Human Resource Management

Module 3
Key Themes in HRM
3.1 HRM Themes - International competition, the enterprise culture, market globalization
have made orgs re-appraise how to regain competitive advantage.

3.2 Quality - not a simple unitary concept

3.2.1 Product Superiority - Japanese perceived superior products.
Product Quality 1. defects during the manufacturing process
2. Reliability in use
3. Value for $$
4. design specification costs

3.2.2 Customer Satisfaction -belief of what customer wants.

Customer Loyalty
1. Meeting or exceeding customer's expectations or requirements
2. External customers - org provides goods & services
3. Internal customers - other department personnel or sub-units

3.2.3 Quality in the Guest Model of HRM

HRM Policies

HR Outcomes

Org Outcomes

1.
2.
3.
4.
5.

1.
2.
3.
4.

High

Org & job design

Mgmt 4 change
Recruitment, selection, socialization
Appraisal, training & dvlpmt, rewards
Communication

Strategic information
Commitment
Flexibility, adaptability
Quality of workforce,
mgmt, performance,
product, customer
satisfaction, org 's
reputation, HR policies

Low

1. Job performance
2. Problem solving
3. Change
4. Innovation
5. Cost effectiveness
1. Turnover
2. Absences
3. Grievances

influenced by
Leadership/Culture/Strategy
HRM Policies
(good reputation
as employer)
Influence
Workforce

Performance

3.2.4 Organizational Culture - Core Value of Org. - how things are done that
permeates the whole org. with a continual striving for
improvement in all areas.

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Human Resource Management

Module 3
Key Themes in HRM
3.2.5 Total Quality Management (TQM) - identifies that quality is fundamental to an
org's culture & philosophy.
TQM Systems - integrated system requiring wide ranging changes that mutually reinforce
each other - not about bolting a few new procedures onto existing systems.
1. Applies to everything they org does - internally & externally
2. Internal & external customer needs priority
3. Top mgmt down to shop floor believes in TQM
a. employee involvement
b. commitment
4. Continual improvement - long term & not a quick fix
5. Changing "the way we do things around here"
a. culture change
6. Devolving power & responsibility down the hierarchy with new employee attitudes
a. new org structure
7. New methods of work
a. flexible work arrangements
b. team working

TQM Failures
1. Not adopting integrated approach - can't select & implement on piecemeal basis
2. Middle mgrs lack of support who see no benefit
3. Top mgmt lack of support or commitment
4. Reluctance to devolve control & responsibility down the line
5. "Imposed" on employees by mgmt

3.3 Organizational Structures - "structure should follow strategy" so 1st decide what
to achieve, then put in place structures for this.

3.3.1 Traditional Bureaucratic Structures-hierarchical/power & status,

pyramidal/layers of mgmt, depts based
on function/parallel structures &
hierarchies

1.
2.
3.
4.

Advantages
Clear duties & responsibilities
Clear & unambiguous authority lines
Accountability
initiative
Efficient control of people

Disadvantages
1. Inflexible & resistant to change
2. satisfaction & responsibility for mgmt.
3. Stifle creativity & personal

3.3.2 De-Layering-removing several mgr rungs in the vertical hierarchy ladder

workresponsibility commitment fear of losing job
good? bad? if de-layeringresponsibility satisfaction = yes but
if de-layering 2costs worksatisfactioncommitment

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Human Resource Management

Module 3
Key Themes in HRM
3.3.3 De-Centralization-close corporate office & devolve power/responsibility 2
business units because of competitive pressure.

1.
2.
3.
4.
5.
6.

Advantages
Reduction of central overheads
quality
flexibility = Customer needs met faster
motivation
commitment
pay & incentive systems 4 local needs

3.4 Flexibility-rapid reaction 2 needs of market =new products, pricing, work force
Forms of Flexibility
Functional
1. Multi-skilling
2. specialization

(Blyton & Morris 1992)

Numerical
Temporal
1. orworkforce
1. orwork hours
a. Part-timers
2. or work times
b. Outsourcing
a. flexitime
c. Contracting
b. shift working
c. annual hours
contracts

Wage
1. Varying wages 2
a. performance
b. objectives

3.4.2 The Flexible Firm (Atkinson 1984)

Self
Employment

Atkinson Model

Core Group
Primary Job Mkt
Functional Flexibility
Mgrs & Techs
Short
Part
nd
Grp
Term
Contracts 2 Peripheral
Time
Public
Job
Subsidy
Trainees Delayed Sharing
Recruitment

Sub
Contracting

Agency
Temporaries

1st Peripheral Grp

2ndary Job Mkt
Numerical Flexibility

Increased
Outsourcing

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Core Workers are career workers of the

organization, committed,
multi-skilled with relative
job security and wage with
training.
1st Peripheral Group is normally full time
employees with
turnover.
2nd Peripheral Group is part-timers, job
share schemes, shortterm contracts, etc.,
with wages and
benefits.

