COMM1170 Organisational Resources People Toolkit – Week 3 Lecturer: Dr Helen Parker Mobilise & Combine Formal Organisation • Structure • Systems (e.g., training and development & total rewards) Identify Leaders as architects of organisational resources • Strategic • Operational Intangible people resources • Motivation & engagement • Performance behaviours Culture Mobilise & Combine Work design • Work tasks and conversations Measure Organisational Performance Environment (e.g., legal, business trends, global environment) People Toolkit CLO4 Identify legal and organisational processes to lead people within changing organisations W3 Lecture Learning Objectives (LLOs) a. Analyse how the human resource system of compensation and rewards (total rewards) impacts employees' behaviour. b. Analyse an employee's work design. c. Identify an organisation's (internal) environment at a strategic level, including organisational structure and culture. Identify Leaders as architects of organisational resources • Strategic • Operational Internal Issue: Netflix Leadership during 2022 downturn Intangible people resources • Motivation Autonomy Competence Relatedness Organisational Performance Environment (e.g., legal, business trends, global environment) People Toolkit Formal Organisation • Structure • Systems (e.g., T&D & total rewards) a. Analyse how the human resource system of compensation/rewards impacts employees' behaviour. Formal Organisation Systems – Compensatioin Benefits Organisational performance: • Legal, • Affordable, • Competitive advantage • Profit sharing • Share Plans • Gain sharing Performancerelated pay Base pay Total pay • Competency based pay • Incentive schemes • Discretionary bonuses Individual performance • Motivate • Develop Perform (Shields 2016; WHO 2007) THE LATEST IN HR – ‘TOTAL REWARDS’ Benefits Compensation Work-life Performance & Recognition Development & Career • Legally/medically required, e.g., Long-service leave • Retirement, e.g., superannuation • Travel, sporting facilities, work canteen • Base pay – hourly rate or salary • Variable pay • Paid and unpaid time off, e.g., community involvement, paid carers leave • Spot awards • Praise and recognition • Executive coaching • Tuition fees Compensation Individual-level implications Incentive schemes: Increasing employee productivity and performance by having a defined set of rewards for achieving certain performance targets. Often used in the Sales industry to incentivise employees to hit certain targets to receive the predetermined bonuses. - Motivation (SDT) and Performance behaviours: a clear performance target motivates - Cost savings: Increased labour productivity reduces labour costs per hour. employees to adapt their behaviours to suit the specific target, and become more proactive and - Rewards are contingent on performance targets that can be adapted to suit self-directed, to improve their chances of achieving the reward. organisational needs. - They can gain a sense of competency by learning skills to achieve the reward. - Attracts and retains employees who are achievement oriented. - Engagement: clarifies performance expectations and link to recognition of efforts. Moodle W3 Async -- May encourage unethical behaviours by incentivising individualistic gains - Employee wellbeing can be affected if there are variables affecting outcomes that are out of without consideration of the ‘means’ to achieve results employee’s control. Module Discretionary bonuses: Generally determined and awarded after certain performance objectives have been met. Not necessarily ongoing or guaranteed that if the same performance targets are met at a later date that the bonus will be paid again. - Motivates: highly visible - can communicate a strong performance recognition (competency) message. - Relatedness: Can also signal the company cares about employees (e.g., end-of-year or crisis bonus during COVID-19). - However, can be considered unfair by high achievers in a competitive environment, if all receive same bonus. - Engagement: bonus is not tied to performance, so may engage employees at an emotional level. Moodle: W3 Asynchronous Module (‘Pre Lecture’) - Motivates efforts towards common goal, though competency may be weakened as there are Profit sharing: Sharing of an organisations many factors out of employee control for profit outcomes. profit’s over a predefined period (e.g., 1 year). - Proactive behaviours: Encourages ‘above and beyond’ behaviours, as they identify with and This enables the employee and the organisation want to contribute to org’s financial wellbeing. to align their interests with a set common goal of - Engages the employee through meaningful work where impact can be seen through profits organisational profit. shared. Organisation-level implications - Flexible costs: the organisation is not committed to making payouts on a regular basis. - Can attract and retain employees who value gratitude. - Labour costs vary with capacity to pay – protects organisation from external contingencies (e.g., fluctuations in product market demand and prices). - Reinforces a culture of commitment and cooperation, transparency, high-trust and low-conflict employment relationship - Cost savings: May carry tax advantages (e.g., deferred plans) Gain sharing: Similar to profit sharing, however, is when an organisation awards employees a percentage of a cost saving exercise, rather than profit e.g. An organisation offers employees a proportion of any savings made from a reduced air travel policy. - Motivating