Supplementary
Teaching Material
for
__----
IAC3309
Human Resource
Management
HUMAN
RESOURCE
MANAGEMENT
By Assistant Professor Dr. Kannapat Kankaew
College of
Hospitality
Industry
Management
(CHM)
Suan Sunandha
Rajabhat
University
2021
-2-
Supplementary Teaching Material
For
IAC3309 Human Resource
Management
Asst. Prof. Dr. Kannapat Kankaew
B.A. (French)
M.B.A. (Aviation Management)
D.P. A. (Human Resource Management)
College of Hospitality Industry
Management
Suan Sunandha Rajabhat University
2021
-3-
PREFACE
This supplementary teaching material has been developed and tried out
since semester 2/2019, is a course book designed for Students of 3rd year in
Airlines Business Program - B.A (Airlines Business) studying the course:
“IAC3309: Human Resource Management”. The book contains 9 units, each of
which covers 3 hours of class instruction time and 6 hours of independent
study time (6 hours a week).
The aims of this book are to perform the learners in the following areas
of performance: (1) Able to segregate human resource management (HRM)
and strategic human resource management (SHRM); (2) Able to outline human
resource management process; (3) Able to analyze workforces requirement for
organization; (4) Able to critique performance management; (5) Able to
associate compensation and benefit; (6) Able to assess strategic training and
development; (7) Able to construct industrial relations; (8) Able to integrate
organization behavior and benchmarking.
It is hoped that as learner’s progress through the book, they will have a
chance to process the learning outcomes according to the Thailand Quality
Framework: Higher Education (TQF).
Asst. Prof. Dr. Kannapat Kankaew
November, 2020
-4-
TABLE OF CONTENTS
Page
Preface
I
Table of Contents
II
List of Tables
VII
List of Figures
VIII
Learning Management Plan
XI
Unit 1 Learning Management Plan
1
Unit 1 Introduction to Human Resource Management
5
1 The History of Human Resource Management
5
2 The Definition of Human Resource Management (HRM)
9
3 Human Resource Duties and Practices
11
4 Strategic Human Resource Management (SHRM)
12
5 SHRM Concept from Research to Practice
14
6 Unit Conclusion
22
7 Exercise
22
8 Unit References
23
Unit 2 Learning Management Plan
25
Unit 2 Resourcing and Competency Concept
29
1. Resourcing
29
-III
5-
Page
2 Human Resource and Organization Performance
33
3 Concept of Competency
36
4 Human Resource for Customer Contact
39
5 Unit Conclusion
44
6 Exercise
45
7 Unit References
47
Unit 3 Learning Management Plan
51
Unit 3 Human Resource Information System and The Analysis
55
Design of Work
1 Human Resource Information System (HRIS)
55
2 The Analysis and Design of Work
59
3 Recruitment and Selection
63
4 Socialization and Orientation
65
5 Unit Conclusion
70
6 Exercise
70
7 Unit References
73
Unit 4 Learning Management Plan
75
Unit 4 The Performance Management
79
1 Performance Management
79
- IV
6-
Page
2 The Criteria for Performance
82
3 Performance Appraisal Methods
91
4 Productivity and High-Performance Work System (HPWS)
94
5 Unit Conclusion
98
6 Exercise
98
7 Unit References
103
Unit 5 Learning Management Plan
105
Unit 5 Training and Development
109
1 Training and Development
109
2 Learning Organization
116
3 Knowledge Management
119
4 Unit conclusion
124
5 Exercise
125
6 Unit references
127
Unit 6 Learning Management Plan
131
Unit 6 The Industrial Relation and Occupational Health
135
1 Industrial Relations
135
-V7 -
Page
2 Thailand’s Labor Law
140
3 Occupational Safety, Health and Environment
143
4 Diversity Workforces
145
5 Unit Conclusion
151
6 Exercise
151
7 Unit References
154
Unit 7 Learning Management Plan
157
Unit 7 Compensation and Benefit
161
1 Compensation and Benefit
161
2 Pay System
164
3 Special Group Compensation and Benchmarking
167
4 Compensation in Hospitality Industry
172
5 Unit Conclusion
176
6 Exercise
176
7 Unit References
181
Unit 8 Learning Management Plan
183
Unit 8 Organization Behavior and Human Resource Trends
187
1 Organization Behavior in the 21st Century
187
- VI
8-
Page
2 Organizational Culture
195
3 Leadership
198
4 Global Human Resource Management
202
5 Unit Conclusion
204
6 Exercise
204
7 Unit References
207
-9-
LIST OF TABLES
Page
Table 1.1
Management Concept in each Period
7
Table 1.2
SHRM Studies on Four Dimensions of Dyer &
Reeves
16
Table 2.1
Replacement Planning
31
Table 3.1
Uses of Social Networking
58
Table 3.2
Ten Steps of Well-Designed Orientation
69
Table 4.1
Type of Performance Management Fairness
91
Table 4.2
Comparing Traditional Work Systems and HighCommitment Work Systems
97
Table 6.1
Characteristics of Generations
148
Table 7.1
Compensable Factor Degrees
174
Table 7.2
Determine Pay Rates
175
Table 8.1
Five Managerial Values
193
Table 8.2
Comparison Leadership and Management
200
Table 8.3
Self-leadership Strategies Checklists
201
- 10 -
LIST OF FIGURES
Page
Figure 1.1
Human Resource Management Practices
11
Figure 1.2
Responsibilities of HR Department
12
Figure 1.3
HR Professional Six Competencies
18
Figure 1.4
Intellectual Assets
20
Figure 2.1
Succession Chart
31
Figure 2.2
AMO Theory at Individual Level
36
Figure 3.1
Data-to-Value-Cycle
57
Figure 3.2
Developing Work Unit Activity Analysis
60
Figure 3.3
Socialization Stages
67
Figure 4.1
Effective Performance Management Process Model
82
Figure 5.1
Needs Assessment Process
111
Figure 5.2
Knowledge Management Model
124
Figure 6.1
Bargaining Issues
138
Figure 6.2
Workforce Engagement Model 2020
149
Figure 7.1
Compensation Plan Model
162
Figure 7.2
Pay Model
167
Figure 8.1
Organizational Behavior Contextual Framework
190
Figure 8.2
Organizational Behavior Timeline
191
- 11 -
Course Learning Management Plan
Course Title: Human Resource Management Course Code: IAC3309
Credits:
3(3-0-6)
Number of Hours
: 45 hours/ Semester
Course Description
Strategic human resource, human resource information systems, resourcing and
assessment, performance management, remuneration management, productivity and
benchmarking, industrial relations, strategic training and development, organizational
behavior, and welfare management (uniform, insurances, medical treatment, financial
aid for employees).
Course Rational and Objectives
This course is categorized in Airline Business Major Elective Course. Bachelor
of Art Degree, College of Hospitality Industry Management, Suan Sunandha Rajabhat
University (SSRU).
At the end of this course, the student will be able to:
(1) segregate human resource management (HRM) and strategic human
resource management (SHRM);
(2) outline human resource information system;
(3) analyze workforces and resources needed for organization;
(4) critique performance management;
(5) associate compensation and benefit;
(6) assess strategic training and development;
(7) construct industrial relation;
(8) integrate organization behavior and benchmarking.
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Contents
Unit 1 Introduction to Human Resource Management
1
The History of Human Resource Management
2
The Definition of Human Resource Management (HRM)
3
Human Resource Duties and Practices
4
Strategic Human Resource Management (SHRM)
5
SHRM Concept from Research to Practice
Unit 2 Resourcing and Competency Concept
1
Resourcing
2
Human Resource and Organization Performance
3
Concept of Competency
4
Human Resource for Customer Contact
Unit 3 Human Resource Information System and The Analysis Design
of Work
1
Human Resource Information System (HRIS)
2
The Analysis and Design of Work
3
Recruitment and Selection
4
Socialization and Orientation
6 hours
3 hours
6 hours
XI - 13
Unit 4 The Performance Management
1
Performance Management
2
The Criteria for Performance
3
Performance Appraisal Methods
4
Productivity and High-Performance Work System (HPWS)
1
Performance Management
Unit 5 Training and Development
1
Training and Development
2
Learning Organization
3
Knowledge Management
Unit 6 The Industrial Relation and Occupational Health
1
Industrial Relations
2
Thailand’s Labor Law
3
Occupational Safety, Health and Environment
4
Diversity Workforces
Unit 7 Compensation and Benefit
1
Compensation and Benefit
2
Pay System
3
Special Group Compensation and Benchmarking
4
Compensation in Hospitality Industry
6 hours
6 hours
6 hours
6 hours
- XII
14 -
Unit 8 Organizational Behavior and Human Resource Trends
1
Organizational Behavior in the 21st Century
2
Organizational Culture
3
Leadership
4
Global Human Resource Management
6 hours
- 15 -
Unit 1 Learning Management Plan
Title: Introduction to Human Resource Management
Total Time in Learning/Teaching: 6 Hours
…………………………………………………………………...
Introduction
Human resources are one of the most important resources of every
organization. Specifically, in the modern world where technology can be procured
producing the same quality of products and services. The globalization allows modern
trade to compete in perfect markets. Thus, firms stress more on creating value added
by delivering the customer experiences through the services from their workforces for
the competitive advantages. It should be pointed out that human resources could
make the company distinct from its rivals. Thence, firms need to carefully recruit,
select, training and development, and retain the workforces. In this chapter, the
human resource management, the strategic human resource management, human
resource management practices, human resource department responsibility, the six
competencies of human resource professional, and the valuable assets of organization
will be introduced.
Learning Outcomes
At the end of this unit the students should be able to:
1. dissociate the differences of human resource management and strategic
human resource management;
2. analyze the human resource management department responsibility;
3. outline the six human resource competencies;
4. describe the human resource management practices
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Scope of Contents
1. The history of human resource management
2. The definition of human resource management (HRM)
3. Human resource duties and practices
4. Strategic human resource management (SHRM)
5. SHRM concept from research to practice
6. Unit Conclusion
7. Exercise
8. Unit References
Learning Activities
Lecture
Group discussion
Problem-Solving
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3 -
Learning and Teaching Resources
1. Textbooks and Main Documents
Boxall, P., Purcell, J. (2011). Strategy and Human Resource Management.
UK: Palgrave.
Dawson P. (2003). Understanding Organizational Change: The
Contemporary Experience of People at Work. SAGE: London.
Nisada, W. (2017). Strategic Human Capital Management. Bangkok: The
Graphico System.
Noe et al. (2012). Human Resource Management. Singapore: McGraw-Hill.
Salaman, G., Storey, J., Billsberry, J. (2005). Strategic Human Resource
Management: Theory and Practice. New Delhi: SAGE.
Ulrich et al. (2012). HR from the Outside in. Singapore: McGraw-Hill.
2. Important Documents for Extra Study
Armstrong, M. (2015). Armstrong’s Handbook of Strategic Human Resource
Management (5th ed.). London: CPI Group.
Bahuguna, P. C., Kumari, P., & Srivastava, S. K. (2009). Changing Face of
Human Resource Management: A Strategic Partner in Business.
Management and Labour Studies, 34(4), 563-581.
doi:10.1177/0258042x0903400407
Measurement and Evaluation
Group Discussion
Oral presentation
Assignments
- 184 -
- 19 -
Unit 1
Introduction to Human Resource
Management
1. The History of Human Resource Management
Human resource management has evolved since the revolutionary era in
the 19th century. In the stage of the production process, where human labor and
organization were used to assist in production. At that time, the factory
emphasized mainly on the production. Later, the era of market management
and customer satisfaction has entered the 20th stage of technology and
globalization, which has made people in organization the most competitive
(Bahuguna, Kumari & Srivastava, 2009).
Globalization provides the organization an advantage over national
developmental differences, such as relocation of production bases to low-wage
countries and regulations that promote investment. Thought, going to set up a
company in the country that has weak labor unions. As a result, the
competition in the market and the environment has changed (Aston, 2008).
Boselie (2011) states that the intense competition and globalization of
the 1980s and 1990s created the dynamics and complexity of the organization,
the shorter of product life cycle, the competition is easily adaptable because of
technology. And, the widespread transmission of knowledge through the
internet allows the customer demand become higher. In responding to the
changes, the scholars have developed the management concepts and theories;
such as, resource base theory, the system of management and assessment
throughout the organization or (balance scorecard) to answer the question of
how to do for the long-term success of the organization.
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6 -
Therefore, the organization focuses on the integration of human resource
management activities that will increase the capacity of the organization, known as a
high-performance work system: HPWS. Boselie, also, summarizes Taylor's
management concept since 1911, with the principle of job classification according to
people and the job type, the controlling of the work closely.
Whereas in 1930, Mayo and his team conducted an experiment at the
Hawthorne study and found that paying attention to the living conditions of the workers
improved job performance, and lead to increased productivity. The feelings of
employees influence their behavior performing the job. From this study, new ideas
were coming up called the concept of human relations movement based on the
following principles: organization composes of social relation, labors are dynamic
groups, informal group within organization has high influence, the motivation of
employees was not directly from the money in spite of human relation has greater
impact.
In 1949, Henry Fayol proposed a scientific management concept similar to that
of Taylor, inspired by the mining industry. By applying job classification to be
regulation and classification of people according to the type of work, and employees’
aptitude. The paying wages per piece encourages workers to be diligent in order to get
more wages. This is to create higher performance work which is the approach of
organization management (Kankaew & Trerattanaset, 2020).
During 1950-1960, there was revisionistic concept which integrate the
differences in labor relations and mutual trust of employees and organization.
McGregor proposes Theory X and Theory Y with two dimensions:
•
Theory X states that the nature of people is lazy. Money is required
as an incentive, and irresponsible. The organization must govern
conventionally.
•
Theory Y states that human is able to be a self-control. This means
human willing to improve the organization such as decentralization,
delegation of authority, work expansion, participation, and
administration by adhering to the organization goals.
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Therefore, in organizational management, according to theory Y, employees
are reliant on their work, which is called decentralized. The decentralization focuses
on organizational performance rather than Mayo concept. Hence, human resource
management in the early 1980s based on the new concept of McGregor, highperformance organizations have adopted the concept of decentralization of decisionmaking, giving employees autonomy, assigning duties, etc.
In 1960, there was the socio-technical system theory (STS Theory). This theory
harmonizes the production factors and social factors to enhance the work performance
of employees. Furthermore, it creates the flexibility within organization. The STS
theory is closely related to the working improvement in mining, the oil production
field, textile industry, and the automotive industry. It is the work of the production line
according to the process and function which is repetitive.
The STS theory was constructed based on social and technology in the factory
working processes, for instance, teamwork and rotation. The assumption of the theory
is human behavior and technology correlated, the changes of technology affected to
social relation, and the attitude towards the job came from technology.
As a deduction, the passage can be summarized as shown in table 1.
Table 1.1 The management concept in each period
Scholars and
Period
Approaches Key issues
Implementation
Operational
system
Taylor &
Fayol 1911194
Scientific
Closely control
management of employees
Division of work,
monetary
motivation, human
as a machine
Centralization
Taylor &
Fayol 19111940
Scientific
Closely control
management of employees
Division of work,
monetary
motivation, human
as a machine
Centralization
- 22
8 Table 1.1 (Continued)
Scholars and
Period
Approaches Key issues
Implementation
Operational
system
Mayo 1933
Human
relations
Emphasize on
human being,
social value
Cooperation,
Assimilation
communication,
of social
motivation on both system
internal and
external
compensation
McGregor
1950s-1960s
Revisionism
Empower to
make
decisions,
delegate
challenging
tasks and build
engagement.
Decentralization,
employees’
autonomy and
engagement,
performance
assessment
High
employees’
engagement
STS Theory
1960s
Sociotechnical
systems
Employ
technology to
design working
condition and
production
Teamwork, job
expansion,
autonomy,
integration of
working system
and production
system
Integration of
various
working
system
Later in 1980, there was a personnel management concept. The concept
highlighted on personnel handling, such as, salary, rules and regulations implementation
on benefit and pension. Before that, during the 1960-1970s, the concept of a total quality
management system or TQM was developed in Asia, Japan, which is a leader in high
quality production at low of cost which affects its competitiveness in the world market.
TQM is a goal setting as a team to produce at zero waste, develop employees,
employees’ engagement, decision-making, and continuous improvement. TQM has
evoked the traditional personnel management to human resource management (HRM)
Legge (1995, cited in Boselie, 2011). The western organization has adapted by
practicing talent acquisition, implement training and development, performance-based
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pay, autonomy, and performance management aligning with the organization
objectives. These management values replaced the recruitment of multiple experts.
2. The Definition of Human Resource Management (HRM)
Armstrong (2013) mentioned that human resource management (HRM) was
developed from the behavioral sciences in combination with human capital and
industrial relations theories. He has compiled several the meanings of human resource
management as following;
Boxall and Purcell define HRM is all activities related to management that are
related to employment in the organization. It is an imperative process to grow with the
organization. For example; human capital management, knowledge management,
organization design and development, human resource planning, selection and
recruitment, talent management, performance management, training and development,
compensation, labor relations, and employees’ well-being.
Beer pointed out the difference between personnel management and human
resource management. He stated that HRM concern with the organization decision
management. And in practical, the decision would be resulting to the relationship of
firm and employees. The HRM credibility depends on line manager. The HR
professional establishes a management policy that leads to consistent organizational
operations.
While, Legge suggested that HR policy should integrate with business strategy
since human resource is the value resource of firm for competitiveness. Armstrong
(2013) concludes HRM is the managing of human resources in relation to hiring and
managing people in the organization, with the paradigm that human resources create
competitive boundaries, which should be developed organizational engagement. Thus,
organization can be successful by employees.
Boxall, Purcell & Wright (2007, cited in Lengnick-Hall et al, 2009). HRM is
divided into three sub-categories: micro HRM (MHRM), international human resource
management. (IHRM) and strategic human resource management (SHRM).
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MHRM consists of two types of human resource policy sub-divisions and
human resource management activities: individual management and small group of
people in organizations such as recruiting, selection, training and development,
performance appraisal and compensation. Another type is organizational performance
management and employee management, such as union relations management.
At the same time, IHRM is an organization's human resource management,
covering corporate offices located in countries around the world. In view of the fact
that SHRM is the application of HR strategy, strategic design. The application and
validation of organizational strategies deploy to influence organizational success.
Coyle-Shapiro et al. (2013) describes HRM as an analytical process, and
managing the human resources that needed in the organization to meet the objectives
of the organizational strategy. In addition, HRM is as a policy and practice that relates
to people in management perspective, including recruiting, selection, training and
assessment.
Inyang (2010) highlighted HRM deals with organizational people management
that will have an important impact on the organization. It is an activity to support
corporate management in the field of employees, recruiting, training and development
compensation and employee benefits.
Noe et al (2012) define HRM is the processes, arrangements, and policies that
determine employees’ behavior, mindset, and performance.
Therefore, human resource management is the process of analyzing, designing,
developing and managing employees in the organization in response to organizational
objectives and strategies. It is based on behavioral science concepts and the theory of
the relationship between human capital and industry. HRM can be divided into three
levels: individual management and small group of employees in an organization such
as recruiting, selection, training and development, performance appraisal. Secondly,
the international level is the human resource management of all branches of the
organization around the world that the organization operates. And last, the strategic
level or strategic human resource management is to integrate human resource
management into the strategy of the organization.
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3. Human Resource Duties and Practices
Firm
Performance
Employee relations
Performance
management
Compensation
Training and
Development
Selection
Recruitment
HR planning
Analysis and design
of work
The HRM practices can be summarized as shown in following figure.
Figure 1.1 Human Resource Management Practices
Source: Adapted from Noe et al (2012), p. 5
From figure 2, it could be explained by the fact that HRM processes begin with
the analysis and design of work, follow by figure out human resource needs (HR
planning), captivating potential employees (recruiting), electing employees (selection),
educating employees how to perform the task and preparing employees for their future
endeavor (training and development), reward the employees (compensation), assessing
employees’ performance (performance management), and building the positive work
environment (employee relation). The effective practices of HRM enhance the
company performance to success. The HRM, additionally, contributes employees and
customer satisfaction, innovation, productivity, and development of firm’s reputation.
It is notable that HRM is a mean to contribute to company profit, quality, and
support other business objectives through enhancing and supporting business
operations. The HR department is responsible for the provision of assistance to laid-off
employees, finding new employment. At the same time, HR has to practice labor law
compliance, record keeping, testing, unemployment compensation, and benefits
administration. The HR department, moreover, coordinates with other departments on
employment interviewing, performance management and discipline, and efforts to
improve the productivity and quality.
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The roles and responsibilities of HR depends on the size of the company, the
characteristics of the employee, the industry, and the value system of the company
management. The HR responsibilities in each task were concluded as following;
Employment and
recruiting
Training and
development
Interviewing,
recruiting,
testing,
temporary labor
coordinating
Compensation
Benefit
Orientation,
performance
management
skills training,
productivity
enhancement
Wage and salary
administration,
job descriptions,
executive
compensation,
incentive pay, job
evaluation
Insurance,
vacation leave,
retirement plan,
profit sharing,
stock plans
Employee
services
Employee and
community
relations
Personal records
Health and
safety
Strategic
planning
Employee
assistance
programs,
relocation
service,
outplacement
services
Attitude surveys,
labor relations,
publications,
labor law
compliance,
discipline
Information
system record,
safety
inspection, drug
testing, health,
wellness
International
human resource,
forecasting,
planning,
mergers and
acquisitions
Figure 1.2 Responsibilities of HR Department
Source: Adapted from Noe et al (2012), p. 6
4. Strategic Human Resource Management (SHRM)
HR department in some companies advises top management; the others might
make decision on staffing, training, and compensation after top management decided
relevant business strategy. HR is viewed as a business within the firm with three
product lines. The first product line from HR is administrative services and
transactions. This product line is the traditional practices on compensation, hiring and
staffing. It stresses on resource efficiency and service quality. Secondly, the business
partner service is also known as human resource business partner (HRBP).
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The HRBP is to develop effective HR system, help to implement business
plans, talent management. And the third HR product line is strategic partner or
strategic human resource management (SHRM). The SHRM is to contribute HR on
business strategy based on the considerations of human capital, business capabilities,
readiness, and develop HR practices strategic differentiators. The function of SHRM
focuses on knowledge of HR and the business, competition, the market, and business
strategy.
Consequently, the effective of SHRM requires to understand the strategy
concept. There are numerous academicians define strategy as a guideline plan for the
intended implementation. There are 2 types of guidelines for dealing with different
situations. Those are strategy formulation and strategy development, where strategy
formulation is done before it happens while strategy development is done with intent
and purpose. Thus, the strategy is the perception of the outside world, referring to the
transmission of organizational personality traits to each member of the organization.
Strategies and organizational structures are interrelated, and strategies are forecasting
changes. Or, it is the planning for the future strategic thinking (Nisada, 2011).
Boxall & Purcell (2003, cited in Boselie, 2011) defined organization strategy is
a set of alternative choices. Some strategies might derive from planning, discussion of
executives, or practices. Whereas, Hofer & Schendel (1986, cited in Boselie, 2011)
said strategy is the crisis perspective of executives have planned for organization
capability, or the internal risk, external threats affecting the organization change, and
how would organization deploy its resources effectively.
Boselie (2011) proposes that good strategy must be linked to the complex
internal and external factors that must be taken into account in planning development
for a competitive advantage. Differentiating products and services, building core
competencies and outstanding abilities of the organization over competitors in terms of
quality, technology, innovation, marketing, or the use of human and financial
resources, etc.
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Therefore, the strategy means organizational schemes that are formally
established as guidelines for leading the organization to achieve its goals. And
strategies can be flexible according to the environmental conditions that may happened
unexpectedly. Strategies are linked to complex factors such as organizational
objectives, internal factors, external factors, planning, developing strategies for a
competitive advantage.
5. SHRM Concept from Research to Practice
Many organizations rely heavily on human capital for a competitive advantage.
The market value added depends on intangible assets such as knowledge, core
competencies and organizational potential. Then, human resources should be a resource
that creates more value for the organization.
The best way is to become a business partner. Due to, the environment is always
changing. Hence, the organization has to increase the level of expertise in managing
change and making new business policies, strategies and practices. However according
to the studies, most HR is adhering to the general administrative task rather than the
value-added functions, strategies that support inputs in line with business strategy
(Lawler, 2005).
Discoursing at Transformation & Change - Managing Culture for Success Panel,
Dave Ulrich, said strategic human resource management is a mirror of business goals.
And, it acts as a window linking the work between human resources departments and
customers and investors. At present, the organization is aware of HR, whether it is the
concept of governance, practices, competence of employees. or data analysis.
The organization needs good supervision through a professional HR team. The
HR professional should have the ability to transform important information related to
HR analytics for department managers (line manager) to be used (Thansetthakij, 2015).
As Becker & Huselid (2006) stated that strategic human resource management is a focus
on organizational performance rather than individual employee.
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For this reason, lead to the conclusion that, the strategic human resource
management concept is the integration of human resource management with business
strategy. The integration of human resource management and business strategies will
result in effective human resource management, improve organizational efficiency and
lead organization to success. There are two main dimensions of this concept: the
development of line manager to be an expert in personnel management. As a cause,
line managers are close to their employees, they can create incentives for employees
and supervise work, solve any problems that arise in a timely manner. Another
dimension is the integration of external fit or vertical fit. It is the relationship between
human management strategies and fit with the environment. On the other hand, the
internal fit or horizontal fit, is the relationship between strategy and human resource
management activities (Nissada, 2011; Wright & McMahan, 1992; Way & Johnson,
2005)
From the above mentioned, the concept of management theory that emerged
since the industrial revolution has been developed continuously to find good practices
to increase productivity, personnel management, human resource management, and
strategic human resource management. The SHRM concentrates on the overall picture
of the organization and link the operations with the organization's strategy
respectively. In the past 25-30 years, many scholars have studied the effectiveness of
the application of mechanical human resource management in organizations such as
Richard & Johnson (2001) found strategic human resource management affects
organizational performance, reduces turnover rates and increases marketing results and
increases production rates. Dyer and Reeves (1995) proposed a study to test
organizational efficacy in SHRM research: (1) human resource outcomes such as
employee behavior (2) organizational outcomes such as productivity, quality and
service (3) financial accounting results such as income from investments and profits,
and (4) stakeholders or results in the capital market, such as the value of stocks, etc.
From the above suggestion, many scholars have studied the relationship between
SHRM and the four outcomes as summarized examples in Table 1.2.
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Table 1.2 SHRM studies on four dimensions of Dyer and Reeves (1995)
Scholars
Dyer and Reeves Organizational Efficacy in SHRM Dimensions
Human
Resources
Organizational Financial
Arthur (1994)
Turnover rate
Productivity
and quality
Batt (2002)
Absenteeism
Batt et al
(2002)
Absenteeism
Sale growth
Delerly &
Doty (1996)
Gutherie
(2001)
Stakeholders
Average return
on assets and
equity
Employee
retention
Productivity
Huselid (1995) Turnover
Productivity
Ichniowski et
al (1997)
Productivity
Way (2002)
Turnover
Total return on
capital
Productivity
Source: Adapted from Way, A. S., Johnson E. D. (2005). Theorizing about the impact of
strategic human resource management
In addition, Way & Johnson (2005) address five widely used theoretical
concepts related to SHRM namely resource-based view. It is a theory that looks at
organizational resources, that they are valuable, rare, inimitability, or difficult to
replicate, and internal processes (organization) or activities that will give a sustainable
competitive advantage. Howbeit, theories do not explain how an organization has to
do to be effective.
Further, the systematic agreement theory is a theory that provides a conceptual
framework for the harmonization of organizational design, strategy and organizational
culture for the same goal consists of four areas: (1) structural alignment, it is the
harmonization of goals of different activities or processes in the organization which
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17 -
consists of a vertical structure. This is attributable that all organizational
goals, objectives and strategies are aligned with HR activities. At the same time, the
horizontal structure Is the activities within HR that are in the same direction, in
response to the strategy of the organization. (2) cultural alignment on organizational
leadership that creates organizational culture that supports organizational strategies.
(3) performance alignment at specific time of the organization, in line with the
necessary results of the organization in order to lead the organization to success and,
(4) environmental alignment concerning the external environment that is in line with
the organization's strategy.
Inasmuch as, John (n.d.) conducted a study on the evolution of human resource
strategies by dividing the paradigm of strategic human resource management into 3
eras including; (1) the era of person-job fit (2) the era of systemic fit and (3) the era of
competitive potential. He stated that strategic human resource management, starting
from the age of people fit with the job. It is a vertical integration character that focus
on efficiency and productivity. While, the management part is the standard behavior.
divide tasks by function. After that, entering to the second and third eras or present and
future, respectively, focusing on knowledge-based competition, innovation and
change, learning, culture uniqueness, promptness and smart human capital.
Despite the fact that, Lengnick-hall et al. (2009) divided the evolution of
strategic human resource management into seven categories: (1) explaining
contingency perspectives and fit, (2) shifting from a focus on managing people to
creating strategic contributions, (3) adjusting HR system components and structure (4)
expanding the scope of SHRM, (5) achieving HR implementation and execution, (6)
measuring outcomes of SHRM, and (7) evaluating methodological issues.
Thought, Ulrich et al (2012) recommend HR professional to stress on the
business from outside to inside organization. This is to enable firm adding sustainable
value. As a basis of the business context changing connected with economy and
consumers’ behavior. The scholars have identified six important trends of the change
as following; (1) society including; individual lifestyles, family, ethics, religion, and
expectation of well-being, (2) technology refers the technology disruption on human
on the aspect of life span and working, (3) economics the economic cycles (recession
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or growth) shape consumer and government confidence, the capital flow, investment,
(4) politics concerning with regulatory affect the expectation on government of
corporate, personal lives, (5) environment involves with the limit resources that provide
energy, over and above firms need to manage social responsibility, (6) demographics
are the changing of birthrates, education, aging society, income level affect to consumer
behavior. Therewith, Noe et al (2012) propose six competencies of HR professional as
shown in figure 1.3.
Figure 1.3 HR Professional Six Competencies
Source: Adapted from Noe et al (2012), p. 6
These six competencies help HR professionals demonstrate managers that they
are able to help HR function create value, contribute to the business strategy, and shape
the company culture. Moreover, these competencies enhance HR professional
performing the administrative services and transaction, business partner services, and
strategic partner efficiently. According to figure 2.1, successful HR professionals have
to be capable of sharing information, build relationships, and influence persons both
inside and outside company, including managers, employees, community members,
schools, customers, venders, and suppliers. The six competencies can be developed by
training or allow employees to experience by real practices.
19 - 33
The six competencies can be interpreted apiece in accordance with the practical
duty; operational executor is HR professional implement workplace policies, advance
HR technology, administer the daily work of managing people. Considering that
cultural and change steward, in this function the HR professional should develop and
value organizational culture, help employees navigate organizational culture which
means find the meaning in their work, manage work life balance, encourage
innovation. It can be concluded that the two competencies mentioned above are the
duties of HR professional on systems and processes.
