- Hofstede’s cultural dimensions theory
- International HRM
Managing Cooperative Efforts. A job of a manager is to assess, develop, and support cooperative efforts among the individuals he/she manages.
By holding a leadership position, the manager is assumed to have all of the authority, influence, and power to make it happen.
A team is a collection of two or more people who interact with one another for a common, positive purpose.
ORGANIZATIONAL BENEFITS OF TEAMS
*Absenteeism is a habitual pattern of absence from a duty or obligation without good reason.
CHARACTERISTICS OF EFFECTIVE TEAMS
Types of teams:
Types of teamwork
Leadership is an interpersonal influence directed toward the achievement of a goal or goals.
Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, characters, knowledge, and skills.
Situational Leadership Theory
According to Hersey and Blanchard, leadership style varies from person to person. A successful leader is one who can apply varying leadership styles depending on the maturity of a follower.*
*Follower maturity – the attitude towards various tasks.
The leadership theories aim to explain the origin of the leaders, their behaviour and leadership styles.
Each leadership style has its advantages and disadvantages. The best in the current fast-changing world is the ability of the leader to adapt to the situation. Leadership plays an important role in the company’s management system and overall performance. That is why companies develop leadership programs.
For example, the leadership program in McDonald’s:
Rather than working as an employee, an entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale.
Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization.
|Bases of Difference||Entrepreneur||Intrapreneur|
|1. Dependency||independent in his operations||dependent on the entrepreneur, i.e., the owner|
|2. Raising of Funds||himself raises funds required for the enterprise||Funds are not raised by the intrapreneur|
|3. Risk||bears the risk involved in the business.||does not fully bear the risk involved in the enterprise.|
|4. Operation||operates from out-side.||operates from within the organisation itself.|
Make the test and check what are your main strength and weaknesses in the working space (try to make it in different languages and see if the results will be the same!!!) . https://www.16personalities.com/free-personality-test
Similar to the organizational structure, supporting functions do not play the initial role in HRM but are important for the correct functioning of all the main functions.
There are some specific HR roles or HRM supporting functions:
1. Labor Relationships
3. Health and Safety
Having good employee relationships means providing fair and consistent treatment to all employees so that they will be committed to the organization.
Psychological contract —Employees expect to be treated fairly and ethically in return for providing their employer with a fair and reasonable amount of work.
Managers and supervisor in employee relationships:
Employee relations representatives from the HR department:
Effective communications <=> Feedback
Informal communications also called “the grapevine.” Information exchanges without a planned agenda that occur informally among employees.
A form of electronic communication that integrates voice, video, and text, all of which can be encoded digitally and transported on fiber-optic networks.
Telecommuting is also called “remote work”, “telework”, or “teleworking”. A person who telecommutes is known as a “telecommuter,” “teleworker,” and sometimes as a “home-sourced,” or “work-at-home” employee. (Wikipedia)
Challenges of telecommuting: feeling out of the team, need a high level of self-control, difficulties in on-line communications, technological problems.
Internal Marketing is used to build enthusiastic commitment among the organisation’s middle managers, front-line managers and employees. Note! Employees are possible customers. Employees have direct contact with customers.
Internal marketing strategy:
Example, Intel Commercials
Another good example is Starbucks, all employees are called partners, and the waiters at Starbucks are called baristas to make them feel exceptional and proud about their workplace, not to feel just simple service worker.
Watch the interview “How Starbucks Trains Customers to Behave”>>>, Anne Morriss, managing director of the Concire Leadership Institute, explains how the coffee giant increased efficiency and satisfaction by treating customers like employees. Like not-payed employees. (source https://hbr.org/video/2226726792001/how-starbucks-trains-customers-to-behave)
A HRIS (human resource information system) or human resource management system (HRMS), is basically an intersection of human resources and information technology through HR software.
This allows HR activities and processes to occur electronically. HRIS is
not only useful as a database of current workers, but also for contingent (or seasonal workers).
HRIS also rise up some ethical issues related with the treatment of personal information.
personnel file – A file maintained for each employee, containing the documentation of critical HR-related information, such as:
The company should guarantee the safety and secrecy of this information.
Dust from sugar is highly combustible, an explosion caused by sugar dust killed 14 workers at the Imperial Sugar refinery in 2008. Source: Maksud/Shutterstock
It is difficult to be definitive in terms of identifying the number of people who may be HIV positive or have AIDS within the workplace.
