CHAPTER 1: BASIC ELEMENTS OF THE INSTRUMENTAL DIMENSION
1. The role of social partners in setting up instrumental systems (role of stakeholders/trade unions)
= negotiation of labour conditions in industry and service organizations, start in 20th century
Dominance of social partners has led to formal socio-economic negotiation system which sometimes has led to forms of neo-corporatist
defence of interests in our society. Social partners determine with the governemnt the socio-economic policy in Western countries.
neo-corporatism: system of consultation and policy making in industrialized countries by which the goverment and the social
partners come to socio-economic agreements in a tripartite consultative structure
consequence: involvement of trade unions in policy (under control of government) and a mutal confusion of interest groups with the
institutional apparatus and political decision making
Underlying features of EU and USA differ, leads to different approach of HRM
EU: limited individualism, greater role for state, different patterns of consultations and ownership
EU: 1980 Rhineland model, emphasize institutional regulations between trade unions and employers, led to satisfaction of social
partners, resulted in strong influence on socio-economic framework in which HRM was constituted
Governmental organizations: presence of trade unions and agreed rules (staff regulations) can hinder development of groundbreaking
HRM. However, statutes or labour regulations can offer protection against political arbitrariness and abuse of power by employer.
contextual approach of HRM (focus institutional stakeholders as decisive factor in setting up HRM systems within organization)
2. The core-business of the instrumental dimension
The administrative service: the necessity of paperwork
Transaction Transformation
Presence administration Human capital planning (workforce) and recruitment
Contract management Strategic retention
Administrative support of internal employment Strategic compensation and benefits
Pay-related services Training and development
Extra-legal pay systems Organization development
Social security adminsitration Internal communication
Administration of personnel development HRM information system (HRMIS)
Developing HRM database and information system Employee relationships and labour conditions
Industrial relations
Supporting services, legally present when people are hired Less routine-based, more oriented at project-based method
Personnel transactions that deal with routine-based aspects HRM Need more profound technical, juridical and managerial expertise
Necessary for every department, require less contact with provider Lead to more HRM added value, are less administrative!
Record-keeping character: make automation possible Change management: complex, requires HRM professionalism
Less intence, rather simple, easy to organize Personal contact with internal clients, creativity to solve problems
Today: higer demands made of administrative transactions. Arrival of quality care, marketing in management thinking. Emphasis on
demands of the client. More customer-oriented approach. Services based on the employee’s needs/wishes. Employees have high demands.
administrative services can lessen the complaints of employees and encourage more compliance with the organization
BUT employees are not necessarily motivated by smooth transactional services
The organizational service: from simple to complex work organization
Organization requires efficient/effective organization of its work: clear work processes and clear demarcation of activities and positions.
o Origin of work processes: 20th century, scientific principles of efficiency
o Work design: rational planning and managing work service processes in entire organization
o Scientific management: use of machines, promotes unilateral commitment of employees in organization (assembly line)
o Tayloristic principles: hierarchical structure of work relationships, one best way to do the job (Weber – bureaucracy)
Deskilling/degrading = workers are easily replaceable, only need minimum of skills, separation of thinking and doing
Reskilling/upgrading = jobs become more complex, need more skills to fulfil exigencies of tasks (ICT)
o Post-industrial society: trend towards polarization between broadly defined OR low levels of autonomy/cooperation/participation
o Karasek (job control): high control means high degree of freedom to organize work yourself
Simple work (passive), relexed work (low demands), stressful work (high demands), challenging work (active work)
o Work design: important to evaluate job characteristics to design a motivating job! Several factors affecting work outcomes
Work systems: task variation/identity/significance, feedback, support, work conditions, rewarding systems,…
Mediators: empowerment, coaching, perceptions of meningfulness, job complexity
Work outcomes: job satisfaction, labour productivity, wellbeing, work safety, health, performance, absenteeism,…
o HRM perspectives should take into account several aspects of work
Constant urge for job enrichment and empowerment as motivational factor (since Herzberg)
Continuous attention on fair and equal distribution of workload over total workforce keeepin in mind the equity theory
Information society that leads to the intelligent worker
Role of supportive leadership in coping with work stress
Organizational part of work making work more attractive
Organization of work processes, linked to broader institutional environment of society (process as social negotiation)
o New paradigm in work organization: social innovation
Challenges human resource managers to make work more dynamic, productive, human by using new work design
principles or going back to old ideas of job enrichment, autonomous workgroups,…
Telework, flexible working hours, social networks, autonomy, self-control, team management
Skilled nature of tasks
, o HRM: important responsibility in designing work process (together with other disciplines) to create an acceptable/motivating
3. The 5 E’s in setting up the instrumental HRM = evaluating instrumental aspects, ambitions of manager to align vertically/horizontally
Economy Efficiency Effectiveness Effortless Expression
Requirement of thrift Balance: max O, min I Reach preconceivd goal Not have to be complex Communicate on HRM
Budgetary limits Economic use of Performance managem. Simplicity and clarity Law of (re)action
NPM: market-oriented resources to reach goal Value people and org Attractiveness HRM Employees own opinion
way (cheap and quality) Taylorism and lean Strategic POV: reach Improve transparency Objective: align indiv.