For the strategic architect, the HR professional should recognize the business
trends and its impact to organization, the performance which has a positive influence
to organization, develop people strategies that contribute to business strategy. Where
talent manager or organizational designer is to develop talent, design reward systems,
and shape the organization. The business ally is the understanding how business return
on the profit. This means that a deep knowledge on organization’s business, cost,
profit, customer, and competitors. These three competencies are the HR duty to
enhance the organizational capabilities. And last competency is the credible activist. It
is the task of HR professional concerning with the delivering result with integrity,
share information, build trusting relationships, influence others, provide candid
observation, take appropriate risk. In details, it implies that the HR professional
creating the value, dedicate to the organization strategy and culture, As well as,
creating the influence on both internal and external stakeholders.
Present day, more companies are interested using intangible assets and human
capital to gain advantage over the rivals. There are three types of company’s value
assets that important for the firm to provide goods and services. Those are cash and
security or financial assets, property, plant, equipment or physical assets, and
intangible assets. Whereas, the intangible asset composes of human capital, customer
capital, social capital, and intellectual capital. The intangible asset has equal or even
more value as financial and physical assets. Furthermore, the intangible asset is
difficult to imitate. Thence, human resource management practices for instance,
selection, training, performance management, and compensation have direct influence
on human and social capital through influencing customer service, work-related,
know-how, competency, and work relationship.
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The organization improves its intangible assets through attracting, developing,
and retaining knowledge workers. Noting that, the knowledge workers are the
employees who contribute to the company by through their specialized knowledge,
and intellectual.
Figure 1.4 Intellectual Assets
Source: Adapted from Noe et al (2012), p. 6
To completely benefit from employees’ knowledge, organization has to focus
on developing and empowering the workforces. The empowering refers to giving
employees responsibility and authority to make decisions regarding all aspect of
product development or customer service. In addition, the organization should become
knowledge-based firm by capturing the learning at employees, team, and company
level. This is also known as learning organization. It means the organization embrace a
culture of lifelong learning, enable all workforces to continually acquire and share
knowledge. Meanwhile, employees should be encouraged to identify problems, making
decisions, continuously learning, and improve. It is for the purpose of adapting change
and dealing with the effect of the changes. The change is a new way of organizing and
working, the initiative transformation to develop modern management, such as
knowledge management, the creation of a learning organization (Dawson, 2003).
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Change is inevitable in organization as products, services, and the entire industry
experience a shorter life cycle. Technology, regulations, globalization, new
competitors, and the workforce are among many factors require organization change.
As a result, the changes have forced organization to merge, acquire new competencies,
grow, downsize or restructure. It is, also, affecting in the employment relationship.
In some cases, the psychological contract occurred which is employees expect
to contribute and the organization will provide for the employees’ contribution. In
addition, the contract was not written. For example; the organization demands for
excellent customer services and high productivity levels. Then, the employees are
expected to take more responsibility for their career training while balancing work and
family to exchange for high performance, working longer hours. The employees,
therefore, require flexible working hour, comfortable working conditions, more
autonomy, training and development opportunities, job security. Otherwise, the
employees will find other employment opportunities. Since, the research survey
revealed that opportunities for career growth, learning and development, performing
exciting and challenging work are the factors in determine employees’ engagement
and commitment to the organization.
The challenging for HR professional is to enhance the employee engagement.
It is referring to the level of employees are highly involved in the work, the strength of
their commitment to their responsible task. The employees are engaged and committed
to the organization they work for which allows organization competitive advantage,
high productivity, better customer service, and lower turnover rate. Into the bargain,
HR professional must systematically plan to recruit, attract, retain, develop, and
motivate highly skilled workforces and managers. It is called talent management.
Alternatively, HR professional needs to find alternative work arrangement
which is the independent contractor, on-call workers, temporary workers, and contract
company workers. The benefit of alternative work arrangement might happen on both
individual and organization. Today, more people need flexible working, balancing
work and family responsibilities. On the other hand, the organization is easier to add
or terminate temporary workers when needed. Meanwhile, the part-time workers may
22 - 36
consist of valuable skills that current employees may not have that needed for
specific project.
6. Unit Conclusion
This unit introduced the evolution of human resource management, the functions
of human resource professional. It is derived from working design, personnel
management, human resource management and the strategic human resource
management. How would HR professional should practice to enhance the organization
strive to success. The strategic human resource management is to align HR activities
with the business strategy. The HR professional should compose of six competencies
namely; operational executor, cultural change steward, business ally, talent
management/organizational designer, strategic architect, and credible activist. In the
meantime, HR can be view as three organizational product lines including;
administrative services, business partner services, and strategic services. Additionally,
helping the organization dealing with globalization, sustainability, and technology
changes. The HR professional should consider how the internal and external
environment goes, how the work shall be done, the expectation of employees, and the
value placed on human capital and intangible assets.
7. Exercise
7.1 Activities
Divided students into 6 groups, each group select one of the six HR
competencies discuss and analyze the what should HR practices in accordance with
each competence that most beneficial to the organization, and present in class.
o Operational executor
o Cultural change steward
o Business ally
o Talent management/Organization designer
o Strategic architect
o Credible activist
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7.2 Questions for revision
1. How does the HRM evolve?
2. How could you describe the differences of HRM and SHRM?
3. What are the three product lines that HR has been view?
4. How could HR retain high skilled workforces?
5. What should HR practices to augment knowledge, skills, and
capability of employees?
6. How could you explain the organization intellectual assets?
7. What are the six key external contexts affecting the business?
8. Describe reasonability of HR department.
8. Unit References
Armstrong, M. (2013). Armstrong’s Handbook of Strategic Human Resource
Management. (5th ed.). Hong Kong: Graphicraft Limited.
Aston Centre for Human Resources. (2008). Strategic Human Resource
Management. London: CIPD.
Bahugana, P. C., Kumari, P., Srivastava. (2008). Changing Face of Human
Resource Management: a Strategic Partner in Business. Management
Insight, 5(2), 96-109.
Becker, B. E., Huselid, M. A. (2006). Strategic Human Resource Management:
Where Do We Go from Here?. Journal or Management, 32(6), 898-925.
Boselie, P. (2011). Strategic Human Resource Management: a Balanced
Approach. New Delhi: Tata McGrawHill.
Boxall, P., Purcell, J. (2011). Strategy and Human Resource Management. UK:
Palgrave.
Cole-Shapiro et al. (2013). Human Resource Management. London School of
Economic and Political Science.
Inyang, B. J. (2010). Strategic Human Resource Management (SHRM): a
Paradigm Shift for Achieving Sustained Competitive Advantage in
Organization. International Bulletin of Business Administration, 7, 23-36.
John, K. (n.d.). Strategic HR Management: the Past, the Present and the Future
Faces. National Monthly Referred Journal of Research in Commerce &
Management, 2(2), 17-30.
- 24
38 Lawler, E. E. (2005). From Human Resource Management to Organization
Effectiveness. Human Resource Management, 44(2), 165-169.
Dawson P. (2003). Understanding Organizational Change: The Contemporary
Experience of People at Work. SAGE: London.
Kankaew, K., Trerattanaset, P. (2020). The Organization Culture Affecting Job
Performance of Newly Hired Employees: a Case Study of the Customs
Bureau at Bangkok Suvarnabhumi International Airport, Thailand. In
Bejaoui, A (Eds.), Corporate Leadership and Its Role in Shaping
Organizational Culture and Performance (pp. 129-155). PA: IGI Global.
Richard, C. O., Johnson, B. N. (2001). Strategic Human Resource Management
Effectiveness and Firm Performance. International Journal of Human
Resource Management, 12(2), 299-310.
Lengnick-Hall et al. (2009). Strategic Human Resource Management: The
Evolution of the Field. Human Resource Management Review, 19, 64-85.
Nisada, W. (2017). Strategic Human Capital Management. Bangkok: The
Graphico System.
Noe et al. (2012). Human Resource Management. Singapore: McGraw-Hill.
Salaman, G., Storey, J., Billsberry, J. (2005). Strategic Human Resource
Management: Theory and Practice. New Delhi: SAGE.
Thansetthakij. (2015). Trend in Human Resource Management Driving the
Organization Potential in 2016. Retrieved from
http://www.thansetthakij.com
Ulrich et al. (2012). HR from the Outside in. Singapore: McGraw-Hill.
Way, A. S., Johnson, E. D. (2005). Theorizing About the Impact of Strategic
Human Resource Management. Human Resource Management Review,
15, 1-19.
Wright, P. M., McMaha, G. C. (1992). Theoretical Perspectives for Strategic
Human Resource Management. Journal of Management, 18(2), 295-320.
- 39 -
Unit 2 Learning Management Plan
Title: Resourcing and Competency Concept
Total Time in Learning/Teaching: 6 Hours
…………………………………………………………...
Introduction
HR professional needs to know the effective workforces and resources
planning. It is beyond hiring new employees. The workforces planning is
including attraction, selection, and retention. It is about from the beginning of
the career, the internal movement up to high leadership position, as well as
retention that most of the organizations reckon that people is most important
resources. Hence, the workforces planning should align with company’s career
system, and business strategy, select potential, understand the organization fit
and employee motivation, managing the exit process. Furthermore, HR
professional needs to deal with the other resources planning such as office
supplies, physical aspects of the office, service other departments,
organizational communication, written procedures, and security.
Learning Outcomes
At the end of this unit the students should be able to:
1. align the workforces planning to organizational strategy;
2. classify the HR resources planning duties;
3. analyze the concept of competency;
4. outline the person competency with the job fit.
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26 -
Scope of Contents
1. Resourcing
2. Competency Concept
3. Concept of Competency
4. Human Resource Competencies for Customer Contact
5. Unit Conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Problem base learning
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27 -
Learning and Teaching Resources
1. Textbooks and Main Documents
Dreher, F. G., & Dougherty, W. T. (2001). Human Resource Strategy.
Singapore: McGrawHill.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Armstrong, M. (2015). Armstrong’s Handbook of Strategic Human Resource
Management (5th ed.). London: CPI Group.
2. Important Documents for Extra Study
Siraphatsorn, W. (2016). Human Resource Management (3th ed.). Bangkok:
Chulalongkorn University Publishing.
Nickson, D. (2007). Human Resource Management for the Hospitality and
Tourism Industries. Singapore: Elsevier.
Measurement and Evaluation
Oral presentation
Group discussion
Testing
28 - 42
- 43 -
Unit 2
Resourcing and Competency Concept
Resourcing or workforces planning strategy has to be rationale ensuring the
organization have enough people needed to do the job. Strategic workforces planning
is critical part of strategic human resource management process. It is a primary on
matching human resource to the organization strategy and operation requirements to
ensure the full utilization of the workforces and resources. Apart from this, it is
concerned with selection and promotion employees who fit well with organizational
culture and strategic requirements.
1. Resourcing
The concept of organization strategic capability depends on its resource
capability in the shape of people. Then, the strategic of workforce planning aims to
ensure the organization achieves competitive advantage by employing capable
workforces than its competitors. The rational of resourcing or workforces planning
strategy derive from the notion that selection and recruitment of workforces best fit to
meet the needs of organization ought to form a core activity. Thus, HR professional
could set up the policies to build motivation and development of the workforces.
Woods, Johanson, & Sciarini (2012) define the resourcing is a process concern
with the anticipating on organization demands and providing the staff to meet the
demands. It entails two key factors: supply and demand of employees both from
internal and external. Where, supply is the number of potential employees and demand
represents the number and nature of the job the organization needs.
The planning for workforce needs requires line managers to explore and to
know about the factors that affecting the supply and demand for the workforces.
30 - 44
Before the recruitment activities, thereafter, line managers should consider these
internal factors that affecting recruitment; what competencies are required, how to
address competency gap, how to develop succession plan, what performance goals to
establish and how to evaluate, how will reward employees, and how to communicate
with employees on their progress and success.
There are two types of demand forecasting including; bottom-up forecasting is
the process of questioning line managers within organization to estimate their needs.
This approach based on the experience of line manager. On the other hand, the topdown forecasting is a prediction based on quantitative or statistical approaches. Since,
the competition, demographics, social, and the changes on government regulations can
influence the demand for human resources. Therefore, the trend analysis method is
applied to forecast the demand. For example; the pandemic of COVID 19 has a great
effect on hospitality industry. There are multiple sectors in hospitality as airlines, hotels,
travel agent, restaurant have to adapt the business or force to lay off its workforces.
Besides, the forecasting supply of human resources should be applied. It is the
analysis of the internal labor and estimate of the labor supply. The internal supply
forecasting concerns with a careful inventory of actual employees and their skills. The
skills inventory is a list of each employee skills, ability to learn new skills,
qualifications, and career goals. The organization can optimally use of HRIS to keep
inventories. The skills inventories should fit with two qualifications including; regularly
updated, it must be agreed from both manager and employee on the skills information to
be kept in computer system.
Replacement and succession plan, what is more, is related to the workforces
planning. The replacement can help estimate internal supply. It is shown in the form of
the chart. Whereas, the succession plan is revealed the changes, successions in
organization by position, such as to promote employee of he/she acquires certain level
of training, and experience are achieved. The replacement planning and succession chart
were exhibited in table 3.1 and figure 3.2 respectively.
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45 Table 2.1 Replacement Planning
Classification: Passenger Ground Service Agent
Source of
Recruits
Number
Current Level
25
Losses
Number
Resignations
6
Transfers
3
Promotions
2
Retirements
3
New Hires
5
Promotions
6
Total
10
Current level
25
Recruits
+10
Losses
-15
Total
20
Total
Needed
15
5
Source: Adapted from Woods, Johanson, & Sciarini (2012). Managing Hospitality Human Resource. P. 91.
Date__________________
Probability of Vacancy
Within 6 months
*
Within 1 year
**
Within 18 months
***
Within 2 years
****
Name
Comments: Training, Experience Needed
Arthur
**
Requires interpersonal skills, management training
Nicky
***
IATA safety and Security, AHM
Peter
*
Pax services, DGR, Ground handling
Arin
****
Hired without prior experience require mentorship
Figure 2.1 Succession Chart
Source: Adapted from Woods, Johanson, & Sciarini (2012). Managing Hospitality Human Resource. P. 92.
- 46
32 It should be pointed out that the workforce planning is the process to decide
what positions the organization require, and how to fill available positions. The
purpose of the workforce planning is to determine, address the gap of organization
workforce needed (Dressler, 2117). The workforce planning should align with the
business strategy planning. Such as, the company plans to enter new business, build
new factory, or reduce the production. These situations influence and affect the
number of and types of positions to be filled. Simultaneously, the decisions how to fill
available positions will impact other HR plans, like training and development.
Dressler (2017) added the forecast demand method for workforce planning,
inclusively, the trend analysis, ratio analysis, and scatter plot. The trend analysis is to
study the changes in the organization’s employment over the past few years. Trend
analysis can provide an initial estimate of future employee requirements. Howbeit, the
employment levels not only depend on time, but including productivity, retirement,
change skills needs. At the same time, ratio analysis refers to the prediction based on
historical between (1) causal factor such as volume of sales, and (2) number of
employees required. And the scatter plot is a graph method used to help identify the
relationship of two variable, such as the hotel expands its building and the number of
rooms arise then the number of employees must be equivalent to serve the guests. In
some way, the trend, ratio, and scatter plot will continue unchanged into the future.
The managerial judgement is required to adjust the forecast. The important factors that
modify initial forecast of employee requirements include decisions to upgrade quality
or enter to new markets, technology, administrative changes, and financial resources.
Most of the organization has review its workforce planning every year. Still, it seems
not sufficient since the workforce planning concerns with paying continuous attention
to the workforce planning issues. For example, Boeing Corporation considers multifactors in predicting the workforce gaps. It is including age, retirement, eligibility
skills, economic trends, the changes of increase or decrease staffing levels, and
internal transfers and promotion.
Armstrong (2015) expanded the workforce planning on integrating of business
based on the understanding of the direction in which the organization is going and
determination of; number of people needed to meet business needs, skills and behavior
needed to support business strategies, the impact of organizational restructuring from
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decentralization, acquisitions, mergers, product or market development, new
technology, changing organizational culture such as customer service, performance
standards, quality, teamwork which indicate the need for people with different
attitudes, beliefs and personal characteristics. The workforce planning strategies are
to provide the people and skills required to support organization.
2. Human Resource and Organization Performance
Dreher & Dougherty (2002) highlighted the importance of human resource
enhance the organization capability. It is the company’s ability to manage employee to
gain competitive advantage. It relates to hiring and retaining competent workforces
and develop their competencies through the effective human resource practices. Since,
the high quality of human resource is very difficult for rivals to imitate. The top
performance firms provide employees with a job challenge, something to believe in,
feeling of control, opportunity to engage lifelong learning, and recognition for
achievement.
For the competitive advantages of today economy, scholars consider the HRM
practices in organization is a fundamental relate to the performance. The adequately
mix of HRM practices depend on the work processes are set, and the context of
surrounding environment of the organization. The key HRM practices that allow
sustainable competitive advantage are; recruit and selection, incentive pay, employee
ownership, training and development, cross-utilization and cross-training, symbolic
egalitarianism, and wage compression.
Recruit and selection refer to hiring the right people who possess the
knowledge, skills, and abilities to perform the job. What is more, these employees
must recognize that the work is satisfying, the overall organizational climate, pay
structure satisfy their needs. The high-performance organization is establishing its
core competency on recruiting and retaining top talent.
The incentive pay is the form of performance-contingent pay to encourage
employees to behave in extraordinary ways, adding value to the organization. The
incentive pay shall be justice and faire. The performance-based pay is link with
behaviors, such as dependability, quality and quantity of output, generation of news
34 - 48
ideas to improve working processes, cooperation. The employee ownership is to
provide the company’s stock, allowing the employees being a shareholder. This
method is also link to the performance.
Training and development is greater practice in high performance firms. It is
the core activity of HRM. It is the idea of continuous development and improvement.
However, the knowledge and skill acquisition is not resulting to improve organization
performance unless the workforces are allowed, encouraged to use job-related
knowledge and skills to perform. The form and method of training is vary depending
the organization’s business environment. Besides, organization has to carefully select
employees with ability and willingness to learn, develop. Moreover, organization must
establish reward to encourage employee to join the training session. The crossutilization and cross-training is a kind of training and development. This method is
driven by the need to be flexible and utilization of employees. It is reinforcing
employees are able to perform multi-tasking or multiskilled. It is also known as job
rotation.
Still and all, the training is not always an effective solution. The training is,
actually, fit for performance problems occurred from workforce lack of ability. In
some cases, the problem is arising from employees exhibited motivation problems.
Even though, the organization selects employees who are well-educated, skills match
with the job requirements. These employees had abundance of ability but were not
motivated by the rewards, routine job. They are not willing to exert high level of
effort. Further to this, these employees had little opportunity to challenge themselves
in their work and to higher positions within organization. Hence, the HR professional
needs to understand the concepts of ability, motivation, and opportunity.
Theory of ability, motivation and opportunity (AMO Theory) is based on the
concept of a high-performance work system (HPWS). The AMO theory is linking the
operating system of human resources, various sub-units of the whole system to
enhance the performance of the organization. The assumption is part of the success in
the operating system for better results depends on recruiting and selection,
establishing employee engagement, performance management and evaluation.
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49 -
The nature of the integration of routine activities of the human resource
department is called internal balance or (internal fit). The internal fit will lead to
organization success. Therefore, the operating system for good results can be
achieved, the organization must integrate the regular human resource activities. In
particular, building the ability of employees in knowledge and skills, motivating
employees, and creating opportunities to participate in decision-making (Boseli,
2011).
AMO theory is an overview of the regular activities of human resources in
ability building, creating motivation, and opportunities. There must be a concrete
operation that connects the three dimensions as follows:
•
Ability practices consist of recruitment, selection suited for the job,
training and development employees’ skills, knowledge, and ability.
•
Motivation practices are the performance management system,
feedback, performance related pay, mentorship and coaching system,
job security, promotion, and benefit.
•
Opportunity
practices
compose
of
autonomy,
organizational
engagement, job rotation, expanding various career opportunities, team
work, communication and decision making.
Boxall & Purcell (2013) realizes that human resource management at the
individual level by applying ability, motivation and opportunity (AMO) theories, it
will affect the performance of employees. And presented the mathematical formula as
follows;
P = f(A, M, O) where,
P = Performance; F = Firm; A = Ability; M = Motivation, and O = Opportunity
However, the motivation may not be only the money. As well as,
opportunities received in the organization are not a measure of the performance of all
employees. The working environment in the organization including the quality of the
information system, and the level of funding that will make employees perform
better.
36 - 50
Based on the basic formulas shown, Boxall & Purcell presents the following
diagrams of the theory, ability, motivation and opportunity at the individual level as
in figure 2.2.
HRM: work and
employment
policies and
practices
Individual:
•
•
•
Ability
Motivation
Opportunity
to perform
Individual
performance
outcomes
Related
management
investments and
policy choices
Figure 2.2: AMO Theory at Individual Level
Source: Strategy and Human Resource Management, Boxall & Purcell, 2013, p. 5
Moreover, the researchers concluded that organization requires employees
with attitude of can do, will do to strive organizational success by the supportive
context. Gaurav & Kasturee (2013) studied theories that involved in the operation
system for high performance work system. It was found that the AMO Theory directly
affects the high-performance operating system because employees are trained and
developed, received satisfying compensation that inspires work and increases the
potential built from within, resulting in jobs performance.
3. Concept of Competency
Competency refers to knowledge, skills, attitudes, habits and motivation on an
individual, team, and the organizational level which will lead to high performance
and high efficiency. There are two main types of competencies which are innate
abilities refer to the capabilities that lead to skills and knowledge. Another component
is acquired abilities, which is requires learning to develop by using the effort to locate
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51 -
information and experience to help such as accounting skills, and mathematical
knowledge is needed to develop through learning (Kīrati Yotyingyong, 2006;
Piyachai, 2006). This is deriving from the notion that human being born with not
enough knowledge and skills to live their lives.
At the same time, a high working performance organization requires
workforces who have good performance to increase productivity and maximize
organizational profit. The organization, therefore, selects talented and high potential
personnel to join the firm to achieve its mission. The learning is a very important
characteristic of humans. Since the knowledge is an asset of organization and making a
sustainable competition advantage. Because employees of the organization are valuable
assets, they can be considered as intellectual capital, which can create high
performance for the organization. It relates to the ability or potential that determines
the details of behavior, how to be successful.
The competency is divided into 3 perspectives, namely knowledge, skills, and
attributes ( KSA) . The knowledge is the information or data that are collected from
studies both in educational institutions, training, seminar, or self-study. It also includes
the discussions and exchanges of ideas and experiences with people from both the
same and different professions. Skills refers to the capabilities which need to be
developed and practiced divided into two parts. One is management skills means the
skill in job management related to the thought systems and the operation management.
The other is technical skills are the skills needed for working or a group of tasks that
are different to the duties of the company (Woodruffe, 1992). And last the attributes
mean thoughts, feelings, attitudes, motivations, which are inherent traits that rarely
change over time, or which are extremely difficult to change.
While Boyatzis (2008) said that the competency is a proper behavior with the
intention of a person in various situations that are linked to the person's ability with
intention, ideas that lead to effective actions. The behavior of a person comes from the
ability or talent of a person, which consists of values, vision, knowledge, performance,
38- 52
life span and career, interests, and lifestyle. That is related to the job and the
organization's environment. The job will determine the roles and responsibilities of
employees. Whereas, the organizational environment will affect the performance of
employees. In short, the organizational environment consists of organizational culture,
working atmosphere, structure and system in the organization; including the economic,
political, social, and religious condition that affects the organization.
In America, the United States Department of Labor set and created the
standard competencies called ‘Employment and Training Administration (ETA). They
divide the competencies into 9 tiers including; tier 1 is personal effectiveness
competencies such as interpersonal skills. While Bohlouli et al. (2017) explain the
interpersonal skills composed of social skills, communication skills, being flexible
and conflict resolution skills. For as much as, professional skills consist of the aim for
achievement by dedicating skills and abilities, and compassion for others. Whereas,
tier 2 is the academic competencies such as reading, writing, analytical thinking, and
communication skills. And tier 3 is a workplace competency for instance, teamwork,
adaptability, customer focus, planning, creativity, problem-solving, and decisionmaking, scheduling and coordination, the use of office tools and technology. Tier 4 is
the industry-wide technical competencies which is a performance that determine by
representatives in each industry. Tier 6 is the occupation-specific knowledge
competencies, for example: administrative, management, public relations and media
which depends on the position and type of industries. Tier 7 is occupation-specific
technical competencies, tier 8 is occupationspecific requirements, and tier 9 is management competencies such as, the
controlling of resources, preparation and assessment of budget, conflict management
and team building (Wattanacharoensil & Yoopetch, 2012). In Thailand, there is
Thailand Professional Qualification Institute ( TPQI) public organization. The TPQI
has set occupation standards for airline ground service into 3 level includes level 3, 4,
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and 5. The key competency standards are effective communication, knowledge of
aviation safety regulations concerning with formalities and processes (TPQI, 2019).
4. Human Resource Competencies for Customer Contact
The advanced competencies for service personnel suggested by Spencer and
Spencer (1993) are ranked from the most important to the least important, consisting of
14 characteristics as follows:
1. Impact and influence means that the individual can create reliability,
presentation with proper language to each client with strategies that influence
client by using different humor, language, gestures and sounds.
2. Developing others is the innovation in teaching, flexibility in individual
needs, and confidence in one’s own potential.
3. Interpersonal understanding is listening to other people's problems, aware of
others’ emotions, understanding of gesture language, attention to the needs of
others, and a deep understanding of the situation in the long term.
4. Self-confidence is the individual's ability to make decisions, responsibility
for resolving problems, solve the mistake, questions and provide suggestions to
the superior, and having impressive personality.
5. Self-control is the ability to control emotions by focusing on the job, avoid
talking inappropriately to customers such as anti, and augment the stress.
6. Other personal effectiveness competencies are learning from mistakes, accurate
self-assessment occupational preference, organizational engagement by acting
oneself in accordance with the mission of the organization, affiliative interest
to coordinate with people, always having a positive expectation for others.
7. Professional expertise by seeking new knowledge and applying knowledge
in the profession.
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8. Customer service orientation is the working, studying, researching for the
customer wants from the questions, complaints and customer needs.
9. Teamwork and cooperation is the persuasion, confidence, and cooperation
Bohlouli et al. (2017) includes the ability to collaborate with others, quality of
individual in team roles and communication.
10. Analytical thinking is the ability to see a holistic relation of cause and
effect, the segregation of complex problem systematically. As Thomas and
Kim (2013) sees it as a skill that everyone needs in today's world because it is a
world of enormous information that needs to be analyzed for decision-making
improvement.
11. Conceptual thinking is the use of pattern, the conceptual framework to
analyze situation, building relations, and the ability to modify theory into
simple issues to indicate the problem.
12. Initiative is to do more than the job you are responsible, such as quick
response to the crisis.
13. Flexibility is the capability to change, having strategy suitable for each
situation.
14. Assertiveness/ Directiveness is a person who able to create restrictions
anything that cannot be provided is not. having behavior that can face problems.
In addition, having skills for understanding the cultural, values and beliefs of
others will help smoother work. And the misunderstandings would be reduced, such as
customer service training, which increases the quality of the organization by focusing
on customer service and creating relationships with the customers. The skills of the
employees are an important basis for good customer service, which consists of
interpersonal skills, problem-solving skill, leadership skill, and teamwork. These skills
exist in the employees will create a positive attitude, effective communication,
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courteous and respective others during the service interaction, as well as he/she is able
to control self-emotional in the difficulty situations. And surely, the good customer
service would make customers come back to use the service again. So that, the
organization must develop employees that serve customers, enhancing staff to receive
training, specifically the frontline employee who must interact with the customer and
knowing the need of customers.
In addition, the organization must check the perception of customers to the
organization on a regular basis (Langes & Piercy, 2012). Such as sales, recruitment
officer, secretary, whose were trained will have the ability to listen and speak
effectively, including providing services beyond the expectations of customers, which
resulting in customer satisfaction. The number one airline, for example, in the world
for many consecutive years is Singapore Airlines which has focused on teamwork.
Team building, at present, many organizations have team-based structure. The team
development in an organization is an integral part of the foundation for enhancing
organizational quality. Therefore, employees must be able to adapt to the team and
build a good relationship within the team (Wirtz & Lovelock, 2016). Singapore
Airlines ( SIA) flight attendants are divided into teams called 'ward', each team has a
team leader as a consultant to advise and develop the team.
There are socializing, newsletters which leads the team leader to learn about
their weaknesses, strengths of each team member that will be develop. As well as. the
team members have opportunity to build good relationships with each other because
all employees will rotate and fly together as a team. There are two complementary
characteristics of the team elements which are task skills and process skills. The task
skill is the skill needed to complete tasks assigned to a team. And process skill is a
basic skill that must be used when working as a team with others. It is to maintain good
relationships with teammates including communication, negotiation and conflict
resolution.
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In Thailand, Worawan Plikhamin (2018) the director of the Bureau of Social
Development Strategy, said that the work competency of human capital includes:
language and communication skills, professional management skills, collaboration
skills, multi-skills, technology and digital skills, analytical skills, financial literacy,
along with eight soft skills that should be available in human capital. The eight soft
skills are;
1. Complex problem solving
2. Critical thinking and analyzing data logically, since analytical thinking is a
primary goal of learning at all levels
3. Creativity
4. People management
5. Cooperating with others and adaptability to work with others
6. Emotional intelligence which able to predict and know the cause of behavior
other people's reactions
7. The ability to analyze data, evaluate and decision making
8. Service-minded is a social skill which becomes more demanding when
technology replaces humans, but technology cannot provide the services as
human being.
Kankaew (2020) conducted research on full-service and low-cost airlines’
employee competencies from passenger’s perspective. The results revealed that the
competencies most satisfied the passenger were the understanding of cultural diversity,
the continuous learning to achieve career goals, service-minded, ethics and moral,
interpersonal skills, and teamwork. While comparing to the competency of pharmacist,
Kankaew (2020) revealed the competency development in pharmaceutical
business should be highlighted on interpersonal skills, communication skills, and
research skill etc., He proposed 5W1H3 model including; why the competency
development required, what are the objectives of development, and resource
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infrastructure, who will take action, when it will be done, and where to procure
technology and financial support. On the other hand, it is one how with three
consideration on the method of competency development, application, and evaluation.
Dreher & Dougherty (2001) show the job analysis result for the position
customer service representative of home entertainment company. The key KSAs
(knowledge, skills, and abilities) are;
1. Reading ability refers to the ability to read, comprehend, and follow
complex written instructions.