Human Resource Management

Module 3
Key Themes in HRM
3.4.3 Evaluation of Flexibility in Practice

1.
2.
3.
4.
5.
6.
7.

Criticisms
Part-time employees often are critical to effective function of org
Mixture of descriptive & prescriptive aspects
a. Descriptive-what orgs do in response to pressures /out what they should do
b. Prescriptive-ideal way to run org in times of rapid change
evidence of orgs adopting model
Functional flexibility ? Most orgs use job enlargement rather than up-skilling
Temporal flexibility? Not new concept. Performance related Pay (PRP)
a. Appropriateness of performance criteria - objective
b. Performance appraisal system pitfalls
Mgmt practices to control over employees
quality of work life in interest of costs

3.4.4 Advantages & Disadvantages - Flexible Working Arrangements

Disadvantages

Advantages
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
5.
1.
2.
3.

The Organization
Flexible core easily controlled/mgd
1. Multi-skillinglack of specialists risk
2. Peripheral workers lack
control over deployment/reliance on
commitmentperformance
individuals to do key tasks.
3. Training lacking
Enriched jobs, career opps
4. turnoverrecruitment/$$
commitment
5. commitment & trained peripheral
Hire/Fire easy at costs
workerquality
level skills bought as needed /out
fringe benefits to pay
$ part-time workers
Individualized paymotivate workers
Core Workers
Job security
1. job demandsstress/well-being effects
Career opps
Training & experienceemployability
Enriched jobs
Effort & individual performance pay
Peripheral Workers (common available skills-not professionals)
Flexible hours & times
1. job securitystress/well-being effects
Freedom for alternative lifestyle
2. training & dvlpemployability
Effort/performance individualized pay
3. No career structure
4. pay
5. benefit package
6. "2nd class"/status
7. No trade/labor union benefits
8. Employment protection laws may not
apply

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Human Resource Management

Module 3
Key Themes in HRM
3.5 Team Working - in terms of distribution of tasks and responsibilities.
3.5.1 From Autonomous Work Groups to Self-Managed Teams
Group Cohesion is how much the members want to be in the group.
Quality of Working Life Movement (QWL) responded to mundane nature of many jobs
with skill level, control over work process and responsibility for product quality
job satisfaction of workers.
Autonomous Work Groups delegate power and influence the group, while direct
management supervision & control over activities QWL performance
satisfaction & motivation.
Team Leader is to facilitate team performance & act as intermediary for team & mgmt.

3.5.2 Types of Teams

Production
1. Multi-skill
2. Cellular
base

Self-Managed
1. Team
leader
2. Budget rqts
3. Goals,
targets
4. commitm
ent
5. performa
nce
6. training
7. Empowere
d?
8. Inter-team
rivalry?

Cross-Functional
1. Different
Depts
2. Org strategy
focus
3. Customer
focus

Problem-Solving
1. Specific
problem
2. Temporary

International
1. Diff
countries
2. Diff cultures
3. Diverse
wisdom
4. Global
perspective

3.5.3 Potential Benefits of Team Working from an Org Perspective

1.
2.
3.
4.
5.

Advantages
Empowermentcreative energy & commitmentperformance
Self-regulating teamsquality focused approach (TQM)
Multi-skilled teamfunctional flexibilitychanging circumstances & requirements
Teamstemporal flexibilitygroup bonus systemperformance targets
cohesiveness & co-operation
De-layering of hierarchical structure

3.5.4 Consequences of Team Working for Individuals

1.
2.
3.
4.

Disadvantages

Advantages
Power
Responsibility
Ownership of tasks
Participative decision making

1.
2.
3.
4.
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Assumption of responsibility$$
Assumption of responsibilitywork
Mgr responsibility
Team responsibilityself policing?

Human Resource Management

Module 3
Key Themes in HRM
5.
6.
7.
3.5

Shared decision making

Mutual support
Group goals, targets

5.
6.
7.

status than specialists?

Functional flexibilityspeciality focus
commitment?

