Human Resource Management Business Cases Ass.-Prof. Mag. Dr. Ursula Liebhart Top 1: Overview & Introduction Top 2: Planning Top 3: Staffing Human Resource Management LEILA Business Scool | Leibach | 14 January 2010 F1 HRM Overview & Introduction HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 2 F2 F3 Functions and Activities of HR management Strategic HR Management: HR Marketing and Retention, Employee and Labor Relations, Health, Safety and Security HR planning HR controlling, HR technology Staffing: Performance Management: Leadership & Motivation, Personnel Appraisal HR Development: Orientation, Socialization, Career Planning, Training & Personnel Development Total Rewards: Compensation, Incentives, Benefits & working time Further: Derecruiting /Lay-off, Diversity Management Role and Organization of HR Management Source: Thom (2001); Liebhart (2007); Mathis/Jackson (2008) External environment HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 3 Job Analysis, Recruiting & Selection F4 Definition & goals of Human Resource Management Human Resource Management is the adequate supply with employees, considering the needs of the enterprise and the needs of the employees. is … to supply the enterprise with personal capacities (manpower) – in the adequated quality and quantity – to the right point of time – for the time required – on the specific job site … so that the corporate processes can be done. HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 4 Goal of HRM F5 • HRM: the process of managing human resources (intellectual asset or human capital) to achieve an organizational objectives. • The functions of HRM: staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee success-all typically labeled HRM issue. • Competitive Advantage through people: core competencies (Knowledge, Skills, and Ability - KSAs) • Human Competitive Advantages: have value, rare and unavailable to competitors, difficult to imitate, and could be organized for synergy HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 5 The Needs of HRM F6 Current HR Management Challenges |1 Human Resource Management Human Capital & Workforce Demographics and Diversity Organizational Cost Pressures and Restructuring HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 6 Economic and Technological Changes & Managing Change Globalization of Business F7 Current HR Management Challenges| 2 Globalization of Business – – – – – • Outsourcing and increased competition The threat of terrorism trade and tariff barrier culture, law, and business practices responsibility of firm to act in best interest (CSR) Economic and Technological Changes – Occupational shifts from manufacturing and agriculture to service industries and telecommunications. – Pressures of global competition causing firms to adapt by lowering costs and increasing productivity. – Technological Shifts and the Internet – Growth of information technology – knowledge worker – Knowledge-Based Training – Human Resource Information System HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 7 • F8 Current HR Management Challenges| 3 • Managing Change • Organizational Cost Pressures and Restructuring – Mergers and Acquisitions – “Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and outplacing workers • Intended results are flatter organizations, increases in productivity, quality, service and lower costs. • Costs are “survivor mentality”, loss of employee loyalty, and turnover of valuable employees. – HR managers must work toward ensuring cultural compatibility in mergers. – Outsourcing – Lay off HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 8 – Reactive and Proactive Change – Managing Change through HR (keeping employees focused on the business success – Responding to the Market (TQM, Six Sigma, and Reengineering) F9 Current HR Management Challenges |4 • Human Capital Value • Workforce Availability and Quality Concerns – Inadequate supply of workers with needed skills for “knowledge jobs” – Education of workers in basic skills • Workforce Demographics and Diversity - Increasing Racial/Ethnic Diversity - More Women in the Workforce - Single-parent households, dual-career couples, working mothers and family/childcare - Significantly Aging Workforce - age discrimination • Growth in Contingent Workforce – Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: • Need for flexibility in staffing levels • Increased difficulty in firing regular employees. • Reduced legal liability from contract employees HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 9 – knowledge, skills, and capabilities of individuals that have economic values to an organization – valuable based on specific skills, can be developed and expanded F 10 Internal and external influences on HR-related work managers‘ conception of man values/norms (corporate culture) central ideas/ strategies employees‘ potentials HR-related work social change employees‘ expectations of employers job market economic change legislations/ contracts technological developments HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 10 structures/ systems position of HRM F 11 T1 Self-Conception of the Personalarbeit HR-related work as staff unit Visions-orientied and integrated HR management institutionalization phase Phase of holistic entrepreneurship Hr-related work as administrative task HR-related work as „repair work of the line“ phase of bureaucratization phase of improvisations re-active level of activity pro-active Quelle: Hilb 2002 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 11 short-term long-term impact with time F 12 Model for multiple