Professional Documents
Culture Documents
PERSPECTIVE OF HUMAN
RESOURCE MANAGEMENT
The Strategic View of Human
Resources
1–2
The Strategic View of Human
Resources
1–3
Sources of Employee Value
1–4
Sources of Employee Value
• Technical Knowledge
– Markets, processes, customers,
environment
• Ability to Learn and Grow
– Openness to new ideas
– Acquisition of knowledge & skills
1–5
Sources of Employee Value
1–6
Adopting an Investment Perspective
1–7
A Dilemma
1–8
Types of Organizational
Assets/Capital
1–9
Research Findings
1–10
Research Findings
1–11
HR Value Chain
1–12
HR Metrics Are Complex
1–13
HR Metrics Are Complex
1–14
Mercer Model of Measuring HR
Impact
1–15
Mercer Model of Measuring HR
Impact
1–16
Factors Influencing Investment
Orientation
1–17
Investment-Oriented Organization
1–18
Investment-Oriented Organization
1–19
Investment Orientation Factors
1–20
Investment Orientation Factors
•
• Nature of Skills Needed by Employees
– The more marketable employee
skills, the riskier the firm’s
investment in skill development
1–21
Investment Orientation Factors
1–22
Investment Orientation Factors
• Availability of Outsourcing
– Given availability of cost-effective
outsourcing, investments in HR
should produce highest returns &
sustainable competitive advantages.
1–23
The Hidden Leverage of Human Capital
Model for Management Success
1–26
Seven Common Misconceptions
1. Encouraging employee participation is more
effective for improving organizational
performance than setting performance goals.
2. Most errors in performance appraisal can be
eliminated by providing training to managers on
how to avoid them.
3. If employees are asked how important pay is to
them, they are likely to overestimate its true
importance.
1–27
Seven Common Misconceptions:
Implications
1. Select new employees on both intelligence and
conscientiousness.
2. Assess intelligence and conscientiousness before
values.
3. Define the values that are important and assess
them through carefully developed, valid
procedures.
4. Use integrity tests with ability tests for high
predictability.
1–28
Seven Common Misconceptions:
Implications
1. Develop compelling goals; enlist participation
and support it through rewards.
2. Training and feedback are important, but errors
are difficult to eliminate. Top managers should
serve as role models in quality of performance
reviews.
3. Attitude surveys are subject to biases; study
behaviors as well as attitudes.
1–29
Reading 1.3
Effective HRM Practices
• Employment Security • Training & Development
• Selectivity in Recruiting • Cross-Utilization &
• High Wages Cross-Training
• Incentive pay • Symbolic Egalitarianism
• Employee Ownership • Wage Compression
• Information Sharing • Promotion From Within
• Participation & • Taking the Long View
Ownership • Measurement of Practice
• Self-Managed Teams • Overall Philosophy
1–30
Effective HRM Practices
1–31
Effective HRM Practices
• Downsides exist
– Requires more involvement and
responsibility than some employees
want
– Managers & others may resist them
as well
– Turnover may result
1–32