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Summary HRM B&M
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Summary Human Resource Management, ISBN: 9781544327822, Human Resource Management B&M
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Human resource management slides lectures + MOCK EXAMS - Pre-Msc EBB617B05
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English glossary of important terms of the course
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HRM 2019/2020Lecture 1 3/2/2020
Case: Starbucks only has a 75% turnover rate, because their employees are satisfied. Other
companies have a 150-400% turnover rate.
History of HRM
1. - 1930: Taylorism and scientific management: workers are workers, they are lazy and don’t
want to work. You have to push, force them and monitor them. They are not employees
2. 1930-1960: personnel management: management got more complex. They have to monitor
employee; do they come and are they productive? Not very important function. HRM was
cost post, costs needed to be as low as possible. So, HRM managers were not very important.
3. 1960-: human resource management: workers are not just workers, but employees with
their own needs who want to work and make a carrier. More aspects to HRM, more
functionalities. Not just getting job done, but also to make sure jobs were decent.
4. 1970- : Strategic HRM: not just one HRM department, but HRM needed to be linked with
strategy of the company. We need to hire right people and motivate them to work on right
path.
So, for long HRM was seen as a cost center: a division or a department that brings in no revenue or
profit for the organization, but only costs money, rather than a revenue center: division that
generate monetary returns for the organization. However, later it was seen as a productivity center a
revenue center that enhances the profitability through enhancing the productivity of people.
M in HRM
Traditional HRM aimed for:
▪ Task completion
▪ Absenteeism
▪ Turnover: permanent loss of wokrers
Key outcomes now:
▪ Improve performance and productivity
▪ Achieve organizational goals
▪ Help employees prosper
▪ Stimulate positive behavior
▪ Fulfill social responsibilities: trend of last 30 years. We need to take care of stakeholders.
HRM is also about taking care of employees wellbeing and corporate responsibilities of
organization.
So employee engagement is very important, this can be established by giving them right tools, create
trust, by listening, by managing and leading and by treating them with respect.
Apart from this, agility is also very important. Agile environments not only accept changes, by thrive
in such environments. By creating a digital culture, thrive on change, value of on-demand workers
and reviewing legal processes and structures for adaptability an agile work environment can be
reached.
1
,R in HRM
Employees are resources:
1. Economic resource: knowledge, skills and expertise. Helpful for getting the job done.
2. Intagible assets: creativity and social capabilities: not measurable by degrees etc. Social
capabilities: being connected to other people. Social capital is behind every employee and
creates assets to companies.
3. Varying asset values: star vs non-star employees: Performance of people differ, in particular
fields there are top performers. HR research shown: top 20% is top performer and creates
80% of value. However, there are also ups and downs of employees: engagement goes up
and down. HR must do something about this, they have to understand up and downs and
look for solutions.
To understand resources it is not only about skills, but also about a lot of variance between people.
H in HRM
1. Human needs: self-determination theory. You want to make your own decision.
2. Motivation and emotions: maslow’s motivation hierarchy
3. Employee wellbeing: stress, burnout, satisfaction
4. Life beyond work: security and health, wellbeing and work-life balance.
We concern about needs, but also community and family.
Plan HR? how many people and what kind of performance?
Obtain HR? How do we find the people?
Manage HR? How do we make sure that people engage?
Steps:
1. Job analysis and HR forecasting: what kind of task do you
have and what kind of people do you need?
2. HR hiring: approach people and attract them as potential
candidates
3. HR assessment and training: learn people all the necessary skills
4. HR motivation: employees need to be motivated
Starbucks:
HR policies: Employees are being treated as partners
HR systems: compensation structure
HR practices: good salary, college achievement plan, give employees a change to get promoted and
changes of promoting to senior management.
Starbucks gives a lot of positive prospects for employees.
HRM is not just based on experience: is it intuition based of evidence based? It is important to use
scientific evidence and not only trust on intuition.
The most valid performance interview are designed around candidates unique background: WRONG.
Everyone is different, but yet when there is a good group of people you cannot compare when
individualizing the interviews.
HRM: new challenges
Challenge 1: Globalization
2
,Because of globalization, companies confront rivals from other countries.
▪ Offshoring: companies send part of their operations out of their home countries. For
example: manufacturing in another country. This can be a solution to lower cost. This has
been criticized because of jobs in other countries.
▪ Outsourcing: this doesn’t have to be in another country. You lend out a task, to make it more
efficient of cheaper.
▪ Reshoring: Brexit, bring tasks back to the own country. Driven by political and economical
concerns. For example: China has become a lot more expensive, so sometimes it is cheaper
to move tasks back to the own country.
How does this challenge HRM?
Largest challenge is how do we deal with expatriation and reparation? You have to send your
employees to other parts of the world. How do you train them to make sure that they don’t get
overwhelmed: challenge of expatriation. As a result of reshoring: a lot of things have changed in the
home-country, so how can they adapt again? Repatriation is one of the biggest challenged: how do
you deal with and how to you allocate people coming back to the home-country?
Challenge 2: Changing demographic trends
Besides this, there are also changing demographic trends:
▪ Racial diversity
▪ Increasing female labor: there needs to be a certain percentage of women in certain
positions. This is a big challenge a lot of the time.
▪ Aging workforce: how do you work with older people? And how do you, as manager, deal
with aging workforce? This is an issue all over the world. Most concerns: how do we arrange
retirement? We need enough people to work, a solution: increase retirement age. The
retirement plan also has to change, people can work less days a week and you have to take
care of them and their health.
How does it challenge HRM:
1. Obtain HR: succession plans
2. Performance management: technology challenges
3. Benefit and compensation: pension, health and safety schemes
4. Legislation and labor relations: age discrimination
Challenge 3: Diversified employment forms
We have a lot of work forms nowadays: we have freelance jobs, part-time jobs etc. Companies have
multiple contract at hand. As employer: how do you understand contracts? We have to take it into
more psychological concepts. For employees this means that career is also different; you can just go
to another firm to get a promotion. So you’re more flexible. Contract is not the most important thing,
employability is way more important. Security is less important.
How does it challenge HRM:
▪ Psychological contract: The mutual beliefs, perceptions, and informal obligations between an
employer and an employee that are distinct from the formal employment contract.
▪ Psychological success
▪ Protean career: a career that is driven by the individual and not by the organization.
o Security vs. employability? Employability is more important
o Proactive and preventive moves
3
, Challenge 4: Sustainability and social responsibility
Sustainability and social responsibility: Global warming
has influence on corporate management. Starbucks: less
bean production because of global warming. Starbucks
has started an initiation for sustainable coffee initiation
(no child labor etc).
Challenge 5: Technological development
Technology development: we grew up with technology.
But older workforce needs to quickly learn how to
switch from different technology means. HRM also gets
more and more technologic.
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