roles of HR Managers Administrative Expert (Administrative Role) • Partner of strategy implementation • Align the HR Strategy to Business Strategy • Focus on developing HR programs that enhance organizational performance • Leading Role for Best Practices Employee Champion (Employee Advocate Role) HR Business Partner • Mouthpiece from employees to management • Facilitate chances to personnel and vocational development of the employees • Provide ressouces for the employees • Responding to epmployee complaints Source: Ulrich (1998) • Efficient and effective Delivery of HR Services • Continous improvement of internal processes – administrative efficiency • Building up of internal competence centers Change Agent (Facilitator of continuous change) • Increasing the organization´s ability to transform • Provide capacities for changes • Designer of the organizational culture HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 12 Strategic Partner (Strategic Role) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 14 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 13 F 13 Changing Roles of HR Management F 14 Operational to strategic transformation of HR F 15 • • • • • • Speak the language of the business Masters HR methods Is able to lead change processes Familarity with HRMS Technologies Creates cultures and work places that facilitate the individual performance ability and organizational engagement Demonstrates personal credibility The importance to a professional qualification and experiential background increases. HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 15 Competence Profile of the HR Business Partner F 16 HR Management as a Career Field • HR Generalist – A person with responsibility for performing a variety of HR activities. HR Specialist – A person with in-depth knowledge and expertise in a limited area of HR. • HR Manager – A person who is a line manager for HR Generalists and Specialists HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 16 • F 17 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 17 HR Specialists Source: HR Department Benchmarks and Analysis 2004 F 18 Internal customers External customers • commercial employees • HR consultants • • • • • • industrial employees freelancers contractors working in-house operational departments departments of administration CEO, Management • • • • • • headhunters advertising agencies lawyers applicants former applicants future applicants • • • apprentices, trainees employees‘ representatives ! • • • • • • • • temporary employment agencies seminar providers conference hotels, travel agents providers of HR software third party billing providers of professional journals and books associations organizers of fairs • • • • universities, schools shareholders, board health insurance ! Source: Goerke/Wickel-Kirsch (2002) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 18 Examples of HR customers F 19 Expectation of the internal customers executiv es employ ees SERVICE participation from the customers‘ perspective advice strategic partner HR consultant change processes learning and development support change agent promoter individual provider of services HR expert HR consultant psychologist consultant trouble shooter change agent ombudsman promoter/coach HR department HR manager internal service provider service-center „personnel“ CONTROL GUIDANCE promoter/coach HR marketing specialist SUPPORT HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 19 manage ment F 20 HR work: forms of organization Distribution of HR competences universalistic participative central (1) dominant, central HR department with universal authority („yesterday“) (4) (also) specialist executives as HR managers, central HR department as comprehensive coordination („day after tomorrow“) decentral (2) Dominance of the HR field, but throughout the company („today“) (3) (also) specialist executives as HR managers, helped by decentral HR units („tomorrow“) other options: • Outsourcing of HR functions, „model of elimination“ • virtual HR department HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 20 Organization of HR department Quelle: Scholz (2000) F 21 continuum of division of responsibilities between HR department and specialist department responsibilities of HR dept. 1 2 The HR dept. has sole authority. The HR dept. acts after consulting specialist dept. 3 The HR dept. can only act together with the specialist dept. 4 5 6 The specialoist dept. can only act together with the HR dept. The HR department offers support and advice. The specialist dept. has sole authority. Tasks that should be performed solely by the HR department: • • • • venture-significant tasks (e.g. HR marketing). cross-functional tasks (e.g. conception of an HR development system). all task that are more economically performed in the HR dept. (e.g. HR administration). all tasks that require special skills (e.g. labour market research). Quelle: Wunderer (1995) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 21 responsibilities of specialist dept. F 22 HR Cooperation with Line Managers – Develops legal, effective interviewing techniques – Trains managers in conducting selection interviews • Managers – Advise HR of job openings – Decide whether to do own final interviewing – Conducts interviews and testing – Receive interview training from HR unit – Sends top three applicants to managers for final review – Do final interviewing and hiring where appropriate – Checks references – Review reference information – Does final interviewing and hiring for certain job classifications – Provide feedback to HR unit on hiring/rejection decisions HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 22 • HR Unit HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 23 HR Planning HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 24 F 23 F 24 Factors That Determine HR Plans F 25 Human Resource Planning • Human Resource (HR) Planning – The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives. HR Planning Responsibilities – Top HR executive and subordinates gather information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals Overall Strategic Plan Human Resources Strategic Plan HR Activities HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 25 • F 26 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 26 HR Planning Process F 27 Planning Planning of quantitative personnel requirements – – – – – • Influencing factors Procedures and methods Considerworking time models Long range personnel requirements – Retirements/locational change Short- and medium term personnel requirements – seasonal, social and personal fluctuations Planning of qualitative personnel requirements – Recording of job requirements and determination of existing qualifications – according to groups: • • • professional groups qualification groups fields of activity – job description – requirements profile – capability profile Work analysis (job analysis, Task analysis) Job description Requirements profile The result of the task analysis is the work analysis and the specification of requirements. The job description comprises: illustration of instances Illustration of tasks Illustration of achievements HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 27 • The requirements profile defines the amout of requirements of specific tapes of requirements. Staffing HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 28 F 28 F 29 Job Description • • • • • Job : A group of related activities and duties Position: the different duties and responsibilities performed by only one employee Job Title: status of employee, identify duty and level occupied Job Description: Statement of the tasks, duties, and responsibilities of a job to be performed Job Specification: skills required to perform the job and physical demands of the job Job Analysis: the process of obtaining information about jobs by determining what the duties, task, or activities of jobs are; using data to develop job description and job specification, and to improve organizational performance and productivity HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 29 • F 30 Job Requirement SELECTION: determine recruitment qualification ! provide job duties and job specification for selection process! PERFORMANCE APPRAISAL: provide performance criteria for evaluating employee ! TRAINING and DEVELOPMENT: determine training needs and develop instructional programs! COMPENSATION MANAGEMENT: Provide basis for determining employees’ rate of pay HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 30 RECRUITMENT: F 31 Source of Data Job Analyst Employee Supervisor! Methods of Collecting Data Interview Questionnaire Records Observation! Job Data Tasks Performance Standards Responsibility Knowledge Skills and Experience Required Job Context Duties! Job Description Task Duties Responsibilities! Human Resources Functions! Job Specification Skill Requirement Physical demands Ability needed! HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 31 The Process of Job Analysis F 32 Determining Job Requirements Nature of: Basis of: - What employee does - Why employee does it - How employee does it! Determining Job Requirements! JOB DESCRPTION - Summary statement of the job - List of essential functions of the job! - Employee Orientation - Employee Instruction - Disciplinary Action JOB SPECIFICATION - Personal qualifications required in terms of skills, education and experience ! - Recruitment - Selection - Development! HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 32 JOB ANALYSIS F 33 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 33 Criteria of a Job Specification(Example) F 34 • • • • • • • • Relevance– only take essential characteristics of the position into account Completeness– include all characteristics of the position Absence of overlap– one-time survey of facts Clearness, objectivity– definition and survey of facts has to be verifyable interpersonally Simplicity– characteristic values have to be easily identifyable Reliability– ascertion of characteristics has to be reliable Validity– test results have to reflect the actual requirements Efficiency– cost-benefit analysis HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 34 Design Principles of Job Requirements Quelle: Scholz (2000) F 35 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 35 Job Requirement Profile (Example) F 36 Starting Position on the Personnel Market Major changes in businesses and environment lead to increased competition for the best employees. Demographic development Dynamics, complexity, digitalisation, globalisation of markets Companies face a new situation of competition: „fight for the best employees Highly specific task- and job descriptions Mobility and fluctuation of workforce Change in values (e.g. postmaterialism) Quelle: MCI Symposium 2007 Professional HR-marketing gains in importance Orientation of organizational communication towards job market HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 36 • + Employer quality Employer image = Employer attractivity • As an employer, you are only competitive if you can keep the promises you make. HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 37 F 37 F 38 