2. Customer sensitivity is the skill of understanding and reacting sensitivity to
the needs of customers.
3. Mathematical/Computational skills are the skill of using basic arithmetic to
add, subtract, divide, and multiply monetary figure; skills of translating verbal
or written statements for the purpose of solving customer problems related to
billing such as discount rate, tax rate questions.
4. Stress tolerance refers to the ability to perform under pressure, facing with
angry/ confused customer while remaining calm.
5. Written communication skills are the aptitude for writing to express the
ideas clearly with propre grammatical.
6. Oral communication skills are the ability to express the ideas with clarity,
appropriate tone, grammar, and level of professionalism, being able to listen,
ask probing questions while not offending or criticizing the customer.
7. Problem analysis skills refers to the seeking out pertinent data and
information to determine the source of a problem or complaint.
8. Judgment is the logic ability of conclusions based on available information
and procedural standards.
44 - 58
5. Unit Conclusion
In a nutshell, the organization success is depending on the well-planned
resourcing. It is a process concern with the anticipating on organization demands and
providing the staff to meet the demands. It entails two key factors: supply and demand
of employees both from internal and external. Where, supply is the number of potential
employees and demand represents the number and nature of the job the organization
needs.
For the competitive advantages of today economy, scholars consider the HRM
practices in organization is a fundamental relate to the performance. The key HRM
practices that allow sustainable competitive advantage are; recruit and selection,
incentive pay, employee ownership, training and development, cross-utilization and
cross-training, symbolic egalitarianism, and wage compression. Furthermore, The
AMO theory is linking the operating system of human resources, various sub-units of
the whole system to enhance the performance of the organization. It will affect the
performance of employees.
At the same time, a high working performance organization requires
workforces who have good performance to increase productivity and maximize
organizational profit. The organization, therefore, selects talented and high potential
personnel to join the firm to achieve its mission. The learning is a very important
characteristic of humans. Since the knowledge is an asset of organization and making
a sustainable competition advantage. Competency refers to knowledge, skills,
attitudes, habits and motivation on an individual, team, and the organizational level
which will lead to high performance and high efficiency. The competency is divided
into 3 perspectives, namely knowledge, skills, and attributes (KSA).
-4559 -
6. Exercise
6.1 Activities
Students pair up choose the career that you are interested in, then create
replacement and succession planning, specify the competencies requirements of the
chosen position.
Note: You have 10 minutes for discussion, and 3 minutes to present in front of the
classroom.
6.2 Questions for revision
1. How could you describe resourcing?
2. Could you critic the effective succession plan?
3. What makes the organization to become high performance work system?
4. How could you explain the AMO theory?
5. What are the components of competency?
6. What constitutes of KSAs?
7. How could organization develop its employees’ competencies?
8. How could you analyze the competencies of service personnel composition?
9. What organization act as government agency to develop Thais’ labor
competency?
10. Analyzing your own competencies for 21st century.
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6.3 Testing
1. Resourcing is………
A. employees’ competencies
B. planning right workforces supply the organization’s needs
C. organization strategic capability
D. replacement and succession plan
2. The resourcing entails two critical factors of supply and demand
from………..
A. employees and line managers
B. employees and organization
C. internal and external
D. workforces and their needs
3. Three key methods of resource demand forecast including the trend, ration
and scatter plot are more important than managerial decision. True or False?
A. True
B. False
4. The high quality of human resources is not difficult to replicate, since the
organization can recruit, select and train. True or False?
A. True
B. False
5. AMO theory links with HR activities in terms of…….
A. ability building, creating motivation, and providing opportunities
B. recruitment, performance management system, training and development
C. autonomy, job rotation, organizational engagement
D. motivation, attributes, and opportunities
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6. The employees’ knowledge, skills, attitudes, habits and motivation on an
individual lead to behavior is the definition of………..
A. motivation
B. high performance
C. ability
D. competency
7. The accounting skills, customer service skills and mathematical knowledge
are….
A. innate abilities
B. acquired abilities
C. talent
D. learning from experiences
8. KSAs are the component of individual competency refer to knowledge,
skills, and attributes. True or False?
A. True
B. False
7. Unit References
Armstrong, M. (2015). Armstrong’s Handbook of Strategic Human Resource
Management (5th ed.). London: CPI Group.
Bohlouli, M., Mittas, N., Kakarontzas, G., Theodosiou, T., Angelis, L., &
Fathi, M. (2017). Competence Assessment as an Expert System for
Human Resource Management: A Mathematical Approach. Expert
Systems with Applications, 70, 83-102.
https://doi.org/10.1016/j.eswa.2016.10.046.
Boselie, P. (2011). Strategic Human Resource
Approach. New Delhi: Tata McGraw-hill.
Management:
A
Balance
- 62
48 Boxall, P. Purcell, J. (2013). Strategy and Human Resource Management (3rd ed).
Singapore: Palgrave Macmillan.
Boyatzis, R. E. (2008). Competencies in the 21st Century. Journal of
Management Development, 27(1), 5-12.
doi:10.1108/02621710810840730.
Dreher, F. G., & Dougherty, W. T. (2001). Human Resource Strategy.
Singapore: McGrawHill.
Gaurav, M. Kasturee, G. P. (2013). Identification of Multiple Theoretical
Linkages for High Performance Work System: A Literature Review.
Management and Labour Studies. 38, p. 39-52.
Kankaew, K. (2020). The Competence that Satisfies Us: Agribusiness and
Airline Business Management Cases. E3S Web of Conferences,
175(13023).
Kankaew, K. (2020). The Competencies-Based Development in Pharmaceutical
Industry. Systematic Reviews in Pharmacy, 11(12), 962-963.
Kirati, Y. (2006). Competency Based Appraoch. Bangkok: Mister Copy.
Langes, K. M., & Piercy, F. N. (2012). Key Drivers of Frontline Employee
Generation of Ideas for Customer Service Improvement. Journal of
Service Research, 15(2), 215-230.
Nickson, D. (2007). Human Resource Management for the Hospitality and
Tourism Industries. Singapore: Elsevier.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Piyachai, C. (2006). Competency Search and Deep Analysis. Bangkok: HR
Center.
TPQI. (2019, June 29). Professional Qualification Database System:
Passenger Ground Service. Retrieved from www.tpqi.go.th. from
Thailand Professional Qualification Institute www.tpqi.go.th.
Spencer, M. L., & Spencer, M. S. (1993). Competence at Work. Singapore:
John Wiley & Sons.
Siraphatsorn, W. (2016). Human Resource Management (3th ed.). Bangkok:
Chulalongkorn University Publishing.
49 - 63
Wattanacharoensil, W., & Yoopetch, C. (2012). Thailand's Human Resource
Competencies in Airline Service Quality: Voices from the Airline Industry.
Journal of Human Resources in Hospitality & Tourism, 11(4), 280-302.
doi:10.1080/15332845.2012.690680.
Wirtz, J., & Lovelock, C. (2016). Services Marketing (8th ed.). New Jersy: World
Scientific.
Worawan, P. (2018). The Integration of Human Development Aligning to the
Country’s Policy. PowerPoint Slides. PowerPoint slides. Office of the National
Economic and Social Development Board. Bangkok.
Woodruffe, C. (1992). What is Meant by a Competency? (R. Boam, Sparrow, P. Ed.).
Singapore: McGraw-Hill.
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Unit 3 Learning Management Plan
Title: Human Resource Information System and The
Analysis Design of Work
Total Time in Learning/Teaching: 3 Hours
…………………………………………………………...
Introduction
Technology has reshaped the lifespan of people, trends, behavior,
communication. Therefrom, the business model has shift to e-commerce which
allow customer to purchase online. The advancement of technology, equally,
changing many aspects of human resource management. Social networking
facilitates and useful for connecting to customers and valuable for busy
employees to share knowledge, ideas with peers and managers. Organization
continues to administer human resource information systems to store large
quantity of employee data, such as personal information, training records,
skills, compensation rates, absence, benefit, and cost. It is important applying
the information technology for human resource planning for further
recruitment, selection, work design and analysis, socialization and orientation.
There are three type of crucial data namely; structural, relational, and human.
These must be integrated. The structural data identifies what organization own.
While, relational data tells external environment including; customers,
competitors, and stakeholders. And last, the human data reveals how people in
organization perform to drive the organization objectives.
52 - 66
Learning Outcomes
At the end of this unit the students should be able to:
1. explain the human resource information system (HRIS);
2. describe job analysis and design of work;
3. critique the recruitment, selection process;
4. outline socialization and orientation program.
Scope of Contents
1. Human Resource Information System (HRIS)
2. The Analysis and Design of Work
3. Recruitment and Selection
4. Socialization and Orientation
5. Unit Conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Problem solving
Testing
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Learning and Teaching Resources
1. Textbooks and Main Documents
Fitz-enz, J. (2009). The ROI of Human Capital (2nd ed.). Shaghai:
AMACOM.
Fitz-enz, J. (2010). The New HR Analytics. Shaghai: AMACOM.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
2. Important Documents for Extra Study
Armstrong, M. (2015). Armstrong’s Handbook of Strategic Human Resource
Management (5th ed.). London: CPI Group.
Becker, B. E., & Huselid, M. A. (2010). SHRM and Job Design: Narrowing
the Divide. Journal of Organizational Behavior, 31(2‐3), 379-388.
doi:10.1002/job.640.
Measurement and Evaluation
Oral presentation
Assignments
Testing
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68 -
- 69 -
Unit 3
Human Resource Management Process
Employees, specifically young workers from the millennial or Gen-Y
generations habituate with the usage of social networking tools such as Facebook
throughout their lives and see them as valuable tools for both their work and nonwork
lives. Consequently, organization competing through technology by using social
networking for HR practices including recruitment, training and development,
scheduling, and measuring employee attitudes. Technology has also made it easier to
monitor environmental conditions and operate equipment in organization. Irrespective,
its potential advantages, various organizations are dubious whether they should
embrace social networking. They are afraid of social networking will result in
employees wasting time or offending or harassing their co-workers. On the other hand,
other companies believe that the benefit of using social media for HR practices and
allowing workforces to access social media at work outweigh the risk. The
organization trust its workforces to use social media productively and are proactively
in developing policies about personal use and training employees about privacy setting
and social network etiquette. In a certain way, social networking has become the
electronic substitute for daydreaming at one’s desk or walking to the break room to
socialize with co-workers.
1. Human Resource Information System (HRIS)
Human resource information system (HRIS) refers to the use of computer
system to acquire, store, retrieve, and distribute information related to a company
human resource. Nowadays, organization continues to administer human resource
information systems to store large quantity of employee data, such as personal
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70 information, training records, skills, compensation rates, absence, benefit, and cost.
The HRIS can enhance strategic decision making, help the company avoid lawsuits,
provide data for evaluating policies and programs, support daily HR decisions (Noe et
al, 2012).
Other scholars define HRIS is the system involve with materials, software, staff,
data, and process which allow HR professional to acquire, store, process, analyze,
retrieve, and distribute information about organization’s human resources. The benefit
of HRIS for HR department includes automation HR function tasks and routine
operations, reduction client request time execution, increase efficiency of operations,
improving HR service quality, developing employee productivity and knowledge
(Moussa & Arbi, 2020; Chakraborty & Mansor, 2013)
Nagendra & Deshpande (2014) stated that HRIS becomes a vital instrument to
collects, manages, and reports information for decision-making. The HRIS should
interface with other system to enhance the communication between departments such as
payroll system with accountancy system. Moreover, the system is able to identify
trends, assessment and managing costs, comparing the organization with competitors.
Whilst, new HRIS is allowed an effective HR planning, implanting new technology
with organization goals. For instance, the enterprise resource planning system (ERP)
linked with HRIS provide a distance competitive advantage over competitors. The
HRIS should ensure data security during transferring information, because it concerns
with personal employees’ information.
Particularly, all HR processes can be done by using HRIS in which beneficial to
organization, such as the automation of tasks and process reduce the use of financial,
papers, and human as well increasing the efficiency and effectiveness. What is more,
the HRIS could provide a self-service for example; computer-based training, online
recruitment. The employees can update data by themselves which creates more
accuracy of data with time and cost saving. As a result, the HRIS help HR professional
reducing process and administration cost, speeding the transaction processing, reduce
information errors, improve the tracking and control of human resource actions. The
system, additionally, keeps automatic tracking and reminder to business obligations and
events (Lengnick-Hall & Moritz, 2003; Aggarwal and Kapoor, 2012).
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71 Fitz-Enz (2009) recommends to implement human requirements planning
(HRP). Initially, the HRP employed statistic concepts analysis, decision science to
build human capital business intelligence. As a consequence of knowledge, skills, and
attitudes of the employees could make organization distinct from its competitors. The
data and people, today, inevitably linked. Then, the employees need timely, relevant,
and most important organized data. However, the workforce should be able to convert
data into meaningful and useful information, interpret information into business
intelligence and share with co-workers. By reason of the information sharing culture in
an organization is strive to long-term profitability. Thus, Fitz-Enz proposed the datato-value cycle model as shown in figure 3.1 below.
Figure 3.1 Data-to-Value-Cycle
Source: Adapted from Fitz-Enz, J. (2009). ROI of Human Capital. P 19.
From figure 3.1, it is worth noting that the value data begin with number 1
human capital process; planning, acquisition, support, development, engagement, and
retention. The final values are the economic result of organization. The internal
efficiency in human resource department result to expense reduction, improvement in
cycle times, incentive compensation plan, greater employee engagement, and affect to
revenue generation.
After that follow by number 2-4, it is the application of human capital into the
tasks and processes within various business units. At stage number 5-6, it highlights on
the competitive advantages by improving or continuous recycling process, evaluating
how the internal improvement impact on organization profit.
58 - 72
Thereby, the organization capacity is the ability of firm to extract value from
its physical and intellectual assets, or relational and human capital. Significantly, the
intellectual capital consists of intellectual property, brand, and the complex of process
and culture. Where, the relational capital is the knowledge and relationship with
external parties, such as customers, suppliers, government. Simultaneously, human
capital is the combination of employee skills, motivation, knowledge, ability,
engagement, and commitment.
According to Noe et al (2012) suggested HR professional take advantage of
social networking to create value by HR practices as summarized in table 2.1 below.
Table 3.1 Uses of Social Networking
Issues
Use
Loss of expert knowledge due to retirementKnowledge sharing, capturing,
and storing
Employee engagement
Collect employee’s opinion
Identify and promote employee expertise Create online expert communities
Promote innovation and creativity
Encourage participation in online
discussion
Reinforce learning
Share best practice, applications,
learning, link to article/website
Employee needs coaching and mentoring Interact with mentors and
coaching peers
Need to identify and connect with
Distribute job postings, respond
promising job candidates
to candidates’ questions
Source: Adapted from Noe et al. (2012). Human Resource Management. P 49.
Obviously, various organizations administered technology increasingly. It
includes e-HRM, HRM dashboards. The electronic human resource management (eHRM) is the processing and transmission of digitalized information used in HRM. The
e-HRM could be text, sound, and visual images from one computer or electronic device
to another. It uses software, social networks, and mobile technology as iPhone, iPods,
iPad, and notebook computer. For example, the Federal Aviation Administration (FAA)
has more than 40,000 employees around the USA.
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59 The FAA employs virtual shared workspaces for employees, where the
employees can interact in virtual rooms to discuss, and share the documents. The
virtual rooms have saved FAA cost more than $ 2 million travel costs, and more than $
1.5 million in employees’ times.
The intranet refers to a network that uses internet tools but limited access to
users within the company. A company intranets and web portals allow employees,
managers, online access to information about HR issues, offer self-enrollment
programs, and feedback through survey. Employees can find the company policies and
information about training programs, online enrollment, choose benefit and change
salary deductions, review employment contracts. More sophisticated intranet system
extends management decision such as compensation and performance management.
The HR dashboard is one of the most uses internet technology development. It
is a series metrics that managers and employees can access. The HR dashboard
provides HR metrics to conduct workforce analytics, determine the HR practices’
value how to contribute to organization goals (Noe et al, 2012).
2. The Analysis and Design of Work
Work-flow design is the process of analyzing essential for the production of
product or services, preceding to allocate and assign task to specific job category or a
person. Anyhow, HR professional needs to understand organization structure. It is the
formal network of vertical and horizontal interconnections among jobs that constitute
the organization. In addition, HR professional has to understand how one job relates to
another, above position, same level of responsibility, subordinates, different function.
Then, HR can improve or redesign the work-flow and process. The work flow analysis
is crucial to recognize how the work process and inputs for producing outputs that
meet the standard quality. Hence, all firms need to identify the outputs of work,
specify the quality and quantity standard for the outputs. The output is a result product
from the work unit whether individual, team, or department such as aircraft engine
blade, power plant, aircraft seat, or the services provided by the airline transporting to
destination, housecleaning services. The work unit analysis was concluded as shown in
figure 3.2.
60 - 74
Equipment
What special
equipment, facilities
and systems are
needed?
Raw
inputs
What materials,
data, and
information are
needed?
Equipment
Activity
Output
What special
equipment,
facilities and
systems are
needed?
What task are
required in the
production of the
output?
What
product/service is
provided?
How is the output
measured?
Human resources
What knowledge,
skills, and abilities
are needed by
those performing
the task?
Figure 3.2 Developing Work Unit Activity Analysis
Source: Adapted from Noe et al. (2012). Human Resource Management. p 158.
Once the outputs of work unit have been specified, it is needed to examine the
work processes used to generate the output. The work processes are the activities that
members of work unit engage to produce a given job. Every process inclusive of
operating procedures that how to perform each stage of the product/service
development. The procedure performs on the basis of the task in the production line.
The task is broken down to be done by each person in the work unit. In some cases, the
task is quite complex. It is required various skills that only one employee cannot
perform. Then, the work might be performed as a team to provide wider skills set, back
up each other, share work when any member becomes overloaded, and catch each other
errors.
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75 It is necessary for the effective team that the level of the task and outcome are
interdependence. And if the work is organized as a team the compensation has to be
paid as a team, provide autonomy for decision making. However, organization should
be aware of some individual may fail to develop their own skills or take responsibility
for the task. Besides, in team it is critical to establish individual accountability of
behavior.
To optimal efficient design work systems, it is mandatory for manager to
understand the processes in the development of the product/service that work in each
unit. Without a clear understanding of tasks essential to the production of an output, it
is difficult to determine whether the work unit has become overstaffed. Thought, the
final stage is to identify the inputs used in the development of the work unit’s product.
The inputs can be split into raw materials, equipment, and human skills needed to
perform the tasks.
Structure and nature of jobs have to be considered for the analysis and design
of the job. Since the job function structure needs to be narrow and highly specialized.
For example, middle managers tend to have little decision-making authority or
responsibility for managing coordination. Whilst, CEO has to make sure the
competition is healthy and best practices delegate throughout the organization,
preventing long-term sustainable advantage in every factory, profit-sharing, promote
collaboration among managers etc.
Job analysis means the process getting detailed information about jobs. Job
analysis is important for the company to understand and match the job requirements
and people to achieve high-quality performance. HR professional needs to determine
skills, duties, and knowledge required for performing jobs in the company. The duties,
functions and responsibilities have to be associated with the position or description of
the job. And the requirements for high performance relate with job specifications. The
job specification is the component of education, qualifications, work experience,
physical strength, intelligence, communication skills, accuracy of work, stress
mastery, special talents (Sirbu & Pintea, 2014).
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62 Noe et al (2012) mentioned the most common used tool for job analysis is the
position analysis questionnaire (PAQ). The PAQ emphasis on inputs, processes,
relationships, and outputs that is consistent with the work-flow analysis. PAQ
questionnaire standard consists of 194 items relating to behaviors, work conditions,
and job characteristics. It is categorized into six sections including;
1. information input refers to where and how employee gets
information needed to perform the job.
2. mental process is the reasoning, decision making, planning, and
information processing activities that involve in performing the task.
3. work output is the physical activities, tools, and devices used by the
worker to perform the job.
4. relationships with other persons concern with the relationships with
other people require to perform the task.
5. job context is the physical and social contexts where the work is
performed
6. other characteristics are the activities, conditions, and characteristics
not including previous described that relevant to the job.
A person who performs the job analysis will rate the item on six scales: extent
of use, amount of time, importance to the job, possibility of occurrence, applicability,
and special code or rating scales for some item. After that, the PAQ computer program
will generate a report of the job scores on the job dimensions. Knowing the job
dimension scores allows HR professional to having guidance on the types of abilities
that essential to perform the job.
In conclusion of job analysis, it is the process of conducting an in-depth study
of work position in term of tasks requirements, and behavioral requirements. Once the
analysis was done, the job description is then completed. A job description is a list of
task, duties, and responsibilities of each position. The workforce knows his/her duties,
and behavior that the firm expected. Addedly, the HR department can reap the
advantage of job analysis to determine competencies for each job, to develop optimized
policy of recruitment. It is known as job specification. A job specification is a list of
knowledge, skills, abilities, and other characteristics that a person holds to perform the
task.
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77 As refer to Armstrong (2015) said jobs should be designed to maximize skill
variety, task, autonomy and feedback, and chances for learning and growth.
Otherwise, it will lead to dissatisfaction. To be more concise of the knowledge, and
skills of new employee requirements. The HR professional should consider the type of
business, function, duties. Then, all potential competencies should be listed to consult
with line manager to be utmost fit with the position.
As Kankaew (2020) reviewed the competencies in pharmaceutical industry
development that the pharmacist should consist of both hard skills in terms of
knowledge in medications, diagnose patient symptoms, and soft skills as interpersonal
skills in the interaction with patients nicely. The interaction could help the patient
relief from sickness, motivate the psychology state of the patients in coping with the
sickness.
While, the ground service personnel competencies Kankaew (2020) found that
the ground service personnel should compose of cultural diversity, continuous
learning, service-minded, ethics and morals, social interaction, and teamwork.
3. Recruitment and Selection
After the job analysis, job descriptions, and job specification have been done.
The latter process is to recruit and select candidates to fill available position.
Recruitment and selection are complex processes. Human resource recruitment is the
activity carried on by the company with the purpose of attracting and identifying
potential employees. Thus, the organization needs to make decisions in three areas of
recruitment:
1. personnel policies refer to organizational decisions that affect the nature of
the vacancies for which people are recruited, such as the policy to fill the
vacancy from internal rather than recruit from external,
2. recruitment sources are the sources that company advertise its available
positions. It could be internal and external sources. The source of advertising is
affecting different applicants. For instance, newspaper, social media, website,
university, internal board announcement.
3. the characteristics and behaviors of the recruiter or recruitment company
that impact on the nature of the vacancies and applicants that shapes job choice
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78 decisions. For instance, recruiter traits likewise warmth reflect the level of caring about
the applicant or informativeness reflect the enthusiastic of contribution to company. On
the other hand, recruiter functional area whether specialize in human resource or expert
in recruit particular jobs such as expertise in recruit for top management, service
personnel, or labor workforce in factory.
Organization competes through people has to consider the extremity care with
how to select organization members. The employee selection is the process which
organization who will or not will be selected to be organization member. Noe at el
(2012) stated five selection process include:
1. reliability refers to the consistency measurement of a performance free
from random error. For instance, reliability on intelligence, then the score a
person receives based on intelligence will be consistent in any contexts. Or
else, physical characteristics (strength or endurance), cognitive abilities
(memory or verbal reasoning), personality (decisiveness or integrity),
2. validity is the scope of performance on the measure is related to
performance on the job.
3. generalizability is the level of validity of selection method established in
the context extends to other contexts.
4. utility is the level of information provided by selection methods enhances
the fundamental effectiveness of the organization.
5. legality is the selection in accordance with labor law without bias.
The selection methods, commonly, is the interview. It is the dialogue created
by one or more persons to gather information and evaluate the qualifications of
applicants. The questions that deal with specific situations might occur on the job,
and use these to identify what the person is likely to do in the situation occurring
called situational interview.
The situational interview can be effective for assessing sensitive issues
dealing with honest and integrity of the candidates. In conjunction with the
interviewers must be critical and look for inconsistencies or gaps in stories or
experiences of the interviewees. The interviewers should be trained to learn the
nonverbal signs that a person is trying to bend the truth, like hands movement, avoid
eyes contact, mumbled speech. In addition, the evidence checks such as references
65 - 79
may not predict the future success on the job. This is because most of the references
are positive.
There were various scholars have conducted researches on recruitment and
selection process. Such as, Esch, Black, & Ferolie (2019) studied on organization
apply AI for recruiting process. The researchers found the positive attitude towards
organization, AI attract potential candidates to fill out the application form, reduce
anxiety of candidates, and reduce cost of recruitment. Henderson (2019) surveyed the
recruiters on using social media screening candidates. The researcher found that
recruiters looked for professionalism as professional image of the candidates. In
contrast, the candidates who post, shares inappropriate behavior by way of example;
party pictures, drug/alcohol use, racist comments, pornographic comments were
considered unqualified.
While, Brindusoiu (2013) studied recruitment and selection in service firms in
Romania. The result found most approaches use for selection were realistic job
previews (inform the duties both pros and cons) and behavioral interviews. Whereas
the effective recruitments were referrals and website. The common selection
processes begin with analyzed CV, phone interview, analyzed result tests, face-toface interview, reference check, on boarding program, assess trial period, and
organize training.
Mitchelle & Gamlem (2012) proposed the interview technique namely STAR.
S stands for situation, the interviewer ask candidate to describe the situation and how
he/she responds to the situation. This leads to T is specific task involved, A is
specific action that candidate did to complete the task, R is result from the action.
4. Socialization and Orientation
Socialization is a process of integrating newly-hired employees to acquire
knowledge, behaviors, skills, and attitudes concerning with the company, and
transform themselves from outsiders to insiders (Cai, Lui, Zhao, & Li, 2020; Kankaew
& Treruttanaset, 2020; Özdemir & Ergun, 2015; Islam, M. Z., Jasimuddin, S. M., &
Hasan, I. 2017). For Leidner, Gonzalez & Koch (2018) added that organizational
socialization is not only a learning process of newly-employed acquiring knowledge,
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80 skills, rather including values, and norms of organization which enhancing newlyemployed can perform the roles in organization well. There are four key elements exist
in socialization processes. (1) task mastery or learning how to perform one’s job, (2)
role clarification or gaining an insight understand of one’s job, (3) acculturation or
adjust to organization’s culture, and (4) social integration or developing relationships
with others on organization specifically co-workers and supervisor. Organizations
implement socialization effectively has to enable newly-employed staffs to achieve the
outcomes of self-efficacy, role clarity, knowledge of organizational culture, and a sense
of belongingness. The process of socialization could be held formally by institution
training, or informally by the interactions among employees, and observation.
At the time, Özdemir & Ergun (2015) reviewed organizational socialization
found that there are six socialization process including; performance proficiency,
people refers to knowing of who are key players; policies are the obtaining knowledge
both formal and informal networks, understanding of power structures within
organization, language is the understanding of the profession’s technical term, jargon,
slogans; organizational goals and values are the knowledge about formal and informal
goals and values of organization; and history is the traditions, customs, rituals that solid
particular work culture. The researchers have mentioned that socialization is important
for both employees and company to facilitate the process of employee adjustment.
Islam, M. Z., Jasimuddin, S. M., & Hasan, I. (2017) highlighted the
importance of socialization in service firm in Malaysia. Since, the socialization
encourages employees to acquire new knowledge in the organization context. In the
meantime, the application of technology, the supportive environment allows new
employees learning better. The knowledge, in the service industry, is important for
competitive advantage. It is worth noted that the service firms use knowledge to solve
problem of customers with a range of solutions, as well as innovate of customized
solutions to fit with each individual.
In summarization, Noe et al (2012) concluded that socialization is the process
that transforming into effective member of organization. Socialization composes of
three stages. The first is anticipatory socialization. It is expectation of employee
toward the company, job, working conditions, and interpersonal relationship through
the interaction with company representatives. The second stage is encounter.
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81 This stage occurs on the first day of employee start to work. The second stage
could make the new employee shock or surprise. And last stage is settling-in. At this
stage, the employees begin to feel comfortable on the job demand and social
relationships, resolve work conflict, interested in the evaluation and performance
management, learning about career opportunities within the company as shown in
figure 3.3.
1. Anticipatory Socialization
Provide realistic job preview,
accurate information both
positive and negative of the
job, working conditions,
company and location
2. Encounter
Provide training, challenging
work, orientation to reduce
shock and surprise, to
understand roles, stress on new
job
3. Setting on
Provide performance assessment and
information on career opportunities
Figure 3.3 Socialization Stages
Source: Adapted from Noe et al. (2012). Human Resource Management. p 327.
Dessler (2017) define orientation is a process provide to newly-hired employees
with basic background information about the company. For example:company rules,
computer passwords. The orientation has to assist new employees start becoming
emotionally engaged to the company. The manager wants to achieve four things when
orientation employees including; make new employee feel welcome and feeling to be a
part of a team, make sure new employees has basic information to function effectively,
provide new employee knowledge to understand organization in a broad sense like the
past, culture, strategies, future vision, and lead to socialization employee into the
company’s culture and way of doing things. Socialization and orientation programs are
essential for socializing employees. The orientation is dealing with familiarizing new
employees on company rules, policies, and procedures. In general, the orientation
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82 program consists of information about the company, department, and community the
employees will live and work. On the first day of newly-hired orientation, the program
encompasses meet-and-greet lunch with manager. The employees, normally, consider
onboarding for 90 days which, incorporate e-learning, mentoring, on-the-job training,
and performance review (Noe et al, 2012).
Additionally, Noe et al (2012) proposed the effective characteristics of
orientation program. It should cover with information on both technical and social
aspects of the job, employees are encouraged to ask questions, avoid embarrassing,
allow formal and informal interactions with manager and peers, assist employee
relocate, employees learn about the company’s products, services, and customers.
Woods, Johanson, & Sciarini (2012) suggested that the orientation should be
well-prepared. Since, new employees receive too much information at one time might
increases the anxiety. Inadequate orientation can be financially damaging to company
because it may reduce new employees’ effectiveness in the beginning week on the job,
and may causing to the job dissatisfaction and turnover. In contrast, the propre planning
orientation is enhancing the employees stay longer. Newly-hired employees, naturally,
have many questions about the job, and new organization. Thence, the questions must be
answered quickly and effectively.
The scholars added the benefit of orientation on both employees and company.
The employee will receive a consistent message equally, assist employees to recognize
that they are working in a great company, introduce management team, first impression,
build strong values and philosophy of company, introduce business goals and priorities,
knowing opportunity for succeed, introduce team at all levels, and lower turnover.
The orientation benefit for the company encloses with the understanding of the
company’s expectations about employee performance, assist employees understand the
value of their positions, build self-esteem, helps employees realize that they are
important to the operation, provides structured learning about the company and the job,
establish commitment to being a member of the team, encourage employees’ motivation.
