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Human Resource Management Business Cases Top 1: Overview & Introduction Top 2: Planning Top 3: Staffing Ass.-Prof. Mag. Dr. Ursula Liebhart

Human Resource Management LEILA Business Scool | Leibach | 14 January 2010

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HRM Overview & Introduction

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Functions and Activities of HR management

Strategic HR Management: HR Marketing and Retention, Employee and Labor Relations, Health, Safety and Security

HR

pla

nnin

g

HR

con

trolli

ng, H

R te

chno

logy

Staffing: Job Analysis, Recruiting & Selection

Performance Management: Leadership & Motivation, Personnel Appraisal

HR Development: Orientation, Socialization, Career Planning, Training & Personnel Development

Total Rewards: Compensation, Incentives, Benefits & working time

Further: Derecruiting /Lay-off, Diversity Management

Role and Organization of HR Management

External environment Source: Thom (2001); Liebhart (2007); Mathis/Jackson (2008)

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Definition & goals of Human Resource Management

Human Resource Management is the adequate supply with employees, considering the needs of the enterprise and the needs of the employees. Goal of HRM is … to supply the enterprise with personal capacities (manpower)

–  in the adequated quality and quantity –  to the right point of time –  for the time required –  on the specific job site

… so that the corporate processes can be done.

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The Needs of HRM

•  HRM: the process of managing human resources (intellectual asset or human capital) to achieve an organizational objectives.

•  The functions of HRM: staffing the organization, designing jobs and teams, developing

skillful employees, identifying approaches for improving their performance, and rewarding employee success-all typically labeled HRM issue.

•  Competitive Advantage through people: core competencies (Knowledge, Skills, and

Ability - KSAs) •  Human Competitive Advantages: have value, rare and unavailable to competitors,

difficult to imitate, and could be organized for synergy

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Current HR Management Challenges |1

Human Resource

Management

Globalization of Business

Economic and Technological Changes &

Managing Change

Organizational Cost Pressures and Restructuring

Human Capital & Workforce

Demographics and Diversity

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Current HR Management Challenges| 2

•  Globalization of Business –  Outsourcing and increased competition –  The threat of terrorism –  trade and tariff barrier –  culture, law, and business practices –  responsibility of firm to act in best interest (CSR)

•  Economic and Technological Changes –  Occupational shifts from manufacturing and agriculture to service industries and

telecommunications. –  Pressures of global competition causing firms to adapt by lowering costs and increasing

productivity. –  Technological Shifts and the Internet –  Growth of information technology –  knowledge worker –  Knowledge-Based Training –  Human Resource Information System

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Current HR Management Challenges| 3

•  Managing Change –  Reactive and Proactive Change –  Managing Change through HR (keeping employees focused on the business success –  Responding to the Market (TQM, Six Sigma, and Reengineering)

•  Organizational Cost Pressures and Restructuring –  Mergers and Acquisitions –  “Right-sizing”—eliminating of layers of management, closing facilities, merging with other

organizations, and outplacing workers •  Intended results are flatter organizations, increases in productivity, quality, service and lower costs. •  Costs are “survivor mentality”, loss of employee loyalty, and turnover of valuable employees.

–  HR managers must work toward ensuring cultural compatibility in mergers. –  Outsourcing –  Lay off

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Current HR Management Challenges |4

•  Human Capital Value –  knowledge, skills, and capabilities of individuals that have economic values to

an organization –  valuable based on specific skills, can be developed and expanded

•  Workforce Availability and Quality Concerns –  Inadequate supply of workers with needed skills for “knowledge jobs” –  Education of workers in basic skills

•  Workforce Demographics and Diversity -  Increasing Racial/Ethnic Diversity -  More Women in the Workforce - Single-parent households, dual-career

couples, working mothers and family/childcare -  Significantly Aging Workforce - age discrimination

•  Growth in Contingent Workforce –  Increases in temporary workers, independent contractors, leased employees,

and part-timers caused by: •  Need for flexibility in staffing levels •  Increased difficulty in firing regular employees. •  Reduced legal liability from contract employees

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Internal and external influences on HR-related work

HR-related work

structures/ systems

managers‘ conception of man position of HRM

employees‘ potentials

job market

technological developments

employees‘ expectations of employers

legislations/ contracts

economic change

social change

central ideas/ strategies

values/norms (corporate culture)

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Self-Conception of the Personalarbeit