The Learning Organization - learning is the characteristic of the organization.

3.5.1 The Concept of the Learning Organization -learning center stage!
Gestalt - perception individual components BUT perception = + extra (2+2=5)

3.5.2 Characteristics of the Learning Organization

Strategy
Feedback/org
members,
customers,
suppliers

Looking In
Feedback/depts
available easy

Structures
Looking Out
Learning Opps
1.Loose work roles 1.Feedback/customer, 1.Challenge tradition
2. New ideas, ways suppliers
2.Idea experiments
2.Job exchanges
3.OK 4 mistakes
3.Training prgm/
4.Feedback constant
customers
5.Encourage workers
6.Learning culture
7.Available resources

3.7 Organizational Commitment

commitmenteffort/performance

3.7.1 The Nature of Commitment

Commitment is a strong identification with the values of the org & a subsequent desire to
support & further the objectives of the org.
Compliance is the employee reluctantly accepts what is required by mgmt because there is
option other than to do so.
Work Involvement Job Involvement Professional Commitment
Org Commitment
1.
Commitment
1.
Commitment 2 org
1. the work is
1. professional
2
job/role
not
2. dept values
central to life
commitment
work
2. Not earning a
2. org values
2.
org values
living
3. work involve
commitment
Affective commitment is concerned with the person's attitudes & to a positive set of feelings
about the org. levels of affective commitment are desirable for the organization.
Continuance commitment is the person's behavior rather than their feelings & a desire to
continue working for the org. Continuance commitment (f) Affective commitment
levels of continuance commitment desirable BUT lack of alternative employment or
time 'sunk costs' in pension plans or company specific skills desirable

3.7.2 Determinants of Org Commitment

Personal factors with commitment-age, education
Environmental factors with commitment - job expectations, job responsibility, work
involvement.
Employee Involvement Techniques (Guest)
Info to employees
group meetings to brief people about org activities
Receiving Info from employee
suggestion schemes to info in direction
Work system changes
self mged teamresponsibilitycommitment
Incentive System Intro
PRP, profit related pay, share options
involvement, commitment
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Human Resource Management

Module 3
Key Themes in HRM
Employee Relationship Changes

Participative style of mgmtinvolvement in

decisionscommitment
Implemented in piecemeal way Limited effect on commitment

3.7.3 Commitment, Effort, & Performance-how commitment relates to perf.

Commitment correlated to Turnover but small
Commitment not directly linked to performance.
Commitmentmotivation performance (but correlation/motivation is small)
employee involvementmotivation (limited)

3.8 Culture-values & aims of the organization - "the way we do things around here"
3.8.1 What is Culture? set of shared values & beliefs held by members of an org.
Culture Levels (Schein 1984)
Artifacts & Creations (surface)

dress codes, office layout, common behaviors

(conformity & discipline or openness)
Values
"how we do things around here"
Basic Assumptions
presuppositions about people, org & environment
Corporate Culture are the values by top management.
Organizational Culture - rank & file values maybe different from top mgmt.
Sub-Group Culture - accts vs engineers

3.8.2 The Relationship between Culture & Performance

Soft HRM say org performance=culture. Strong culturesperformance.
Strong Culture where a level of consensus of values throughout the org & coincide
with the corporate values.
quality culture needed (TQM) initiate corp culturecommitmentperformance
counter productive if strategy is identified wrong pulling wrong direction lack
diversity rigidity to change
Can culture be changed?

3.8.3 Managing Culture Change-assumes "changed valueschanged behavior"

Culture Change Techniques (difficult/evidence it can be achieved)
Leadership
example setting, personnel selections, pay, promotions
Communication
needs & benefits for change, briefing sessions from top mgmt,
Programs
group problem & solution discussions, customer care training
Personnel
recruit those with desired values or those who can be socialized,
Changes
very gradual, voluntary retirement
Reward Mgmt
PRP policy (performance related pay)
Do Culture Change programs WORK? doubtful as values take long to develop but
may have beneficial effects for the org! Mgmt
requires this to be done this way but benefits.

3.9 Summary
Flexible Firm Theory -flexibilitycompetitiveness by allowing swift & effective reactions to
change.
Learning Org capability to adapt constantly to changing circumstances.
Self-managed team Benefits - commitment & performance
but commitment not directlyperformance
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Human Resource Management

Module 3
Key Themes in HRM
3.10 Strategic & Operational HRM
Chapter 1-3 are Strategic HRM
Chapters 4-8 are Operational HRM

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