The ten steps of well-designed orientation present in table 3.2.
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83 Table 3.2 Ten Steps of Well-Designed Orientation
Step
Explanations
1. Introduction to
the company
The objective is to make new employee feel positive
about the company, begin to instill the pride of
belonging and being a part of the company.
2. Review of important Include standards of conduct, performance standards,
policy and practices
the introductory period of employment, discipline
policy, and safety.
3. Review of benefits
and services
Make the employee appreciate the cost of benefit ex.
food, medical care, discount, social and recreational
services.
4. Benefit plan
enrollment
Allow employee time to discuss with family before
making a commitment.
5. Completion of
employment
documents
6. Review of employer
expectations
Payroll, emergency information, employment
opportunity data, and other relevant documents.
7. Setting of employee
expectation
Explore what are the expectations of employees? Ex.
training and development, schedule wage and salary
reviews, security, recognition, working conditions,
promotion opportunity etc.,
8. Introduction to
fellow workers
Use of nametags and buddy system.
9. Introduction to
facilities
Provide standard tour of the facility.
Apply performance appraisal forms making an outline
for discussion of employer expectation on teamwork,
attitude, loyalty, and working relations.
10. Introduction to the Prepare to have new employee involved in the work
job
flow.
Source: Adapted from Woods, Johanson, & Sciarini (2012). Managing Hospitality Human Resources.
70 - 84
Finally, the orientation should be observed closely, and assist employees in
learning new job by managers. It is also should have an end point after employee
experiences all the aspects of organization. Manager would define an orientation end
point by meeting with new employee to answer the questions. The meeting, normally,
held after the orientation few days or a week. This meeting allows manager to appraise
the employee’s progress on establishing the objectives and goals before the first
formal working appraisal.
5. Unit Conclusion
On a final note, human resource information system (HRIS) is to the use of
computer system to acquire, store, retrieve, and distribute information related to a
company human resource. It involves with materials, software, staff, data, and process
which allow HR professional to acquire, store, process, analyze, retrieve, and
distribute information about organization’s human resources. The analysis and work
design is the process of analyzing essential for the production of product or services,
preceding to allocate and assign task to specific job category or a person. And the job
analysis is the process of conducting an in-depth study of work position in term of
tasks requirements, and behavioral requirements. The human resource recruitment is
the company search to attract and identify potential employees to apply for available
position. While, the selection is the process of selecting the candidates in various types
of tests and activities. Last, socialization and orientation are to prepare new employees
get used to the organization in all areas such as history, culture, job, and team.
6. Exercise
6.1 Questions for revision
1. Could you outline the importance of HRIS?
2. How could you describe the process of job analysis and design of
work?
3. What makes the recruitment and selection effectiveness?
5. How could we design an effective of socialization and orientation?
7. Could you figure out the data-to value model?
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85 8. Could you explain the benefit of social networking in creating value by HR
practices?
9. How could we distinct the socialization and orientation?
10. How could you apply PAQ for job analysis?
6.2 Testing
1. Which of these statements is best describe HRIS?
A. An information technology system in which organization use to record
employees’ behavior.
B. The human resource information system which organization use to store
employees’ data for planning, evaluating policies, and enhancing strategic
decision-making.
C. The human resource information software which organization use for
payroll planning, evaluating policies, and enhancing strategic decision-making.
D. The human resource information system which beneficial for organization
in handling employees, customers, and stakeholder’s information.
2. The e-HRM enhances employees to set up a meeting, knowledge sharing by
benefiting from social network. True or False?
A. True
B. False
3. The job analysis is, in addition, resulting to job descriptions. True or False?
A. True
B. False
4. The process of analyzing essential for the production of the
products/services to allocate and assign task to specific job or a person refers
to…
A. Job analysis
B. Job design
C. Work-flow design
72 - 86
D. Socialization
5. Mike is running the project to get detailed information about the jobs. Mike
has applied position analysis questionnaire (PAQ). He is doing a….
A. Job analysis
B. Job design
C. Work-flow design
D. Socialization
6. Recruitment is to conduct an interview of the applicants, while selection is to
find the most propre sources to attract potential employees. True or False?
A. True
B. False
7. Today, HR professional uses social media to evaluate candidate behavior
on….
A. Job performance
B. Social etiquette, and interactions
C. Social responsibility
D. Human relations
8. To assess the candidates’ moral and integrity, what kind of selection
method is best suit?
A. Formal interview
B. Structural interview
C. Situational interview
D. Reference check
9. Which is best suitable for newly-hired employee learn to adapt
oneself to organizational culture?
A. Onboarding
B. Orientation
C. Socialization
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87 D. Working
10. To make new employee feel welcome, being a part of a team is one of
the……..process.
A. Socialization
B. Orientation
C. Selection
D. Onboarding
8. Unit References
Aggarwal, N., Kapoor, M. (2012). Human Resource Information
Systems (HRIS)-Its Role and Importance in Business
ompetitiveness. Gian Jyoti E-Journal, 1(2).
Armstrong, M. (2015). Armstrong’s Handbook of Strategic Human
Resource Management (5th ed.). London: CPI Group.
Cai, D., Lui, J., Zhao, H., & Li, M. (2020), Could Social Media Help in
Newcomers’ Socialization? The Moderating Effect of
Newcomers’ Utilitarian Motivation. Computers in Human
Behavior, 107.
Chakraborty, R. A., Mansor, A. N. N. (2013). Adoption of Human
Resource Information System: A Theoretical Analysis. Social and
Behavioral Sciences, 75, 473-478.
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Esch, V. P., Black, S. J., & Ferolie, J. (2019). Marketing AI
Recruitment: The Next Phase in Job Application and Selection.
Computers in Human Behavior, 90, 215-222.
Henderson, E. K. (2019). They Posted What? Recruiter Use of Social
Media for Selection. Organizational Dynamics, 48.
Islam, M. Z., Jasimuddin, S. M., & Hasan, I. (2017). The role of technology and
socialization in linking organizational context and knowledge conversion: The
case of Malaysian Service Organizations. International Journal of Information
Management, 37(5), 497-503.
- 74
88 Kankaew, K. (2020). The Competencies-Based Development in
Pharmaceutical Industry. Systematic Reviews in Pharmacy,
11(12), p 962-963.
Kankaew, K. (2020). The Competence that Satisfies Us: Agribusiness
and Airline Business Management Cases. E3S Web of
Conferences, 175, p 13032.
Kankaew, K., Trerattanaset, P. (2020). The Organization Culture Affecting
Job Performance of Newly Hired Employees: a Case Study of the
Customs Bureau at Bangkok Suvarnabhumi International Airport,
Thailand. In Bejaoui, A (Eds.), Corporate Leadership and Its Role in
Shaping Organizational Culture and Performance (pp. 129-155). PA:
IGI Global.
Leidner, E. D., Gonzalez, E., & Koch, H. (2018). An Affordance Perspective
of Enterprise Social Media and Organizational Socialization. Journal of
Strategic Information System, 27, 117-138.
Lengnick-Hall, M. L., & Moritz, S. (2003). The impact of e-HR on the human
resource management function. Journal of Labor Research, 24(3), 365379.
Mitchell, B., & Gamlem, C. (2012). The Big Book of HR. NJ: Career Press.
Moussa, B. N., Arbi, E. R. (2020). The Impact of Human Resources
Information System on Individual Innovation Capability in Tunisian
Companies: The Moderating Role of Affective Commitment. European
Research on Management and Business Economics, 26, 18-25.
Nagendra, A., Deshpande, M. (2014). Human Resource Information Systems
(HRIS) in HR planning and Development in Mid to Large Sized
Organizations. Social and Behavioral Sciences, 133, 61-67.
Özdemir, Y., & Ergun, S. (2015). The Relationship between Organizational
Socialization and Organizational Citizenship Behavior: The Mediating
Role of Person-Environment Fit. Procedia - Social and Behavioral
Sciences, 207, 432-443. doi:https://doi.org/10.1016/j.sbspro.2015.10.113
Sirbu, J., Pintea, R. F. (2014). Analysis and Evaluation of Jobs-Important
Elements in Work Organization. Social and Behavioral Sciences, 124,
59-68.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
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Unit 4 Learning Management Plan
Title: The Performance Management
Total Time in Learning/Teaching: 8 Hours
…………………………………………………………...
Introduction
Managing employee performance is one of the hardest tasks for line manager.
The manager must strive to accurate evaluate performance, and work to focus on
employee to improve performance. In general, organization conducts performance
assessment on every quarters, six months, or yearly. What is more, the majority of
people do not appreciate the feedback on their weakness. Consequently, employees do
not like performance appraisal. It can be summarized that we as a human does not like
to hear where we are lacking of and what we need to improve. In certain cases, the
performance appraisal results to layoff, promote, or pro-long probation period some
employees. Thence, this unit students will learn how to practice performance
management effectively.
Learning Outcomes
At the end of this unit the students should be able to:
1. outline the performance management system;
2. explain the criteria for performance;
3. analyze the effective performance management;
4. describe the productivity and high-performance work system.
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76 -
Scope of Contents
1. Performance Management
2. Criteria for Performance
3. Performance Appraisal Methods
4. Productivity and High-Performance Work System (HPWS)
5. Unit Conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Problem-Solving
Testing
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91 -
Learning and Teaching Resources
1. Textbooks and Main Documents
Dreher, F. G., & Dougherty, W. T. (2001). Human Resource Strategy.
Singapore: McGrawHill.
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
2. Important Documents for Extra Study
Kankaew, K., Trerattanaset, P. (2020). The Organization Culture Affecting
Job Performance of Newly Hired Employees: a Case Study of the
Customs Bureau at Bangkok Suvarnabhumi International Airport,
Thailand. In Bejaoui, A (Eds.), Corporate Leadership and Its Role in
Shaping Organizational Culture and Performance (pp. 129-155). PA:
IGI Global.
Michell, B., & Gamlem, C. (2012). The Big Book of HR. NJ: Career Press.
Measurement and Evaluation
Quiz
Assignments
Presentations
Testing
78- 92
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Unit 4
The Performance Management
Once, employees were selected, trained and work for specific time frame as
outlined by organization. The evaluation has been placed to check how well the
newly-hired employees, and existing employees meet with department objectives
related to organization goals. Moreover, the appraisal program is also allowed
employer know the skills, knowledge, talent of each individual. This is resulting to
further training and development needs for the employees. Most of the organization
conduct performance management by supervisor or managers rating each employee,
communicate and discuss the rating score, organization’s expectation, and suggest
how to improve the performance.
1. Performance Management
On the beginning of employment, manager should set the standard practices
for success, explaining work duties, expectations, and job-related behaviors. Since
the performance management for each individual employee is a process that
commence with having an obvious and documented description of job’s roles and
responsibilities. Additionally, employees should receive a copy of job description,
goals and objectives have been discussed, briefed a company culture. The
performance management needs attention continuously to each individual
monitoring, evaluating performance against job’s requirements and standard for
success, note and acknowledge both positive and negative behavior, address situation
that need improvement (Mitchell & Gamlem, 2012).
Hence, the performance management (PM) is the combination of two words,
the management is the resolution of objectives and organizing available resources to
achieve specific objectives (Vural et al, 2012). Whereas, Dreher & Douherty (2001)
mentioned that performance management is concerning with identifying, assessing,
revising, and developing individual and teams performance align with organization’
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80 goals (Dessler, 2017; Bowden & Sandlund, 2019). Today, every kind of businesses
conduct some kind of systematic appraisal of the performance of each employee.
Performance appraisal interview is considered an organizational tool for assessing
performance, setting objectives, and agreeing on future development. It is the sub-set
activity of performance management. Whereas, Noe et al (2012) stated that
performance management is the process through which managers ensure that
employees’ activities and outputs are congruent with organization’s goals. It is the
principal key to gain competitive advantage.
The standard method of performance appraisal has a supervisor rating each
employee on some kind of performance rating scale once a year. There is also a
requirement that supervisors provide a face-to-face annual performance feedback and
counseling session to employee. In the one-on-one session supervisors communicate
the employee’s numerical ratings and overall evaluation, discuss, expectations for
performance improvement, and recommend ways to enhance performance.
Noe et al (2012) expanded the performance appraisal is an administrative duty
performed by managers and primarily liability of the human resource department.
However, the usage of performance appraisal arises the problem of confrontation
between managers and employees that both parties’ dislike. It is time-consuming,
frustrating, anxiety, stressful, and pain. The other reason is the appraisal lack of
consistency across the organization, inability to differentiate among different
performance levels, the unavailability of the appraisal system to provide the use of
data for development, assisting employees build their skills, competencies or to build
high-performance culture.
There are three purposes of performance management including; strategic
purpose, administrative, and development purpose. It can be explained as follow;
1. strategic purpose is the primary ways strategies are implemented is through
defining the results, behaviors, and characteristics of employee for carry out
strategies. Then, the development of measurement and feedback systems that
maximize the extent to which employees demonstrate the characteristics,
engage in the behaviors, and produce the results. PM is essential for
organization to manage their talent strategy, identify employees’ strength and
weaknesses, link employees to propre training and development activity,
rewarding good performance with pay and incentives.
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95 2. administrative purpose is helping the administrative decisions, such as
salary administration (increase pay), promotions, retention-termination,
layoffs, and recognition of individual performance. However, many managers
are not aware the importance of performance appraisal process. They feel
uncomfortable assessing others. Then, they rate employees with high score
which make the performance appraisal useless.
3. development purpose is seeking to improve employees’ performance by
stress on the weaknesses of employees. On the flip side, the feedback given
during appraisal cause deficiency. Since, managers are often inconvenient
facing employees with their weakness performance. Then, managers reduce
the conflicts by rating at high scores. So that, the performance management
should develop the measures which performance will be assessed.
The effective process of performance management should ensure the system is
constantly used throughout organization, appraisals are completed on time, giving and
providing feedback on time. The performance management should be a part of
organizational culture. The performance management process consists of six
processes. The first two steps are identifying the goals and objectives of the
organization. In consequence, the key performance areas represent critical factors that
enhance the goals and objectives. Follow by, after that, develop performance measures
for each key area. The expected performance results are for example; benefit
customers, employees, team, organization.
Second process is understanding how to achieve the established goals. This
step is identifying measurable goals, behaviors, and activities that will help the
employee strive to reach the results. The goals, behaviors and activities should be part
of the job. Whilst, step three is the organization support. It includes provide training,
necessary resources and tools, frequent feedback communication on accomplishing,
challenges the performance. The fourth step is performance evaluation concerns with
the annual formal performance review. The fifth step is the employees and managers
identify what the employee can do to highlight on the performance strengths, and
address the weaknesses. Therefore, the last step is to identify training requirements,
adjust the frequency feedback, amend the performance outcomes, discuss the
behaviors that need to improve based on organization goals. The six steps of
performance management process concluded in figure 4.1 as follow;
Step 1: Define performance
outcomes for organization
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Step 1: Define performance
outcomes for organization
department
Step 6: Provide
consequences for
performance results
Step 5: Identify
improvements needed
Step 2: Develop employee
goals, behavior, and actions
to achieve outcomes
Step 3: Provide support and
ongoing performance
discussions
Step 4: Evaluate performance
Figure 4.1 The Effective Performance Management Process Model
Source: Adapted from Noe et al. (2012). Human Resource Management, p 343.
Mitchell & Gamlem (2012) added the objective development step for the
effectiveness must integrate with team, department, and organization objectives. In
view of the fact that objectives provide a foundation for future performance, standard
behavior, business plan and condition changes. A well-written objective should
compose of the usage of action verbs, clear setting what will be done, and the expected
outcomes; results are quantifiable, observable; activities and results are within the
employee’s control; targets are achievable, support business goals; involve with the job
responsibilities or development need; time lines to assess the progress.
2. Criteria for Performance
The performance criteria must relate to the job analysis and job design that
organization expected from the employees. Noe et al (2012) proposed five performance
measures criteria along with; strategic congruence, validity, reliability, acceptability,
and specificity. The strategic congruence is the scope of performance management
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97 system that draws out the task performance congruence with organization’s strategy,
goals, and culture. For instance, if the organization is focusing on customer service,
hence the performance management should measure how well the employee serv the
customers. This approach emphasizes the need for performance management system
to guide employees in contributing to the organization’s success. The system has to
be flexible to adapt to changes in the organization’s strategic. The company might
face how to measure nonfinancial performance, such as customer loyalty, employee
satisfaction. Thereby, managers need to;
1. Develop model of how nonfinancial performance assess link to the
company’s strategic goals. Identify performance issues that important to
success.
2. Using existing databases; ex. customer satisfaction, employee satisfaction
survey. After that, develop the assessment related to the issues.
3. Use statistical and qualitative methods for testing the relationship between
performance assessment and financial outcomes. Ex. the studies of
employee’s satisfaction is significant related to business performance
including customer satisfaction, productivity, and profit.
4. Review the model to ensure nonfinancial performance measures are
appropriate and determine whether new measures should be added.
This stage is to understand the drivers of financial performance,
ensuring the model fit with business strategy and economic condition
change.
5. Act on summarization that the performance model reveal, such as
employee’s attitudes at work had a significant impact on customer
satisfaction. Then, the organization held a training for manager to do a
better job, providing employee autonomy to perform.
Validity refers to the scope to which a performance measure evaluates all concern
issues of the job performance. The performance evaluation must not be deficient or
contaminated. The deficient is the performance assessment that does not measure all
aspects of performance. While, the contaminated is the performance measurement that
assess irrelevant aspects of performance not concern with the job.
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Reliability is the consistency of performance measure. For example; evaluating
two employees close to the same time. Additionally, the measurement should reliable
over time. Such as the evaluation of sales person in different department, managers
should consider the seasonality of products sale.
Acceptability is the people who use performance assessment accept it. The
employees believe the performance management system is fair. There are three types
of fairness as shown in table 4.1 below;
Specify refers to the scope of performance measure tells employees what is
the organization expected from employees, and how employees can meet the
expectations. This method is relevant to strategic and development purpose. Given
the fact that employees know what to do helping organization strive to success, and
the performance problem of employees have been raised to correct.
Dessler (2017) suggests other criteria to avoid bias or against employee. If the
performance measurement was done by immediate line managers. Thus, managers
could apply; peer appraisal, rating committees which consist of employee’s
immediate supervisor and three or four other supervisor, self-rating, appraisal by
subordinate, and 360-degree feedback. The 360-degree feedback refers too the
employer collects performance information all around employee, such as supervisors,
subordinates, peers, internal and external customers. In general, the 360-degree
feedback is for the purpose of development rather than pay purpose. The organization
employs information technology system which allow raters to complete online
surveys.
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99 Table 4.1 Type of Performance Management Fairness
Type of Fairness
Importance for
Performance
Management
System
Procedural fairness Development
Interpersonal
fairness
Outcome fairness
Use
Outcomes
Implications
•
Managers and employees
have opportunity to joint
development system
•
Ensure consistent standards
when assess different
employees
•
Minimize rating errors and
biases
•
Give timely and complete
feedback
•
Allow employees challenge
the appraisal
•
Provide feedback in an
atmosphere of respect and
courtesy
•
Communicate expectations
on performance assessment,
and standard
•
Communicate expectations
on rewards
Source: Adapted from Noe et al. (2012). Human Resource Management, p 349.
3. Performance Appraisal Methods
Currently, Dessler (2012) reveals that many organizations employ information
technology to automate appraisal process. The tool monitor, report, and correct
performance deviations real time. Still many organizations employ traditional
performance appraisal tools as follow;
Graphic rating scale is most popular method for performance appraisal. The
scale will list various job dimensions, such as communication, teamwork. As well as,
the scale also identifies a range of performance values from ‘below expectation’,
‘meet expectation’, and ‘role model’ or unsatisfactory to outstanding.
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92 Furthermore, in each range of performance values must indicate the
description of behavior. For example; outstanding refers to independently prepares
communications, such as forms, paperwork, and records, in a timely, clear, and
accurate manner; products require few, if any, corrections. Independently adapts style
and materials to communicate information. Managers will rate each subordinate by
checking the score that best describe subordinate’s performance. And finally, the
scale will be added up to measure employee in respecting to achieve specific profit,
cost, or efficiency goals.
Alternation ranking method is rating by listing all employees and their
competencies. Later, supervisor rates highest specific competency of employee with
one who has lowest. Then, choose the next highest and lowest until everyone has been
ranked.
Paired comparison method is the ranking method more specific on quantity
and quality of work. This method is comparing every employee with every other, then
choose the highest ranked score on specific area, such as who has highest in quality of
work, highest for creativity, highest for productivity.
Forced distribution method is like grading on a curve, but it was predetermined
percentages of ratees into performance categories. For example; top performance 15%
of employees are 1, middle or average 75% performance ranked 2. The advantage of
this method is preventing supervisors from rating most employees ‘satisfactory’ or
‘high’. It is also reflecting the fact of top employees often distinct from average or
poor ones.
Critical incident method is practiced by managers record positive and negative
behaviors work-related of subordinates. And every six months or assessment period,
managers and subordinates meet to discuss the performance using the incidents as
examples. This method allows managers use for explanation the employee’s rating,
but it is not producing relative ratings for pay raise purposes.
Management by objectives (MBO) means a multistep companywide goalsetting and appraisal program. Managers have to set specific measurable,
organizationally relevant goals with each staff, and periodically discuss the progress
towards the goals. There are six steps including;
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1. set the organization goals are to establish a company plan for next year and
set goals.
2. set department goals, the head of department and superiors set goals for
department.
3. discuss department goals, the head of department discuss the goals with
subordinates and ask them to develop their own goals.
4. define expected results for the short-term performance targets.
5. conduct performance reviews, after a period the head of department
compare employees’ actual and expected results.
6. provide feedback, the supervisors review performance and feedback,
discuss, and make a plan to correct employee’s performance.
Computerized and web-based performance appraisal: the program includes
performance review forms and approval processes, competencies for job types, builtin writing assistant, and legal check.
Electronic performance monitoring (EPM). This method is use computer
network technology to allow managers monitoring their employees’ computers. The
system allows managers to monitor the employees’ rate, accuracy, and time spent
working online. EPM can improve productivity, due to modern technology support
managers monitoring in specific job; Ex. wearables digital armbands allow managers
monitor workers moving, how long the task is taking to complete, quality, and report
how long it takes for each employee to finish the task.
Though, the performance appraisal of any method has to be clear goals, fair,
and use coaching. In particular circumstances, the rater error problems do occur in
judgement, bias, or unclear standard. The unclear standard might result in unfair
appraisals due to the traits and level of merit are ambiguous. Such as, supervisors
might define good performance, quality of work differently. While, halo effect is the
manager rates subordinates on personality bias, for instance once individual was rated
as unfriendly employees will be lower score on all other issues.
The other problem might occur is central tendency refer to rate all employees
on average, for instance the score ranking from 1 to 10 raters tend to avoid the highs
and the low, but rate of most employees between 5 and 6. Doing this, will distort the
evaluations, making it less useful for promotion, salary increase, or counseling
purposes.
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Since personal bias, unreasonably rating, and relying just on recent events are
the reasons courts have given in holding an organization’s appraisal processes to have
been unfair. Then, the organization needs to ensure the appraisal is legally defensible
with these following evidences;
1. appraise a job base on duties and criteria;
2. communicate performance standards to employees in writing;
3. combine multiple types rating dimension both quantity and quality;
4. employees should able to review and make comments about their appraisals
before become final, and should have a formal appeals process;
5. documented all information;
6. train or provide raters instructions.
4. Productivity and High-Performance Work System
(HPWS)
Productivity is the rate at which an employee of organization produces goods,
and the amount produced comparing with the time, work, and money is required to
produce the goods (Oxford, 2020 December 10). In most of businesses and
organizations, the employees cost around 30-50 percent of the total project’s cost.
Thus, the human resource management aims to optimize organizational productivity
by increasing efficiency and effectiveness of the employees. Consequently,
organizations require goo human resources to build a propre group of working
experts maximizing the productivity of the organization. The motivation of staffs,
then, is important to encourage the productivity. In general, there are four factors in
companies to specify the degree of employees’ motivation. Those are;
1. Job satisfaction means the level of contentment of employees feel about
their job that affected to the performance.
2. Job security means employees assure on their job without the risk of
unemployed. Since, the productivity is the main key of successful business.
When employees feel unsecure, they will not perform their job at high level.
The job security, hence, has negative impact on the employees’ performance.
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3. Work stress is a severe problem that reduce employees’ efficiency. It might
come in with different forms and impact employees’ psychological and
physical state. The efficient work stress management helps productivity,
motivation and decision-making of employees.
4. Overall workload is the amount of work which employees have to do. This
can be the difficulty of work as well. Therefore, the design of work needs to be
considered on iteration of the process (Azadeh & Zarrin, 2016).
Kour, El-Den, & Sriratanaviriyakul (2019) added that employees’ positive
psychology influences the productivity on working. The reason is mental anxiety and
stress always the basic problem negatively to the behavior and state of human. The
behavior and state of human, certainly, affects to the job performance of individual
and relating to the organization’s productivity. Positive psychology is emphasis on
what is good in each individual, positive behaviors, and strengthen them. It lays on
individual’s happiness, prosperity, well-being, and how can the mental state of a
person be improved by focusing on the traits.
For the organization productivity, the employees’ knowledge, expertise, wellbeing and happiness should be set as the organization’s purpose. then, developing the
process to improve human resources, and strategy for the competitive advantage.
Researchers found the positive psychology relate to organization productivity, achieve
business goals, and maintain sustainability. This is due to positive psychology shed
the light on human strengths that create positive impact to positive behavior. In
contrast, the negative psychology leads to the workplace violence, organizational
failures, uncertainty management.
As today, every company expect its employees to be cooperative, creative,
engage and contribute to the knowledge sharing. However, from the research revealed
that there is only 14 percent of the workforces show their contribution to the company.
Thus, it is not only to motivate employees to do the job, yet rather how to inspire them
to perform better job.
Kloutsiniotis & Mihail (2020) and Boselie (2011) defined high-performance
work system (HPWS) as a combination of HR practices, work structures, and
processes that optimize workforce knowledge, skill, service quality, flexibility, and
commitment.
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96 The HPWS is emphasize on the whole system of HR practices that will
contribute to higher organizational performance. HPWS is considered as the main
source in improving employees’ productivity and job performance. So that, the system
is expected to encourage employees’ skills, motivations, and opportunities to perform
more effectively. HPWS is embellishing work engagement result to employee’s effort,
display positive attitudes and behaviors fulfilling work-related state of mind, and
dedication.
Boselie (2011) mentioned HPWS as the total quality management (TQM)
concept is teamwork, goal setting, employee development, employee engagement,
decision-making, and most important is continuous improvement. Human resource
management is a mechanism to build high-performance culture (HPC). It means the
value of organization striving to achieve the goals embedded in everyone in an
organization.
Building HPWS, organization must understand fundamental factor that is
‘control’. The management control theory is used to explain HPWS due to the
principle of theory emphasis on organization controlling. The theory separates
between control strategy and commitment strategy. The control strategy is division of
work to be smaller, set specific tasks, people will build credibility, narrow down the
duty, pay according to the workload assessed by the supervisor, work directly with
supervisor. Controlling makes the growth or development opportunities lower. In
addition, there is a hierarchical rule and lower productivity.
Contrasting to commitment strategy is adding jobs to employees which are
given challenging opportunities for employees, having a strong team, participation in
decision making system which lead to high-commitment work system. It composes of
identification workload, job rotation, skill-based compensation, peer assessment,
teamwork. It is also stress on learning and growth. The business information is widely
shared. And employees are cooperating with the organization.
Furthermore, Boselie (2011) has compared the traditional work systems or
(control strategy) with high-commitment work systems or (commitment strategy) as
shown in table 4.2.
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Table 4.2 Comparing Traditional Work Systems and High-Commitment Work
Systems
Traditional Work Systems
High-Commitment Work Systems
Tightly set workload
Detail-oriented workload setting
Employees hold specific expertise
Job rotation
Pay according to the job description
Pay according to skills
Job appraisal by supervisor
Job appraisal by peers
Working closely with supervisor
Team-based project assignment
Pay overtime or transfer in accordance
with the regulations
Highlight on learning and career
advancement
No career development
Employees are part of the team
Employees are not interested in the
business of the organization
Working as a team drives business and
information sharing
The hierarchy of the separation
Status differences in organizations less
important
The employees are less involved
Employees in the organization
cooperative
Source: Adapted from Boselie, P. (2011). Strategic Human Resource Management.
As HPWS is the alignment of working practices of human resource
encouraging the culture of high-performance striving for organization success. Hence,
HR professional should practice as following;
1. Selective recruitment and selection; the employee selection must find
person-job fit and person-organization fit called value-based recruitment. It
means recruiting based on the organization culture and values.
2. Compensation and performance rate pay (PRP) is pay according to
individual performance.
3. Appraisal and performance management; the assessment is based on a
strategic approach to improving performance in the overall and increase
organization business awareness to employees.
4. Training and Development; this issue should consider learning system such
as on-the-job training through eLearning system.
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5. Employee involvement refers to the employee participation in all level from
the operational level to management.
5. Unit Conclusion
Performance management is concerning with identifying, assessing, revising, and
developing individual and team’s performance align with organization’ goals. While the
performance appraisal is an administrative duty performed by managers or supervisors, and
primarily liability of the human resource department. There are three purposes of performance
management including; strategic purpose, administrative, and development purpose. The
effective process of performance management should ensure the system is constantly used
throughout organization, appraisals are completed on time, giving and providing feedback on
time. The performance criteria must relate to the job analysis and job design that organization
expected from the employees. The criteria to avoid bias or against employee. While,
productivity is the rate at which an employee of organization produces goods, and the amount
produced comparing with the time, work, and money is required to produce the goods. The
motivation of staffs is important to encourage the productivity. Where, high-performance
work system (HPWS) as a combination of HR practices, work structures, and processes that
optimize workforce knowledge, skill, service quality, flexibility, and commitment.
6. Exercise
6.1 Questions for revision
1. How could you outline the performance management systems?
2. What the criteria of performance management best practices?
3. How could you analyze the effective performance management?
4. Could you describe the differences between performance
management and performance appraisals?
5. Should supervisors or managers provide feedback employees
immediately after performance appraisal?
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6.2 Testing
1. On the beginning of employment, manager should set the standard
practices for success, explaining work duties, expectations, and job-related
behaviors. True or False?
A. True
B. False
2. Which of these following choices best describe ‘performance
management’?
A. A process of identifying, assessing, revising, and developing individual
and team’s performance align with organization’ goals.
B. A kind of businesses conduct systematic appraisal of the performance of
each employee.
C. The standard method of performance appraisal has a supervisor rating each
employee on some kind of performance rating scale once a year.