Workplace Safety and the Law
There are two sets of workplace safety laws:
(1) workers’ compensation, an employer-funded insurance system that operates at the state level
(2) the law that mandates safety standards in the workplace.
Comprehensive Safety Programs are well-planned efforts in which management
The health program is the range of activities with the focus on employee health improvement provided from the organization.
Benefits for EMPLOYEES:
Benefits for EMPLOYERS:
Diversity – Human characteristics that make people different from one another.
Example, Intel Diversity website https://www.intel.com/content/www/us/en/diversity/diversity-at-intel.html
Example, Diversity in Hospitality
Why Manage Employee Diversity?
Management of Diversity – the set of activities involved in integrating nontraditional employees (for ex. minorities) into the workforce and using their diversity to the firm’s competitive advantage.
Diversity training programs – programs that provide diversity awareness training and educate employees on specific cultural and sex differences and how to respond to these in the workplace.
What is Total compensation? Total compensation is the package of quantifiable monetary rewards an employee receives for his or her labour.
The Elements of Total Compensation:
● Base Compensation,
● Pay Incentives,
● Indirect Compensation/Benefits
or Fixed Pay is the payment an employee receives on a regular basis, either in the form of a salary or as an hourly wage (for example, a weekly or monthly paycheck).
Pay-Per-Performance or Variable Pay is a program designed to reward employees for good performance (including bonuses and profit-sharing).
Indirect Compensation or Benefits (for example, health insurance, vacations, and unemployment compensation).
Additionally, to Total Compensation (monetary) the company can also apply non-monetary Rewards to motivate employees (such as contacts, recognition programs and career opportunities).
Challenges of Managing Compensation:
Thus, developed correctly, the Compensation System includes Monetary Total Compensation and non-monetary Total Rewards. The synergy of monetary and non-monetary compensations help the company to find a balance between expected performance and cost optimization, from one side, and employee work-life balance and motivation, from the other side.
There are several factors which may determine the Compensation Plan for the specific job position, such as level of responsibility, strategic relevance, the ration demand/supply in the market, cost of living for international HR, tenure or the longitude of an employee working in the company, etc.
THE DISTRIBUTIVE JUSTICE MODEL (input/outcome ratio) states that employees exchange to the firm :
fairly paid is when –> employee’s input/outcome ratio = other employees input/outcome ratio
THE LABOR MARKET MODEL states that:
● the wage rate for any given occupation
● is set at the point where
● the labour supply = the labour demand
● in the marketplace.
This means that in the majority of situations:
2. Fixed Vs. Variable Pay
fixed pay as a percentage of total compensation continues to decline, and firms are asking employees to share more risks with them
3. Performance Vs. Membership
In the majority of the situations, the performance concept is applied in flat organizational structures with expert career passes (is represented as a round). While the membership concept is more common in hierarchical organizations with management careers (is represented as a triangle).
4. Job Vs. Individual Pay
The job-based compensation plan can be applied:
(1) to achieve internal equity – the comparative relative value of jobs throughout the firm,
(2) to achieve external equity – salary data comparative to a benchmark,
(3) to achieve individual equity – an individual’s positioning of his/her experience, seniority, and performance established within the pay range.
A job-based policy better when:
Individual Pay plan rewards employees for acquiring
Knowledge/skills based-pay plan has the following advantages and disadvantages:
Individual-based compensation better when:
5. Egalitarianism Vs. Elitism
An egalitarian pay system is a payment plan in which most employees are part of the same compensation system. Egalitarianism (+) (common for older, well-established firms)
● more flexibility to deploy employees in different areas without having to change their pay levels.
● reduce barriers between people who need to work closely together.
An elitist payment system is a payment plan in which different compensation systems are established for employees or groups at different organizational levels. Elitist pay structures (+) (common and risky and high competition
environment, high-tech products)
● more stable workforce
6. Below-Market Vs. Above-Market Compensation
Will employees be compensated at below-market levels, at market levels, OR at above-market levels?
To hire the “cream of the crop” – above-market
Company may apply different policy for different Job positions depending, for example, on the strategic relevance. Also, the decisions can be combined with other criteria, for example, market-median based salary with aggressive incentives to give extra value to the job offer.
7. Monetary Vs. Nonmonetary Awards
The organization should be realistic regarding the costs issues and search for the balance between monetary and non-monetary rewards.