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 38 The employees perspective: where is the difference? F 39 Why do you need an employer brand-concept? The employer brand positions the company on the market and influences the development of preferences of potential employees All employers Known employers awareness set Selected employers procesed set Accepted employers decision chosen object relevant set hold set reject set total set foggy set unawareness set Quelle: Jäger (2007) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 39 • F 40 External Communications Marketing and Promotion of the value proposition to the outside (External Employer Branding) by a coordinated HR marketing-mix HR marketing-mix Supply policy Job profile, job design: physical environment, process environment, HR development Payment policy Substantive elements of payment and benefits Communication policy Recruiting-fairs, jobboards, recruiting-websites, „classic job ads in newspapers and magazines etc. Availability policy Definition of procurement options: direkt procurement, HR consultant, headhunter, etc. Quelle: MCI Symposium 2007 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 40 • F 41 Internal Communications Behavioral Branding refers to the process of anchoring brand identity in the employees heads in order to promote brand compliant behavior and strenghten the company brand. Communication tools • Employee magazines • Assemblies • Circulars • Performance reviews • Informal discussions Brand identity understand internalize live employee shape Brand image internal external Quelle: MCI Symposium 2007 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 41 • F 42 Awards 2010 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 42 Large European Companies F 43 What is a „Great Place to Work© ! trust those they work for. management employee own activities ! be proud of what they are doing. colleagues ! enjoy working with colleagues. HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 43 ! a workplace where employees are able to ! HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 44 F 44 F 45 Ways of recruitment internal No changes concerning existing employment contracts Additional work such as overtime, extra shifts Short-term Holiday shifts Long-term external changes concerningexistin g employment contracts HR development Horizontal transfer and vertical promotion Personnelleasing Conversion of part-time to full-time New employees: Full-time vs. Part-time, temporary vs. unlimited Vocational education and training such as retraining and acquisition of apprentices Source: Hentze (1991) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 45 recruitment F 46 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 46 Advantages and Disadvantages of Internal and External Recruiting Sources F 47 Internal Recruiting – Profiles containing background and KSA information on current employees that allow for key word searches to locate suitable candidates for open positions and career development. – Skills Management System(s) • Job Posting – A system in which the employer provides notices of job openings and employees respond by applying. • Promotions and Transfers – Upward and lateral movements of employees HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 47 • Organizational Databases F 48 rather passive measures Rather active measueres • Self-promotion • Register of candidates • Placement by unemployment agency • Personnel leasing • • • • • HR consultants and brokers Employment agencies and headhunters Billboards and notices Job ads in print media Recruitment via internet – E-Recruiting • • • • Companies‘ homepages „Job Posting“ Self-applicants-services Virtual recruiting fairs Recruiting-games • Internet job sites/career websites • Newsgroups • Virtual communities • • • • • • College-/university recruiting Recruitment / recommendation by employees Personal contact with potential candidates Appeal to young professionals PR (open house, etc.) Labor Unions HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 48 Measures and sources of external recruitment F 49 Internet Recruiting • Disadvantages – Recruiting cost savings – More unqualified applicants – Recruiting time savings – Additional work for HR staff members – Expanded pool of applicants – Morale building for current employees – Many applicants are not seriously seeking employment – Access limited or unavailable to some applicants HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 49 • Advantages F 50 HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 50 What to Include in an Effective Recruiting Ad F 51 Process of personnel selection Postal application Electronic application ! Put documents together ! Electronic management of candidates (profiling) ! online-tests, recruiting-games Evaluation of application documents Selection interview ! Clarify unresolved questions, evaluate social behavior by critical questions ! get to know attitudes, capture expectations Additional tests and procedures ! Intelligence tests, performance and concentration tests, personality tests, assessment-center Job interview ! Completing existing information ! First process of negotiating premiums and incentives (payment, working hours, vacation days etc.) Employment Refusal • letter HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 51 ! Professional competence and experience ! Overall development in CV F 52 Start Short informal conversation, try for a pleasant and open atmosphere, possibly presentation of company or job, no assessment Self-presentation of applicant For a few minutes, candidate talks