HR-related work as staff unit

institutionalization phase

Visions-orientied and integrated HR management

Phase of holistic entrepreneurship

Hr-related work as administrative

task

phase of bureaucratization

HR-related work as „repair work of the

line“

phase of improvisations

level of activity

re-active pro-active

impact with time

shor

t-te

rm

long

-ter

m

Quelle: Hilb 2002

T 1

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Model for multiple roles of HR Managers

Source: Ulrich (1998)

Strategic Partner (Strategic Role)

•  Partner of strategy implementation •  Align the HR Strategy to Business Strategy •  Focus on developing HR programs that

enhance organizational performance •  Leading Role for Best Practices

Administrative Expert (Administrative Role)

•  Efficient and effective Delivery of HR Services •  Continous improvement of internal processes –

administrative efficiency •  Building up of internal competence centers

Employee Champion (Employee Advocate Role)

•  Mouthpiece from employees to management •  Facilitate chances to personnel and vocational

development of the employees •  Provide ressouces for the employees •  Responding to epmployee complaints

Change Agent (Facilitator of continuous change)

•  Increasing the organization´s ability to

transform •  Provide capacities for changes •  Designer of the organizational culture

HR Business Partner

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Changing Roles of HR Management

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Operational to strategic transformation of HR

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Competence Profile of the HR Business Partner

•  Speak the language of the business •  Masters HR methods •  Is able to lead change processes •  Familarity with HRMS Technologies •  Creates cultures and work places

that facilitate the individual performance ability and organizational engagement

•  Demonstrates personal credibility

The importance to a professional qualification and experiential

background increases.

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HR Management as a Career Field

•  HR Generalist –  A person with responsibility for performing a variety of

HR activities.

•  HR Specialist –  A person with in-depth knowledge and expertise in a

limited area of HR.

•  HR Manager –  A person who is a line manager for HR Generalists and

Specialists

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Source: HR Department Benchmarks and Analysis 2004

HR Specialists

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Examples of HR customers

Internal customers

•  commercial employees •  industrial employees •  freelancers •  contractors working in-house •  operational departments •  departments of administration •  CEO, Management •  apprentices, trainees •  employees‘ representatives •  !

External customers

•  HR consultants •  headhunters •  advertising agencies •  lawyers •  applicants •  former applicants •  future applicants •  temporary employment agencies •  seminar providers •  conference hotels, travel agents •  providers of HR software •  third party billing •  providers of professional journals and

books •  associations •  organizers of fairs •  universities, schools •  shareholders, board •  health insurance •  !

Source: Goerke/Wickel-Kirsch (2002)

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Expectation of the internal customers

management

executives

employees

S E R V I C E

individual provider of services

psychologist

change agent ombudsman

promoter/coach

HR marketing specialist

HR consultant

change agent

promoter

HR manager

strategic partner

CONTROL GUIDANCE SUPPORT

HR consultant

consultant trouble shooter

promoter/coach

internal service provider service-center „personnel“

HR expert

advice

change processes

learning and development support

HR department

participation from the customers‘ perspective

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HR work: forms of organization

other options: •  Outsourcing of HR functions, „model of elimination“ •  virtual HR department

Quelle: Scholz (2000)

Organization of HR department

Distribution of HR competences

universalistic participative central (1)

dominant, central HR department with universal authority („yesterday“)

(4) (also) specialist executives as HR managers, central HR department as comprehensive coordination („day after tomorrow“)

decentral (2) Dominance of the HR field, but throughout the company („today“)

(3) (also) specialist executives as HR managers, helped by decentral HR units („tomorrow“)

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continuum of division of responsibilities between HR department and specialist department

responsibilities of specialist dept.

responsibilities of HR dept.

The HR dept. has sole authority.

The HR department offers

support and advice.

The specialoist dept. can only act together with the

HR dept.

The HR dept. can only act together with the specialist

dept.

The HR dept. acts after consulting specialist dept.

The specialist dept. has sole

authority.

1 2 6 5 4 3

Quelle: Wunderer (1995)

Tasks that should be performed solely by the HR department: •  venture-significant tasks (e.g. HR marketing). •  cross-functional tasks (e.g. conception of an HR development system). •  all task that are more economically performed in the HR dept. (e.g. HR administration). •  all tasks that require special skills (e.g. labour market research).