D. An administrative duty performed by managers and primarily liability of
the human resource department.
3. Which of these choices best describe performance appraisal?
A. A process of identifying, assessing, revising, and developing individual
and team’s performance align with organization’ goals.
B. A kind of businesses conduct systematic appraisal of the performance of
each employee.
C. The standard method of performance appraisal has a supervisor rating each
employee on some kind of performance rating scale once a year.
D. An administrative duty performed by managers and primarily liability of
the human resource department.
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4. Most of managers and employees like performance appraisal. True or
False?
A. True
B. False
5. Which of these choices outline the differences of performance management
and performance appraisal?
A. The performance management is the assessment of employees, while
performance appraisal is the planning process of planning for the assessment
system.
B.
The performance appraisal is the assessment of employees, while
performance management is the planning process of planning for the
assessment system.
C. The performance management consists of three purposes, while
performance appraisal has no purpose and lack of consistency across
organization.
D. The performance management is a part of organizational culture, while
performance appraisal is a part of department culture.
6. The performance criteria must relate to ………….and……….
A. Job analysis, job rotation
B. Job analysis, job specification
C. Job analysis, job design
D. Job analysis, job performance
7. The strategic congruence on performance criteria is the scope of
performance management system that draw out the task performance
congruence with organization’s strategy, goals, and culture. True or False?
A. True
B. False
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109 8. Productivity is…………….
A. The degree an employee produces goods, and the amount produced
comparing with the time, work, and money is required to produce the goods.
B. The level of contentment of employees feel about their job that affected to
the performance.
C. The amount of work which employees have to do. This can be the
difficulty of work as well.
D. The behavior and state of human, certainly, affects to the job performance
of individual.
9. A combination of HR practices, work structures, and processes that optimize
workforce knowledge, skill, service quality, flexibility, and commitment. This
description refers to…….
A. Performance Management
B. HPWS
C. Performance Appraisal
D. HPC
10. In term of recruitment and selection for HPWS, human resource
professional must……
A. Apply commitment strategy
B. Select person-job fit and organization fit
C. Select person-organization fit and culture fit
D. Apply management control theory
11. The heart of HPWS, organization must………..for total quality
management.
A. Teamwork
B. Goal setting
C. Continuous improvement
D. High-performance culture
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110 12. Employees’ positive psychology emphasize on employees’ happiness,
prosperity, well-being, and mental state that would lead to organization’s
……….
A. Productivity
B. Job performance
C. Positive behavior
D. Violent
13. Human resource management aims to optimize organizational productivity
by increasing ……… and ……….. of the employees.
A. positive psychology, motivation
B. motivation, skills
C. knowledge, skills
D. efficiency, effectiveness
14. The level of contentment of employees feel about their job that affected the
performance is……….
A. Job satisfaction
B. Job security
C. Overall satisfaction
D. Work stress
15. Overall workload refers to…….
A. The amount of work which employees have to do and the difficulty of work.
B. The amount of work that caused severe problem reducing employees’
efficiency.
C. The feeling of employees assures on their job without the risk of unsecure.
D. The developing process to improve human resources productivity.
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111 -
7. References
Azadeh, A., & Zarrin, M. (2016). An Intelligent Framework for Productivity
Assessment and Analysis of Human Resource from Resilience
Engineering, Motivational Factors, HSE and Ergonomics Perspectives.
Safety Science, 89, 55-71.
Boselie, P. (2011). Strategic Human Resource Management: a Balanced
Approach. New Delhi: Tata McGrawHill.
Bowden, M. H., & Sandlund, E. (2019). Knowledge Talk in Performance
Appraisal Interviews. Learning, Culture and Social Interaction, 21, 278292.
Dessler, G. (2017). Human Resource Management. Singapore: Pearson.
Dreher, F. G., & Dougherty, W. T. (2001). Human Resource Strategy.
Singapore: McGrawHill.
Kankaew, K., Trerattanaset, P. (2020). The Organization Culture Affecting
Job Performance of Newly Hired Employees: a Case Study of the
Customs Bureau at Bangkok Suvarnabhumi International Airport,
Thailand. In Bejaoui, A (Eds.), Corporate Leadership and Its Role in
Shaping Organizational Culture and Performance (pp. 129-155). PA:
IGI Global.
Kloutsiniotis, V. P., & Mihail, M. D. (2020). The Effects of HighPerformance Work Systems in Employees’ Service-Oriented OCB.
International Journal of Hospitality Management, 90, 102610.
Kour, J., El-Den, J., & Sriratanaviriyakul, N. (2019). The Role of Positive
Psychology in Improving Employees’ Performance and Organizational
Productivity: An Experimental Study. Procedia Computer Science, 161,
226-232.
Michell, B., & Gamlem, C. (2012). The Big Book of HR. NJ: Career Press.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Oxford. (2020). Learner’s Dictionaries. Retrieved from
https://www.oxfordlearnersdictionaries.com
104 - 112
Vural, Y., Vardarlier, P., & Aykir, A. (2012). The Effects of Using Talent
Management with Performance Evaluation System Over Employee
Commitment. Social and Behavioral Sciences, 58, 340-349.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
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Unit 5 Learning Management Plan
Title: Training and Development
Total Time in Learning/Teaching: 6 Hours
…………………………………………………………...
Introduction
The emerging of industrial revolution 4.0 era has shaped the world to new
economy namely knowledge-based economy. Recently, technology advancement goes
drastically, continuously, sophistically. It allows the flow of data goes faster which
resulting organization use data analysis to embellish the competitions. Additionally,
organization needs to arm its employees with knowledge and skills to fit with the
changing environment. The emerging of industrial revolution 4.0 makes the
knowledge of employees becoming one of the competitiveness advantages. It is
notable that today competition is no longer depend on single sourcing of raw materials
to produce the product, but value added on the knowledge, skills, ability and
intelligence of the organization. Then, the promotion on knowledge management was
applied to develop employees in the organization. The exchange of knowledge and
creation of innovations or new products has resulted in a change management of work
regulations and modern management development concepts such as knowledge
management (KM), the creation of a learning organization changing knowledge into
innovation.
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106 -
Learning Outcomes
At the end of this unit the students should be able to:
1. outline human resource practices on training and development;
2. figure out the training and development plan;
3. describe the importance of learning organization;
4. analyze knowledge management best practices;
5. critic the industrial revolution 4.0 (IR 4.0) influencing organizational
learning and development.
Scope of Contents
1. Training and Development
2. Learning Organization
3. Knowledge Management
4. Unit Conclusion
5. Exercise
6. Unit References
Learning Activities
Lecture
Problem-Solving
Testing
107 - 115
Learning and Teaching Resources
1. Textbooks and Main Documents
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Marquardt, J. M. (2002). Building the Learning Organization: Mastering the 5
elements for corporate learning. CA: Davies-Black Publishing.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
2. Important Documents for Extra Study
Kankaew et al. (2020). Learning Organization: The Challenges of Knowledge
Management in the Changing Paradigm. Journal of Legal Entity
Management and Local Innovation, 6(2), 241-254.
Kankaew, K. (2019). Is Human Capital in Higher Education Ready for
Thailand 4.0: a Case Study of SSRUIC Students, Nakorn Pathom
Education Center. Journal of Educational and Social Research, 9(3),
203-210.
Kankaew, K., Trerattanaset, P. (2020). Educational Buddhism for Human
Capital Development of Thailand 4.0. Journal of Human Sciences,
21(1).
Measurement and Evaluation
Assignments
Problem-Solving
Testing
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Unit 5
Training and Development
The emerging of industrial revolution 4.0 came along with the autonomous
analytics machine. Davenport and Harris (2017) explained Today, the 4.0 analytics era
where the artificial intelligence is widely used and also known as cognitive
technology. The deep learning technology is most sophisticated technology to handle
enormous amount of data for predicting, making decision, and high level of computing
to solve complicate problems. It is in accordance with Ekambaram et al (2018)
determine the data in 4.0 era with 5Vs namely; value, velocity, veracity, variety, and
volume. Therefore, it is critical for an organization to squeeze, analyze data into
knowledge as information tools for the swift environmental changes. Hence,
organization must resilient associated to the changes. Nowadays, the business
environment becomes knowledge-based economy therewith organization should
transform its human resources into intellectual capital. Therefore, training and
development is necessary to implement effectively.
1. Training and Development
Given the fact that intangible assets namely human capital, customer capital, social
capital, and intellectual capital serve organization gain competitive advantages. Considering
that formal training, informal training, and knowledge management are consequential for the
development of intangible assets. Organizations nowadays reckon training as one part of
continuous organization learning. Continuous learning means a learning system that require
employees to understand the entire work system and expected to acquire new skills, apply to
the job, share with peers (Noe et al, 2012).
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110 -
Training is a planned effort by organization facilitating learning of job-related
competencies, knowledge, skills, and behaviors of employees. The objective of
training is for employees to acquire knowledge, skills, and behaviors apply to daily job
activities (Boonanan, 2016; Noe et al, 2012). Employees must be trained to increase
some competency to work in the current position. The training results can be return to
the organization's income, such as comparing the waste before and after the training
(Prawet, 2013; Tissana, 2012). The training adds value to a company and personal
growth of employees. Training can be very effective if it consistent to organizational
strategies (Burke, 2014; Suchitra, 2014).
The training techniques use communication methods, transfer knowledge, facts
and experiences from the trainer, and between the trainers themselves. By organizing
seminars, group discussion, meetings for learning. For changing behavior and meeting
objectives, each training technique is effective in creating knowledge, skills, and
learning roles of participants differently. However, there is, currently, no best training
method because each technique has its own characteristics and weaknesses. It is
depending on the speakers will choose to use it according to the suitability with
learner's context and training objectives.
Boonanan (2016) describes the basic training process consists of assessment,
development, and evaluation (Suthinee, 2017). The evaluation has the goal of
collecting data to determine the need of training which requires specific knowledge
suitable for ability, skills, and other characteristics (KASOCs). The information is
obtained from the organizational level, job data, and personal information. The
organization data collected from organizational analysis. It is the answer to what
extent the organization should focus on. What factors affect training, because the
organization sets goals, manpower, operational information, organizational climate
and organizational indicators. As for job analysis, the purpose is to find the answers
that what should teach, how to satisfy the trainees. It can be analyzed by using the
task-oriented approach. This approach will explain work activities, practices and
methods namely ‘worker-oriented approach’ for behavior analysis individual analysis,
identifies who should receive training and who needs to be trained.
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In addition to the job analysis, there must be an in-depth analysis of the job
components, which is the whole process. It is divided into work types, and a step-bystep workflow that will help achieving organization’s goals, increase training
effectiveness (Noe et al, 2012; Werner & DeSimone, 2009). The needs assessment
process summarized as shown in figure 5.1.
Figure 5.1 Needs Assessment Process
Source: Adapted from Noe et al. (2012). Human Resource Management Gaining a
Competitive Advantage (8th ed.). UK: McGraw-Hill.
IATA (2017) has proposed an adult training design process, model
called the ADDIE model, which consists of the following details:
1. A- Analysis is the analysis of data, target group, the tasks that must
be accomplished and the objectives of the training program, such as
the need for training. The root causes of problems, objectives,
necessary information and methods of data collection. How the
training design will be.
2. D- Design is the design by using the result of the analysis, such as
the analysis process, develop and assess together, write a lesson plan,
objectives, assessment methods, and quality control.
3. D- Develop is the development of training equipment, such as the
development of procedures, the guidelines for trainees, training
resources, develop and assist the trainees about working matters,
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training facilitation, evaluation of training participants and experiments.
4. I- Implement is the testing of training tools and equipment such as the
production of training media, intermittent training, assessment and feedback
from participants.
5. E- Evaluate is an assessment, it can be performed for each training activity
and evaluating the important things in the training, along with providing
feedback to the participants.
For instructional strategies, IATA (2017) defines as the methods that
instructor use in their training to achieve their learning goals. The methods that the
instructors use will help to create educational atmosphere and activities. The activities
were held during the course between the instructor and the participants. The methods
that the instructors may use are; experiential learning, two-way communication,
sharing experiences, and learning to solve real problems by oneself.
The types of training can be categorized according to training approaches,
including storytelling, role-play, and practice. It is also can be divided according to
participation characteristics consisting of; the trainees are highly involved and joint
role. The most popular training method is on the job training, such as job rotation,
coaching, mentoring, job instructional training, apprenticeship training, and
committee assignment. There is another type called off-the-job training. It is
providing information for self-improvement, such as lecture by an expert, conference
and discussion, simulation training, case studies, role-playing, games, using the
internet and the learning portal, team leader training (Noe et al, 2012; Ploy, 2018;
Suchitra, 2014; Werner & DeSimone, 2009).
To set up formal training activities effectively (Noe et al, 2012) suggested HR
professional conduct five stages including;
1. Need assessment is to determine if the training needed by analyzing
on organization, person and task.
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2. Ensuring employees’ readiness for training, this is to ensure that
employees have motivation and basic skills to master the training
content.
3. Creating a learning environment is to determine learning objectives
and outcomes, practice, feedback, observation or other, and
administering and coordinating program.
4. Ensuring transfer of training is to ensure the trainee apply knowledge
to their jobs with the supporting from peer and manager.
5. Selecting training methods such as presentation, hands-on, group,
mobile technologies (iPads, smart phone), apprenticeship (work-study
training method with both on-the-job training and classroom training),
simulation, Avatars (a computer depiction of human that being used as
imaginary coaches), business games, case studies, e-learning, blended
learning (the combination of mobile, e-learning, face-to-face) etc.,
6. Evaluating training program refers to the assessment whether the
training achieve the desired learning outcomes and financial objectives.
Therefore, it can be concluded that the training is a form of education that is
planned to improve the performance of the employees for daily task to the level that
the organization needs, to step up to a new position. There are many forms of training
techniques that can be done by communicating and transferring knowledge of the
experience from the instructor to the trainees. As well as, among the trainees
themselves, such as; seminars, opinions sharing, meetings. Whereas, the popular
training methods is on the job training, job rotation, coaching, mentoring, and training
through a committee. Another method is off the job training, it can be conducted
through a lecture by an expert, discussion among participants, the use of simulation,
case studies, in which the training process must be evaluated, and development of
training results as well.
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Considering that both on-the job training and off-the job training can be done as
formal training through a course, program, seminar, or event to teach employees. The
formal training is the training program that developed or organized by the company.
Whereas, informal training is the learner initiated, motivated to develop oneself. The
informal learning occurs without instructor, and the breadth, depth of knowledge, and
timing are controlled by the employee. The informal learning may involve learning
alone, face-to-face, or technology-aided social media. It may occur through interaction
with peers, e-mail, informal mentoring, website, Facebook. Both formal training and
informal learning contributes to the improvement of intangible assets specifically
human capital.
The most common advance technology learning tool namely ‘learning
management system’ (LMS). LMS is a technology platform that can be used to
automate the administration, development, and delivery of all of an organization’s
training program. The LMS can provide employees, managers, and trainers with the
ability to manage, deliver, and track learning activities. The system helps organization
decrease cost of travel and other related costs to training, reduce time for program
completion, increase employees’ accessibility to training across the business.
Development
Garavan et al (2001) define development is the acquisition or a short-term
development to increase knowledge, skills, and attitudes for better performance to
support the growth in future’s position. Ploy (2018) says that development can be done
by learning in many ways. Development is knowledge, skills enhancement and
experience to support new jobs that are not immediately evaluated. The development is
a long-term investment rather than training. The human resource development is an
investment in human capital to create knowledge that develops parallelly between
organizations and personnel through various processes. Such as education, job learning
training to work, professional development to increase the ability of the employees at
both individual and group level.
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The development of human capital will lead to effective organization
operations. In developing employees to be desirable human capital of the
organization, at the end the employees shall have a positive attitude towards the
organization with the following methods:
1. Analyze, plan, train the employees to understand and work correctly.
2. The organization must study the expenses affecting the organization
development that all employees should be aware of, and how to develop
employees to have skills for organizational effectiveness.
3. Develop incentives such as benefits and compensation.
4. Provide scholarships for talent employees who can apply knowledge to
develop the organization for the long term. This method is also building
employees’ loyalty.
5. Coaching, mentor and on the job training
6. Develop a system to promote creativity
7. Cultivate employees ‘ownership
8. Develops competitive knowledge of the industry, marketing mechanisms
by presenting managed data systematically
9. Stimulating and promoting motivation to interaction with customers
(Prawet, 2013).
Swanson & Holton III (2009) mentioned that development has been classified
into two paradigms including; learning paradigm and performance paradigm. The
learning paradigm composes of individual learning, performance-based learning, and
whole system learning. Where, performance-based learning is widely use for human
resource development. It is to focus on the development of the performance of people
who have learned. The principle of this approach comes from continuous learning, but
it is the learning that affects overall performance of the organization.
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Performance paradigm is the development of individual by applying technology.
It is the integration of non-learning elements in job performing and non-related to the
job separated from the learning system. Performance paradigm consists of individual
performance improvement by controlling and the usage of technology, and the
performance consulting.
The important issue in the development of human capital is to develop a
positive attitude towards the organization. Especially today, in the dynamic
environment of change, which the organization cannot predict which skills are
appropriate for the future but having good attitudes will affect employee behavior
(Lundberg & Westerman, 2020). Therefore, the organization must analyze the
development plan, and study the costs might impact to the development. As well as,
promoting the creativity, motivate and encouragement employees to interaction with
customers, including the knowledge on the industry competitive.
2. Learning Organization
Learning organization, according to Senge (2006), is an organization in which
the people in the organization continuously expand their capabilities at the individual,
group, and organizational levels. For the purpose of various levels of people require
and an organization of having new ideas, which includes the extension of ideas. It is
the continuous learning of individuals learn together throughout the organization
(Yadav & Agrawal, 2016). The concept of building a learning organization by Senge
is called ‘The Fifth Discipline’ that is the basis for understanding the learning
organization consists of;
1. System thinking is a holistic thinking, viewing of the organization
system from the inputs process throughout the results. The
organizational system is a systematic, which is interconnected
relationship with each other.
2. Personal mastery is the people in organization aware of the
importance on learning, practice, and lifelong learning to increase their
potential. The organization must be able to encourage people in
organization to learn, develop, and create awareness in the pursuit of
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learning. As well as, creating the learning-mind that are intended to learn and
create an atmosphere that encourages all colleagues to develop their potential
to achieve their goals (Weiss, 2001).
3. Mental model means the pattern of thought, belief, and attitude from
experience accumulated to become a conceptual framework of a person. The
mental model causes a person having the ability to understand, making
decisions in various matters.
4. Shared vision means creating a common attitude of people in the
organization. It is to be able to see the image and to focus in the same
direction, which drive towards to the goal swiftly, and;
5. Team learning means the collaborative learning among members as a group
or team. The important goal of team learning is to exchange knowledge and
experience with one another. Uneven, it is both formal and informal learning.
The learning organization must learn together as a team. There is an exchange
of knowledge, experience, skills and thinking methods to improve the
intelligence and the potential of the team as a whole. There is, actually, the
information transfer between each other of both the new knowledge that has
come from the discovery or from outside and within the organization.
Marquardt (2002) gives the meaning of the learning organization is an
organization that has a lot of learning. There is ongoing selection and change for the
success of the organization. The organization enhance the power to employees to learn
from outside and within the organization including from technology on the workrelated issue for the most effective production. (Bratianu, 2015; Chakpitak, 2009;
Gottschalk, 2005). Thus, Marquardt (2002) proposes a learning organization model
consisting of 5 subsystems, the learning subsystem, organization subsystem, people
subsystem, knowledge subsystem, and technology subsystem. These five elements are
concrete to bring success to the organization. All components are ingredients promoting
each other. If any subsystem is weak or missing, the other subsystems will be damaged
as well.
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According to Kankaew et al (2020) mentioned that the competition of an
organization depends on having the data and the ability to manage the information that
is most beneficial to the organization. Changes in the globalization, is unpredictable;
for example, the advancement of technology and the COVID 19 a pandemic crisis that
has a profound impact on economy, society, the lives span of people, and industries
around the globe. In the meantime, the unpredictable crisis is quite difficult
management. Thence, organization should highlight the knowledge management,
practice learning organization for sustainable competitiveness.
Today, technology advances have resulted in massive flows of information, or
known as 'Big Data'. The organizational knowledge is the flow of experiences, values,
and information that lines within the expert body. And, it is often in the documents, the
daily tasks that employees perform. In the competition, organizations are required to
create knowledge, which consists of 6 main activities: learning related to qualifications,
skills, and experience of individual; culture, values and belief; social activities
concerning with communication, teamwork, and behavior; technology system; working
processes, planning, and monitoring; and the infrastructure relating to knowledge
sharing and storing.
Therefore, it can be said that learning organization is an organization with
continuous learning at all levels of the organization, from the individual level to the
team level, and corporate level. The dimensions of knowledge and information that are
abundant comes from a wide variety of sources which circulate rapidly. Organizations
must promptly screen for information that affects organizational performance to
enhance competitiveness in the unstable environment.
The difficulty on building a learning organization is knowledge management by
extracting tacit knowledge from people and then integrating that knowledge, imparting
into employees. However, the creation of a learning organization in which the members
of the organization are considered adults, the learning management must have clear
objectives and goals in order for the learning to be accomplished and provide
opportunities for learners. When adults know the objectives and reasons for learning,
good learning cooperation is formed (IATA, 2017).
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Organizations that learn quickly can adapt quickly. This gives it a strategic
advantage and can effectively apply the intelligence that has been accumulated
throughout the organization. Whereas, the knowledge has combined with the potential
of people empowerment and knowledge management as well as modern technology,
the organization will be competitive advantage.
3. Knowledge Management
Knowledge management (KM) is the process of enhancing company
performance by designing and implementing tools, processes, systems, structures, and
cultures to improve the creation, sharing and use of knowledge (Noe et al, 2012). In
managing knowledge, organizations must create a process for converting personal
knowledge into explicit knowledge, consisting of four processes: socialization is the
social process that create an exchange of knowledge with one another; the process of
explaining knowledge and transferring of knowledge that lines in a person to the
organization; the process of gathering explicit knowledge and linking knowledge
together to create new knowledge, and the practice of knowledge absorption is the
application of the explicit knowledge and put into practice by the learners while
performing their duties. These four processes are called the spiral of knowledge.
A practical model was then created by allowing all employees in the
organization to have free access to information and communicate with each other.
Teamwork plays the most important role in knowledge creation organization. Because
it is an interaction, exchange, and conversation because the conversation may cause
misunderstanding, conflicts of understanding or conflicts resulting from information
circulating both vertically and horizontally. The middle management of the
organization should be like a knowledge engineer who synthesizes specific knowledge
at both individual and senior management levels. It is then converted to explicit
knowledge to develop the organization (Kankaew et al, 2020).
While, Hwang, Lin & Shin (2018) sees knowledge management as a
component of social and technological systems across organizations at all levels. They
are interested in knowledge management at the individual level of dedication to
knowledge management systems, and knowledge sharing in an emotional perspective.
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120 It is in terms of insensitivity and organizational traditions, it was found that
organizational traditions did not influence knowledge sharing among employees, with
variables in the organization's processes, the use of official information, and the
communication style consistently affect the work efficiency of employees.
Another view from Zouari & Dakhli (2018) said that knowledge management
systems have four key components: human resource, technology, processes
andenvironmental context are the driving force for the effectiveness of knowledge
management. Researchers are presenting their concepts with structuration theory to
illustrates the importance and features of the four knowledge management systems.
The research is based on a knowledge management strategy, knowledge management
activities, and the environment outside the organization
The results of the study showed that the use of technology to help in data
collection and knowledge sharing was unsuccessful due to the lack of support in the
process of organizing knowledge management activities. In particular, the human
resource department and the organizational context did not create a system of seeking,
transmission and sharing of knowledge including; the lack of corporate culture, the
lack of trust of employees together within the department, especially foreign
employees of different cultures. Therefore, organizations should use a mixed strategy.
It is a strategy to consolidate power and decentralize knowledge management in order
to extract internal knowledge and make use of external knowledge.
In line with Ulrich et al (2012), addressed the important role a professional
human resource has to be a strategist. The activist that built trust, talent builder, and
change leader by acting as an intermediary between executives and department
managers in implementing knowledge management for efficiency and effectiveness.
Though Chibuzor et al (2019) conducted a study of knowledge management
and organizational innovation through a study of three variables in knowledge
management: knowledge acquisition. knowledge sharing, and the application of
knowledge. Another two variables of corporate innovation are comprising of technical
and administrative variables. The five variables were found have consistent levels of
significance due to the rapidly changing dynamics of business operations. Therefore,
investing in organizational knowledge management and innovation is extremely
important to provide a sustainable competitive advantage.
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121However, the organization must implement policy and process for collecting
knowledge in order to be a database for registering in the system whether organization
has been successfully from applying knowledge.
Based on the research mentioned above, driving knowledge management a key
issue is implementing a process with executive support, whereas human resources act
as a key driver, along with technology adopting that employees can easily access and
use. In addition, building a culture of trust within organizations is a very challenging
issue for organizations, especially multinational organizations. And organizations with
a variety of diversities such as generations, and nationalities.
This is because the organizational structure system has few important
management positions and everyone requires growth and advancement in the
workplace, earning a higher salary and position. Thus, coaching and sharing
information or knowledge transfer may not be possible with the cooperation of the
senior employee. Hence, the human resources department plays a huge role in driving
knowledge management strategies.
However, the challenging in knowledge management does exist. As refer to A
study by Chay et al (2010) found that the factors challenging knowledge management
in Singapore is the people with high abilities do not want to share their knowledge of
what they know because sharing knowledge with others is not appreciated by the
organization and receives little incentives. Therefore, rewarding and recognition, as
well as being open-minded will positively affect the sharing of knowledge within the
organization and create added value for the organization.
As a consequence, Gottschalk (2005) defines the objective of knowledge
management is to help organizations create, share and use knowledge effectively. This
will allow the organization to reduce the causes of errors and working processes. Then,
employees could have more personal time to educate, less doubts and better decisions.
Furthermore, it could develop the relationships between the organization and
customers. He provides the perspective of knowledge management from different
schools such as;
Economic school knowledge management is the preservation and use of
organization’s knowledge, or intellectual assets to generate income for the
organization. It could be asset management, patent, trademark, or copyright.
122 - 130
The economics perspective is more concerned with the use of
knowledge than knowledge acquisition. The key to success is to develop a
team with knowledge management expertise.
Organization
school
knowledge
management
is
the
use
of
organizational structures, or network to share and connect knowledge. It is also
known as knowledge community. The knowledge community is a group of
people with the same interests or having the same problem or experience. The
goal of designing knowledge community is to maintain the business objectives,
and it can acquire knowledge from both a community within the organization
and outside the organization.
Strategic school views knowledge management in the dimension of
competitive strategy. It was seen as essential issues in the strategy of
organization. However, this is depending on the management of each
organization, how to focus on the differences, such as information-based
perspective on information access, technology-based perspective in terms of
using technology, or the culture-based perspective, in terms of sharing
knowledge, etc.
Marquardt (2002) proposes knowledge management system model
compose of six steps including; knowledge acquisition, knowledge creation,
knowledge storage, analysis and data mining, transfer and dissemination, and
application and validation. The knowledge acquisition refers to finding new
knowledge for developing and improving organization. The organization may
acquire knowledge by comparing with other organizations or benchmarking,
finding best practice, seminar, hire consultant, networking or alliances. Albeit,
the knowledge receives from both internal and external must be check
according to organizational standards. And organization should be aware that
knowledge might occur from daily job operation.
Knowledge creation is the creation of new knowledge. It is about
deploying excellence ideas to drive innovation. In fact, it is the duty of all
parties in the organization. There are four forms of knowledge creation
namely;
123- 131
1. Tacit to tacit is the transfer of knowledge from one person to another while
working together. This type of knowledge has limitations in the form of
explicit knowledge and has no collective benefit to the organization.
2. Explicit to explicit is the knowledge arising from the consolidation and
synthesis of existing explicit knowledge such as corporate information
synthesis. This the creation of knowledge is limited, because it is the
knowledge that the organization already has.
3. Tacit to explicit occurs when a person takes the knowledge, they have in the
organization together with the knowledge within themselves for innovation.
4. Explicit to tacit occurs when a person applies explicit knowledge in an
organization and generates new internal knowledge, such as the adjustment of
a new work process that has become the standard of work of the organization.
These four forms of knowledge are dynamic spiral of knowledge relentlessly.
And will be the driving force that causes the creation of new knowledge. The
organization can use various activities to promote knowledge creation, such as action
learning, systematic problem solving, experimentation, learning from past experiences
etc.
Third step is knowledge storage, at this step organization should create
information storage system which is easy to search, disclose, information delivery
clearly, correctness, and accuracy. The later step analysis and data mining refers to the
categorization, grouping, summarizing, highlighting, creating a relational model, and
detection of variance and dynamics of information such as; clustering, classification,
association rule learning.
While, transfer and dissemination are relating to the movement of information
and knowledge. It was considered as a kind of power transferring, and the sharing of
power necessary for the success of an organization. An effective knowledge collection
system should be divided into categories, such as learning needs, work purpose, user
expertise, functions or the use of information, location and method of information
collection. At the time, the dissemination could be done by intention such as writing,
reports, memorandum, or by unintended like job rotation at due time, dialogue, and
informal network.
124- 132
Lastly, the application and validation of knowledge refers to the application of
knowledge creatively and continuously with the most efficient technology and
application. It enhances the ability to provide analysis and problem-solving services for
customers. The six steps of knowledge management model as shown in figure 5.2.
Knowledge
Acquisition
Knowledge
Creation
Transfer &
Dissemination
Knowledge
Storage
Analysis &
Data Mining
Figure 5.2 Knowledge Management Model
Source: Adapted from Marquardt, J. M. (2002). Building the Learning Organization:
Mastering the 5 elements for corporate learning. CA: Davies-Black Publishing.
4. Unit Conclusion
In conclusion, the training refers to the organization’s plan to facilitate learning
of job-related competencies, knowledge, skills, and improving behavior of employees.
Training emphasizes on current job to increase competency and productivity. The
training should congruence with organization’s strategies. The type of training includes
on the job training, and off the job training. The most popular training method is on the
job training, such as job rotation, coaching, mentoring, job instructional training,
apprenticeship training, and committee assignment. Development is the acquisition or a
short-term development to increase knowledge, skills, and attitudes for better
performance to support the growth in future’s position. The development is a long-term
investment rather than training. Such as education, job learning training to work,
professional development to increase the ability of the employees at both individual and
group level.
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Learning organization is an organization in which the people in the
organization continuously expand their capabilities at the individual, group, and
organizational levels. Whereas, Knowledge management (KM) is the process of
enhancing company performance by designing and implementing tools, processes,
systems, structures, and cultures to improve the creation, sharing and use of
knowledge.
