and organisational views onuseful and beneficial learning will differsignificantly

Findlay 2001 Influences on employee perceptions

evaluation of learning benefits

effective organisational governance fairand trustworthy management

Management Style

traditional style unlikely to see learning asviable or attractive

Keep 1981 critical issue is extent towhich organisations want staff to learn

Employee Commitment and theLearning Organisation

Scarbrough 1998 Management of thePsychological Contract

what employees are prepared tocontribute to the organisation in exchangefor security

associated to factors such as reward and job security

senior managers believe innovation andcreativity can be achieved bycommitment

Affective Commitment: employees sharethe values and goals of an organisation

Myer & Allen 1984 Continuance Commitment

investments made by individuals overtime to organisation

lack of alternative substitutes to existingjobs individuals remain but may notshare values and goals

Herriot & Pemberton 1997

survival of organisation depends onrenegotiation of psychological contract

creation of fair exchange securingindividual commitment

Goffee & Scase 1992

increasing competitive environment hasled to competitive cost based strategyhaving a greater negative impact oncontracts

Knowledge Workers and Professionals

additional dimension to issues ofcommitment where these workers arefocused towards individual or professionalgoals rather than corporate ones

overcoming conflict requires betterintegration of knowledge workers withincorporate environment

Learning Through Social andOccupational Networks

people work and learn collaboratively withlearning taking place each day

incorrect assumption that learning is donein isolation evidence suggests learningis achieved through communities andoccupational networks

Wenger 2000 Features of Communities of Practice

members bound together by mutual andcollective understanding of communitynature

community built through mutualengagement participation acceptedthrough activities and actions

community produces repertoire ofcommunal resources language, routinestools etc

often ignored within the organisation

Challenge for the HR Function

critical challenge to establish anintegrated set of policies across theorganisation to support LO aims

at strategic level need for holisticrelationship between HR andorganisational strategy

important to reflect on the HR role inmaking the organisation a LO

HR Models Story 1992

Regulators HR function formulatesemployment rules and procedures

Change Makers employee relationsemphasise the needs of the business

Advisers internal consultancy roleallowing management to decide HRinitiatives

Handmaidens specialists operating insubmissive relationship with clients

devolution of HR function to managers how will this affect the creation of a LO?

Higher Education in the UK

Barry 2001

perceptions of university as ivory towerinhabited by scholars pursuing knowledgein rigorous ways

reality of universities similar to widerpublic sector with requirements to delivercost effectiveness through measurementof performance

1990s rapid growth in student numbersmirrored by reduction in funding bystudent

universities now forced to compete openlyfor resources targeted towards researchactivities

Personnel Management in UK Universities

traditional area of underdevelopment in UK institutions

Keep & Sisson 1992

review of personnel management during1980s found few examples of personalfunction

those responsible had little influence overprocesses and were focused towardadmin centre rather than staff

Jackson 2001

significant changes with most universitiescontaining personnel department

new universities are more managed than older ones

despite changes there is still little clarityon on the role played by personnel

Professional Communities

high levels of occupational rather thanorganisational commitment

links created between academics throughcommunities or networks of practice

Brown & Duguid 2000

knowledge can be sticky or leaky

knowledge critical to the organisationexists but cannot be located

knowledge leaks along networks of practice

knowledge sticks between differentorganisational practices

organisation will have different views toknowledge creation than that of itsemployees

further implication of knowledgemovement suggests that expertise inteaching skills may not be shared indifferent subject areas


Learning andDevelopment at

Work

Definitions and Terminology

Education

system aimed at developing intellectualcapability and conceptual understandingthrough learning process

Training

process to facilitate learning to increaseeffectiveness in aspects of work

Learning

changes taking place within individualand on the process whereby the learneracquires knowledge

Skills

aspects of behaviour practised in the worksituation that individuals are required toperform at an acceptable level

motor skillsmanual dexterity

social and interpersonaltechnical and analytical

Tacit Skills: ability to perform taskswithout awareness of doing so highlyvalued

Bloom 2004 Taxonomy of Learning Hierarchy

knowledge

comprehensionapplication

analysissynthesis

evaluation

Competency

Whiddett & Hollyfolde 2003

behaviours demonstrated by individualswhen undertaking job relevant skills

Management Charter Initiative management standards

breadth/awareness and strategic perspective

oral and written communicationleadership and assertiveness

Teamworkinganalysis and judgement

drive and flexibility

The Process of Learning

BF Skinner Behaviourist Approach

signal, stimulus and response learningclassical conditioning stimulus creates response

