Human Resource Management (HRM)

What? the functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits). all the activities related to the recruitment, hiring, training, promotion, retention, separation, and support of employees. functions within a company that relate to people. Why? is the effective use of human resources in order to enhance organisational performance. the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting the needs of the firm. applying human resources within complex systems such that people succeed, performance improves, and human error decreases.
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

(Source: web definitions for HRM)

Effects of HRM
HRM-practices (especially job design and selection/ appraisal/training) better predict company performance than R&D, QM, strategy and technology (West, 2001) Empowerment better predicts company performance than technology-based management practices (Patterson et al., 2004) HRM-practices as cause and effect of company performance (Guest et al., 2003)
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

HRM from a work and organizational psychology perspective

Scientific foundation for HRM tools HRM as a function penetrating the whole organization Focus on working conditions as influences on human competence and motivation Systematic linking of "fit human to task" and "fit task to human"

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Road map for HRM: Work Process Design (Fall semester)

Satisfaction

Motivation

Task / Work process

Performance

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Road map for HRM: Leading teams (Spring Semester)

Personnel selection
Satisfaction Motivation

Personnel development

Task / Work process

Performance

Performance appraisal / Compensation

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topics HRM: Leading teams

16.2 . 23.2 . 2.3. 9.3. 16.3 . 23.3 . 30.3 . 6.4. 20.4 . 27.4 . 4.5. 11.5 . 18.5 . 25.5 . Introduction; Core functions of HRM HRM as strategic and operational leadership task Integrating leadership tasks through Management by Objectives; Definite assigments to groups for semester projects Introduction to semester project in small grou p s Personnel selection: Theory and instruments (exercise in small groups) Performance appraisa l Compensation; Personnel development and caree r s Requirements for effective leadersh i p Fundamentals of team working Group interaction (exercise in small grou p s ) Managing diversity in teams Discussion of student projects in small grou p s Benchmarking HRM: Guest speaker from industry Exam preparat i o n
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Organization of course
Course provides 3 ETCS points (approx. 75-90 work hours). Besides the lecture, the prerequisite for credits points and exam participation is the completion of a semester project in groups of 4 students. The exam is written (1.5 hours; closed book) and takes place during the first two weeks in June. Overall grade: 50% project & 50% exam Material for lectures/semester project: www.oat.ethz.ch.

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topic 1: Leadership assessment

Marius Gerber & Michaela Kolbe

Assessment Center: Evaluation of personal characteristics based on behavior in realistic situations Task: develop and test an assessment method based on a chosen model of effective leadership Methods: determine relevant personal characteristics related to good leadership behavior, create an assessment scenario and carry out an assessment

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topic 2: Best Practice in HRM

Sifra Corver & Julia Belting

Best practice: finding businesses with an excellent HRM (Swiss HR-Award), focus on practice, not results Task: evaluate a companys HRM and create a ranking list Methods: create interview guidelines and conduct structured interviews with HR, general managers and employees

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topic 3: Pay for Performance

Ccile Tschopp & Nadine Bienefeld

Pay for performance systems: potential for serious unintended negative results, but also for substantial performance improvements Task: systematically evaluate an existing pay for performance system Methods: interviews with system designers and employees; benchmarking using ProMES

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topic 4: Cooperation in distributed teams

Daniel Boos & Johann Weichbrodt

Distributed teams: necessity in global business, difficulty of communicating and cooperating mainly via electronic means Task: Conduct a small exploratory study about a distributed team and reflect on your findings with reference to organizational science literature Methods: interviews with the leader and one member of a distributed team, plus a short questionnaire for all team members

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Semester project
Selection of topics/assignment to groups: Please send e-mail to Jacqueline Hohermuth (jhohermuth@ethz.ch), indicating
your name, your preferred topics (1st and 2nd priority), German/English preference, people you want to form a group with (group size is 4, if needed people will be assigned to groups by us)

Deadlines
send e-mail by Feb. 23 information about group composition by Feb. 25 changes possible until Feb. 27 (e-mail to Jacqueline again) Final assignment to groups March 2 (no changes or additions of new students possible after that date) final report due May 25
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Required reading
Noe, R.A. et al. (2005). Human Resource Management: Gaining a competitive advantage. Chapter 2 Strategic Human Resource Management (pp.56-91). New York: McGraw-Hill. (Lecture on Feb. 23) Anderson, N. & Cunningham-Snell, N. (2000). Personnel selection. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 69-99). Oxford: Blackwell. (Lecture on March 16) Fletcher, C. (2000). Performance appraisal: Assessing and developing performance and potential. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 125-147). Oxford: Blackwell. (Lecture on March 23) Landy, F.J. & Conte, J.M. (2006). Work in the 21st century. Chapter 4/Module 4.5 Job Evaluation, Comparable Worth, and the Law (pp. 204-210). Boston: McGraw Hill. (Lecture on March 30) Pfeffer, J. (1998). Six dangerous myths about pay. Harvard Business Review, No. 3 May/June. (Lecture on March 30) Noe, R.A. et al. (2005). Human Resource Management: Gaining a competitive advantage. Chapter 9 Employee Development (pp.380-423). New York: McGraw-Hill. (Lecture on March 30) Shackleton, V. & Wale, P. (2000). Leadership and management. In N. Chmiel (Ed.), Introduction to work and organizational psychology - A European perspective (pp. 277-301). Oxford: Blackwell. (Lecture on April 6) Landy, F.J. & Conte, J.M. (2006). Work in the 21st century. Chapter 13 Teams in Organizations (pp. 540-569). Boston: McGraw Hill. (Lecture on April 20) Noe, R.A. et al. (2005). Human Resource Management: Gaining a competitive advantage. Subchapter on Managing Workforce Diversity (pp.306-313). New York: McGraw-Hill. (Lecture on May 4) Pfeffer, J. & Veiga, J.F. (1999). Putting people first for organizational success. Academy of Management Executive, 13/2, 3748. (Lecture on May 18)

The texts will be available on Feb. 23 & March 2 during the break for CHF 10
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Topics HRM: Leading teams

16.2 . 23.2 . 2.3. 9.3. 16.3 . 23.3 . 30.3 . 6.4. 20.4 . 27.4 . 4.5. 11.5 . 18.5 . 25.5 . Introduction; Core functions of HRM HRM as strategic and operational leadership task Integrating leadership tasks through Management by Objectives; Definite assigments to groups for semester projects Introduction to semester project in small grou p s Personnel selection: Theory and instruments (exercise in small groups) Performance appraisa l Compensation; Personnel development and caree r s Requirements for effective leadersh i p Fundamentals of team working Group interaction (exercise in small grou p s ) Managing diversity in teams Discussion of student projects in small grou p s Benchmarking HRM: Guest speaker from industry Exam preparat i o n
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Core functions of HRM

Job analysis and design Recruitment and selection Training and development Performance management and compensation Labor and employee relations

HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Examples in the news HR implications?

Bonus payments in banks Swiss Re: CEO Aigrain quits after major losses SR Technics closes Dublin plant with more than 1000 employees Hitzfeld on managing a national football team as a distributed team of club players Increasing use of short time work
HRM: Leading teams G. Grote ETHZ, Spring Semester 09

Examples in the news HR implications

job design selection development performance mgt employee relations

Bank boni Swiss Re SR Technics National football Short time work

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HRM: Leading teams G. Grote ETHZ, Spring Semester 09