8. Open Vs. Secret Pay
9. Centralization Vs. Decentralization of Pay Decisions
Summary. Compensation is a complex topic that has a significant impact on organizational success.
● None of the options is a simple either/or decision
● Many possibilities between them are possible.
Pay-per-performance is a system that compensates employees on the assumptions that:
Types of incentives:
Pay-for-performance plans can be designed to reward the performance of the individual, team, business unit or plant, an entire organization, or any combination of these.
Advantages and Disadvantages of Individual- and Team-Based Pay-for-Performance Plans
Conditions That Favour Various Pay-Per-Performance Plans
The Challenges of Pay-Per-Performance plans:
● The «Do Only What You Get Paid For» syndrome (employee focus only on the rewarded objectives)
● Unethical Behaviors («white lies» to «meet or exceed» targets)
● Negative effect on the Spirit of Cooperation (internal competition effect on communication)
● Lack of Control (factors beyond an employee’s control, or employee overloaded)
● Difficulties in Measuring Performance (individual contribution of the group work)
● Psychological Contracts (damaging results of changes)
● The Credibility Gap (fairness of the reward)
● Job dissatisfaction and Stress (greater productivity – more work)
● Potential Reduction of Intrinsic Drivers (no motivation to work without reward)
Meeting the Challenges:
Opportunity to align employees ́objectives with the organization
● Link Pay and Performance Appropriately (piece-rate system*)
● Use Pay for Performance as Part a Broader HRM System (for example with training)
● Build Employee Trust (managers need to show that they care about employees)
● Promote the Belief that Performance Makes Difference
● Use Multiple Layers of Rewards (variable pay)
● Increase Employee Involvement (in the design of the pay system)
● Stress the importance of Acting Ethically (training programs ‘how to meet performance expectations’)
● Use Motivation and Nonfinancial Incentives (balance – public and nonpublic praise, honorary titles, mentoring programs, expanded job responsibilities, etc.)
Pay-for-performance plans in small firms are more likely to be successful if
there is active employee participation in the development of the plan, incentives are linked to the achievement of organizational goals, and frequent informal feedback is provided to employees.
Benefits are group membership rewards that provide security for employees and their family members. Indirect compensation is given to the employee in the form of plan (health insurance) rather than cash).
Types of Benefits
Legally required benefits (1) Social Security, (2) workers’ compensation, (3) unemployment insurance, and (4) family and medical leave.
Other benefits types: Health insurance, Retirement, Insurance, Paid time off, Employee services
Challenges in Managing Benefits:
The Benefits Strategy
The design of a benefits package should be aligned with the business’s overall compensation strategy. The benefits strategy requires making choices in three areas:
○ (1) benefits mix,
○ (2) benefits amount, and
○ (3) flexibility of benefits.
HR specialist and Manager’s roles in Managing Benefits:
● HR staff administrate and control benefits programs:
○ the use of flexible benefits mix
○ Communicating benefits to employees
● The manager should be familiar with benefits:
○ to employees (help to understand and make the best from benefits)
○ a powerful recruiting tool (use benefits advantage to recruit high-quality applicants) ○ retain talented employees (reduce turnover)
○ a part in managerial decisions and organizational processes (effectively manage work schedules)
○ to managers (to be aware of their own benefit)
Labor Standards and Legal Issues
Great Place to Work GPTW
1. When your business is a great place to work, employees give 100% in everything they do.
2. … you become an employer of choice.
3. … employees think like owners.
4. … customers notice and come back again and again.
5. … absenteeism nearly disappears
6. … turnover costs plummet
7. … collaboration and creativity thrive
8. … you’re impacting the lives of people.
Training – The process of providing employees with specific skills or helping them to correct difficulties in their performance.
Development – An effort to provide employees with the abilities the organization will need in the future.
Training not always works. To get positive results the training process should be well organized.
The challenges of the Training Process:
Stages of the training process:
Clarifying the Objectives of Training
The levels of needs assessment:
Types of Training:
Four Measurement Levels of Training:
Training should always match with the company’s objective and environmental trends. However, it also should be developed in a way to bring positive perceptions to employees and match their needs. The correctly developed training process can add extra value to the company as an employer and can be perceived as a motivation among workers. Effective training will return on the investments by the positive impact on a company’s performance.
The company can save on training costs in different ways, for example, by using online training. Or, by applying the on-job-training format when the more experienced employees train less experienced ones. Employees should be trained. However, the decision about whether to train employees in the company “make skills” or to hire already trained specialists “buy skills” will depend on the company’s strategy.