Operant conditioning desired responseis rewarded after delivery

Cognitive Learning

stimulusstimulus connections

insight experience and 'aha' momentpowerful reinforcer of learning case studies

Cybernetics

learning as information processing

signal with message passed acrosscommunication channel

Stammers & Patrick 1975

signals encoded for transmission

messages subject to noise which acts as obstaclelearning hindered by other stimuli andamount of information sendable is limited

Bandura 1977 Social Learning Theory

learning by imitation of othersenables transfer of tacit skills

allows for sharing of social andinterpersonal skills

doesn't incorporate feedback or evaluationindividuals can also learn negative orinappropriate skills

Kolb & Honey 1995 Learning Process ModelFormation of

AbstractConcepts

Generalisations

ConcreteExperiences

Observationand

Reflection

TestingConcepts in

newSituations

4 different learning models withindividuals having orientation to one ormore

Activists learning by involvementReflectors learning by review and reflection

Theorists learning through context oftheory and concepts

Pragmatists learn through linking newinformation and real life situations

4 Stage Training Process System

Identification of Training and Learning Needs

specification of needs at individual andorganisational level

training must represent the best solutionto existing problems and is not a cure forall organisational problems

3 Levels of Training Need

Organisational Training Need

global review of short and longer termobjectives to determine need

assessment of staff against objectivescompetence/performance managementapproach using JDs to determine requiredneedscritical incident focus on prioritising themain problem within organisation

Job Training Need

identification of specific training needs

range of methods for application

job specification

role analysistask observation

Personal Training Need

linked to job training need and includesidentical processes

linked to performance appraisal

Devising a Learning Plan

traditional approach seeks to determineclear aims and goals to approach

most helpful objective are those thatdescribe expected behaviour butconditions under which they will occur

critical to recognise knowledge skills andabilities brought by staff to learning event

variation in drive and motivation to learnby different staff members

Delivering TrainingSnape 1994 4 Categories of Training Methods

Instruction

Self Managed

Lecture

Case Studies

Pedagogical

Andragogical

Individual Based Group Based

Instructional: used for basicprogrammable skills and transfer ofroutine information

tell showdoreview processes

early part of pilot course or assembly lines

Lecture: required from providing largenumbers of people with information

estimations show that 25% is recalledfrom this process

attention span 20 minscost effective way of providing information

relative to presenter communication method

Case Studies: team oriented approach tolearning allowing individuals to proposesolutions

trainer supports group and allows forconclusions to be met

allows for problem solving and addressingreal life situations

important for cases to be appropriatelength and content

approach often criticised for not providingright balance of content and length

Self Managed: learning by the individualincluding elearning and language labs

undertaken at required pace of individual needschoice of method will vary based on cost,situation and location factors

regarded as most effective way oflearning at work and most common

many organisations provide in housetraining and in certain cases professionalqualifications

Evaluating Outcomes

most critical step of training process andfrequently not carried out in many firms

Kirkpatrick 1967 4 Levels of Evaluation

Reaction Level: most commonly usedapproach providing feedback at the end ofthe session

Immediate Level: measure of trainingobjectives: exams, tests, projects andcases

Intermediate Level: impact on jobperformance and application toworkplace interviews, questionnairesand observations

Ultimate Level: impact of training onorganisational performance using numberof indicators

number of customer complaints

level of sales or productivitynumber of accidents

absenteeism or turnoverletters unanswered

The Strategic Dimension

critical that HR ensure learning is locatedwithin the organisational context

top 3 critical factors in promoting learning

ensuring culture is supportive or learningensuing management are committed to learning

providing employees with time to learn

Benefits from learning

helping faster integration of new staffavoidance of errors

increased staff flexibility

difficult to measure financial value oflearning to company

Costs associated with Learning

fixed costs including accommodation or equipment

salaries and on costs of trainersvariable costs depending on length andnature of training undertaken

opportunity costs harder to measure may include payments to employees costof wasted materials