5. Exercise
5.1 Questions for revision
1. Could you please outline the differences between training and
development?
2. How could you figure out six steps of knowledge management?
3. Could you explain ADDIE training model?
4. Could you analyze the differences of learning organization and
knowledge management?
5. How could you identify HR professional preparing five stages of
formal training?
5.2 Problem solving
Students apply ADDIE training model to design the training for any
position, career that you are interested in. You may discuss and compare with
your peer how to design appropriately for different task, trainees,
organization’s strategy and goals.
Note: This is individual work, please submit in A4 paper.
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5.3 Testing
1. The organization planned to facilitate learning of job-related
competencies of employees to apply on daily task is…..
A. Development
B. Learning
C. Knowledge management
D. Training
2. There is one best training technique method that is formal training.
True or False?
A. True
B. False
3. Which of these choices is the most popular training method?
A. Off-the-job training
B. On the job training
C. Lecture
D. Role-play
4. The learning alone or technology aided, social media consider as
formal training. True or False?
A. True
B. False
127
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Yadav, S., & Agarwal, V. (2016). Benefits and Barriers of Learning
Organization and its five Discipline. IOSR Journal of Business and
Management, 18(12), 18-24.
129- 137
Zouari, M. B. C., Dakhli, S. B. D. (2018). A Multi-Faceted Analysis of Knowledge
Management Systems. Procedia Computer Science, 138, 646-654.
Ulrich et al. (2012). HR from the Outside In. Singapore: McGrawHill.
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- 139 -
Unit 6 Learning Management Plan
Title: Industrial Relation and Occupational Health
Total Time in Learning/Teaching: 8 Hours
…………………………………………………………...
Introduction
Multiple reasons that workforces organize union such as better pay,
working conditions. Union workers benefiting, in general, holidays, sick leave,
unpaid leave, insurance plan benefits, long-term disability benefits, and more.
The union mostly comes with belief that it is only through unity that they can
get their fairness, protect themselves from unreasonable treat of management.
The main point is that low morale, fear of loosing job, and poor communication
lead to unionization. Everyone wants to be treated with dignity and
individually in the workplace. Then, the industrial relations shall be
implemented to cope with issues raise by union logically, and minimize the
loss. A positive working relationship could hold employee’s engagement level
and reducing the form of union in organization.
Learning Outcomes
At the end of this unit the students should be able to:
1. illustrate the industrial relations effectiveness;
2. describe Thailand’s labor law;
3. outline the occupational health in workplace;
4. critic diversity workforces in organization;
5. illustrate unionization.
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140 -
Scope of Contents
1. Industrial Relations
2. Thailand’s Labor Law
3. Occupational Health in Workplace
4. Diversity Workforces
5. Unit Conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Problem-Solving
Testing
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141 -
Learning and Teaching Resources
1. Textbooks and Main Documents
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Mitchell, B., & Gamlem, C. (2012). The Big Book of HR. NJ: Career Press.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
2. Important Documents for Extra Study
Espinoza, C., Ukleja, M., & Rush, C. (2010). Managing the Millennials. NJ:
John Wiley & Sons.
Meister, C. J., & Willyerd, K. (2010). The 2020 Workplace. NY:
HarperCollins Publishers.
Measurement and Evaluation
Group discussion
Testing
Gamification (Classcraft)
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Unit 6
Industrial Relation and Occupational Health
Employees joins unions because they belief union can accomplish their
objectives. For instance, economic security, assurance of safe and comfortable
working conditions, respect, job security, better benefit, and autonomy. The poor
communication in organization, layoffs, inconsistent policy, and unfair treatment by
management are also led to unionize. Whilst, Employees have duty in equipped a safe
workplace, free form hazards that can cause physical injury. Organization has a legal
responsibility to make its effort to limit the number of injuries and deaths in the
workplace. To do so, organization must invest considerable amounts of time and
money to promote health and safety in the workplace and accident prevention. The
organization omit to ignore responsibility will be faced the sanctions and the
Occupational Safety, Health and Environment Act will be implemented. According to
the law, every company with at least 100 workforces is required to hire a qualified
safety officer. The safety officer is required by law to submit a report to the ministry in
every three months regarding conditions at the company. In addition, safety officer
hold liability for any damage or injuries caused by below standard occupational health
and safety. In reality, it is not easy to find qualified safety officer with a degree in
occupational health and safety, especially in small company located in the provinces.
1. Industrial Relations
The effective industrial relations system, actually, does not eliminate conflict,
but it provides conflict resolutions that minimize costs to management, employees, and
society. The collective bargaining system is one such web of rules or institution as
related mechanisms for example, mediation, arbitration, and participation in decision
136 - 144
making. Hence, the scholar suggested the successful industrial relations system
composes of four factors namely;
1. environmental context such as technology, market pressures, legal framework
specifically as it affects bargaining power;
2. participants including employees, unions, management, and government;
3. rules of the game that describe a process which labor and management interact
and resolve disagreement such as the steps followed in grievance procedure,
4. ideology allow industrial relations system to operate properly such as
acceptance of the capitalist system, the roles of other participants.
Recently, industrial relations model is helpful in laying out the types of decisions
management and unions interaction for attainment of goals in wages and benefits, job
security, the rights and responsibilities of unions and management. The interaction
between management and unions occur in three levels including; strategic level, labormanagement level, and workplace level (Noe et al, 2012).
Industrial relations’ goals and strategies are explained by Noe et al (2012)
compose of society, management, and labor unions. Where, society spell out on the
institution of industrial conflict that is the negotiation goes through collective bargaining
than battling in the streets. The collective bargaining (Dessler, 2012) defines as the
process that management representative and the union meet negotiate a labor agreement.
It helps to reduce economic losses cause by strike, and contribute to society stability.
From this reason, the labor union is essential component of democratic society.
While, management concerns with management decision either encouraging or
discouraging the unionization of its employees. The management may discourage unions
because the fear of higher wage and benefit costs, disruptions caused by strikes,
adversarial relationship with employees, and constraints placed on decision making
flexibility. Management avoids unionization by providing employment terms and
conditions that employees will perceive sufficient attractive and equitable. So that,
employees would feel little gain joining union. However, if employees are already
represented by a union, the management will stress on dealing with employees as a
group rather than individually. Yet, the management objectives such as controlling labor
costs and increasing productivity, maintaining management perks in staffing levels and
work rules have to be remained. Management has another option by decertify a union by
encouraging employees to vote out the union in a decertification election.
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137For labor union, it is the collective action to give workers a formal and
independent voice of their work. Labor unions try to represent their members’ interests
in negotiation decision. The main goal of labor unions is bargaining effectiveness and
influence to make the employees’ voices heard and to effect the changes in the
workplace. The right to strike is one of the important bargaining powers. The success
of strike depends on the costs imposed on management versus on the union. Where,
the number of union’s membership is critical, more member is greater ability to
disrupt production and greater financial losses.
Thence, Mitchell & Gamlem (2012) state the central piece of industrial
relations or employee relations is organizational culture. It refers to how well the
organization treats employees fairly, professionally, and respectfully. Management
shall balance the needs of employees and organization that reflect a positive culture. It
obtains from recruitment, retention, morale, and productivity. As well as, building the
atmosphere of trust. A positive culture that treats employees fairly should include;
opportunities for growth and advancement, rewards and recognition, feedback and
communication, problem solving and counseling, fair and consistent treatment of
employees, and a safe and secure work environment. As today, organization with an
effective employee relations program and a culture of respect are likely to remain
union free.
As refer to Dessler (2017) revealed the survey results that if an organization
pay attention to employee engagement, it would help to concrete positive relationships
between employees and management and decreases the possibility of employee
seeking union representation. Further study from Gallup, also, in 500 organization
confirms that employee engagement has impact on nonunion. As an evidence from the
findings, it suggested that the fair treatment system, good benefit, building trust could
improve employee engagement in an organization and would minimize labor union
representation. Since, the main key factor of union representation is seeking security
for themselves.
At the same time, Woods, Johanson & Sciarini (2012) highlighted the
negotiation and collective bargaining require both management and unions to bargain
in good faith over mandatory bargaining issues. If fail to do so, it will lead to unfair
labor practice charge.
138 - 146
The mandatory bargaining subjects are directly affecting the employment
relationship, such as wages, benefits, work rules, hiring and firing, and working
conditions. Then, scholars have segregated the type of bargaining issues into three
namely; mandatory issues, voluntary issues, and illegal issues as summarized in figure
6.1 below.
Figure 6.1 Bargaining issues
Source: Adapted from Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing
Hospitality Human Resources (5th ed.). Michigan: American Hotel & Lodging Educational
Institute.
Collective bargaining
Most of collective bargaining occurs during the primary bargaining stage of
negotiations. At this point, both sides are making concessions to debate topics openly,
and try to resolve their disputes without a strike. Both management and unions should
avoid threatening behavior. Successful negotiations depend on complete preparation of
the topics. It is also depending on the management understanding of current contract,
pending issues, and why the issues are important to union’s members. Meanwhile, the
management needs to prepare its argument in advance and study potential impacts of
the union’s demand.
So, Dessler (2012) suggests the effective negotiation on collective bargaining. It
is important to bear in mind that knowledge is power. Then, having information is
advantageous. A good negotiator require judgement which is the ability to strike the
right balance between gaining advantages and reaching compromises.
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139 Therefore, the bargainer should be sure to set objectives and understand its
reason, not hurry, when in doubt consult with associates, well-prepared with firm data,
strive to keep some flexibility, do not concern with own self, face saving, alert real
intentions of other party, good listener, build reputation for being fair but firm, learn to
control emotion, link the topics, collective bargaining is a compromise process not
having all pie, understand people and personality, transparent and openness.
Strike
A withdrawal of labor called ‘strike’. Strike came up with negotiation that
could not be solved. There are four main types of strikes including;
1. economic strike occurred when failure to agree on work condition and
wages;
2. unfair labor practices strike is the strike against illegal conduct by
organization towards employees;
3. wildcat strike is not officially sanctioned by union leadership or by majority
of union members. It occurs when one group of employees believes that being
treated unfairly; and
4. sympathy strike occurred when one union strikes in support of another union
strike.
Grievances
Dessler (2012) defines grievance process as a process that employer and union
agreed to follow whether some action violated the collective bargaining agreement.
Where, the discipline cases, seniority problem, promotion, transfers, and layoffs would
top of the grievances causes. Others would include grievances growing out of job
evaluations and work assignments, overtime, vacations, incentive plans, and holidays. It
is consistent with Woods, Johanson & Sciarini (2012) have outlined most common types
of grievances filed by unions are security in job, compensation practices, working
conditions, ambiguous terms or unclear contract, employee disregard company rules.
Moreover, they have figured out the union grievance procedure into 4 steps as follow;
1. employees complain to a frontline supervisor about the problem. In
this step, there is no report needed. About 75 percent of grievance
resolve at this stage.
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148 2. employees complain to department head or personnel office with the aid of
union official. In general, employees are required to submit the grievance in
writing.
3. union official presents the written grievance to company president.
4. written grievance is presented for the judgement.
Preventing grievance
Grievances can be prevented if management follows a policy of fair and
consistent management practice, select, hires, and trains employees at the first place.
Therefore, it is essential to establish and adhere to specific discipline policy and
associated procedures. Organization should set specific rules for all employees to follow.
The rules are used as guidelines by which management can enforce disciplinary actions.
The most important step in grievance is clear, complete and accurate documentation of
facts. It is the action that require discipline, a manager should first document the facts
throughout description of what happened. It must also include dates and times of the
event, names of people involved, and witnesses. Then, the progressive discipline shall
establish which allow employees to know they will be treated fairly.
The progressive discipline policies are based on McGregor’s four rules include;
immediate means managers should exercise disciplinary action immediately to highlight
the connection between unacceptable behavior and discipline. Second step is warning,
this step managers should be instructed to warn subordinates in advance about the
consequences of breaking the rules. Later step is consistent enforcement and impersonal
enforcement of discipline. Managers have to enforce the rules consistently, free from
bias. In sum, most progressive discipline consists of oral warning, written warning,
suspension, and discharge.
2. Thailand’s Labor Law
In Thailand, the Ministry of Labor (MOL) is the government agency taking care
of labor law and rights of all workforces. The labor law was issued and amend several
times in accordance to the environment changes. Under the Ministry of Labor is the
Department of Labor Protection and Welfare (DLPW) is affiliated. DLPW is responsible
on labor protection and relations.
141
- 149 Whereas, the Department of Skill Development (DSD) is taking care of
employment promotion like skill development and employment (DLPW, 2020
December 27). The main labor law in currently in used called Labor Protection Act
B.E. 2541. It composes of 16 chapter such as employment in general, employment of
women, young workers, wages, welfare, occupational health and safety, supervision
etc.,
The law indicates normal working time 8 hours per day, not exceed 48 hours in
total per week. If the occupation is harmful to health and safety of employees, the
working hours must not over 7 hours a day, and 42 hours a week. Where the remaining
hour should be agreed between employees and employer. The employer must notify the
starting and ending time of daily work, condition of work, and nature of work. For
holidays, employers must not require employee to work unless the nature of job is
continuously performed. If stop working may cause damage to the work. For example;
hotel business, entertainment, transportation, food and beverage business, medical.
Whilst the position of sale and service depends on necessity.
For young workers, the organization must not employ child under 15 years old.
In case, there is young worker under 18 years old, the employer must declare to labor
inspection within 25 days of commencing work. Young workers are not allowed to
perform hard and harmful task, for instance; metal pressing, heat, cold, hazardous
chemical, electric or motor saw, radioactive material. Where the place of work like
slaughterhouses, and gambling are prohibited.
In chapter 5 of labor act concerns with wages, overtime pay, holiday pay. The
MOL (2020 Jan 01) has announced latest minimum wages standard for labor
differently in each part of the country ranging from THB 320-336, such as Bangkok
and its vicinity provinces minimum wages is THB 331, while Phuket and Chonburi
minimum wages is THB 336 etc.,
Therefore, it can be concluded that there are different type of labor law in
Thailand. It is can be explained as follow;
The Labor Protection Laws are laws that define the rights and duties of
employers. This is in order to provide good employment, hire, and conduct business
relationship between employer and employee. Employees could get the right benefits.
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150 Where, the Labor Protection Act establishes rights and duties between
employers and employees. It is setting minimum standards for hiring and using labor
arrangement of work places and equipment. So that, the workers’ health is in good
condition and safety in life and body, and reasonable compensation.
The other law is Labor Relations Act. It is a law that sets guidelines for treating
each other between two parties, the employer and the employee. So that both parties can
have a good understanding of each other. They can agree on the rights and duties. And
benefits in working together as well as establishing methods for resolving disputes or
labor disputes that arise to be terminated quickly, achieving peace in the workplace. This
will affect the economy and the security of the country.
Whereas, State Enterprise Labor Relations Act such law is the State Enterprise
Employee Relations Act, B.E. 2534. The law on the protection of labor and labor
relations in the state enterprise sector. It is the protection of benefits which is not less
than the minimum standard under the labor protection law.
The occupational Safety Act is the set of minimum standards for establishments
to comply with safety and good health without accidents, and disease cause from
working.
The essence of the law that is crucial for employees were summarized as follow;
the termination and compensation rates has been updated and read that in the event the
employer terminates the contract without prior notice to the employee. The employer
shall pay the employee in the amount equal to the wage that the employee should
receive. It is start from the date the employee is dismissed from work until the effective
termination of the employment contract.
Albeit, in case of the employer terminates employee. The employer must pay
wages, overtime, working hours pay, holiday pay. And the money the employer is
obliged to pay as the employee is entitled to receive within 3 days from the date of
termination. Bearing in mind that, in case of the employer is obliged to temporarily stop
the business in whole or in part which is not a force by majeure event. The employer
shall pay the employee not less than 75 percent of the wages before the employer ceases
the business. The payment must be paid throughout the period the employer does not
allow the employee to work.
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151 The criteria for payment of dismissal compensation is as follows; working 120
days but less than 1 year get compensation 30 days; working 1 – year but not reach for
3 years get compensation 90 days; working 3 years to 5 years and more but not reach 6
years get 180 days of compensation; 6-9 years but not reach 10 years get 240 days of
compensation; worked for 10 years, but less than 20 years, received 300 days of
compensation, and worked more than 20 years receive compensation for 400 days.
For business leaves, the law states that an employee the right to take leave for
essential business Not less than 3 working days per year and must pay wages equal to
the wages on a normal working day. While, maternity leaves a pregnant female
employee have the right for maternity leave. One pregnancy is not more than 98 days,
including leave for pregnancy examination, before giving birth, and include holidays
during the leave. The employee will receive wages during maternity leave from social
security for 45 days and from employer for no more than 45 days.
The employer must set wages, overtime pay, work pay - holiday to employees
working with the same quality and quantity, equal value at the same rate, regardless of
whether the employee is male or female. If the employer intends to relocate to a new
location or move to another location. The employer shall post a notice to notify the
employee in advance publicly. The employee can clearly see the notice for at least
thirty days before the date of relocation. And the announcement must be clear enough
to understand which location and when an employee will have to be moved.
3. Occupational Safety, Health and Environment
The occupational safety, health and environment is incorporated in the labor
protection act. It refers to action or working conditions that are free from causes which
may harm to life, body, and mind or health due to work, or in connection with work.
The act stated that employer duty is to organize and supervise the establishment safety,
hygienic, and work environment. As well as, to promote and support the work of
employees to prevent workers from harm to life, physical, mental and health.
Employees are obliged to cooperate with employers in implementing and promoting
the occupational safety, health and environment. To provide safety for employees and
the workplace.
144- 152
The employer shall arrange occupational safety officers, personnel, agencies or
groups of persons to conduct safety in the workplace in accordance with the criteria,
methods and conditions prescribed in the Ministerial Regulation.
Occupational safety officers and personnel one must register to Department of
Labor Protection and Welfare. It is enforced by law that employer must inform
employees in case of working conditions or doing work that may endanger the
employee's life, physical, mental or health. Let the employer notify the dangers that may
arise from work and give work manuals to all employees before employees go to work,
change jobs, or change places of work.
The employer must arrange for the executives, supervisors and all employees to
receive training on occupational safety, health and environment in the workplace. This is
to manage, take action on safety, occupational health and working environment safely. It
includes that the employer accepts employees to work, change work, and change the
place of work or machinery, equipment. This could endanger the employee's life,
physical, mental or health. The employer shall provide training for all employees before
starting work.
The employer must post a warning symbol, hazard warning, and occupational
health and environment notices. It includes statements showing rights and duties of
employers and employees as specified by the Director-General in a conspicuous place at
the workplace.
In the event that the supervisor is aware of a defect or damage that could
endanger the employee's life, physical, mental or health. The preventive actions must be
taken within the scope of their responsibility or assigned as soon as they become known.
In the event that it may not proceed inform the management or employer to take
corrective action without delay (MOL, 2020).
By way of illustration, Finnair (2005) a national flag carrier of Finland has issued
the ergonomic cabin service work manual. The aim is to educate cabin personnel to
healthy working habits. The ergonomic is the archetype of work environment to for
safety, healthy, and comfortable and motivation. Ergonomic concerns with work
postures and methods. The strain caused by physical conditions depends on the rhythm
and management of work. In view of the fact that working in the aircraft cabin
environment, equipment, tools used by cabin crew, personal equipment, complexity and
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153 diversity of the routes flown, environment conditions can be either positive or negative
to cabin staff.
Thence, the airline has segregate ergonomic factors in a flight work
environment into; repeated lifting, crouching, reaching, standing work, limited space,
work tools not adjustable, irregular working hours, jet lag, less oxygen, pressure
fluctuations, dry air, and lighting. Therefore, the manual instructs cabin crew on the
posture, lifting, how to exercise onboard and relaxing to relief the muscle pain of the
neck and shoulders.
4. Diversity Workforces
As mentioned earlier on the organizational fair treatment of toward every
employee. Given the fact that, presently, the modern economy most of organizations
are diversities in term of generations, and nationalities. Hence, the rules and
regulations should implement equally under Thai’s labor protection act. Meister &
Willyer (2010) said shifting workforce demographic is one of the organizational
changes. The demographic trend that currently changing is the working-age decline
due to the decline in current birth rate, such as in Japan, China, Korea, Hong Kong and
Taiwan. There is a lower birth rate, which will lead to the lack of replacement laborers
in the future. Thailand is one of the countries which has lower birth rate and inevitably
facing the lack of manpower. It is becoming aging society now. As Espinoza, Ukleja,
& Rusch (2010) stated that a global phenomenon is taking place namely global aging.
In developed countries, they will lack of labor supply. The existing workforces will
leave the labor market due to retirement and mortality. There will be the competition
finding talents and high-skilled labor.
While, Meister & Willyer (2010) summarized a result of such shortage of
replacement workers, the existing labor will extend their working life longer.
Resulting in differences and diversity in the organization. The workers in the
organization may consist of up to five generations workers who have to work in the
same organization. The point of difference in the workplace are the ages, and ethnic
diversity. These are the issues that organizations and future leaders must prepare to
manage.
146- 154
The future organization will consist of several generations of employees (Gens)
working together, so in order to manage the organization for success, leaders must know
the characteristics of each generation, learn how to communicate, compensation for the
retention of existing employees. Furthermore, leaders must attract new talent employees
to work in the organization, as well as to create an organization engagement for success.
The organization consist of 5 generations comprising;
1. Traditionalists are people who born before 1946, the peculiarity of this people
is a generation of integrity. The most important events that influenced this group
were the World War II, and the innovations that took place during this time is a
fax machine.
2. Baby Boomers are people who born in between 1946-1964. The peculiarities
of this generation are competition, fight, work hard. The influential events are
the struggle for women's rights. The innovation is computer.
3. Generation X are people who born in 1965-1976. A distinctive feature of this
generation will be self-assured, independent. The important events that influence
this generation is the Persian Gulf War. Whereas, the innovations that occur in
this age are mobile phone.
4. Millennials are people who born in 1977-1997. Its characteristic is someone
who likes speed, ambitious, addictive to communication, Google and Facebook.
Social media is an innovation that occurs in this era and has an influence on
millennials. Millennials choose organizations they trust, an organization that
deliver benefits to society, and can combine life and work together. They can
work anywhere and anytime.
5. Generations 2020 are those people who born from 1997 onward. The main
characteristics of this generations are living with communication, smart and
knowledgeable about online media. The innovation in this generation is
smartphone application. They have freedom to learn from various sources at any
time from smartphone. Smartphone is important tool to live their life, working
and learning.
Though, having multiple generations in organization, the communication pattern
is important for career inspiration and passing on knowledge from generation to
generation. It is necessary to understand the individual characteristics of each
generation.
147 - 155
Meister & Willyerd (2010) introduced communication techniques that is
suitable for each generation. Communication details include form of communication,
content, context, and recipient attitude, technique, speed, and frequency must be
considered.
As such, traditionalists would like a formal style of communication. The
message must consist of complete details of content. As for the context of
communication, it is related to stability and a historical perspective. In terms of
attitude, there will be obedience to the authority. And prefer to read from printed
documents or face-to-face communication rather than reading from electronic devices.
They are reasonable to finish the communication in the timeframe to achieve the
communication result.
For baby boomers, they love to communicate in a semi-formal way. They will
receive quite a bit of information and carefully look at the results. They stay in the
rules, and communicate when necessary. It is preferable to read printed documents or
face-to-face communication, as is the case with the traditionalists. As for generation X,
this generation is less interested in formal communication. They do not like tardily.
Gen X cares about himself, dares to think, dare to ask like the Millennial. Online
communications are preferable wherever and whenever. The millennials, where the
communication style will be playful. The current topic of communication is faster,
preferring technology communication rather than confrontation, as summarized in
below table 6.1.
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148Table 6.1 Characteristics of Generations
Traditionalists
Baby Boomers
Generation X
Millennials
Style
Formal
Semiformal
Not so serious;
irreverent
Eye-catching
fun
Content
Detail; prosestyle writing
Chunk it down
but give me
everything
Get to the
point
If and when I
need; I’ll find
online
Context
Relevance to my
security;
historical
perspective
Relevance to
the bottom line
and my rewards
Relevance to
Relevance to
what matters to now, today and
me
my role
Attitude
Accepting and
trusting of
authority and
hierarchy
Accept the rules
as created by
the
traditionalists
Openly
question
authority; often
branded as
cynics and
skeptics
Ok with
authority that
earns their
respect
Tactics
Prints;
conventional
mail; face-toface dialogue or
by phone; some
online
information/inter
action
Prints;
conventional
mail; face-toface dialogue;
online tools and
resources
Online; some
face-to-face
meetings (if
really needed);
games;
technological
interaction
Online; wired;
seamlessly
connected
through
technology
Speed
Attainable within Available;
reasonable time
handy
frame
Immediate;
when I need it
Five minutes
ago,
149 - 157
Table 6.1 (Continued)
Frequency
Traditionalists
Baby Boomers
Generation
X
Millennials
In digestible
amounts
As needed
whenever
constant
Source: Adapted from Meister C. J., Willyer K. 2010. The 2020 Workplace. New York: HarperCollins.
However, regardless of the age, all employees have the same needs - feeling of
value to organization, being trust, getting assistance and a sense of belonging to
organization. So, managers require to understand the differences, learn how to connect
the gaps between generations, especially, the millennials. Leaders need to consider the
relationships with them. Since, millennials like to be social, involve in politics, love to
learn and being creative, and who are smart about technology. Organization should
engage with people of all generations to be one. Then, the workforce engagement
model in 2020 has been propose as shown in figure 6.2 as follows;
Practice areas
Principles
Values, Brand, CSR
1. Collaboration
Demonstrated by
2. Authenticity
3. Personalization
Social Recruiting
Uber-connection
4. Innovation
Social Learning
Accelerated
leadership
5. Social connection
Figure 6.2 Workforce Engagement Model 2020
Source: Adapted from Meister C. J., Willyer K. 2010. The 2020 Workplace. New York:
HarperCollins
From Figure 6.2, it can be seen that the model for organizational participation
in the future consists of 5 principles including;
150- 158
1. Collaboration refers to teamwork from the whole organization in particular
with regards from external parties such as customers, government, and
suppliers;
2. Authenticity refers to the transparency in the transmission of operational
messages within the organization, which reflects the organizational values;
3. Personalization refers to paying attention to the individuality of employees,
providing the benefits that each generation of employees’ needs;
4. Innovation refers to the continuous innovate for the organization and
employees to stay sustainable. And attracting new generation employees into
the organization; and
5. Social connection refers to organization understands the basic needs of
human beings as being a part of society. Organization offers work and activities
in a fun atmosphere.
From all five principles, it will lead to practice areas, which will be the values of
Organization, image creation, and social activities. This can be done by the
following 4 activities as following;
1. Social recruiting
2. Uber-connection means organization using existing technology to connect
with online society, customers and external parties;
3. Social learning is self-learning, the use of knowledge to create opportunities
and gathering people. Building a network learning gained from work and from
the network. It is because of different people complement each other;
4. Accelerated leadership is developing leadership competencies faster through
management innovation, creating knowledge for employees to enter new
position. This may be done through corporate social responsibility (CSR)
activities to help communities live on their own as well as the employees learned
from the projects.
151- 159
5. Unit Conclusion
Industrial relations system enhances conflict resolutions minimizing costs to
management, employees, and society. The successful industrial relations system
composes of environmental context, participants, rules of the game, and ideology. The
industrial relations lead to collective bargaining. It is a process that management
representative and the union meet negotiate a labor agreement. Collective bargaining
helps to reduce economic losses cause by strike, and contribute to society stability.
Strike is a withdrawal of labor called ‘strike’. Strike came up with negotiation that
could not be solved. Grievance is a process that employer and union agreed to follow
whether some action violated the collective bargaining agreement. In Thailand, the
Ministry of Labor (MOL) is the government agency taking care of labor law and rights
of all workforces. The main labor law in currently in used called Labor Protection Act
B.E. 2541. It composes of 16 chapter such as employment in general, employment of
women, young workers, wages, welfare, occupational health and safety, supervision
etc., The occupational safety, health and environment is incorporated in the labor
protection act. The employer shall arrange occupational safety officers, personnel,
agencies or groups of persons to conduct safety in the workplace in accordance with
the criteria, methods and conditions prescribed in the Ministerial Regulation.
6. Exercise
6.1 Questions for revision
1. Could you figure out the successful industrial relations?
2. How could you outline the pros and cons of collective bargaining?
3. Why should employees join the unions?
4. How could organization avoid employees to set up union?
5. Could you define strike and analyze the causes of strike?
6. How could you explain grievance?
7. According to Thailand’ s labor law, do firms can employ children under 15
years old?
8. Does minimum wages are equal in every part of Thailand?
9. Shall employer provides safety training for employees in any circumstances?
10. How could you define diversity?
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160 11. Could you analyze types of diversity in the workplace?
12. What makes modern organization facing diversity?
6.2 Discussion
Divide students into three groups find out information concerning with below
topics by using technology tools, discuss and share your information with other
groups.
1. Due to the pandemic COVID 19, the company allow employees to work
from home 3 days/week. But the company won’t pay for the day employees
stay at home instead accounted for holidays. As refer to Thai’s labor law, do
you think the company doing things, right or not? Please explain and analyze
your stand point.
2. According to industrial relations, preventing union company must create
employees’ engagement. However, during the spread out of COVID 19 most of
employees stay and work from home. How could you, as HR manager creating
employees’ engagement?
3. You are new employee in big organization where there are diversities both
in term of generations, and nationalities. How would you handle the everyday
situation facing with conflict rather than creating teamwork environment?
6.3 Testing
1. Employees join unions because they need job security, raise wages and
benefit. True or False?
A. True
B. False
2. The interaction between management and unions occur in three levels
namely……..
A. strategic, labor-management, and workplace
B. individual, team, department
C. team, department, organization
D. union, collective bargaining, industrial relations
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3. the main goal of labor unions is bargaining ………. and ……….. to
make employees’ voices heard, and to effect the changes in the workplace.
A. effectiveness, influence
B. wages, benefit
C. compensation, job security
D. grievance, engagement
4. Organization can prevent employees setting up unions by……
A. create employee relations and positive culture
B. pay attention to employees’ life span
C. treat everyone equally
D. negotiation and collective bargaining
5. Wages, benefits, work rules, hiring and firing are an example of mandatory
bargaining. True or False?
A. True
B. False
6. The effective negotiation on collective bargaining require………as a power.
A. managers
B. group
C. knowledge
D. information
7. Which of these choices is not strike?
A. sympathy
B. unfair
C. economic
D. withdrawal
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162 8. The grievance can be prevented by………
A. establish discipline policy and associated procedures
B. management practice
C. enforcing discipline actions
D. unions
9. The main reason leads to the lack of workforces is…..
A. organizational changes
B. diversity
C. demographic shift
D. global competition
10. Millennials born with the rise of social media. True or False?
A. True
B. False
7. Unit References
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
DLPW. (2020). History Background. Retrieved from
https://www.labour.go.th/index.php/en/about-us-en.
