HUMAN RESOURCE
Human Resource
MANAGEMENT:
Management:SUMMARY
Summary of OF
the THE
Knowledge
KNOWLEDGE
clips CLIPS
Week 1: Introduction to HRM
What is HRM?: Set of policies, practices and system that influence employees behaviors
attitudes and performances.
- Set of planned action that are supposed to maximize companies’ performance by
helping employees in achieving goals relevant to the company.
What is Human capital?: the knowledge, skills, abilities, and other talents that an individual
possesses that are crucial for companies’ activities, and for creating economic value.
- Researchers proposed that human capital can be seen as a resource with a great
potential for creating sustainable competitive advantage, when it meets 4 criteria:
Valuable
Rare
Inimitable
Organized
- the organization of human capital is where the strategic human resource
management is based.
Strategic Human Resource Management: The pattern of planned HR deployments and
activities intended to enable an organization to achieve its goals.
HR activities: seen as systems of coherent practices that help collectively enhance the
abilities, motivation and create opportunities for the employment to achieve strategic goals
of the organization.
Horizontal alignment: The degree to which the HRM practices are mutually supporting and
reinforcing.
Pfeffer’s seven best practices:
1. Employment security
2. Selective hiring
3. Self-managed teams
4. High compensation contingent on performance management
5. Extensive training
6. Reduction of status differences
7. Extensive information sharing about the organization
This theory evolved into the theory and practice of high-performance work systems
(HPWS):
- System which creates an environment in a business that allows an employee greater
involvement and responsibility.
HPWS can be bundled around enhancing 3 aspects: Employee abilities, motivation, and
opportunities.
,HUMAN RESOURCE
Human Resource
MANAGEMENT:
Management:SUMMARY
Summary of OF
the THE
Knowledge
KNOWLEDGE
clips CLIPS
The most important success factor of HR is the fit between HR systems and the
organizational context.
Vertical fit: the strategic fit between the practices and the strategy of the organization.
- For example, a cost reduction company might want to employ different HR systems
then a company focused on customer satisfaction.
Strategic fit involves:
1. Content: are the hr-practices really focused on achieving business objectives as stated
by the organization?
2. Process; Is the hr-practice function in the process of strategy formulation?
3. Implementation: are HR practices consistently implemented in the organization such
that the intended goals can be achieved?
4. + Adaptation; how supportive of change and how proactive or reactive organizations
are when they are implementing HR-systems in the changing environment?
Degrees of HR strategic involvement
Administrative linkage
- HR is more administrative serviced and transactions from the HR product line, but
focusses on itself.
One way- linkage
- When managers decide on the strategy and then tells HR-practicians what to do.
Two-way linkage
- HR is able to provide feed back to the management and presents inside on the impact
of the strategy on the people-related outcomes. HR functions more as a strategy-
partner who helps the top management in implementing the strategy.
Integrative linkage
- HR becomes the strategic partner and equally contributes to the strategy
development.
What is a shared service model? Centralization of HR functions and major routines that
includes centers of expertise or excellence, service centers and business partners.
- They have a service center where there is a central unit for HR-related administrative
and transactional tasks that employees, retirees and business- unit managers access
through online portals and phones. HR becomes COE (center of excellence).
Evidence-based HR: Making decisions through conscientious, explicit, and judicious use of
the best available evidence from multiple sources to increase the likelihood of a favourable
outcome.
Evidence based approach gathers data via 4 main sources:
,HUMAN RESOURCE
Human Resource
MANAGEMENT:
Management:SUMMARY
Summary of OF
the THE
Knowledge
KNOWLEDGE
clips CLIPS
1. Scientific evidence (scientific literature)
2. Internal data of the company (organization)
3. Professional expertise (practitioners)
4. Values and concerns (stakeholders)
- Using more sources of information, helps to decrease the risk of potential bias.
For evidence-decision making you need to follow 6 steps:
1. Asking; translating the practical issue or problem into an answerable question.
2. Acquiring; Systematically searching for and retrieving the evidence.
3. Appraising; Critically judging the trustworthiness/relevance of the evidence.
4. Aggregating; weighing and pulling together the evidence.
5. Applying: incorporating the evidence into the decision-making progress
6. Assessing; evaluating the outcome of the decision taken.
Importance of People Analytics: data-driven approach to managing people at work
- Can help company gain insights like why people are leaving the organization.
- What drives employee engagement or which of the selection criteria had the biggest
impact on the performance?
- About analyzing people-data to answer critical questions about the organization.
- By using people analytics, you don’t have to rely on gut feeling.
- Allows you to make better decisions based on data.
- Turning data into insights, enable HR to become more involved in decision-making on
a strategic level.
Link between the company’s culture and HR
Company’s culture: shared values, attitudes, standards and believes that guide everyone
within an organization; shapes the company’s direction and emphasizes what truly matters.
Espoused values: normative statements of desires outcomes or conditions that an
organization believes ought to exist; written policies.
Enacted values: Standards and norms that are exhibited by the company and the
organization’s employees on a daily basis; does the company walk it’s talk?
- Some HR-practices like training sessions, feedback moments, recruiting individuals
with diverse characteristics and parting ways with those who do not match the
desired standards, care the ways of how company’s culture can be changed. Also
inspiring change by leading through example, sets the tone.
Current trends in HR:
1. Work from home & individualization
2. Upskilling & reskilling
3. Focuss on well-being
4. The great resignation vs. quiet quitting vs. big tech layoffs and quiet hiring
5. AI taking over humans
, HUMAN RESOURCE
Human Resource
MANAGEMENT:
Management:SUMMARY
Summary of OF
the THE
Knowledge
KNOWLEDGE
clips CLIPS
Week 2: Recruitment & Selection
What is recruitment and selection?
1) Company needs to first determine what needs to be done.
2) Make sure that there are right people with the right skills, knowledge, abilities &
other characteristics at the right place, to complete the tasks and make things
happen.
Traditional idea of hiring jobs: creating jobs which created the predetermined tasks and roles
and then hire people who could fulfill these roles. Tasks and roles are constantly evolving, so
this might not hold anymore.
Process of hiring in 3 steps:
1) Workforce planning: the strategic process of forecasting organisations future staffing
needs, alighning them with its overall business objectives and implementing
strategies to acquire the necessary talent. For example, looking at evaluating the
existing personnel’s capabilities, forecasting future demands for skills/competences,
identifying potential gaps, making decisions if the company needs to hire new
employees, retain, or let go of the current ones, implement a temporary hire
freeze/offer extra training.
2) Recruitment: process of actively seeking and attracting potential candidates to fill
specific job or positions within an organization. (Also creating a pool of candidates
intern/extern). The more successful the recruitment strategy, the bigger the pool of
canidates to choose from.
3) Selection: If you have the luxury to choose, you have to be able to considerate
between the people who are or who are not a good match. Selection refers to the
process of evaluating and choosing the most qualified candidates from a pool of
applicants to fill a specific job role within a organization.
Keys to effectively utilizing labor markets:
Company needs to have a clear idea of configuration of human resources; need to
know the strength and weaknesses of the present stock of employees
Needs to know where the organization is going into the future and be aware if the
present configuration of human resources is related to the future configuration.
Address the differences. Organization needs programs to diminish these differences.
Human resource planning process:
1) Forecasting:
- Determining the supply and demand for various types of human resources to
predict areas within the organization for future labor shortages or surpluses.
For shortages as well as surpluses you can use the following methods
- Leading indicators: Groups of statistics that point to the future direction of labor
demand. Or objective measures that predict the future labour demand.
- Subjective measures: managerial judgements. expert judgement.
2) Determining labour shortages or surpluses:
