Aarhus School of Business Summer University Aarhus University, Aarhus Course Title: Strategic Human Resource Management (SHRM) Faculty: Professor Debi S. Saini, Management Development Institute, Gurgaon (INDIA); E-mail: debisaini@mdi.ac.in; debissaini@gmail.com Duration of the Course Delivery: 31 July - 24 August, 2012 AIM OF THE COURSE In the midst of chaotic competition at the global level, a large number of companies claim that their people are their greatest asset. In actuality, however, some only genuinely practice this mantra. Many say so but covertly use employee-unfriendly policies. But several others with well articulated vision and sustainable potential do practice people-friendly management. This helps them in building employer brand, attracting competent employees and ensuring employee engagement. Eventually, they result in mutual benefit of employer and employee. To facilitate attainment of such goals, it is important that appropriate HR interventions and policies are chosen; which in turn help in producing the requisite people behaviors, attitudes, skills and mental models for individual as well as organizational success. In this context, this course focuses on positive HR interventions as well as related measures, targets and outcomes. The course also helps explain why some companies almost always adopt just hard, costreduction, and result-oriented people policies; and in the process remain only short-term focused in their approach. It is emphasized that several low-cost companies have also been following soft and proactive HRM. Main issues: Concretely speaking, the broad sets of issues focused on in the course relate to: helping promote peoplefirst culture to facilitate employee engagement; fitting human resource interventions in the organization strategy; and aligning HR strategy with business strategy through appropriate selection of HR architecture and developing in employees the desired attitudes, behaviors and mindsets. Specifically, the course will focus on the following areas of people-management strategy: • building a conceptual framework of promoting a high performance work system (HPWS) in view of the contextual competitive realities and the emerging HR strategy literature; • building employee recruitment, selection and talent acquisition strategies; • selection of desired combination of soft and hard HR interventions; • leading change through appropriate HR and employee-relations strategies; • managing issues in promoting organizational flexibility; • facilitating people engagement by promoting employee involvement, diversity & fun culture; • inculcating a learning and knowledge dissemination culture; 1 • articulating HR strategy issues in managing global business, including in emerging economies; • measuring the effectiveness of investment in human capital; and • aligning HR interventions with organizational strategies and goals. TEACHING METHODOLOGY Learning of the course contents will involve focusing on analyzing the relevant concepts, as also organizational problems and the need for taking decisions to resolve them. It will be facilitated through lectures, case discussions, video presentations, exercises, problem-solving discussions, role plays and home assignments. The usual class session will begin by articulation and illustration by the faculty of the theoretical concepts that are emerging in the fast-developing SHRM literature at the global level. Case discussions will aim at solving people-management problems and deriving the relevant HR concepts through that process. The above devices are aimed to promote learning by involving the class. The participants will undertake some exercises in the class to help them develop specific people-management competencies. Also, the participants will be encouraged to contribute to class learning by raising queries and replying to those raised by others. LEARNING OUTCOME On completion of the course, the participants are expected to have mastered the following knowledge, skills and competencies: • A comprehensive understanding of linkage between people issues and contextual business realties. • Ability to use different soft & hard HR interventions for building a conducive performance culture. • Ability to grasp people issues in global business and facilitate global leadership development. • Knowledge of linkages between IR breakdown & HRM strategies to resolve the resultant issues. • Knowledge of innovative people interventions to promote out-of-box thinking & learning. • Ability to adopt the relevant HR measures & setting targets for solving organizational problems. • Ability to develop HRM strategy so as to be in alignment with needs of business strategy. PERFORMANCE EVALUATION: Assessment Components: 1. Case presentation & discussion by groups & class participation 2. HRM strategy essay work: 3. End-Term Exams: 20 % 20 % 60 % 2 The students will be divided in groups of four each for preparing and discussing issues involved in the exercises, caselets and full cases scheduled for discussion on the scheduled day. The assessment of one’s contribution, however, will be done on individual basis. Also, each individual student will write an essay mainly focusing on any company of her or his choice that has adopted some of the themes of strategic HRM being discussed in this course and the results the practice of these themes have led to. In doing so, the student should bring out clearly references to the literature that has been developed on these SHRM themes and how the company concerned is applying these themes (practices) in its peculiar context. S/he should support her/his formulations with the help of the working of those practices in few other companies as well, though the main focus shall on the company that is the main focus of the essay. The information about the practice of the relevant themes may be obtained from the internet, company websites, management journals, business books, magazines and newspapers. The essay should identify the interventions chosen by the main organization being focused on, and how these interventions have been linked to, or integrated with, the company’s business strategy. You may choose a company from private-sector or public sector. While the essay contents are being developed, the student must also link her/his formulations with the conceptual learning gained from the course. The project essay will be due to be submitted by each student in soft as well a hard copy on or before 13th August, 2012 (1. p.m.) and shall have a length of about 2000 words, double spaced (References and appendices can be separate). It should be concise and crisp and bring in all relevant issues. The essay should reflect the student’s diagnostic, analytical and application skills. The project essay summary will be presented by each student on the last day of course teaching as scheduled on 16th August, 2012. SESSIONS PLAN Date Subject Topic & Issues References Assignements/ Exercices, etc. Case Qs/ Week 1 Day 1 Tuesday: 9-13 Readings: Context and nature of strategic Holbeche HRM: (2009), Chs 1 Linking Globalization and & 2 the HR wave New industrial relations Saini & (IR) as a part of strategic Khan (2000) HRM pp. 13-34; 50Challenges of Strategic 54 HRM/HRD Nature of & Stages in evolution of SHRM Critique of strategic HRM 3 Day 2 Wednesd ay 9-13 Strategic management, HRM strategy, and HRM strategy models: Organization Strategy development and implementation: Vision/ mission/ objectives /goals/ values Rational vs. emergent strategy Business Strategy and HRM Strategy Interface HRM strategy models of Tichy, Devanna et al., Beer et al., and Others Broad theoretical approaches to HR strategy: best practice; best fit; & resource-based view approaches Overview of Strategic themes in SHRM Readings: Beardwell, et al. (2004) ch. 2 Discussion on: What is the hallmark of HR strategy of Southwest Airlines? (all students to participate in the discussion—see internet for facts) Case: IBM: Strategies & People Issues Group 1 Questions: 1. Compare HR strategies of the three CEOs of IBM on hardsoft dimensions of HR strategy. 2. Discuss fully the following statement of CZARNECKI: ”They’re eager to stay, but prepared to leave.” 3. “[w]e’re sometimes our own worst enemy. We’re awfully tough on ourselves….” Discuss this observation of Randy MacDonald 4. What should IBM do to respond to the people mgt. challenges that IBM faces? 5. What lessons in SHRM do you learn from the IBM case? 4 Day 3 Thursday day: 9-13 selection Readings: Holbeche 92008), Ch. Contemporary issues in 6 recruitment & selection Wilkinson, et Talent crisis & strategic al. (2010), recruitment Ch. 6 Gen X & Gen Y profiles Stein, S. Issues in retention & (2007), Ch. 5 turnover Retention strategies Recruitment strategies: and Case: S.G. Recruits Cowen: New Group 2 Key Questions: 1. What are the key decision points used by S.G. Cowen in making hiring decisions? 2. What is your evaluation of the process used by the process used by the firm? 3. How will you evaluate the criteria used by the company in making hiring decisions? 4. Which two candidates will you select if you were a member of the recruiting committee and why? Exercise: How people change values to accommodate peers & others Day 4 Friday: 9-13 Changing paradigm in employee relations: Traditional issues in management of industrial relations (IR) Frames of reference in, or Perspectives of, IR: Pluralist, Unitarist & Radical frameworks Generic changes in IR at global level and their causal roots From pluralist IR to neopluralism and neounitarist IR strategies Readings: Case: People Management Saini & Fiasco at Honda Motor Cycles Khan (2000), and Scooters India Ltd. Chs. 2, 3 (HMSI)… General discussion with all grops Key Questions: 1. Who are the IR actors in this case? 2. What role in IR is being played by government? 