Espinoza, C., Ukleja, M., & Rusch, C. (2010). Managing the Millennials. NJ:
John Wiley & Sons.
Finnair. (2005). Ergonomics for Cabin Service Work. Cabin Service
Department Finnair Health Services.
Meister C. J., Willyer K. 2010. The 2020 Workplace. New York:
HarperCollins.
Ministry of Labor. (2020). Minimum Wages Rate. Retrieved from
https://www.mol.go.th.
Mitchell, B., & Gamlem, C. (2012). The Big Book of HR. NJ: Career Press.
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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
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Unit 7 Learning Management Plan
Title: Compensation and Benefit
Total Time in Learning/Teaching: 6 Hours
…………………………………………………………………...
Introduction
Human resource management practices need to handle compensation and
benefit fairly. At the same time, compensation and benefit is used as a tool attracting
new talents. In global economy, the government regulates payroll taxes, minimum
wage, and antidiscrimination. Legal compliance is necessary while HR professional
shall maintain organization benefit as well. The compensation could be both intrinsic
and extrinsic. The compensation is one component of organization’s human resource
system. Compensation professional must interact with others such as union
representatives and top executives. Employee benefits are important element of
employee compensation package. The benefit includes paid vacation, medical
insurance, retirement plans, and tuition reimbursement.
Learning Outcomes
At the end of this unit the students should be able to:
1. segregate compensation and benefit;
2. describe intrinsic and extrinsic compensation;
3. outline strategic compensation and benefit;
4. implement benchmarking;
5. outline special group compensation.
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Scope of Contents
1. Compensation and benefit
2. Pay system
3. Special group compensation and benchmarking
4. Compensation in Hospitality Industry
5. Unit conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Testing
Learning and Teaching Resources
1. Textbooks and Main Documents
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Martocchio, J. J. (2015). Strategic Compensation: A Human Resource
Management Approach (8th ed.). Singapore: Pearson.
Martocchio, J. J. (2014). Employee Benefits: A Premier for Human Resource
Professional (5th ed.). Singapore: McGraw-Hill.
Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (11th ed.).
Singapore: McGraw-Hill.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging
Educational Institute.
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2. Important Documents for Extra Study
Kankaew, K., & Charernnit, K. (2020). Low Income Rate Causing the Lack of
Pharmacist. Systematic Reviews in Pharmacy, 11(12), 994-996.
Kankaew, K. (2020). Strategic Compensation for Talent Group and
Expatriates. The Golden Teak: Humanity and Social Science Journal,
26(3), 40-52.
Measurement and Evaluation
Testing
Assignments
Presentation
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Unit 7
Compensation and Benefit
The challenge for most of company is to develop a compensation philosophy
and a pay system consistent with its objectives and that will reinforce the culture, and
behavior needed for the organization to be effective and successful. The compensation
needs to be reviewed frequently to ensure that it still meets the business needs and
continues to align with the vision and mission of the organization. Whether, lead,
follow, or meet the market pay structure, which compensation strategy should
organization associated? Compensation is part of total rewards structure. It is a key
strategy for successful organization (Mitchell & Gamlem, 2012). The total reward
program is a combination of cash, equity, and benefits that employer pay for the work
of employees. The component of total reward program is monetary compensation
(extrinsic), and nonmonetary compensation (intrinsic). Nonmonetary compensation is
basically the culture aspect of the firm. Where, monetary is divided into direct
compensation and indirect compensation. Direct compensation is a payment of money
to an employee, while indirect compensation is pay for time not worked, protection
plan, such as insurance, disability, social security, saving plan.
1. Compensation and Benefit
Employees work for organization using knowledge, skills, and experiences
gained through learning or from their previous jobs that have been accumulated
through experiences. In return, organization responds to employees’ motivation by
using compensation in the form of wages and benefits at different levels (Kankaew &
Charernnit, 2020). Compensation is both intrinsic and extrinsic rewards which
employees receive from conducting their tasks. The intrinsic compensation is
employee’s psychological mindset resulting from performing their jobs. While, the
extrinsic compensation can be both monetary and nonmonetary rewards.
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170 Together, both extrinsic and intrinsic compensations are called total rewards or total
compensation. Compensation professionals are responsible for extrinsic compensation.
On the other hand, organization develop professional to promote intrinsic
reward through effective job design (Martocchio, 2015). The compensation
professional set up monetary compensation programs depend on the employees’ job
performance levels, or learning job-related knowledge or skills. Monetary is core
compensation, whilst nonmonetary refers as employee benefits such as medical
insurance, paid time off like vacations. Thus, the compensation plan model has been
proposed as shown in figure 7.1 below;
Total Compensation
Extrinsic Compensation
Core
Compensation
*Hourly wage
*Annual Salary
Adjustment to Core
Compensation
*Cost of living
*Seniority
*Merit
*Incentive
*Person-focused
Intrinsic Compensation
Legally Required
Employee Benefits
*Social Security Act
*Works Compensation laws
*Family & Medical Leave
Act
Discretionary Employee Benefits
*Health insurance
*Disability insurance
*Life insurance
*Retirement plans
*Paid time of
*Accommodation and enhancement
Figure 7.1 Compensation Plan Model
Source: Adapted from Martocchio, J. J. (2015). Strategic Compensation: A Human Resource
Management Approach (8th ed.). Singapore: Pearson.
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From figure 7.1, consequently, the core compensation or base pay. It is the
money employees receive for performing their task. Employee continues to receive
base pay as long as he/ she remain in the job. Organization distributes base pay in one
or two type namely hourly pay or wage, or as salary. Employees get salary for
working regardless of the number of hours worked. In contrast hourly pay, employees
earn for each hour worked. While, annual salary calculated by weekly rate for
employees.
Normally, base pay amount was set in accordance with skill level, effort, and
responsibility required to perform the jobs and severity of working conditions.
However, there are other factors concerned such as the law, internal consistency,
market competitiveness, and recognition of individual contribution. On and on, base
pay was amended due to the increasing of cost of living, differences in employee’s
performance, skills, and knowledge.
Cost-of-Living Adjustment (COLAS) exemplifies periodic base pay increase
that are founded on changes in prices of goods, and life expenses. This method is most
common among workforces represent by unions. In considering seniority pay, it is a
system reward employee with periodic addition to base pay according to employee’s
length of service in performing the task. This method believe that employees become
more valuable to organization. The employee will leave organization, if he/ she does not
have clear idea that salary will increase. This rationale comes from human capital
theory. The theory states that employees’ knowledge and skills generate productive
known as human capital. The workforces can expand knowledge and skills from formal
education and training. This is including on-the-job training, experiences. And on
specific time, employees presumably refine existing knowledge and skills or acquire
new ones that enable them to work more productively.
Merit pay refers to reward employees earn permanent increases to base pay
according to their performance. Merit pay system leads to excellent results or effort,
motivates future performance, and helps employers retain talents. At the same time,
incentive pay or variable pay rewards employees for partially or completely
accomplishing a predetermined work objective. Incentive pay is a compensation that
depending on employee’s achieving of some standard based on preestablished formula,
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individual or group goals, or company earning, such as reach target sale at THB 10
million. The incentive pay will be delegated to specific teams or group of employees.
Recognizing that pay-for-knowledge plans reward for professional employees
who successfully learning specific courses. Meanwhile, skill-based pay mostly used for
employees who perform physical work, increases these employees’ pay as they master
new skills. Both types of pay programs reward employees for the range, depth, and type
of skills or knowledge employees are able to apply productively to their task.
Employee Benefits
Employee benefits are nonmonetary rewards containing variety programs that
provide paid time off, employee services, and protection programs. Firms offer various
benefits on a discretionary basis. The discretionary benefits, according to the law, firms
must provide particular set of benefits to employees. The discretionary benefits
comprise of three categories concretely; protection programs, paid time off, and
services.
Protection programs are, for instance, family benefits, promote health, and
protect from income loss caused by catastrophic, disability, serious illness, or
unemployment. Whereas, paid time off is providing employees with pay for time during
their vacations. And last, services are the supporting as tuition fees, day care assistance
to employees and their families.
2. Pay System
Milkovich, Newman & Gerhart (2014) stated pay systems are the system of
compensations designed to achieve specific objectives. The basic objectives of pay
systems are; efficiency, fairness, ethics, and compliance with the laws and regulations.
The efficiency is for improving performance, increasing quality, delighting customers
and stockholders, and controlling labor cost. Notwithstanding, fairness is to ensure fair
treatment and recognize personal and family well-being. Firms practice by recognizing
employees’ contribution and providing higher pay for greater performance, experience,
or training. While, employee’ s needs are concerning with fair wage as well as fair
procedures. That is the process need to make pay decision fairly.
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Compliance to the laws and regulations are complying to the country’s
compensation laws and regulations. If laws changed, pay systems have to change and
ensuring applicable to the laws. As a multinational company, organization must
comply with the laws of all the countries in which they operate.
Ethics refer to company cares about how its result are achieved. Company
should integrate all three objectives; efficiency, fairness, and compliance with the laws
together. It is worthy noting that sometimes pay systems create ethical dilemma, such
as executives bonus payouts was not evaluating competitor’s pay rates. While, the
compensation professional remains silent during ethical misconduct and outright
malfeasance.
It can be clearly seen that pay objectives provide several purposes. First, it is a
guide the design of pay systems. For instance, if the objective is to increase customer
satisfaction, so that the incentive program and merit pay should be used to pay for
performance. Another example is to develop innovative products. Hence, organization
may need training, good job design, and team building may use to reach objective.
Where, the pay systems must be aligning with this objective by providing salaries that
least equal to competitors, but increasing skills and knowledge. The objective is also
serving as the standards for judging the success of pay system. If the objective is to
attract and retain the best, brightest talent employees, but they quit the job for higherpaid. The pay system may not perform effectively.
Therefore, companies must address the policy decisions particularly as regards;
internal alignment, external competitiveness, employee contributions, and management
of pay system. These policies are the foundation for creating pay systems. The four
policies choices are also served as guidelines for managing pay to accomplish the
system’s objectives.
The internal alignment is the comparison among job or skill levels inside
organization. Jobs and skills of employees are compared in terms of their relative
contributions to the company business objectives. Such as, how does the work of
programmer compare with system analysis, software engineer, and software architect?
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Does on contribute to solutions for customer and satisfaction of stakeholders
more than another? Internal alignment helps to determine what is an appropriate
difference in pay for people performing different work. It relates to the pay rates for
employees doing equal work and for those who do dissimilar work. Pay relationships
within the firm affect three compensation objectives. Those are;
1. the employee’s decision to stay with organization, to become more flexible by
investing in extra training, or seeking new and greater responsibility.
2. fairness is affected through employees’ comparisons of their pay to the pay of
others in organization.
3. compliance is affected by the basis used to make internal comparison, like
paying on basis of race, gender, age, national of origin. This might be illegal in
some countries.
External competitiveness is pay comparison with competitors. How much
organizations wish to pay in comparison with others? The external competitiveness,
firms need to stress on how much and what types of other firms paid. This is can be
called market driven pay. The company might pay higher than competitors in order to
attract the best applicants. There are two key points to be considered namely; to ensure
the pay sufficient to attract and retain employees, and to control labor costs thus the
products or services of organization can remain competitive in the global market.
Employee contributions or pay mix refers to an important policy decision due to
it affected directly to employees’ mindset and working behaviors. Compensation
professional should consider performance-based pay. Performance-based pay reflects
fairness in the employees needs. Pointing out that pay mix composes of base pay,
incentives, stock, and benefits.
Management policy on pay system is to ensure that the right people get the right
pay for achieving the right objectives in the right way. Managing compensation is now
becoming more strategic instead of the past. Today, managing compensation counts as a
part of business. It means that better understanding and analyzing the impact of pay
decisions on people’s behaviors and organization’s success. It helps to attract and retain
the right employees. As well as, engaging employees to be more productive.
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Pay techniques are tied with the organization pay policies consequently; internal
alignment pay technique need to relate with job analysis, job description and internal
structure; for competitiveness organization should consider market definitions, surveys,
policies lines, and pay structure; for contributions the organization should apply pay for
performance; and last management needs to assess the cost, communication and
changes. Finally, the pay systems have been concluded in figure 7.2.
Figure 7.2 Pay Model
Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (11th ed.). Singapore: McGraw-Hill.
3. Special Group Compensation and Benchmarking
From management perspective, the success of organization derived from the
minority, but talented that stands out above the vast majority of employees. This group
of people create and drive strategies for an organization's competitive advantage. They
were called talent or special group. Special group also refers to expatriates, and top
management. Expatriates are people who reside in other country which is not their
country of origin for the purpose of working more than one year.
In this sense, expatriates are mainly refers to white collar who hold important
role in organization. So that, the compensation for special group is higher than other
employees. Due to the success of the organization does not come from the work of
everyone equally. Rather, it is caused by a group of talented people who have important
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responsibilities, risks management, and generate income to the organization
(Kallayanee, 2013).
As a consequence, Kankaew (2020) organization is made up of a wide range of
people. Though, a group of people who formulate the organization's policies, goals,
mission and core strategies is CEO or a group of talented people. This special group of
people have specialized knowledge of the business of the company. Notwithstanding to
Ellig (2014) defines talent are executives which can be broken down by the following
criteria: salary, position, and seniority.
As for the talent compensation, Armstrong (2012) revealed that executive pay
was so high and difficult to control. This may peril to the organization, since it has a
negative impact on the economy and overall negative impact on society. Furthermore,
paying the executives a very high amount. Sometimes it has little significance to the
success of an organization, which means that extremely high compensation does not
beneficial to organization as it should be. Hence, organization must carefully plan a
compensation strategy, and privileges for the talent group. Taking into account the
overall benefits of the organization, survival, and competitive advantage are primarily
(Kankaew, 2020).
The strategy for determining compensation is the fundamental direction an
organization chooses to take or not to take, with an emphasis on sustainable competitive
advantages. The best fit approach is a paid approach based on the context of the
environment. Best fit approach is based on the assumption that no approach works for all
organizations. Another approach is best practice approach is best practice that could
applies to all organizations. Howbeit, the integration of the compensation system into the
different strategies of the organization is recommended, the more consistent it is, the
greater the effectiveness of the organization.
Martocchio (2014) demonstrates the correlation of compensation strategy and
compensation decision-making method, that organization needs to assess its strategies.
Then, how compensation is assessed as follows: competitive strategy means the planning
on how to use corporate resources, technology and employee capital to create
asustainable competitive advantage. Orelse, human resource strategy refers to the
deployemtn of manpower consistent to organization competitve strategy.
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Lastly, organization might apply compensation strategy in which the
compensation professional must incorporate with human resources executive, and
financial executive planning for total rewards. Total rewards must enhance the
organization competitiveness.
Milkovich, Newman, & Gerhart (2014) discusses a component of senior
management compensation. Typically, it consists of five components: base salary, shortterm incentives or bonuses where Graham, Roth & Dugan (2008) highlighted that shortterm incentives may arouse human greedy which leading to self benefit rather than
organization. Long-term incentive and capital appreciation plan refers to the sum of
money executives will receive in 3-5 years if organization succeeded. The executive
benefits are other compensation rather than monetary such as insurance plan. The
executive will get higher insurance than other employees. Special benefits or perks
(privileges) can be described as executive car, special parking lot, travel expenses for the
whole family, membership fees, housing, special offices etc.,
Neljzen & Bruyker (2010) offers a range methods for expatriate pay system due
to current trends the growing of multinational organizations resulting to migration, and
diversity. Therefore, organization should have management policies in order to meet
business outcomes and labor flows. Fundamentally, organization pays according to;
1. home-based refers to the paying base on the country of origin where the
expatriate from;
2. headquaters-based system refers to all employees are paid equally according to
the headquarters salary system, regardless of the nationality of the migrant
workers;
3. proxy-based system refers to the compensation based on the country of origin
for migrant workers. Who do not receive remuneration according to their own
country.
This compensation includes basic expenses such as taxes, cost of rent,
living expenses, storage and investment funds, then, calculate the tax deduction.
The remaining money is multiplied by the time assigned to them overseas.
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This method is suitable for recruiting employees who are not established in the
office abroad.
4. equalized spending at host refers to the base salary and taxes paid in accordance
with the country of origin. Organization, then, pay allowances for purchases of
goods and services for the country that the employee live in. By increasing the cost
of different products and services, for example, Indians have to work in London.
Employee will receive the same salary base, in addition he will receive an
allowance for the expenses of goods and services according to the cost of living in
London.
However, organizations that are successful in managing compensation must pay
both extrinsic rewards and intrinsic rewards. Intrinsic rewards also known as psychic
income. Such as the working environment. learning and development opportunities, and
autority in decision making. Remuneration management also has to take into account the
size and operational cycle of the business as a start-up business; business is growing or in
decline state (Kankaew, 2020).
In Singapore, Quah (2015) introduces the concept of public administration in
Singapore on compensation is used for attracing and recruiting smartest people to work in
the government sector. He compared compensation of public service sector in Southeast
consists of Indonesia, Malaysia, the Philippines, Singapore and Thailand. The result found
that Singapore paid the highest compensation in public sector. Singapore believe that high
wages will attract good people to work in the government sector; employee perceived that
compensation and benefit paid fairly, high compensation motivates employees to work at
their best. And, there should be rewarding to good people.
Compensation management must also look at the affordability of the employer.
Singapore sees the importance of paying government personnel very seriously due to lowpaid employees may lead to corruption. Since, economic compensation helps to survive
and influence social status.
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In Thailand, Kankaew & Charernnit (2020) raised the problem of lacking
pharmacist. Pharmacist accounted as talent and special group which still lack of
manpower to serve hospitals, private drug stores, and chain stores. Due to the production
of pharmacist serving the market needs require around 5-6 years for each pharmacist. It is
mostly equal to produce the doctor or dentist. In the other hand, the doctor and dentist
could earn more revenue and get recognition than pharmacist. As a result, there are not
many students interested to learn in pharmaceutical field. Moreover, the graduate
pharmacists tend to work for private drug company, private hospital, and open their own
drug stores rather than working for the public services. As it can be noticing that an
important reason of lacking pharmacist is low compensation for working in government
hospital, or public services in remote area.
In 2018, Thai government agency namely Food and Drug Administration tried to
solve the lack of pharmacist by issuing the Drug Act by allowing non-pharmacist able to
sell and dispense the medicine for patients by referring the doctor’s prescriptions.
However, many workforces in public health against this idea. They argue that the
government should focus to the production of pharmacist rather than allow nonpharmacist to dispense the drug. Since, it might cause severe loss and jeopardized to
people. Meanwhile, the compensation and benefit should be considered to attract
pharmacist to work for the public services.
Benchmarking
Benchmarking is a level of quality that can be used as a standard when comparing
with others. This word could be used as verb which mean to measure the quality of
something by comparing it with something of standard. As for a job compensation, it
means a job that used as standard in comparison with other jobs, specifically for deciding
how much money employee in similar position should be paid (Cambridge, 2020).
Organizations rely on a benchmark survey for setting pay and benefits to recruit
high qualified candidates, as well as to retain valued employees. The benchmarking on
compensation and benefits is called market-competitive pay system (Martocchio, 2015).
Currently, it is easy to benchmark from the internet. The compensation professional
considers the pay system from benchmark based on four activities.
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These include conducting strategic analysis, assessing competitors’ pay practices
with compensation surveys, aligning internal job structure with external market pay rates,
and determining compensation policies. The four activities are explained as follow;
1. strategic analysis involves the investigation of firm’s external market context
and internal factors. The internal factors are financial condition, functional
capabilities such as human resources. While, The external factors are, for instance,
industry profile, information about competitors, and long-term growth prospects.
2. compensation survey or benchmark concerns with the collection of the result
analysis of competitors’ competition data. Traditionally, the benchmarking focus
on the wages and salary practices of rivals. Today, the benchmarking outlines
employee benefits rather than wages and salary. It is because of benefits are the
key element of market-competitive pay systems. The benchmarking is important
since it enable compensation professionals to obtain realistic views of competitors’
pay practices.
3. compensation professional align the internal job structure with external market
pay rates determined through compensation survey. The alignment results in pay
rates mirror the internal and external valuation of jobs. Mostly, compensation
professionals rely on statistic method to achieve integration.
4. compensation professional suggested pay policies that suit with the company
and competitive strategies. The compensation must highlight the balance between
managing costs, attracting and retaining the best-qualified employees. Ultimately,
top management makes compensation policy decisions after review the data
carefully.
4. Compensation in Hospitality Industry
Woods, Johanson & Sciarini (2012) cited the hospitality organization must decide
how to position its pay policies in comparison to other companies in the market. For
instance, to collect information on pay and benefit packages provided by other hotel,
restaurant, airlines, and tourism industries is important to successful recruitment and
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retention. Organization must develop method to determine job worth. The most common
approaches, for example, are external and internal evaluation, job evaluation. Job
evaluation methods, there are four most widely used consisting of four subcategories
including; ranking method, classification method, point method, factor comparison
method.
1. Ranking method uses a team of managers, evaluation commettee, and
employees to rank the job. They will collect the job descriptions and rank the
descriptions on a sequence. The scale ranges from most skilled to least skilled, or
most crucial to least crucial to organization, or hardest to easiest.
2. Classification method or job grading, this method compares each job to a
predetermined grade or class. The grade or class specified by the government for
example; grade 1-4 are clerical and non-supervisory position, grade 5-10 are
management trainees, grade 11-15 are general management, highly expert job
position.
3. Point method is most common used in job evaluation. This method assign the
point to each job on the basis of criteria. After that, job grades are placed to total
point respectively. Creating point system is difficult and complex taks.
Organization may need help from consultants. This method concerns with three
basic elements namely; determining, compensable factors, weighting the relative
importance of each compensable factor and creating levels within each
compensaple factors. Firstly, determining begins with job analysis and grouping
similar jobs into families. This would constitute job structure. Such as the
company put all administrative employees into one job structure, like clericals,
service employees from all departments.
After the job families have been set, the compensable factors of each family are
identified. The compensable factors are the factors that firm values and choose to pay for.
The compensable factors must illustrating realted to the actual work performed to be
credible and acceptable to the employees affected by the system.
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Compensable factors, for instance, are education, expereinces, skills, effort, analysis and
problem-solving,
autonomy,
interactions
with
others,
responsibilities,
working
conditions, and more like time away from base.
Then, follow by assigning levels or degrees for each compensable factors. The
degrees must be in descriptive form. Exhibit in table 7.1 is an example for compensable
factors degrees. The latter part is to calculate the number of points assigned to each
degree. In general, the point number used between 600-1200 points. For example, 1000
points is chosen and one factor is weighted 25 percent, so that factor is qualified for up to
250 points. The total is divided by number of degrees to determine the the point totals for
those degrees. If there are 4 degrees each degree is worth 25 points. After the points are
assigned for each degree, it is a simple process to apply and total points for each job. The
jobs are, hence, grrouped into grades or levels based on their point total.
Table 7.1 Compensable Factor Degrees
Definition
This factor addresses the types of tools and machines used by
employees to perform duties of this position
Explanation Responsibilities involving equipment use range from working simple
machines to managing highly technical computer equipment. The ability to
operate particular equipment coincides with assessing a skill level.
Degree 1
Job requirements: require no previous knowledge of training, skills can be
acquired through on-the-job training.
Degree 2
Job requirements: require use of advance office equipment, ex. personal
computer, to generate standard documents and files, letter typing, entering
data
Degree 3
Job requirements: require use of advance office equipment to intepret and
prepare documents, software, statistic manipulation ets.,
Source: Adpated from Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging Educational Institute.
4. Factor comparison method is signified key jobs. The key jobs are the evaluation
committee considers highly important to the success of the organization. Such as,
in a restaurant cook, greeter, and server might considered key jobs. Thereafter,
houly wages are used as a benchmark for comparing all other jobs. In this
example, the market hourly pay rates for cook, greeter, and server are THB 300,
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200, and 100 respectively. The committees, then, assign rates to each compensable
factors. After pay rates are alloted to key jobs, pay rates for non-benchmark jobs can be
established on factor-by-factor basis. An example shown in table 7.2 as follow;
Table 7.2 Determine Pay Rates
Physical
Factor
Skill
Responsibilit
-y
Working
Conditions
Interperson
al Skills
Prevailing
Wage for
Benchmark
-ing
Cook
60
90
80
35
35
300
Server
25
15
15
15
30
200
Greeter
20
20
15
15
30
100
Physical
Factor
Skill
Responsibility
Working
Conditions
Interpersonal
Skills
Prevailing
Wage for
Benchmarki
-ng
Steward
19
10
15
26
10
80
Prep Cook
20
25
20
20
15
100
Maid
20
20
22
18
10
90
Benchmark
Jobs
NonBenchmark
Jobs
Source: Adpated from Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing Hospitality
Human Resources (5th ed.). Michigan: American Hotel & Lodging Educational Institute.
Hospitality company must decide how to position its pay policies in comparison to
competitiors. Hospitality, specifically, airlines that are highly competitive so that
attracting competence personnel by remuneration is vital. The airline companies might
consider being pay leaders (pay more than the market average rates), pay followers (pay
policy that lower than the average market rates), and meet the competitors (pay the same
rates as competitors).
However, the research in hotel chain found that pay for performance and pay
policies that reflect organization values are resulted the best. Some hospitality
organizations practice skill- and knowledge-based pay. For instance, in hospitals applied
skill- and knowledge based pay for nurses and doctors. The on-call pay may also
implemented for doctors.
176 - 184
Likewise, in airline companies pilots, engineers, load master having additional
pay for their skills and knowledge acquired. Meanwhile, flight attendant gets other pay
like perdium, time away from base, or allowance depending on the country they have
flown.
5. Unit Conclusion
Compensation can be both intrinsic and extrinsic rewards for employees
performing the task. The intrinsic compensation is the psychological rewards, whereas
extrinsics are monetary and nonmonetary rewards. Combining both intrinsic and
extrinsic called total rewards or total compensation. Paying system, organization must
consider legal requirements, employee benefits, and organization strategy. Benefits are
additional pay rather than core compensation. It is crucial for candidates applying for a
job choosing organization due to fringe benefits. The benefits are for example
insurance, retirement plan, healthcare, social security. Where, special group
compensation is rather high due to their latented, high responsibilities, high capability
to lead organization successfully, therefore, perks and other benefits are added. To be
competitiveness, attracting talents, and retaining valuable employees, organization
should benchmarking with its competitiors compensation.
6. Exercise
6.1 Questions for revision
1. Could you figure out the differences of compensation and benefits?
2. What makes organization benchmarking the market pay rates?
3. How could you identify intrinsic and extrinsic rewards?
4. What is benchmarking?
5. Could you critic the effectiveness of special group compensation?
177- 185
6.2 Discussion
1. Divide students into four groups, each find out the compensation and benefits
of different organizations. Then, analyzing, criticizing, providing suggestion for
a better pay system in current knowledge-based economy.
1.1 airline company
1.2 government agency
1.3 state enterprise organization
1.4 private organization
Note: students can apply technology tools to find out the information, then
share the information to the class.
6.3 Testing
1. Total rewards is the combination of……..and ……….
A. pay system, reward system
B. intrinsic rewards, extrinsic rewards
C. benefits, core compensation
D. pay structure, pay policies
2. The ….. compensation is fulfilling psychological state of employees.
A. extrinsic
B. wage
C. monetary
D. intrinsic
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178 3. Monetary is…..compensation.
A. extrinsic
B. wage
C. incentive
D. intrinsic
4. Life and health insurance is considered as……..
A. core compensation
B. legal requirement benefits
C. discretionary employee benefit
D. adjustment to core compensation
5. Organization distributes base pay in one or two type namely…. and….
A. hourly pay, salary
B. base pay, rewards
C. performance, skills
D. knowledge, skills
6. Organization needs to adjust base pay periodically due to the increasing
of prices of goods, and life expenses. This process is called….
A. legally required
B. adjustment to core compensation
C. cost-of-living adjustments (COLAS)
D. merit pay
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179 7. Merit pay is the reward to employees earn permanent increases to base pay
according to their performance. Merit pay leads to excellent results or effort.
True or False?
A. True
B. False
8. The payment provided as a compensation on employees achieving of some
standard based on preestablished formula, such as reaching sale target at THB
10 million. This reward is called…
A. reward
B. compensation
C. incentive pay
D. performance-based pay
9. Nonmonetary rewards containing variety programs that provide paid time off,
employee services, and protection programs. This type of rewards also known
as…
A. employee benefit
B. protection program
C. pay system
D. legal requirements
10. Pay systems are the system of compensations designed to achieve specific
objectives. There are three main pillars that organization must practice in order
to be competitive. Those are….
A. policies, techniques, and objectives
B. internal alignment, work analysis, efficiency
C. contribution, management, cost
D. market survey, seniority, fairness
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18011. Special group refers to talent people, executive, CEO who create
and drive strategies for an organization's competitive advantage.
Special group could lead organization to success. True or False?
A. True
B. False
12. Expatriates are people who reside in other country which is not
their country of origin for the purpose of working more than one year.
True or False?
A. True
B. Fasle
13. The public administration compensation concept of Singapore to
attract new talent, prevent corruption is……
A. pay at highest level for public employees
B. increase intrinsic rewards as a feeling of pround serving the country
C. low-paid to government personnel
D. economic compensation leads to survive and influence social status
14. In Thailand, the public service sector, such as hospital lacking of pharmacist
due to…
A. pay at highest level for public employees
B. increase intrinsic rewards as a feeling of pround serving the country
C. low-paid to government personnel
D. economic compensation leads to survive and influence social status
15. Benchmark is one of the important processes in setting pay and benefits.
Consequently, firm needs to know the compensation of its competitors, and the
market-based pay. True or False?
A. True
B. False
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189 -
9. Unit References
Amrstrong, M. (2012). Armstrong’s Handbook of Reward Management
Practice: Improving Performance Through Reward (4th ed). India:
Kogan Page.
Cambridge. (2020). Cambridge Dictionary. Retrieve from
https://dictionary.cambridge.org.
Dessler, G. (2017). Human Resource Management (15th ed.).
Singapore: Pearson.
Ellig, B. (2014). The Complete Guide to Executive Compensation (3rd ed).
Singapore: McGrawHill.
Graham, D. M., Roth, A. T., Dugan, D. (2008). Effective Executive
Compensation: Creating a Total Rewards Strategy for Executives. NY:
AMACOM
Kallayanee. (2013). Strategic Compensation. Bangkok: The War Veterans
Organization of Thailand.
Kankaew, K., & Charernnit, K. (2020). Low Income Rate Causing the Lack of
Pharmacist. Systematic Reviews in Pharmacy, 11(12), 994-996.