productivity by fulfilling autonomy needs as finding ways to be more cost efficient are encouraged. - Competency: Rewards only those results that are within the group’s control (i.e., uses specific measures that show how value was added from labour productivity/costs). - Greater engagement through meaningful work contributions, trust in org and co-workers through sense of collective efforts. - Mental health effects through over-commitment (e.g. longer voluntary hours) that affects work-life balance. - Like profit sharing, it is self-funding (costs vary with capacity to pay). - Emphasis on cost-effectiveness more than quality can create oversights on impact to employee wellbeing - Sustainable competitive advantage: Can strengthen employee commitment and reduce absenteeism. - Multi-factor gain shares can reward cost efficiency outcomes that incorporate ethical non-financial criteria such as OHS, hazardous waste, and customer satisfaction. Share Plans: When an employee meets certain performance criteria, they are given the option of acquiring shares in the company. - Motivates individual performance to achieve rewards. - Can improve trust in org and engagement - Improves well-being – option for long-term job security and financial gains, - Cost savings: Improves productivity and thus reducing labour costs - Sustainable competitive advantage: Encourages long-term commitment and reduces turnover - Motivates through competency needs. Competency based pay: Employees receive pay - Engages by incentivising improvement and development of employees’ competencies. increases when they meet certain competency - Can be detrimental to employee well-being and mental health if employees do not receive levels. adequate training and perceives unfair competency measures. - Complex to manage and administer competency assessments – this may cause distrust among employees resulting in higher costs from turnover, etc. - Competencies be more suitable for some org environments such as where results are difficult to quantify but where the work itself is not closely supervised, as with teachers and other knowledge workers. Rewards Poll Questions Formal Organisation Systems – Rewards What types of behaviour's could a profit-sharing scheme encourage? A. Working proactively, both individually and as a team to achieve the organization’s goal B. Competing with rival teams and co-workers in the organisation Compensation Solution C. Looking at innovative ways to improve work processes/outputs D. Both A and C Formal Organisation Systems - Compensation Poll Q2: What types of behaviours could a team-based monthly performance bonus scheme encourage? A. Helping and collaborating to achieve a common goal B. Relying on your co-workers to do most of the work C. Both A and B Compensation Solution D. Competing with co-workers in your team Work design • Work tasks and conversations b. Analyse an employee's work design. Work Design Work tasks & Conversations SMART work design (Gagne, Parker, & Griffin, 2021) Work Design Formal Organisation • Systems Culture c. Identify an organisation's (internal) environment at a strategic level, including organisational structure and culture. Formal Organisation Structure Poll Question 1: What type of organizational structure delegates decision-making power to a Poll Question 2: What type of organizational structure would you prefer to work in? larger number of employees? A. Decentralised structure (Left picture) A. Decentralised structure (Left picture) B. Centralised (right picture) B. Centralised (right picture) Culture Poll question 1: Why is an iceberg used to depict organisational culture? A. Because culture can be quite a chilling experience B. Because there are both visible and invisible parts of organisational culture C. Because those at the top of the hierarchy have more influence on organisational culture Culture Poll question 2: Which of these below is considered an ‘invisible’ or unobservable part of culture? A. Rituals (e.g. graduation ceremony) B. Beliefs taken for granted and ideal prototypes of behaviour C. Stories and legends Culture at Netflix – Context not Control Culture at Southwest Why is organisational structure & culture important to understand? Formal Organisation • Structure • Systems (e.g., T&D, Total Rewards) Internal Issue: Inappropriate Leadership (operational) Culture Mobilise & Combine Intangible people resources • Motivation Autonomy Competence Work design • Work tasks and conversations Relatedness Mobilise & Combine Organisational Performance Environment (e.g., legal, business trends, global environment) People Toolkit Week 4 Course Lecturer Dr Kevin Kuan Contact: comm1170@unsw.edu.au Week 4 Learning Objectives 1. Articulate the significance of technology resources. 2. Articulate the fundamental definitions and terminology used in information systems. 3. Understand the challenges in managing technology resources. 4. Explain the different competitive advantages associated with technology. 5. Apply technology solutions to resolve the identified business problems. This week: • W1 Pre-lecture activity • Tutorial preparation • Attend Tutorial • Groups must be formed for Hurdle Task • Issues? Email tutor ASAP • Library Research Skills Workshop – Friday 16 June 1.30 pm to 2.00 pm Thank you for your attention The lecture recording will be made available in the COMM1170 Moodle site. If you have any questions about the lecture or course, please utilise the: • Moodle forums to create a learning community, or • COMM1170@unsw.edu.au for personal matters