Another training challenge for the company is retaining trained employees. In this situation, development programs and career opportunities can be a solution.
Talent development is a process of succession planning which follows performance appraisal standards and is based on the competency model.
This process consists of several stages (identification, direction and development) and as the final step consider the growth in a career path in the organization.
On this phase, development needs should be identified based on:
On the direction stage, the potential talents are guided by the company by providing:
The interest in the development of each candidate starts to be more clear. On this stage, company can segment potential talents and decide the next degrees of further development or not.
Every measure in the development stage aims to develop various dimensions from the company’s competency model.
What is a career? Career is an individual’s metaphorical “journey” through learning, work and other aspects development in the workplace.
Career development is an ongoing and formalized effort that focuses on developing enriched and more capable workers and working space.
A career in the company with flat and hierarchical organizational structure. What will be the difference? – For companies with hierarchical structures management-career with the possibility to be promoted in the vertical of organization chart by getting more responsibilities. In flat organizations, very common expert-careers when an employee can develop the knowledge and expertise in the specific field. However, both career paths are possible and needed in any organization. Experts very often advice top-managers.
1. Performance Appraisal and its components.
2. Appraisal Formats and Sources
3. The Role of Performance Appraisal
Performance appraisal – is the process of identification, measurement, and management of human resources performance in organizations.
Performance Identification is determining which areas of work the manager should be examining when measuring performance. Rational and legally defensible identification requires a measurement system based on job analysis. The appraisal system, then, should focus on performance that affects organizational success rather than performance-irrelevant characteristics such as race, age, or sex.
Performance Measurement entails making managerial judgments of how “good” or “bad” employee performance was.
Performance measurement must be consistent throughout the organization.
That is, all managers in the organization must maintain comparable rating standards.
Performance Management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization.
Competency model – Set of competencies associated with a job (related to experience, knowledge and personality).
● Competencies – Characteristics associated with successful performance →
● Dimension – A measurable extent of performance characteristics that determines effective job performance
Appraisal formats can be classified in two ways:
(1) by the type of judgment that is required (relative or
(2) by the focus of the measure (trait, behaviour, or outcome).
RELATIVE judgment – supervisors compare an employee’s performance to the performance of other employees doing the same job (compare coworkers).
ABSOLUTE judgment – supervisors make judgments about an employee’s performance based solely on performance standards.
TRAIT appraisal – supervisor make judgments about worker characteristics that tend to be consistent and enduring.
“-” have been criticized as too ambiguous and create conscious or unconscious bias.
BEHAVIOURAL appraisal – supervisors assess a worker’s behaviours.
OUTCOME appraisal – supervisors assess the results achieved by workers. Normally based on the objectives: number of total sales, number of products produced, number of tables served, etc.
Sources of the Appraisal
● self-review – A performance appraisal system in which workers rate themselves.
● peer review – A performance appraisal system in which workers at the same level in the organization rate one another.
● subordinate review – A performance appraisal system in which workers review their supervisors.
Manager – Worker Relationships
This means that managers must provide workers with feedback and coach them to higher levels of performance —> Training and Development and DISCHARGES
Why Performance Appraisal is important? If done effectively Performance Appraisal is:
And from the employee point of view?
Challenges to Effective Performance Measurement
Managers confront at least five challenges:
● Rater errors and bias (halo-error, the tendency to rate similarly across dimensions)
● The influence of liking (like or dislike for other reasons)
● Organizational politics (continues evaluations)
● Whether to focus on the individual or the group
● Legal issues (clear and written instructions)
Performance Appraisal Improvement – 360 degrees Feedback
● Explore the causes of performance problems.
● Direct attention to the causes of problems.
● Develop an action plan and empower workers to reach a solution.
● Direct communication at performance and provide effective feedback.
1. Hiring process
4. Onboarding and Socialization
Recruitment. The process of generating a pool of qualified candidates for a particular job; the first step in the hiring process.
Selection. The process of making a “hire” or “no hire” decision regarding each applicant for a job; the second step in the hiring process.
Socialization. The process of orienting new employees to the organization and the unit in which they will be working; the third step in the hiring process.
