This file contains all lectures of shrm. all examples have been worked out and explanations have been added to the models so that the theory becomes much clearer and there is a common thread to discover per theme.
Hoorcollege 1
key principles
- Success usually is thought up as performance and company profits. Success is
however not always the same as profit. For the university we want to provide good
education
- Relative success= If you are in a sector i.e. retail, you are in a bad sector since
websites take over a lot. As long as you are doing better than your competitors you
will in the end still survive and doing fine. You might make losses but, in the end, this
doesn’t matter.
- Employees are considered the organization’s most important key to Organizational
success, and therefore HRM is key management tasks.
Ernst and young, Erasmus MC & NS: “good employees help us to create success, we are
people driven.”
Increase in attempts to bring HR data and business data together to show the effect of HR on
business outcomes. So, combine HR with numbers.
- Key aspects of HRM can have a significant positive impact on organizational success
- Considerable debate about the nature of this relationship
o How/why black box debate: which underlying processes lead to
organizational performance. What is the key factor between HRM and
organizational performance
o When contingency perspective/best practice-best fit debate: some people
say that HR leads to good performance. Some research says that it depends
on the context and you should adapt your strategies and policies to the
context.
o For whom dark-side perspective: what about employees? They want to
perform well and do their job in the right way, but they also want to have fun,
be healthy etc. it is not only about performance. Some researchers say that
you invest in your employees, but you also exploit them a bit, they have to
suffer in terms of their health for example.
differentiated workforce: you have cleaners, doctors etc. every function
differs in their practices and organizations should have different practices for
different employees too.
o Who HR devolution: who is responsible and who is in charge? What we
have noticed in the last decades is that HR activities are being relocated from
HR departments to line management.
What is HRM?
- What is HRM
- What is Organizational success?
- What is the relationship between HRM and organizational success?
You have to answer these questions first in order to know how HRM can influence success.
One policy can consist of different measures.
,Noor van Loon SHRM blok 2 jaar 2
Most people agree on the fact that HRM exists of:
1. Skill Have the right abilities available in order to do your tasks. you can make skills
(train and develop) or buy them (hire and recruit)
2. Empowerment besides having skills and motivation to contribute, you also have to
be able to and have the opportunity to perform. You can provide information so that
employees know what is going on and make them influence things.
3. Motivation you aim to make sure your employees want to work. i.e. Performance
management=increase the effort that employees want to put in your company and
link this to promotion possibilities
Describe organizational success
Apple= sales, awareness, innovation of technology, reputation
VUmc= quality of service provided, health of patients
Lidl= sales, quality of products, affordable prices
The message is that within different contexts, different indicators of success matter. It
depends on the sector and context which strategy works best.
In 1994 the first relationship between HR and performance was found. Firstly, the
performance after HRM was linked to market value per employee. In 2003 an Englishman
did the same and linked profit per employee to HR. after that many more studies were
conducted. Now there is so much evidence that there is also meta-analysis, the studies that
have been done to that point are used to make an overview and compute and average for all
these studies. There are now 3 meta analyses done, on financial and operational outcomes.
In the output in the block, we can conclude that the more HR practices you offer the higher
your operational and financial outcomes even though the outcomes differ a bit.
- West et al. However, for some companies’ outcomes don’t matter that much, this
is why people started looking at other variables such as sophistication, appraisal and
teamworking etc. this all has influence on patient’s safety in this case which means
275 fewer deaths.
- Shipton et al. teamwork etc are positively related to innovation.
When you invest in HRM you will make more profit, but you can also think the other way
around and say “if you have a lot of money you can put it in HR and this will get better”. So it
is cross-sectional and you can’t say for sure which influences what.
We should be cautious about what we found in the HR articles because otherwise there will
be biased.
Knowledgeclip 1
Black box debate the idea that the adoption by organizations of a more sophisticated set
of HR practices has a positive impact on performance. The practices have a positive influence
on participation, payment and benefits, recruitment and selection, training and
development, participation and communication. The more of these are implemented the
,Noor van Loon SHRM blok 2 jaar 2
better organizations perform. It is unclear how many steps there are in the link between
these HR-practices and performance which is called the black box debate.