Trends and Development in Learning

Coaching

personal assistance offered on a 11 basiscommonly used and seen as an effective learning tool

problems associated include it being usedin an ad hoc way and many coacherslack sufficient training

ELearning

learning delivered or enabled through etechnologyaccommodates access at different times and place

seen rapid expansion but not as much as predictedlack of PC access

lack of support and human interface

CIPD identifies effective elearning when;

content is concerned with knowledge

long term training needtrainees are scattered

expensive situations need simulation

Management Development

set in context of social and economicenvironment of organisation

continuous and rapid change andrequirements for management to respond

Burgoyne 1988 6 Levels of MD Maturity

No management developmentIsolated Tactical MD: ad hoc and reactive

Integrated and Coordinated MD: careerstructure and assisted learning

MD Strategy Implements CorporatePolicy: implementation of policy

MD Strategy Input into CorporatePolicy Formation

Strategic Development of Managementof Corporate Policy

methods for MD include MBA,management degrees, internal or externaltraining courses and action learning

Continuing Professional Development

enables integration of learning withexisting professional work in a meaningfulway

Essential Principles of CPD

needs to be continuousbe owened and managed by individual learner

driven by individual needs

have clear learning outcomesevaluate learning

be seen as essential part of professionaland personal life

Marchington Chapter 9.mmap 11/05/2008

OrganisationalRestructure and Job

Insecurity

Job Insecurity

increasing feature of modern working

resulting from changes in the economicenvironment due to M&A and otherchanges

Brockner 1991 Survivor Syndrome

impact of job losses and redundanciescan have negative impact on survivingstaff

survivors are more change averse,resentful and competitive developmentof long hours culture

can lead to a range of health relatedissues including depression andsubstance abuse

Psychological Contract

defines what employees are prepared togive by way of effort and contribution inexchange for job security

recent movements that withdraw securityfrom the contract has been shown to leadto increased turnover rates

while intentions to leave may not berealised due to lack of attractivealternatives this will impact on individualsperformance

Guest & Peccei 1992

survivor guilt leads to negativity andundermining employee commitment

Managing InsecurityGreenhalgh 1991 Coping Strategies formeeting insecurity

Preventative Strategies

preclusion of insecurity by keepingworkforce intact

finding alternative cost efficiencies natural attrition and reducing temporarystaff

however many firms will not be able tosource such alternative options as thisrequires alternative cost strategies

Ameliorative Strategies

minimisation of hardships by loser and survivors

notice given or grouping of job losses i.e. all in one go

reemployment assistance and continuedemployer support

Restorative Strategies

repairing of damage done to commitment of survivors

provision of guarantees to survivorsaround job security

important to not confuse good intentions with reality

General comments on strategies

approach will depend on organisationalbusiness strategy innovation vs costreduction

preventative strategies will require othermethods for savings

internal capital market within firms oftenleads to to short term cost focus


Managing a DiverseWorkforce

AntiDiscrimination Legislationand Equality Codes

interactions and attitudes betweenemployers and staff are influenced bylegislation

1975 Sex Discrimination Act

1976 Race Relations Act

1995 Disability Discrimination Act

Dickens 1994 Overview of UK Equal Opportunities

some improvements have developed inthis area but men are still prevalent inmany companies senior managementhigher levels of unemployment amongstethnic minorities

The Business Case for Equality

traditional argument for equality has beenbased on an ethical or coerciveframework

further argument was made in favour ofapproach equality from a businessperspective

equal treatment of women will lead to awidening of the employee pool

argument that discrimination was aneconomically inefficient method ofworking

this has lead in many cases to themarginalisation of HR and unions in UK

Changing Organisational Cultures

mainstreaming of EO has lead to a widerapplication of the process above that ofmanagerial decision making

wider issues included use of differentlanguages sexual harassment and stylesof working

increasing prominence of work life issues

Limitations of Business Case Model

has been difficult to convince bottom linebenefits for many firms

many changes are likely to be long termand costs of inequality are unlikely tohave been measured

problems have been most likely incompanies pursuing a cost strategy

stronger case made for firms pursuing aninnovation strategy particularly due tochanging demographics and increase ofwomen in the workforce

Other demographic trends includingageing workforce has led to changingperceptions