Bush: commercial HRM management (standard) goals as central question Make understandable perceptions of employee
EU: market principle Measurement, evaluate in evaluation of HRM for employees (&others) with intentions company
CHAPTER 2: TOWARDS A MORE TRANSPARENT, LEGITIMATE, FORWARD-LOOKING AND RESULT-DRIVEN SERVICE
1. The search for justice in HRM
There is a difference between transparency and objectivity. HR should be more transparent than objective!
Employees attach great importance to equal treatment within the organization. Objective and fair treatment is a must for fairness.
Perceived fairness of procedures and treatment has an influence on the attitude, behaviour and performance of employees.
Procedural justice Distributive justice Interactional justice
- Internal consistency Benefits are distributed in organizations. Informational: people who provide info
- Objective, free from interest Salary, bonuses, non-financial advantages. about why certain procedures/distributions
- Built on evidence-based info Equity theory: balance input/output better understanding, communicate
- Correct worong decisions Social comparisons among employees intentions of HRM, openly explain
- Reach al groups of employees Comparison within/outside organisation Interpersonal: treatment of people with
- Meet current ethical standards Competition between organizations in politness, dignity, respect by authorities
terms of conditions, job candidates evalue when procedures are implemented
2. Less administration, more strategy
The cost of different activities is opposed to the added value of each of these activities. Strategic HRM has lowest cost and highest value.
based on this logic of Spencer, design table where shift from administration to strategy becomes obvious. Transformation: HRM-function!
Reduce HRM’s administrative burden by creating a self-service culture among line managers and other employees.
Self-service culture (EES: employee self service): IT apps used as self-service, employees are responsible for entering/changing databases.
transactions: routine and repetitive tasks such as control and administration
transformations: change in behaviour of employee and/or situation in organization (can lead to strong results in long run)
Need transition from transactional to more transformational services, together with strategic approach of HRM.
Constant attention to change management within HRMdep!! HR-manager: expert, professional, strategic partner of manage team, employees
TRADITIONAL HRM: 10% strategic, 30% service delivery, 60% administration and control (low added value)
FUTURE HRM: 40% strategic, 40% service delivery, 20% administration and control (high added value)
CHAPTER 3: THE ORGANIZATION OF HRM SERVICES
1. HRM and continuous improvement (more efficiency)
Continuous improvement is a central element in quality management systems and is focused on making processes more efficient, customer
friendly and performing. Quality management becomes popular and organizations are paying a lot of attention to reactions of customers.
development of internal quality systems to constantly monitor (EFQM = European Foundation for Quality Management)
personnel-related and organizational processes (HRM as enabler for improvement of products and service delivery)
ambition to improve quality not te innovate/renew existing processes (need reengineering techniques for HRM as innovative practice)
2. HRM and reengineering
HRM processes need to be redesigned regularly, continuous improvement is insufficient. BPR be used, aims at reinventing HR-processes.
Not step by step but all processes increasingly rethought/reorganised. Eliminating, simplifying existing HR-activities. Added value in mind.
THREE HRM APPROACHES Administrative approach Internal process approach Strategic approach
Stakeholders HRM staff, general managem. Gen. manage, HR/finance dep. Gen. man, HR-dep, employees
Objective Existing rules and procedures Saving, cost-efficiency, quality Strategic goal, HR added value
Focus Admin. management, control Processes, cost control, quality, Different perspectives: internal
customer orientation client/process, innov, finance
Level HR-dep HR and financial dep All levels of organization
Planning Systematic control approach Process improvent plans Strategic planning/HRM plan
Management activities Follow-up and control Process analysis, quality care, Strategic planning, different
degree of automation, develop measurements, data analysis
Instruments Procedures, regulations BPR, quality care BSC, performance indicators
Standards for success Follow-up of procedures/rules Cost reduction, quality standard KPI, improve different dimens.
Absence of legal complaints Customer satisfaction BSC, achievement of goals
Bureaucratic process, cost Financial cirteria, wishes of Balance: internal employee,
control, no idea what to achieve internal client, quality control, internal process (core, support,
Internally oriented, outcomes continuous improvement management), strategic goals