Challenges of the hiring process. The most important of these are:
In contemporary HRM theory, Hiring Process is often called Talent Acquisition. Note! That there is competition in the labour market for talented employees. Thus, the company should analyse the market needs, competitor actions and job needs inside the organization. Based on the analysis, the firm develops a unique value proposition for its target employees to get an advantage, and to attract the best talents possible. A strong Employer Brand with a positive perception amount current and prospective employees can strengthen this advantage. Moreover, the applicant-entered approach can improve the applicant perception about the company, and, as a result positively affect candidate retention.
Types of Job Seekers form the employee point of view:
The role of Job Analysis in the Hiring Process?
Job analysis helps to identify “selection criteria” to address the company’s objectives and “employee value proposition” to address employee needs.
Selection criteria example, Google https://youtu.be/t9O4usHigKg
Defining the Employee Value Proposition (EVP) is a source of differentiation for the company in the competitive Labour market.
To define successful EVP company should make a list of its strength as an employer (authentic characteristics), define target employee group preferences (relevant characteristics for the differentiation) and identify competitor’s strength (to find out what is the same and identify what may be different).
In the example,
Employer Brand to strengthen the company’s positioning and image as an Employer in the Labour market.
Companies may use different sources to generate the “pool of candidates”.
For example, social networks in order to demonstrate an emphasis on the personalization and closer communications with the potential candidates.
The recruitment process may include different stages, such as:
Recruitment funnel is used to prognoses the number of Applicants needed to make a final selection and to fill 1 job position.
For example, to get 2 candidates for the final selection, the company needs 2*3/2*2/1*5/1*2/1*10/1 = 600 applications
Candidates Retention is the employment practice that let the company to safe on the future cost related to the requirement, specifically candidate acquisition. The idea is based on the fact that the company cannot hire all suitable candidate during the selection process. Thus, the HR department keeps in contact with those who were not hired to offer them a job when new job offers will be available. Includes several concepts:
Applicant–centered recruiting is exactly what it sounds like: a way of hiring that puts the candidate first. Their wants, their needs, their questions. When working with people, a good strategy can be to imagine yourself in different roles. As a company, who need to hire, and, as an employee who wants to be hired.
For example, at the beginning of my managerial career, I was visiting a lot of interviews as a potential candidate to see the other side of the process. This helped me a lot to improve my skills as a hiring manager and improve the candidate impression during the recruitment process.
Candidate Selection tools
Companies should use – Reliable and Valid techniques for successful candidate selection. Usually, companies apply more than 1 selection technique.
Ex. In the selection context, it is the extent to which scores on a test or interview correspond to actual job performance. Once you are hiring an English teacher, there is no need to test he/she on the level of French.
Interview Vs. Assessment Center
The interview may create “Social Judgement Biases”. The aim of the Assessment Centre is to reduce subjectivity during the selection process.
Example, The general ideas of the interview psychology – «How to impress hiring mangers” – https://youtu.be/pMRO2dl9z3w
Which candidate would you select (candidate 1 or candidate 2)?
The final selection decision is always related to risks. A wrong decision can be costly for the company.
If the final decision — to hire (‘positive’) or not to hire (‘negative’) — is correct (‘right’) or incorrect (‘false’) depends on the ratio predicted/actual performance.
Personnel economics has been defined as “the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management».
For example, the calculation of odds – a ratio of probabilities – can be applied.
Orientation vs. Socialization
Orientation is a short-time process of informing new employees about what is expected of them in the job and helping them cope with the stresses of transition.
Socialization is a long-term process with several phases that helps employees acclimate themselves to the new organization, understand its culture and the company’s expectations, and settle into the job.
3 Stages of Socialization
(1) anticipatory, (2) encounter, and (3) settling in.
(1) At the anticipatory stage, applicants generally have a variety of expectations about the organization and job based on accounts provided by newspapers and other media, word of mouth, public relations, and so on.
>>>realistic job preview (RJP) Realistic information about the demands of the job, the organization’s expectations of the job holder, and the work environment.
(2) In the encounter phase, the new hire has started work and is facing the reality of the job.
>>> new hires need additional information about policies and procedures, reporting relationships, rules, and so on.
(3) During the settling-in phase, new workers begin to feel like part of the organization.
>> An employee mentoring program, in which an established worker serves as an adviser to the new employee, may help ensure that settling in is a success.
Airbnb – a famous example of the “marketplace” e-business model who grew fast. A brief story of speedy success.
Note! Airbnb’s business model considers 2 types of customers Host and Guests.