In response there have been a number of efforts to model the impact of HRM on
organizational performance. Employees play a key role in this influence.
Three theories that dominate the HRM field.
1. Research based view- Barney organizations can build advantages based on
resources that are valuable, capable of delivering superior competitive results but
not obtainable by competitors, perfectly inimitable, hard to replace. Organizations
have different resources; organizational, structure, planning, physical and human
resources. Building upon this, advantage can consist of the following:
o Human capital advantage; a situation where there is exceptional human
talent working in the organization with a lot of knowledge, capabilities which
match the organization
o Human process advantage; difficult to imitate historically developed
processes in the organization such as intense forms of cooperation within
people.
2. The AMO framework- Applebaum et al people perform well if they have the
ability, motivation and opportunity to do so.
o Ability= employee can perform well since he possesses the necessary
knowledge and skills which can be influenced by HR for example training.
Linked to human capital theory.
o Motivation= people perform well since they want to perform well. Career
opportunities and extensive rewards motivate employees to perform well.
Linked to social exchange theory
o Opportunity= HR practices such as enabling participation in decisions making
Provides rational on how HR brings us to better performance
3. Strategic human process model highlights the practices that senior managers
intend to implement, the things line managers actually implement and the
perceptions of employees on the implementations. The model also shows us why
there can be a disconnection between the three i.e. line mangers may fail to
implement a good practice while employees can feel differently about an
implementation because of former experiences etc.
Hoorcollege 2
Holy grail of shrm: to know why hrm leads to organizational performance. We refer to this
underlying process as the black box since we don’ know exactly how many boxes there are in
between and what is in these boxes.
Three theories dominate the SHRM field
1. Resource based view of the firm (Barney) general theory about why some
companies outperform others
2. AMO-framework (Applebaum) explains the link between performance and hrm
3. SHRM process model (Nishii &wright) what employees think about hrm practices
Resources based view
, Noor van Loon SHRM blok 2 jaar 2
About explaining why some organizations do better than others. There are two streams of
literature
1. Industrial organization view. The focus is on the outside of the organization i.e
environment of the organization and based on that you decide your position in this
field.
a. Check external factors to see if you can provide anything
b. You first check external environment then you decide what you do
c. You check inside and see how you can create competitive advantage by
beginning outside the organization
o Resources (people, machines) are homogeneous and mobile. If one company
is doing well than the resources are mobile and other companies can obtain
these resources by copying so there is no sustained competitive advantage.
Porter has the 5 stage model: based on the 5 forces you have to determine
your strategy and position in the field
2. Resource based view. You should always let your internal strengths be your guidance
so built your competitive advantage on employees etc. every organization has its
own unique resources and so they are unique and not copy-able. Advantage is
sustained.
a. You look inside the organization
b. Resources are unique so you can create your competitive advantage
c. You look inside the organization to see how you can create competitive
advantage
Barney introduced this in 1991
When resources meet a number of criteria then they will be able to lead to sustainable
competitive advantage.
1. Valuable. It should be able to add value and help the organization to be more
effective and efficient
2. Rare. The resources should not be easily obtainable
3. Inimitable. People cannot copy it easily
a. Unique timing and learning. See the historical
path of a company. Every organization has this
unique path from where it started to where it is
now. Maybe there is this new technique or new
insight etc. if you are this unique in your path
others can’t copy all of the things that happened
before that brought you to this unique
combination of events
b. Social complexity. How do people work
together, how is the contact in your organization, how do teams cooperate?
c. Causal ambiguity. When it is not clear why an organization has a competitive
advantage. i.e. a football team has a star player, and this can be the reason
for success but it can also be the team work or the way how the others
support the starplayer
4. Non-substitutable. Others are not able to use another thing to get to the same
success.
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