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Summary Human Resource Management Knowledge Clips

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Summary of all the knowledge clips, must state that it is not written and structured in the best way but it includes everything.

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  • 28 oktober 2022
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  • 2020/2021
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HRM SUMMARY

After this lecture you will understand:
1.The origins and science of today’s HRM and its connection to research of people in
workplaces.
2. The type of questions that exist in organizations about people in workplaces
3. The structure of the book

Knowledge clip 1 HRM: The history of research on people in workplaces

The core topic of interest of HRM:
Employment relationship: A reciprocal (wederzijds) relationship between those who
perform work or services (employees, as well as those self-employed), and those who offer
employment (employers) in the aim of (together) realizing organizational goals.

Modern workplaces developed more than 100 years ago. In the early stages it was just a
group of people working for one boss in a small area. When the industrialization began
there were built bigger workplace, because of mass production, where a lot of people
worked. This resulted in a lot people moving from the country side to the city. The city
wasn’t ready for this and this resulted in bad housing and working conditions (the bosses
wanted to make maximal profit). This didn’t mean that industrialisation immediately cut of
skilled labour.

What did the industrialisation do to perceptions on employment relations? (Philips)

A lot of attention was payed to adverse effects to employees in the beginning of the 20 th
century. This situation led to fear and the urge to take care of those who lived and worked
in bad conditions by well to do citizens. This in order to make those employees devoted
citizens. Housing, social clubs, bathhouses, sport clubs and shops were built in order to take
care of the well-being of the employees. Togetherness and loyalty cultivated saving funds by
employers for orphans and widows.

Railroad owners reduced wages of employees. They had bad housing and only one Sunday
off every two months. They had long working hours and they were fined for their mistakes.
This in order to compete with the rivals. Complaining wasn’t working because someone else
could replace you. There were secret work unions, this in order to strike and create group
power against oppressors. These were forbidden and not really meaningful. In 1903 a strike
broke out in Amsterdam harbour. Strikers were replaced by other workers, one of those
refused to do his work and was suspended. This resulted in a domino effect and the whole
railroad was striking in the Netherlands. Bosses had no power and the government couldn’t
do anything because there was no transport. Strikers demands were met and there were
established strike unions. Social system: industrial relations. This is a key task in HRM.

Industrialisation and mass production grew at full speed. Employers wanted to know how to
get the lowest costs and the highest production. First there were cars made in shops by
groups one by one. By optimizing and simplifying jobs scientific management came to exist.
Assembly lines were made. Henry Ford payed his workers decent salaries and with this

, 2


method he could create a new market. Researchers were hired and performed experiments
to optimize production processes. Studies the optimal length and space of resting times.
Experimental and control groups. To see if changing working conditions resulted in
improved performances. The experimental group outperforms the control group. Simply
because they want to do their best for the researchers and the company. Human relations
school now took also care of personnel satisfaction, because happy workers are productive
workers. They did this next to personnel administration and industrial relation.

Economy was booming and there was plenty of money to invest in employee welfare,
Philips took good care of employees and their children (study funds). The regulatory system
had become very complex and very expensive and the growth curve of the economy
flattened. Also, there was an oil crisis and Philips started to offshore production to countries
were production was cheaper. Increasement of unemployment in the Netherlands.
Employment relationships became less harmonious. Worker unions and employers blamed
each other for slowing down the economy and worsening the situation for workers in the
Netherlands. WHY DID IMMIGRANTS CAME AND WHAT MADE THE WORKERS UNION
REGULATION SO COMPLEX AND WHY DID THEY BLAME EACH OTHER FOR WORSENING THE
ECONOMY AND WORKERS SITUATION?

The personnel function became criticized for being a cost centre as opposed to being a
profit centre for organizations. Personnel function changed its name to human resource
management. It took a managerial and motivational role towards employees. It changed
from guarding employment and industrial relations to the added value associating with
investing in people. People became human resources. In order to get the organizational
goals. This as opposing the critics. Researchers also began to explore which human resource
investments payed off in terms of better organizational performance. BUT IT IS THEN NOT
ABOUT THE HAPPYNESS OF THE EMPLOYEES BUT ONLY ABOUT THE GOALS AND
PERFORMANCES OF THE ORGANIZATION? They found specific methods for selection,
teamwork, participation in decision making and for pay systems. That each related to better
employee and organizational relations. However, the gap between research and
practitioners hindered the dissemination of these findings to a wider audience.