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HR Cooperation with Line Managers

•  HR Unit

–  Develops legal, effective interviewing techniques

–  Trains managers in conducting selection interviews

–  Conducts interviews and testing

–  Sends top three applicants to managers for final review

–  Checks references

–  Does final interviewing and hiring for certain job classifications

•  Managers

–  Advise HR of job openings

–  Decide whether to do own final interviewing

–  Receive interview training from HR unit

–  Do final interviewing and hiring where appropriate

–  Review reference information

–  Provide feedback to HR unit on hiring/rejection decisions

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HR Planning

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Factors That Determine HR Plans

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Human Resource Planning

•  Human Resource (HR) Planning –  The process of analyzing and identifying the need for and availability of human resources so

that the organization can meet its objectives.

•  HR Planning Responsibilities –  Top HR executive and subordinates gather information from other managers to use in the

development of HR projections for top management to use in strategic planning and setting organizational goals

Overall Strategic Plan

Human Resources Strategic Plan

HR Activities

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HR Planning Process

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Planning

•  Planning of quantitative personnel requirements –  Influencing factors –  Procedures and methods –  Considerworking time models –  Long range personnel requirements – Retirements/locational change –  Short- and medium term personnel requirements – seasonal, social and personal

fluctuations •  Planning of qualitative personnel requirements

–  Recording of job requirements and determination of existing qualifications –  according to groups:

•  professional groups •  qualification groups •  fields of activity

–  job description –  requirements profile –  capability profile

Work analysis (job analysis, Task analysis)

The result of the task analysis is the work analysis and the specification of requirements.

Job description The job description comprises: illustration of instances Illustration of tasks Illustration of achievements

Requirements profile The requirements profile defines the amout of requirements of specific tapes of requirements.

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Staffing

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Job Description

•  Job : A group of related activities and duties

•  Position: the different duties and responsibilities performed by only one employee

•  Job Title: status of employee, identify duty and level occupied

•  Job Description: Statement of the tasks, duties, and responsibilities of a job to be performed

•  Job Specification: skills required to perform the job and physical demands of the job

•  Job Analysis: the process of obtaining information about jobs by determining what the duties, task, or activities of jobs are; using data to develop job description and job specification, and to improve organizational performance and productivity

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Job Requirement

RECRUITMENT: determine recruitment qualification !

SELECTION: provide job duties and job specification for selection process!

PERFORMANCE APPRAISAL: provide performance criteria for evaluating employee !

TRAINING and DEVELOPMENT: determine training

needs and develop instructional programs!

COMPENSATION MANAGEMENT: Provide basis for determining employees’ rate of pay

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The Process of Job Analysis

Source of Data Job Analyst Employee Supervisor!

Job Description Task

Duties Responsibilities!

Human Resources Functions!

Job Specification Skill Requirement Physical demands

Ability needed!

Job Data Tasks

Performance Standards

Responsibility Knowledge Skills and

Experience Required

Job Context Duties!

Methods of Collecting Data

Interview Questionnaire

Records Observation!

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Determining Job Requirements

- What employee does - Why employee does it - How employee does it!

Determining Job Requirements!

- Summary statement of the job - List of essential functions of the

job!

- Employee Orientation - Employee Instruction

- Disciplinary Action

- Personal qualifications required in terms of skills, education and

experience !

- Recruitment - Selection

- Development!

Nature of: Basis of:

JOB ANALYSIS

JOB DESCRPTION

JOB SPECIFICATION

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Criteria of a Job Specification(Example)

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Design Principles of Job Requirements

•  Relevance– only take essential characteristics of the position into account

•  Completeness– include all characteristics of the position •  Absence of overlap– one-time survey of facts •  Clearness, objectivity– definition and survey of facts has

to be verifyable interpersonally •  Simplicity– characteristic values have to be easily

identifyable •  Reliability– ascertion of characteristics has to be reliable •  Validity– test results have to reflect the actual

requirements •  Efficiency– cost-benefit analysis

Quelle: Scholz (2000)

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Job Requirement Profile (Example)

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Starting Position on the Personnel Market

•  Major changes in businesses and environment lead to increased competition for the best employees.

Quelle: MCI Symposium 2007

Demographic development

Dynamics, complexity, digitalisation, globalisation of

markets

Highly specific task- and job descriptions

Mobility and fluctuation of workforce

Change in values (e.g. post-materialism)

„fight for the best employees“

Companies face a new situation of competition:

Professional HR-marketing gains in importance

Orientation of organizational communication towards job market

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•  As an employer, you are only competitive if you can keep the promises you make.