Managing Diversity

terminology entering UK discussion in1990s as equality approach dealingspecifically with minorities

significant disagreement about definition and meaning

diversity approach recognises that allemployees are different and workplacescan benefit from recognising thisdifference

organisation needs to fit its approach to this differences

requires firm to rethink its practices suchas movement away from long hoursculture to encourage home and fixableworking

business case approach to diversityargues the same as EO but addsadditional concepts such as diverseteams increase productivity

diversity cultures works to ensure that allpeople are empowered to meet their fullpotential

some organisations however see adifference between people based ongroup association or intrinsic nature

Can Diversity Management Succeed?

major criticism of EO has been that itfunctions as a process of organisationalgrowth

change is likely to be limited in times ofeconomic stagnation

approach requires significant culturalchange and many organisations will havewell established groups that will resist this

social expectations of fair treatment haveincreased and are well establishednationally

increasing number of women in theworkforce have also moved to shift thisissue into the open

Business pressures will force manycompanies to introduce this approach andconsider how diversity issues affect theircompanies


TheInternationalisation

of HR

Internationalisation of Economic Activity

role of globalisation in underminingdistinctive national economic andindustrial policy

influence of international financial marketsand monetary union

growth of MNC who have becomepowerful actors in the internationaleconomy and majority shareholders inareas of employment and output

20% of employees in developed worldwork in an MNC

intraenterprise trade within MNCs nowlargest source of economic interchange

Reasons for MNC evolution

access to markets and capital

economies of scale

transfer technical expertise

reduce exposure to currency risk andaccess low labour

emergence of MNCs as stateless playersshifting resources towards opportunities

rootless management structures withinternational cadre of management

however many MNCs often maintaincharacteristics of home country

'Country of Origin' Influence on MNC

concentration of operations in country oforigin means that MNCs retain nationalcharacteristics

important distinction between MNCs is theimpact of capital market structures onbehaviours

detached relationships betweenshareholders and companies often afeature of UK/US companies

German models see banks as keycompany stakeholders

AngloSaxon economies are fluid andallow easy take overs with managementfocused towards short term interests

In this model MNCs will adopt costminimisation approach to labourmanagement

Germanic and Latin systems have morestable shareholdings and are free topursue longer term goals prioritisingproduction function and openness inindustrial relations

employee development approach

employees as enduring assets

Business sector and geographic locationwill have an impact on MNC policies

industrial functions will have workingbases in a number of countries each ofthem with different HR regulations

MNCs will often defer HR policy tonational subsidiaries

International Integration and MNC

most MNCs will seek to achieve degree ofintegration in service or productionprovision

to achieve synergies MNCs are nowmoving towards international structuresand capture cross border linkages

single product MNCs may see singlemanagement structure across company

multiple product MNCs may applyinternational product divisions

approach has facilitated cross bordercollaboration within HR function

Ferner & Varul 2000 Challenges facingintegration and HR impacts

nature of the regulatory framework thatHR must interpret and implement

Institutions of collective bargaining andemployee involvement

orientation of company towards internal or external market

nature of system viz training and development

way in which management functions aredefined and differentiated within thecompany

Lawrence 1996 differences withininternational HR functions

US more proactive than Europeparticularly around employee benefitsreflecting tight labour markets

German model highly legalistic andreactive and more concerned with trainingfunctionsoften due to framework of labour regulation

Edwards 1993 balance betweencentralised and decentralised decisionmaking process

result of ongoing negotiations and tradeoffs between operational managementand HQ

many subsidiaries will fail to share bestpractice in order to maintain competitiveadvantage

many companies will attempt to overcomethis resistance by introduction docountervailing measures comparingsubsidiary performance through ICTsolutions

Implications for Managers and Employees

internationalisation will have a wide rangeof implications for the HR function andemployees

Ferner & Edwards 1995

HR management will include the creationof international structures to bring HRmanagement into one place

enabling information exchange anddevelopment of common HR policies

further challenges will includedevelopment of mobile managementcadre moving across the organization

Challenges of common labourmanagement policy

erosion of local autonomy

selling of new approaches such as PRP

comparison of employee performanceacross subsidiaries and different countries

The Motor Industry

characterised by international competition

product market characterised by importpenetration and MNC manufacturing

most successful have been Japanesecompanies and US companies haveemulated Lean strategies and approaches

movement to greater integratesubsidiaries and encourage competitionfor resources from corporate centre


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