More Human Resource practices drive employees to work harder, smarter and collaborate
better. This then leads to an increasing financial performance of the organization. COULD
YOU GIVE A COUPLE EXAMPLES OF HR PRACTICES? META- ANALYSIS. COLLECT ALL
RESEARCH PAPERS AND LOOK AT THEIR AVERAGE OUTCOME.

WHAT IS HUMAN CAPITAL AND SOCIAL CAPITAL?

There are very few organizations that use all effective HR practices. Why?
Small organizations cannot bear the costs. This will lead to financial problems instead of
growth. Another paper found that it suits better to industrial rather than service orientated
organizations. You need to understand the organization before you can implement HR
practices. Because each organization has its own characteristics, needs and possibilities.
Because some practices are unethical.
Stakeholders can oppose HR practices. Why?
Illegal, culture, discrimination. Social and economic phenomenon.

, 3


And simply practitioners don’t read research papers! It is time consuming and it is not a fun
read and not easy to find what you need. So only look it up when it is needful. There is not
only one solution. This is called equifinality; equal solutions with the same outcome in a
different way. Some of these may lead better in a context of one then another. Problem-
context-outcome.


Motivation is linked to your circumstances

Years of experience will reach its ceiling after five years

A high educational level is not available for everybody but someone can still be intelligent, it
is kind of linked to intelligence

High employee performance individual differences

No company will choose their employees just for the factor of their intelligence but this is
the most stable element.

Extra role behaviour trust and reciprocity are the core logic of the social exchange theory: If
someone does something for you you feel abundant to do the same thing back or better this
makes you feel more committed to the organization

Organizational capital umbrella: social capital theory

Q8 1,3,2,4

Financial performance data:
Costco: social exchange theory

Human capital: if employees find a better job they will find a better job wall mart

HRM HC1 KNOWLEDGE CLIP 2: EVIDENCE BASED HRM- A DECISION MAKING PROCESS FOR
PRACTITIONERS

After this clip you understand:
Decision making as bounded rationality
The idea behind evidence-based HRM
The evidence-based HRM process
The benefits of evidence-based management

The observation that something goes wrong doesn’t imply why. But there is still a solution
needed to solve this problem. Bounded rationality: handling decision making without having
all the required ingredients. There is a way to handle this more rational but decision makers
neglect those or aren’t aware of them.

, 4


They often seek for quick fixes: immediate action towards a problem, often based on the
need to be seen doing something about it.
It is not based on an assessment of the problem and its potential solutions but rather
influenced by fads and fashion, limited understanding of the problem, inaccurate
knowledge. Also motivated by organization politics ( WHAT ARE THESE AND WHAT DO THEY
DO THAT IS SO NEGATIVE?) and self-interest. Moreover not carefully planned nor evaluated
by the effectiveness.

The effect is that results aren’t happening as quick as wished. Then this problem needs
another fix to fix the first problem. It negative and harmful: it can only create more
problems on the long-term and not solve problems on the long-term either. Harmful for
organizations and employers.

Physicians are better than managers in decision making and problem solving. They have
access to an overview of recent research findings. These are established in Cochrane
Institute. This is a library of research overview. Here are thorough descriptions of the
problems and causes. Next to that the required scientific treatments and also meta-
analyses.

There is also an overview of recent research findings for managers of organizations on how
to deal with problems and various managing topics. This includes effective HR practices,
tools used to manage people in workplaces

EEBHRM is a conscientious, explicit and judicious decision-making process to address
important people-related issues in organizations by combining the best available research
evidence with measurable data and professional knowledge in organizations. It is a method
for practitioners who consciously apply their expertise and judgment. Who use evidence
from the local context wo which the decision applies. Also, they have to inform themselves
about the available best external research evidence. And finally take the perspective of
people who are affected by the decision into account

First you need a good understanding and definition of the problem.
Questions: What is happening? What seems to be the underlying problem? What are the
effected outcomes? What would improve in objective measures if the problem was fixed (I
DON’T UNDERSTAND THIS) Who are included in the problem? Which domain of the HR
practices are relevant to apply?

To make the project as targeted as possible; the question has to specify the specific
outcome, the intended domain of HR practices and which people in the organization are the
target for the HR practices?

Example question: improving work designs (intended domain of HR practices) to reduce
stress and sickness (targeted problems to improve) for the employees of the customer care
department (targeted employees).

Collect local evidence: explaining causes and consequences. Desk research: financials,
reports, administrative data. Interviewing stakeholders: managers and experiential experts,

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