Employer quality + Employer image = Employer attractivity

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The employees‘ perspective: where is the difference?

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Why do you need an employer brand-concept?

•  The employer brand positions the company on the market and influences the development of preferences of potential employees

Quelle: Jäger (2007)

total set

aware- ness set

proce- sed set

relevant set

chosen object

unaware- ness set

All employers Known employers

Selected employers

Accepted employers decision

foggy set

hold set

reject set

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External Communications

•  Marketing and Promotion of the value proposition to the outside (External Employer Branding) by a coordinated HR marketing-mix

HR marketing-mix

Supply policy Job profile, job design:

physical environment, process environment, HR development

Communication policy Recruiting-fairs, jobboards,

recruiting-websites, „classic“ job ads in newspapers and

magazines etc.

Payment policy Substantive elements of

payment and benefits

Availability policy Definition of procurement

options: direkt procurement, HR

consultant, headhunter, etc.

Quelle: MCI Symposium 2007

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Internal Communications

•  Behavioral Branding refers to the process of anchoring brand identity in the employees‘ heads in order to promote brand compliant behavior and strenghten the company brand.

Communication tools •  Employee magazines •  Assemblies •  Circulars •  Performance reviews •  Informal discussions

Quelle: MCI Symposium 2007

understand internalize live

employee

Brand identity

internal

shape Brand image

external

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Awards 2010 Large European Companies

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What is a „Great Place to Work©“

! a workplace where employees are able to !

employee

management

colleagues own activities

! trust those they work for.

! be proud of what they are doing.

! enjoy working with colleagues.

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Ways of recruitment

recruitment

internal external

No changes concerning

existing employment

contracts

changes concerningexistin

g employment contracts

Additional work such as

overtime, extra shifts

Holiday shifts HR development

Horizontal transfer and

vertical promotion

Conversion of part-time to

full-time

Vocational education and training such as retraining

and acquisition of apprentices

Personnel-leasing

New employees: Full-time vs. Part-time,

temporary vs. unlimited

Short-term Long-term

Source: Hentze (1991)

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Advantages and Disadvantages of Internal and External Recruiting Sources

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Internal Recruiting

•  Organizational Databases –  Profiles containing background and KSA

information on current employees that allow for key word searches to locate suitable candidates for open positions and career development.

–  Skills Management System(s)

•  Job Posting –  A system in which the employer provides

notices of job openings and employees respond by applying.

•  Promotions and Transfers –  Upward and lateral movements of employees

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Measures and sources of external recruitment

rather passive measures Rather active measueres

•  Self-promotion •  Register of candidates •  Placement by

unemployment agency •  Personnel leasing

•  HR consultants and brokers •  Employment agencies and headhunters •  Billboards and notices •  Job ads in print media •  Recruitment via internet – E-Recruiting

•  Companies‘ homepages „Job Posting“ •  Self-applicants-services •  Virtual recruiting fairs •  Recruiting-games •  Internet job sites/career websites •  Newsgroups •  Virtual communities

•  College-/university recruiting •  Recruitment / recommendation by employees •  Personal contact with potential candidates •  Appeal to young professionals •  PR (open house, etc.) •  Labor Unions

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Internet Recruiting

•  Advantages

–  Recruiting cost savings

–  Recruiting time savings

–  Expanded pool of applicants

–  Morale building for current employees

•  Disadvantages

–  More unqualified applicants

–  Additional work for HR staff members

–  Many applicants are not seriously seeking employment

–  Access limited or unavailable to some applicants

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What to Include in an Effective Recruiting Ad

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Process of personnel selection

Evaluation of application documents !  Professional competence and experience !  Overall development in CV

Selection interview !  Clarify unresolved questions, evaluate social behavior by critical

questions !  get to know attitudes, capture expectations

Additional tests and procedures !  Intelligence tests, performance and concentration tests, personality

tests, assessment-center

Job interview !  Completing existing information !  First process of negotiating premiums and incentives (payment,

working hours, vacation days etc.)