Kankaew, K. (2020). Strategic Compensation for Talent Group and
Expatriates. The Golden Teak: Humanity and Social Science Journal,
26(3), 40-52.
Martocchio, J. J. (2015). Strategic Compensation: A Human Resource
Management Approach (8th ed.). Singapore: Pearson.
Martocchio, J. J. (2014). Employee Benefits: A Premier for Human Resource
Professional (5th ed.). Singapore: McGraw-Hill.
Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (11th ed.).
Singapore: McGraw-Hill.
Neljzen, M., Bruyker, D. S. (2010). Diverse Expatriate PopulationsAlternative Remuneration Packages. Associates for International
Research. Retrieved from www.air-inc.com.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
- 182
190 -
Quah, T.S. J. (2015). Chapter 6 Compensation: paying for the “Best
and Brightest” In Public Administration Singapore-Style.
Retrieved from
http://dx.doi.org/10.1108/S0732- 1317(2010)0000019011.
Woods, H. R., Johanson, M. M., Sciarini, P. M. (2012). Managing
Hospitality Human Resources (5th ed.). Michigan: American
Hotel & Lodging Educational Institute.
- 191 -
Unit 8 Learning Management Plan
Title: Organizational Behavior and Human Resource Trends
Total Time in Learning/Teaching: 3 Hours
…………………………………………………...
Introduction
Organization behavior (OB) is the study of how individuals, groups, and teams
innovate, lead and manage change effectively. In the fourth industrial revolution era
where there are various factors unpredictable and inevitably affecting organization.
Especially, in the dramatically change of technology enhances the capability of
organization in productivity, quality, optimal use of resources, and cost minimization.
It is clearly noticeable that the environment is rapidly becoming globalized. Today,
there are many companies are entering to global markets by exporting their products
abroad, building manufactures in other countries, and joining alliances with foreign
companies. Thus, the principal theme of organization behavior concern with creation,
integration, and management of change.
Learning Outcomes
At the end of this unit the students should be able to:
1. describe the organization behavior for competitive advantage;
2. analyze organization behavior in 21st century;
3. outline human resource management trends;
4. identify organizational culture;
5. construct an effective leadership style in 21st century.
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Scope of Contents
1. Organizational Behavior in the 21st Century
2. Organizational culture
3. Leadership
4. Global Human Resource Management
5. Unit Conclusion
6. Exercise
7. Unit References
Learning Activities
Lecture
Group discussion
Problem-Solving
Testing
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Learning and Teaching Resources
1. Textbooks and Main Documents
Ancona et al. (2005). Managing for the Future: Organizational Behavior &
Process (3rd ed.). Singapore: South-Western.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012). Human
Resource Management: Gaining a Competitive Advantage (8th ed.).
UK: McGraw-Hill.
Weiss, W. J. (2001). Organizational Behavior and Change. Ohio: SouthWestern.
2. Important Documents for Extra Study
Johnson, M. W., & Suskewicz, J. (2020). Lead from the future. MA: Harvard
Business Review Press.
Ulrich, D., Younger, J., Brockbank, W., & Ulrich, M. (2012). HR from the
outside in. Singapore: McGrawHill.
Measurement and Evaluation
Test and quiz
Assignments
Presentation
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- 195 -
Unit 8
Organizational Behavior and
Human Resource Trends
Most organizations are requiring, demanding their employees having a mindset
of leadership, team players, change agents, entrepreneurs, coaches. However, the
organization must understand its people high potential, thus management could be able
to take effective actions. The organizational behavior, therefore, stress on individual,
team, and organization activities level to coping with the unpredictable changing of
environment. So, the modern organization is in the era of transformation. As we can
clearly seen that organization in today world are agile in changing to the environment
context. When something changed, people specifically individual facing with
difficulty to the changes. Resulting to less effective on performing their task. Albeit,
change has constantly emerging in global economy. While, the internet and different
information technologies increasing industry competitiveness, a new entrant of
employees across national frontiers affect organizations significantly. For this reason,
organizational behavior shall reflect and tackle to the changes, and understand it. Also,
learning to know how changing relates to work, and produce effectively.
1. Organizational Behavior in 21st Century
Weiss (2001) said organizations are changing more rapidly and radically than in
the past since the fourth industrial revolution (IR 4.0). Change is configured by the
interrelationships of the information technology and the internet, the emergence of
global economy, international competition, and the increasing of diverse employees.
Additionally, the social forces of pandemic COVID 19 has pushing the change
rigorously, radically shifting organization to be thinner, smaller in size, flexible,
resilience.
188 - 196
The changes made competitive, survival environment stress on increasing the
product and service quality, reduce delivery time, increase customer satisfaction.
Companies can deliver world class products and services through the internet speed,
meeting and exceeding customer needs.
Though, organization adapts by reengineering, reinventing, restructuring, and
rethinking its strategies, structures, and expertise, integrating business process with
internet of things. However, not every organization is the same pace, scale. Yet, the
internet-driven networks and mobile application have produced a type of digital
Darwinism. It is the competitive is level up by information technologies. Doing
business, organizations must create new value-added applications and invent interactive
services transactions uniquely and personalized experience for customers.
Organization
uses
internet
to
eliminate
unnecessary
processes,
link
communication with suppliers, and align the communication system within the company
securely way as intranet. The information-based organization is existing of knowledge
employees, specialized, resist command-and-control style. Organization becomes flat
structure, clear, simple where everyone takes responsibility in the workplace.
For the changing managerial roles are mainly in developing rewards, recognition,
and career opportunities; creating united vision in organization; devising management
structure for task forces; and ensuring the supply, preparation and testing top
management.
The workforces in 21st century organization are continuously change. There are
new young employees who are technology savvy. On the other hand, aging workforces
are augmented, the increasing of migrants. Many jobs require higher skills, at the same
time new organization recruit more disabled workforces and will enable blending of
diverse cultures in the workplace. Managers need to create flexible organization in
accordance with the diversity of staffs. Furthermore, managers should consider the
flexibility of cultures, mentor the workforces, develop equal training program, and
implement sensitivity seminars. It is important to recognize that knowledge of
organizational behavior, tools and techniques is a focal point of the task.
Hence, the discipline of organizational behavior (OB) is the systematic study of
attitudes, actions, and behaviors of individuals and groups in organization. The main
objective in OB learning is to diagnose, predict, and apply concepts, techniques to
change behavior to increase organizational effectiveness.
- 189
197 The effectiveness is, then, an extent to which individuals and groups in
performing their task, contributing to organization’s competitiveness, productivity,
success, and social responsibility. Theoretically, OB knowledge and skills enhance
managers and employees working with customers, suppliers and strategic alliance
members to create win-win situation. It is, actually, creating sustain productivity,
satisfaction, development, and success for organization.
OB, normally, includes leaderships, team and group development, motivation,
individual personality and learning behavior, interpersonal communication, conflict
resolution, power and politics, job design and reward system, and diversity and ethics.
Besides, OB is about the linkages and integrations of performance-related behaviors of
organization’s individuals with groups and teams, organization’s leaders and
constituencies, and external influencers such as customers, suppliers, competitors,
strategic partners. In the meantime, OB remains emphasized on individual and group
behavior, the effects of change from other organizational dimension for example
strategy and culture, and environments are also important influences on behavior.
In view of the study field, OB is interdisciplinary that highlight on theory,
research, and research methods from various discipline such as social psychology,
sociology, anthropology, political science, engineering, and medicine. Due to its
multidimensional background and complexity of organizational problems, so that there
is no one best way to suggest the resolutions.
It is worth noticing that organization composes of people conducting activities
to reach its objectives. It is dynamic rather than static. Organization needs to amend its
activities, processes, and practices in accordance with the environmental context.
Nevertheless, one person could not strive organization to success, but individual, team,
and the whole organization system instead. The contextual OB as shown in figure 8.1.
190 - 198
Figure 8.1 Organizational Behavior Contextual Framework
Source: Adapted from Weiss, W. J. (2001). Organizational Behavior and Change. Ohio: South-Western.
From figure 8.1, the environment affects organization in every aspect.
Organization scholars propose contingency approach identifies possible causes and
effects of problems. Then, it helps to identify situation and solve the problems. There
are four issues to understand organizational behavior including;
1. structural refers to roles, relationships, and responsibilities, and seek to fit
structure to situation;
2. human resources concerning with the analysis of individual needs, feelings
and prejudgment, seek to figure out how to get the job done, and positive
attitude;
3. political refers to the competition power, resulting conflicts and figure out to
develop solutions through bargaining, negotiation, and compromise;
4. symbolic refers to the metaphor of organization as a tribe, theatre which has
many actors play out the drama inside organization.
The organizational behavior evolves overtime of management concept from
classical to scientific management, to bureaucracy; human relations and group
dynamics; decision making and leadership; and global management, customer focus,
information technology, diversity, business ethics as concluded in figure 8.2.
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Figure 8.2 Organizational Behavior Timeline
Source: Adapted from Weiss, W. J. (2001). Organizational Behavior and Change. Ohio: South-Western.
Recognizing that, Kankaew & Trerattanaset (2020) stated that in the
postmodern world, the external environment is rapidly changing. It cannot be
predicted what will affect organization whether politics, economics, or social system.
In addition, the advancement of information communication technology (ICT) is
linked to networks affecting the transfer of data, information, capital, and goods to
people around the globe easily, because of the boundaries were tumbling down.
Therefore, the modern organization has to re-structure or re-process in consistent with
the changing environment for survival because the old management concepts, such as,
centralization, mass production, and economies of scale have no more flexibility and
cannot guarantee organizational efficiency and effectiveness for success. They
summarized management concepts or management values into five main paradigms
including;
1. during 1880-1930: managerial values focused on efficiency and
effectiveness, economy, and the organizational structure. For instance, Taylor (1911),
sought to improve the outcomes and the capabilities of an organization by generating
the expected standard, motivation, and rewards system, coordination, training. While,
Fayol (1916) managerial values contains planning, organization of the management,
commanding, and coordinating and controlling the process. He also focused on
centralization, chains of command, equality, creative thinking.
- 192
200 To sum up, this period places the spotlight on the formal, rational efficiency of
organizational value (Hoy & Miskel, 2005).
2. in 1931-1960: the theorists in this era thought humans, themselves, truly
provided the efficient outcome, humans live with pride and the ability to
improve. Barnard (1938) presented the idea of a co-operation system which
leads to the willingness to achieve the highest success by motivation, which is
called the economy of incentives. On the other hand, Herzberg et al. (1959)
showed a theory with two factors of motivation; the willingness to complete
tasks, and hygiene factors. It is assumed that the organizational value in this
timeframe is focusing on human relations, cooperation, motivation, the
organization’s culture, informality, and natural grouping (Hoy & Miskel,
2005).
3. management values in 1961-1970: the concept of management in this period
uses statistics and mathematic model making on computers, and therefore
management decisions are called management science. This period the concept
of an organization’s structure must be harmonized with the environment. Such
as, Lawrence and Lorsh (1970) proposed the concept of contingency theory
which held that organizational structure depended on the environment. The
organizations are open systems associated with the environment (Hoy &
Miskel, 2005).
4. management values in 1970-2000: this period is the post-modernization era
which developed into a global village by computer networks an organization’s
environment is too complicated, confusing, and unpredictable. So, Hammer
and Champy (1993) proposed the re-engineering in which the organization is
deconstructed by all new working process designs, based on information
technology and the use of the decentralized authority concept, team working,
organizational communication, and customer satisfaction. Its philosophy is in
every decision starting from the customer, with emphasis on production quality
and working by technology. In addition, its proposed corporate governance is
based on transparency, quality of verification, and ethics, while the
transformation of management in the organization is by customer service
value, customer satisfaction, customer supplies, interior organization changes,
communication, and capital reduction (Davidson, 1995).
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5. management values in 2000-present is emphasizing a new strategy by
Balanced Scorecard (BSC) from Kaplan & Norton (2001), which is the
working process has vision planning and is the main strategy for organization
movement, explaining reasonable relations between every project strategy to
be connected. To drive this change, the organization must be adjusted and
compete on the basis of core competency and thereby knowledge, skill,
ability, and learning are important part of competition and keys to
organizational adjustment (Shermon, 2004).
In conclusion, managerial values must be considered are assigned operations,
team work, communication in all levels, customer satisfaction, working with
technology, information and data analytics, quality control, accountability, work
morals, and cost control. On the other hand, leaders must be focused on working
processes,
knowledge
base, cooperation,
innovation, learning
organization,
customers’ brand loyalty, digitalized-mindset, work motivation and rewards,
developing employees’ performance, strategic analysis, innovate remote working
culture and platform, create network sharing and evaluating information management,
enhance employee to facing the problem and decision-making. The five managerial
values were summarized in table 8.1
Table 8.1 Five Managerial Values
Period
1880-1930
Managerial
Values
Reputation
Thinkers
Management
Concept
OB Styles
highlight on
effectiveness and
efficiency,
organizational
structure, and
economic
Taylor
Division of
labor; separate
task according
to physical
movement
Close control,
human value
as a machine,
directing,
hierarchy,
bureaucratic,
centralize
194 - 202
Table 8.1 (Continued)
Period
Managerial
Values
Reputation
Thinkers
Management
Concept
OB Styles
1931-1960
Human relation,
motivation,
organization as a
social system
Barnard
Employees’
willingness to
cooperate
depend on their
logical thought,
trust in
leadership
capabilities
Focus on human
relation, treat
employees as a
human, lead
rather than direct,
motivation and
create socialized
environment
1961-1970
Computer and
statistic,
information
system for
decision-making,
management
science, external
environment
affecting
organization
Lawrence &
Lorsh
Contingency
theory, no one
best
management
concept the
organization
has to adapt in
accordance
with external
environment
Decision based
on statistic,
information
system, and
adaptability to
the external
environment
1970-2000
Globalization,
networking,
knowledge-based
society, training
and development,
human as an
intellectual asset
Kaplan &
Norton
Balanced
scorecard: BSC
model to assess
organization
strategies in the
aspect of
financial,
customer,
internal
process, and
learning and
growth
Emphasis on
human capital
development,
mentoring,
coaching,
decentralization,
autonomy,
transformational
leadership
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203 Table 8.1 (Continued)
Period
Managerial
Values
Reputation
Thinkers
Management
Concept
2000
Influenced by the
advancement of
technology,
artificial
intelligence,
communication
technology,
external, the
digitalization
business;
financial, data
analytics, crypto
currencies, the
unexpected trend
of natural disaster,
outbreak
The customer,
and technology
have a huge
affecting to
organization.
The rise of
new
management
concept, work
from home:
anywhere, any
places. Some
entrepreneur
no need
physical store.
to date
OB Styles
DigitalizedOB &
leadership
Online and
social media
selling,
digitizational
economy and
financial. Data
and
information
analytics.
Source: Adapted from Kankaew, K. (2020). The Evolution of Agribusiness Management Values
from Labor to Brain Mechanism That Shape Leadership Style, E3S Web of Conferences, 175,
13033.
2. Organizational Culture
The organizational culture comes from two fields namely, anthropology and
sociology. Anthropology takes the interpretivist view and sees cultures as a metaphor
for organizations, defining organization as being culture. On the other hand, sociology
takes the functionalist view and defines cultures, as something an organization process.
According to Burke (2014), a metamorphic factor refers to an organizational element
and activity in one way which reflects the firm’s culture, precisely concerning the
external environment, and respecting change by the needs of revolutionary intrusions.
Whereas Weiss (2001) defined organizational culture as the beliefs, shared values,
expectations, norms and assumptions that tie people and systems.
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204 -
It is providing a sense of identity which facilitates commitment and,
communication, as well as a basis for stability and direction. The organizational culture
is social energy and motivation including the inspiration of employees to drive to
achieve the goals of the organization. Schein (1985) explained that organization culture
is a pattern of shared basic assumptions that the group learned, solved its problems of
external adaptation and internal integration, that has worked well enough to be
considered valid. Therefore, it can be taught to new members as the correct way you
perceive, think, and feel in relation to those problem. But Kilmann et al (1985)
specified that culture to the organization is what personality to the individual a hidden,
yet unifying theme that provides meaning, direction, and mobilization. Whereas, Wei &
Miraglia (2017) stated that organizational culture consists of four attributes including;
the surface level which can be seen and observe as symbol, employee’s behavior, rules
and processes called artifacts. While, a deeper level is norms, which direct employees’
behavior response to specific event, and the third and fourth are values and beliefs that
exist in individual ideals, motivations, goals. These last two attributes may not coherent
to action and artifacts.
These definitions represent the two major camps. The first camp views culture
as implicit in social life. Culture is what naturally emerges as individuals transform
themselves into social groups as tribes, communities, and ultimately, nations. The
second camp represents the view that culture is an explicit social product arising from
social interaction either as an intentional or unintentional consequence of behavior. In
other words, culture is composed of distinct observable forms that groups of people
create through social interaction and use to confront the broader social environment
such as language, symbols, ceremonies, customs, methods of problem solving, use of
tools or technology, and design of work settings. (Wuthnow & Witten, 1988). It is
worth noticing that the longer people live in specific culture, they will be absorbed and
influenced of thoughts and feelings. This second view of culture is most relevant to the
analysis and evaluation of organizational culture and to cultural change strategies that
leaders can employ to improve organizational performance.
197 - 205
Hofstede (1980) identified five dimensions of organizational culture. First,
power distance is the degree to which a society expects there to be differences in the
levels of power. A high score suggests that there is an expectation that some
individuals wield larger amounts of power than others. A low score reflects the view
that all people should have equal rights. Second is uncertainty avoidance which
reflects the extent to which a society accepts uncertainty and risk.
Third is individualism and collectivism. Individualism is contrasted with
collectivism, and refers to the extent to which people are expected to stand up for
themselves, or alternatively act predominantly as a member of the group or
organization. However, one having high individualism may not necessarily mean
having low collectivism, and vice versa. Some people and cultures might have both
high individualism and high collectivism, for example. Someone who highly values
duty to his or her group does not necessarily give a low priority to personal freedom
and self-sufficiency.
Fourth, masculinity and femininity refer to the value placed on traditionally
male or female values. Fifth, long and short-term orientation describe a society’s “time
horizon”, or the importance attached to the future versus the past and present. In longterm-oriented societies, thrift and perseverance are valued more; in short term-oriented
societies, respect for tradition and reciprocation of gifts and favors are valued more.
Eastern nations tend to score especially high here, with Western nations scoring low
and the less developed nations very low; China scored highest and Pakistan lowest.
Handy (1985) describes organizational culture in terms of four types by
linking with the organizational structure. First, power culture which concentrates
power among a few, and control radiates from the center like a web. Power is desired
by the top person and personal relationships with that individual matter more than any
formal title or position. Power cultures have few rules and little bureaucracy; swift
decisions can ensue.
Second, role culture people have clearly delegated authority within a highly
defined structure. Typically, these organizations form hierarchical bureaucracies.
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Power derives from a person's position and little scope exists for expert power.
Controlled by procedures, role descriptions and authority definitions, predictable and
consistent systems and procedures are highly valued. Third, task culture teams are
formed to solve particular problems. Power derives from expertise as long as a team
requires expertise. These cultures often feature the multiple reporting lines of a matrix
structures. It is all a small team approach, who are highly skilled and specialize in their
own markets of experience.
Fourth, a person culture exists where all individuals believe themselves superior
to the organization. Survival can become difficult for such organizations, since the
concept of an organization suggests that a group of like-minded individuals pursue the
organizational goals. Some professional partnerships can operate as person cultures,
because each partner brings a particular expertise and clientele to the firm.
Generally, Thai culture system in the public organization is high power
distance, bureaucratic, patronage, face-saving, personal connection, and hierarchical,
where juniors always respect their seniors (Hanphakdeeniyom & Kimthaptim, 2018;
Panpare, 2011). Thus, it is not common to see young people express their ideas in the
meetings freely. However, today the society is changing, with new generations having
more self-confidence and self-assurance entering the working place. As a matter of
course, the new generations replace some retiring staff. The internal environment of
organization is changing.
3. Leadership
Weiss (2005) defines leadership is the competence to deploy strategy
effectively, and the ability to influence others accomplishing organization’s objectives.
The effectiveness leadership is the leader shall enable their team and subordinates in
desired direction. In globalization, though, deregulated, and information-based
environment, leaders could not lead effectively without the cooperation and expertise of
their managers.
Leaders confront with two distinct tasks consist of developing and articulating
the company aims to achieve; and creating the environment what need to be done and
carry out the task.
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207 Leadership styles and leadership practices shape reflect how effective leaders
conceal employee retention and other behaviors within organizations. The process of
leadership exists in two types that is to say; transformational leadership and
transactional leadership. Transformational leadership is a high caliber person who can
transform organization’s culture, focus on long-term success rather than short-term,
build awareness, motivate, support organization’s employees. On the other hand,
transactional leadership is stress on the rewards and punishment. Transactional tend to
against the changes, stick to the same fashion, and do not upgrading the working
condition to higher performance.
The transaction leaders are not encouraging employees to be creative, since
their thought is everything is good as it is. Their perspectives always check on
employees’ progress based on the fixed-targets. However, they are well aware of nonperformers and will detain the reward in the same circumstances (Kesavan, 2020).
Working style and visionaries of transactional leaders are enjoy to work in the
existing systems and constraint, operating from the within to achieve the goals,
thinking inside the box for problem solving. it is difficult for transaction leaders for
creative solution. Leaders are reacting to things that occurred rather than proactive
preventing the occurrence of the problem.
In contrast, transformational leaders are inspiring employees to do more than
expectation. They arouse subordinates to accept the leader’s vision. Transformational
leaders are people-oriented rather than result-oriented. They are good in motivation,
and engagement. In addition, their key characteristics are respect and confidence in
others, encourage pride among subordinates, interest in others rather than self,
concentrate on common good, achievement, keen, optimism, vision, adaptive solutions
to stressful condition, and developing employees individually.
Weiss (2005) states leadership in the information era is internetworked
leadership.
Internetworked leadership composes of six competencies including;
responsibility to find for opportunity in achieving internetworked, leader for learning,
being collective, being digitalized, incorporated with CEO, and apply technology to
create leaders. The leader must capable of using information technology
communicating and understanding how technology support business to success.
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208 The differences of leaders and managers are; leaders focus on organization as a
whole, strategic, long-term, active, and valued-added. While, managers focus on
implementation, routine, short-to mid-term task, and technical details. Mostly,
managers and subordinate emphasis on hands-on level. Hence, the differences of
leaders and managers concluded as shown in table 8.2.
Table 8.2 Comparison Leadership and Management
Dimension
Agenda creation
Leader
Manager
Establish direction
Plan and budget
Develop future vision &
change strategy
Develop detailed steps and
timetable for results, allocate
necessary resources
Network
development for
achievement
Align people
Organize and staff
Communicate directly by
words and actions, influence
creation of team that
understand vision and
strategies
Develop planning, staffing,
mission, provide policies and
procedures for guidance,
method, and system for
monitoring
Execution
Motivate and inspire
Control and problem solve
Energy to overcome obstacles
ex. political, resource,
bureaucratic
Monitor and identify result,
plan and organize to correct
Tend to produce
Tend to produce
Provide potential for very
useful change
Order and predictability
Outcome
Source: Adapted from Weiss, W. J. (2001). Organizational Behavior and Change. Ohio: SouthWestern.
Everyone is a leader; this sentence refers to the assumptions that everybody
can be leader by practicing self-leadership. However, not everyone could be an
effective self-leader, but it can be learned to be. The table 8.3 illustrates selfleadership strategies checklists.
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Table 8.3 Self-leadership Strategies Checklists
Behavior-Focused Strategies
1.
Self-observation:
Observing and gathering information about specific behaviors that you
have targeted for change.
2.
Self-set Goals:
Setting goals for your own work efforts
3.
Management of Cues:
Arranging and modifying cues in the work environment to facilitate
your desired personal behavior
4.
Rehearsal:
Physical or mental practice of work activities before you actually perform
them
5.
Self-Reward:
Providing yourself with personally valued rewards for completing
desirable behaviors
6.
Self-Punishment/ Criticism:
Administering punishments to yourself for behaving in undesirable ways
Cognitive-Focused Strategies
1.
2.
3.
Building Natural Rewards into Tasks:
Self-redesign of where and how you do your work to increase the level of
natural rewards in your job. Natural rewards that are part of rather than
separate from the work Ex. work like a hoppy becomes the rewards
results from activities that cause you feel
• a sense of competence;
• a sense self-control; and
• a sense of purpose
Focus Thinking on Natural Rewards:
Purposely focusing your thinking on the naturally rewarding features of
your work
Establishment of Effective Thought Patterns:
Establishing constructive and effective habits or patterns in your thinking
Ex. tendency searching for opportunities rather than obstacles embedded
in challenges by managing your
• beliefs and assumptions;
• mental imagery; and
• internal self-talk
Source: Adapted from Weiss, W. J. (2001). Organizational Behavior and Change. Ohio: South-Western.
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4. Global Human Resource Management
The business, nowadays, is competing globally. More and more
organizations are entering international markets. To decide entering foreign markets,
developing plants in other countries, and human resource management is
complicated issues. All the same, organizations must adapt and change to external
environment, such as social, political, technology, environment, and economic in
order to be competitive advantage (Noe et al. 2012).
Though the expansion of firms internationally, Noe et al (2012) highlight the
factor affecting human resource in global market including; culture, education of
human capital, environment, and international legislative. Considering that countries
differ in various dimensions. The differences determine the economic viability of
building and operation in a foreign location that have strong impact to HRM.
1. Commencing with culture, it is important to HRM in two perspectives
namely; culture affects the country’s law of the wrong and right. Besides,
culture is also affecting human capital education due to the perception of
people valued education differently. Another reason, culture is important to
HRM because it determines the effectiveness of various HRM practices. For
instance, the best practice in Europe might not effective in Thailand. Culture
is mostly influencing the suitability of HRM practices. Such as,
individualistic versus collective orientation will impact the effectiveness of
human resource management system. Culture differences are influencing
how employees expect leaders to lead, compensation system, benefit,
communication and coordination processes in organization.
2. Education of human capital, this factor effects to organization to find the
potential, maintain the qualified workforces abroad. The country’s human
capital education relates to the qualify workforces, high skills and
knowledge. These result to attractiveness for investment.
3. Political legislative, it is always directing the requirements for certain
HRM practices, for example; training, compensation, hiring, firing, and
layoffs. Furthermore, the law reflects social norms on the legitimate
behaviors.
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211 4. Economic system influences HRM in various ways. It is concerning with the
investment in human capital of each countries differently. The highly skills,
well-educated human capital get higher pay respectively. It is, in addition,
affecting to health of workers, taxes on compensation packages. Thus, the cost
occurs to company differently in each country. The economy can have impact
on pay systems, specifically in multinational company (MNC) seeking to
develop international compensation and reward system. The research reveals
that compensation professional considering various factors in providing
compensation, such as global organization strategy, local regulatory, local
markets, and national cultures.
It is notably that every country has different culture, human capital, legal
system, and economic system. These factors influence directly to the type of HRM
systems that must be developed to associate with particular situations. These
differences affect organization depending on how involved the organization global
markets. Personally, in post-modern era, the author believes that technology is one of
the important factors affecting HRM practices globally. As we have discussed in
previous units, technology has changed the way of people live, work, and behaviors.
MNCs may recruit workforces remotely, hiring as a project-based job, workplace is
everywhere and every time. Similarly, HRM professional needs to cope with
international employees. So that distinguishing the types of international employees by
host country, parent country, and third country.
Host country is the country which parent country of organization seeks to
locate or already located facility. Parent country is the country in which organization’s
headquarter situated. And third country is a country rather than parent country and
host country an organization may not have facility there. Then, the expatriate is now
was segregated by the types of country including; parent-country nationals, hostcountry nationals, and third-country national.
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5. Unit Conclusion
Organization behavior (OB) is the study of how individuals, groups, and teams
innovate, lead and manage change effectively. Change is configured by the
interrelationships of the information technology and the internet, the emergence of
global economy, international competition, and the increasing of diverse employees.
Organization adapts by reengineering, reinventing, restructuring, and rethinking its
strategies, structures, and expertise, integrating business process with internet of
things. The main objective in OB learning is to diagnose, predict, and apply concepts,
techniques to change behavior to increase organizational effectiveness. OB, normally,
includes leaderships, team and group development, motivation, individual personality
and learning behavior, interpersonal communication, conflict resolution, power and
politics, job design and reward system, and diversity and ethics. organizational culture
as the beliefs, shared values, expectations, norms and assumptions that tie people and
systems. It is providing a sense of identity which facilitates commitment and,
communication, as well as a basis for stability and direction. whereas, leadership is the
competence to deploy strategy effectively, and the ability to influence others
accomplishing organization’s objectives.
6. Exercise
6.1 Questions for revision
1. How could you explain organizational behavior deliver competitive
advantages?
2. What makes organization behavior continuous changes?
3. Could you analyze managerial values changed overtime?
4. What is organizational culture?
5. How could you figure out the effective leadership in 21st century?
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6.2 Discussion
Divide students into four groups select one topic listed, then find out information,
analyze, and share with other groups in front of the class;
1. Find out the organizational culture of one airline company in Thailand
2. Analyze what are the effective leadership styles in airline company should be
3. Search and analyze Hofstede five dimensions of cultures
4. Study modern company culture like “Bitkup”, which is start up company
with the growth rate 600 per cent within 6 months, and the average employees’
age around 30 years-old.
Note: This is classroom activity.
6.3 Testing
1. Organizational behavior (OB) is the study of how individuals, groups, teams
innovate, lead and manage change. True or False?
A. True
B. False
2. The principal theme of organization behavior involves with creation,
integration, and……of change.
A. impacting
B. management
C. technology
D. behavior
3. Which of these choices refer to social forces affecting organization?
A. the advancement of technology
B. the implementation of new law
C. the pandemic of COVID 19
D. the climate changes
206 - 214
4. The organizational behavior stress on …………activities level to
cope with unpredictable change of environment.
A. individual, team, and organization
B. individual, leadership, and management
C. individual, CEO, and leaders
D. individual, department, and organization
5. The workforces in 21st century are new and young who possess of
……….skills.
A. technology savvy
B. English
C. knowledge
D. services
6. An extent to which individuals and groups in performing task,
contributing to organization’s competitiveness, productivity, success,
and social responsibility. This sentence is the definition of…..
A. organizational behavior
B. effectiveness
C. leadership
D. manager
7. The key concept of organizational behavior is organization must
associate with the changes of ………….to be competitive.
A. strategy
B. environment
C. culture
D. structure
8. Organization culture is a pattern of shared basic assumptions that the
group learned, solved its problems of external adaptation and internal
integration, that has worked well enough to be considered valid. True or
False?
A. True
B. False
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