Topics
HRM: Leading teams
18.2.
Introduction; Core functions of HRM
25.2.
HRM as strategic and operational leadership task
3.3.
Integrating leadership tasks through Management by Objectives;
Definite assigments to groups for semester projects
10.3.
Introduction to semester project in small groups
17.3.
Personnel selection: Theory and instruments (exercise in small groups)
31.3.
Performance appraisal
7.4.
Compensation; Personnel development and careers
14.4.
Leadership in theory and practice
21.4.
Fundamentals of team working
28.4.
Group interaction (exercise in small groups)
5.5.
Benchmarking HRM: Guest speaker from industry
19.5.
Discussion of student projects in small groups
26.5.
Managing diversity (using experience from student projects); Exam preparation
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Strategic
Human Resource Management
• "a pattern of planned human resource deployments and activities intended to enable an
organization to achieve its goals" (Noe et al., 2005)
• Derive human resource needs (skills, behaviors,
culture) from strategy formulation
• Strategy implementation by means of HRM
practices, which further individuals' capabilities
and motivation as well as actual performance
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
HRM practices: Strategic choices
• Job analysis and design
– e.g. simple vs. complex tasks, specific vs. generic job descriptions
• Recruitment and selection
– e.g. external vs. internal recruitment, specific vs. general skills
• Training and development
– e.g. focus on current vs. future skills, train few vs. all employees
• Performance management and compensation
– e.g. behavioral vs. results criteria, internal vs. external equity,
input vs. behavior vs. output control
• Labor and employee relations
– e.g. GAV vs. individual contracts
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Linkage between HRM and
company strategy
• Administrative (no) linkage
– HRM as purely administrative task
• One-way linkage
– HRM implements strategic goals, but is not involved in strategy
formulation
• Two-way linkage
– HRM executive shows human resource implications of different
strategic choices, but does not directly participate in strategic
decision making
• Integrative linkage
– HRM executive is integral member of senior manage-ment team
and participates in all phases of strategy formulation and
implementation
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Example of contingencies in
strategic HRM
(Snell & Youndt, 1995; Lepak & Snell, 1999)
• Input vs. behavior vs. output control
– Behavior control only works with low uncertainties
– input control most effective with high uncertainties
– output control has no effect on performance in any
condition
• Uniqueness and value of human capital
– traditional, loyalty based employment relationship
when knowledge and skills are firm-specific and of
high competitive value
– purely economic employment relationship when
knowledge and skills are neither firm-specific nor
of high competitive value
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
HRM as operational leadership task:
Key success factors
Performance
Motivation
Satisfaction
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
"Good" performance indicators
• Adequate for task
• Sufficient influence -> Based on behavior
and results, not personal traits
• Reliability, validity, objectivity
• Constructive feedback
• Participatory development
• Fit with organizational culture
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Development of job (dis)satisfaction
(Bruggemann, 1974)
Characteristics of the
work situation
Needs and expectations
at work
(Mis-)match
Satisfaction
Raising
expectations
Dissatisfaction
Keeping
expectations
Lowering
expectations
Keeping
expectations
Problem
solving
Progressive
satisfaction
Stable
satisfaction
Resigned
satisfaction
Fixed
dissatisfaction
Constructive
dissatisfaction
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Extrinsic versus intrinsic
motivation
The less extrinsic motivation …
… the more extrinsic
motivation is needed
Financial incentives
External working conditions
Complete tasks
Surveillance
Task variety
Pressure
Social relationships
Task-related cooperation
… the more intrinsic
motivation is needed
Extrinsic motivation through external incentives
Decision latitude
Learning opportunities
Intrinsic motivation through task orientation
The less intrinsic motivation …
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Individual differences in motivation
Different needs:
Motivation = f (satisfaction / frustration of needs)
__________________________________________________
e.g.
Physiological needs
Security needs
Affiliation and affection needs
Appreciation needs
Self-actualization needs
Different goals and expectations:
Motivation = Valence x Instrumentality x Expectancy
__________________________________________________
Decision to (not) undertake a certain action depends on the answers to
three questions:
Which goal do I want to achieve?
Does this action lead to this goal?
How likely is the success of the action?
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
HRM as operational leadership task:
Linking motivation, satisfaction and
performance
Continuous feedback
Clear performance-reward
relationship
Congruence of
formal/informal performance
criteria
Performance
Clear instrumentalities for
individual goals
Motivation
Fit between individual and
organizational goals
Performance criteria
adequate for task
Active coping with unfulfilled
expectations
Satisfaction
Continuous monitoring
of difference between
expectation and reality
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
HRM practices: Operational decisions
• Job analysis and design
– e.g. individual adaptations in job assignments
• Recruitment and selection
– e.g. changes in specific job requirements or in priorities of job
requirements
• Training and development
– e.g. individual career planning
• Performance management and compensation
– e.g. individual pay raises
• Labor and employee relations
– e.g. adjustment of individual expectations and company inducements as
part of the psychological contract
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08
Influence of normative assumptions on
strategic and operational HRM
Example: assumptions about human nature (Schein, 1988)
• Economic man: Employees will do whatever affords
them the greatest economic gain
• Social man: Social needs are the prime motivator of
human behavior, and interpersonal relationships the
prime shaper of a sense of identity.
• Self-actualizing man: People seek a sense of
accomplishment in their work and are primarily selfmotivated and self-controlled
• Complex man: Human needs fall into many categories
and vary according to stage of development and total life
situation
HRM: Leading teams – G. Grote ETHZ, Spring Semester 08