Employment Refusal •  letter

Electronic application !  Electronic management of

candidates (profiling) !  online-tests, recruiting-games

Postal application !  Put documents together

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Procedure of Selection Interview

Quelle: Schuler (1995)

Start Short informal conversation, try for a pleasant and open atmosphere, possibly presentation of company or job, no assessment

Self-presentation of applicant

For a few minutes, candidate talks about his professional and personal background, assessment according to requirement-related dimensions

Free talk Interviewer relates to the self-presentation and application papers and asks unresolved questions, summarising assessment of impression

Questions related to biography

Biographical questions derived from the requirements analysis, evaluation according to behavioral dimensions

Realistic job information

Interviewer gives balanced information about workplace and company, transition to situational questions

Situational questions Constructed situational questions assessed according to behavioral dimensions

Conclusion Questions asked by candidate, contract preliminaries, summary, saying goodbye, other agreements

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Selection procedure

•  Test procedures •  Work samples •  Assessment centers

•  Computer assisted simulations •  Business simulations •  Stress interview

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Main Concepts of Judgemental Appraisal Methods

Job evaluation Personality assessment

Performance appraisal

Evaluation of potential

Quelle: Henzte (1980), Schuler/Prohaska (1999)

procedure: •  Free depiction of impressions •  Classification procedures •  Identification and selection procedures •  Ranking procedures

procedure: •  Appraisal interview •  Psychological testing •  Biographical questionnaire •  Work samples •  Assessment centers

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Appraisal of Managers

•  Assessment Center: simulated job activities •  Evaluation by Superiors •  Peer Ratings: Good predictors of promotion •  Self-Evaluation: Leniency is a concern •  Evaluation by Sub-ordinates: upward feedback. Good

predictor of managerial success. Must be anonymous •  360 Degree Feedback: Combines evaluations from a

number of sources.

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Evaluation Errors and Appraisal Pitfalls

•  Social deceptions of perception –  Our eyes and memory betray us!

•  Assessment distortions –  In some way, the judge deliberately uses different assessment criteria –  Anchored in corporate culture („no fixed rules of the game“)

•  Assessment failure –  Differentiation is made according to the assesment grades –  Due to strategic considerations, grades are issued according to „non-performance“

criteria

•  Discrimination against women •  Part-time employees

„Each assessment contains subjective elements!“

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Social Misperceptions

•  First Impression (within a few seconds antipathy/sympathy develops, people with similar attributes have an advantage) Similar-to-me effect

•  Self-Perception (personal standards always influence appraisals) •  Tendency to Rate as Average (the more uncertain the assessment of the

judge, the higher the tendency to rate as average) •  Contrast Effect (a weak colleague is perceived differently by stronger

colleagues as by even weaker colleagues) •  Halo Effect (special individual performance oushines other performances) •  St. Nicholas Effect (previously achieved proficiency level matters) •  Pressure of Conformity (the social need for affiliation influences the

perception) •  Good and Bad Mood (choose a neutral temper) •  Stereotypes (emotionally tinged drawers of our perception; candidness,

tolerance, self-criticism, challenging and questioning oneself are crucial) •  The Victim as Perpetrator – Good-Impression-Management (selling oneself

well, playing the gallery, schmoozing, bullying etc. " purposefully infleuence the impression of others)

“I only call those fat who are fatter than me!“

Quelle: Dulisch (2002)

Who is a German civil servant?

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Appraisal Distortion

•  Mildness Effect (Evaluating the willingness for exertion rather than the tangible performance; not wanting to hurt anybody‘s feelings; “We only have good employees“ as part of the corporate self-image)

•  Closeness Effect (close collaboration allows a more positive appraisal; makes knowing and respecting each other possible)

•  Hierarchy-Effect (the higher the hierarchic status, the better the appraisal - the status obscures the actual performance)

•  Benjamin Effect (social comparitive process: the younger the person and the shorter his/her time with the company, the stricter the appraisal – “Age takes precedence over performance“– “Everybody gets a turn eventually!“)

•  Glue Effect (Status-quo Effect) (the appraisal history influences the appraisal in progress– previous performance appraisals are “glued to“ a person – We stick to the status-quo, because deviating from it would mean: having to act, making new decisions, taking responsibility and, if necessary, enduring conflicts.)

Quelle: Dulisch (2002)

“An employee cannot receive a better appraisal than his boss!“

“The only man who behaves sensibly is my tailor; he takes my measurements anew every time he sees me, while all the rest go on with their old measurements and expect me to fit them” George Bernard Shaw

Employee appraisals are primarily evaluations of relationships, and secondly evaluations of people. (Oswald Neuberger) Don’t be impressed by any expert telling you: ”I’ve been doing it this way for twenty years, my friend!” – He could have easily been doing something wrong for twenty years. (Kurt Tucholsky)

>>I want to play fair, so you all get the same task: Climb this tree!<<

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for your att

ention!