about his professional and personal background, assessment according to requirement-related dimensions Free talk Interviewer relates to the self-presentation and application papers and asks unresolved questions, summarising assessment of impression Questions related to biography Biographical questions derived from the requirements analysis, evaluation according to behavioral dimensions Realistic job information Interviewer gives balanced information about workplace and company, transition to situational questions Situational questions Constructed situational questions assessed according to behavioral dimensions Conclusion Questions asked by candidate, contract preliminaries, summary, saying goodbye, other agreements Quelle: Schuler (1995) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 52 Procedure of Selection Interview F 53 Selection procedure Test procedures Work samples Assessment centers Computer assisted simulations Business simulations Stress interview HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 53 • • • • • • F 54 Job evaluation Personality assessment Performance appraisal Evaluation of potential procedure: • Free depiction of impressions • Classification procedures • Identification and selection procedures • Ranking procedures procedure: • Appraisal interview • Psychological testing • Biographical questionnaire • Work samples • Assessment centers Quelle: Henzte (1980), Schuler/Prohaska (1999) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 54 Main Concepts of Judgemental Appraisal Methods F 55 • • • • • Assessment Center: simulated job activities Evaluation by Superiors Peer Ratings: Good predictors of promotion Self-Evaluation: Leniency is a concern Evaluation by Sub-ordinates: upward feedback. Good predictor of managerial success. Must be anonymous • 360 Degree Feedback: Combines evaluations from a number of sources. HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 55 Appraisal of Managers F 56 Evaluation Errors and Appraisal Pitfalls „Each assessment contains subjective elements! • Social deceptions of perception • Assessment distortions – In some way, the judge deliberately uses different assessment criteria – Anchored in corporate culture („no fixed rules of the game ) • Assessment failure – Differentiation is made according to the assesment grades – Due to strategic considerations, grades are issued according to „non-performance criteria • • Discrimination against women Part-time employees HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 56 – Our eyes and memory betray us! F 57 • • • • • • • • • • First Impression (within a few seconds antipathy/sympathy develops, people with similar attributes have an advantage) Similar-to-me effect Self-Perception (personal standards always influence appraisals) Tendency to Rate as Average (the more uncertain the assessment of the judge, the higher the tendency to rate as average) Contrast Effect (a weak colleague is perceived differently by stronger colleagues as by even weaker colleagues) Halo Effect (special individual performance oushines other performances) St. Nicholas Effect (previously achieved proficiency level matters) Pressure of Conformity (the social need for affiliation influences the perception) Good and Bad Mood (choose a neutral temper) Stereotypes (emotionally tinged drawers of our perception; candidness, tolerance, self-criticism, challenging and questioning oneself are crucial) The Victim as Perpetrator – Good-Impression-Management (selling oneself well, playing the gallery, schmoozing, bullying etc. " purposefully infleuence the impression of others) I only call those fat who are fatter than me! Who is a German civil servant? Quelle: Dulisch (2002) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 57 Social Misperceptions F 58 Employee appraisals are primarily evaluations of relationships, and secondly evaluations of people. (Oswald Neuberger) Appraisal Distortion Mildness Effect (Evaluating the willingness for exertion rather than the tangible performance; not wanting to hurt anybody s feelings; We only have good employees as part of the corporate self-image) • Don’t be impressed by any expert telling you: ”I’ve been doing it this way for twenty years, my friend!” – He could have easily been doing something wrong for twenty years. (Kurt Tucholsky) Closeness Effect (close collaboration allows a more positive appraisal; makes knowing and respecting each other possible) • Hierarchy-Effect (the higher the hierarchic status, the better the appraisal - the status obscures the actual performance) • Benjamin Effect (social comparitive process: the younger the person and the shorter his/her time with the company, the stricter the appraisal – Age takes precedence over performance – “Everybody gets a turn eventually! ) • Glue Effect (Status-quo Effect) (the appraisal history >>I want to play fair, so you all get the same task: Climb this tree!<< influences the appraisal in progress– previous performance appraisals are glued to a person – We stick to the status-quo, because deviating from it would mean: having to act, making new decisions, taking responsibility “The only man who behaves sensibly is my tailor; and, if necessary, enduring conflicts.) he takes my measurements anew every time he sees me, An employee cannot receive a better appraisal than his boss! while all the rest go on with their old measurements and expect me to fit them” George Bernard Shaw Quelle: Dulisch (2002) HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 58 • our y r o f ion! t n e att HR Management | 14 January 2011 | Dr. Ursula Liebhart - Slide 59 F 59