3. Analyze this case in terms of the changing 5 frames of reference in IR 4. What was the Co.’s HR & IR strategy before the fiasco? Week 2 Day 5 Monday: 9-13 Strategies for developing cooperative employee relations: New IR dynamics Union-substitution strategies Readings: Boxall et al. (2007), Group 3 Ch. 7 by D. Guest Key Questions: Re-orienting managers & union leaders for cooperation as opposed to adversarialism Managing Employee Relations through New Psychological contract Building contract: Day 6 Tuesday: 9-13 Psychological Strategic approach to building Readings: an engaging and exciting organization Mabey, C et al. (1998) Balancing employee & Ch. 12 business needs Factors that contribute to employee engagement. Case: People Management Fiasco at HMSI contd… 5. Analyse the causal roots of the fiasco at HMSI? 6. If you were HMSI’s CEO, what HR strategy would you have followed in the pre-fiasco situation? 7. What SHRM lessons can one learn from the case? 8. What should HMSI do to build a sustainable people management strategy? Case : People Management in Gabston & Hammings Group 4 Key Questions: 1. Do you agree with the observation of Gabston’s CEO that “The market is a beast; it does not spare any one?” Key practices used by some companies in promoting engagement & excitement? 2. Do you think that there is a problem with Gabston’s people management? Role of transformational leadership in building engagement 3. Why do you think the two organizations follow different HRM policies? 6 4. If you are Karim what would be your change agenda, if at all? 5. How will you handle the Kasir issue? Day 7 Wednesda y: 9-13 Managing diversity (DM): Readings: Saini (2007) Proactive diversity management (DM) as a HRM strategy Concept and approaches to DM Building a diversity strategy agenda Stein, (2007), 12 S. Ch. Case: Managing Diversity at Spenser Owens & Co., Group 5 Key Qs.: 1. What is the cause of the problems that the company in encountering? 2. What needs to change to address the problems? 3. Should organizations aspire to be culturally diverse, and if so, why? DM Exercises—one at the beginning of the class, and the other towards the end of the class Day 8 Thursday : 9-13 Managing organizational flexibility & leading change: Flexible organization–– The flexible firm model of Atkinson Flexibility as per hard and soft HRM strategy models Soft flexibility through Work–Life balance HR issues in promoting and managing change Leadership development issues for building capacity to adapt to change needs. Readings: Case: Dynamics of Change at NDPL Holbeche (2008), Ch. Groups 6 15 Torrington et Questions: al. (2008), 1. What factors contributed Ch. 5 to Co.’s turnaround? 2. What role was played by different change agents? 3. What lessons in SHRM do you learn from the case? Leadership Development: An exercise 7 Day 9 Friday: 9-13 Employee involvement (EI) strategies as opposed to collectivist “employees’ participation in management”: Readings: Case: Labour-Mgt. Torrington et Partnership: How to make it al. (2008), Work & Its analysis by 3 Ch. 21 Analysts The Concept of EI & Employee participation The logic of the changing paradigm and its relevance in the new business environment Company newsletter; team briefing; team working Attitude surveys; suggestion schemes; quality circles; and TQM EI: Rhetoric & realities All groups to come prepared with this case: (any two group can be asked to present & discuss) Questions: 1. What do you think was the CEO’s strategy in going for the changes? 2. What are the Strong points of the first analyst? 3. What are the limitations of analyst number three? 4. With which analyst you agree more and why? 5. What do you think are the benefits of studying a case through the methodology of evaluating the analysts? Week 3 Finalize your individual project contents so as to be ready to be submitted by the evening of 12th August (6 p.m.). Among others, do read the concluding chapter in Holbeche (2009) (pp. 477-488) while you finalize your project contents Day 10 Monday 9-13 Developing a learning organization (LO) and Readings: benchmarking of HR practices: Holbeche (2009), Ch. Learning and knowledge17 creation culture Forster Nature of learning (2005) Pp. organization Case: Westing Travels Inc. Tours & Group 7 Questions: 1. What issues do you see in the case from the viewpoint of 8 Senge’s model of learning Organization & Garvin’s building blocks Issues in creating a learning organization Managing knowledge workers and the role of HR 379-395. developing Westing learning organization? as a 2. What role should HR play in transformation of Westing as a learning organization? 3. What is wrong with JD’s strategy? What should he do to confront the issues involved? 4. What lessons should Westing learn from this case to reformulate its HRM strategy? Day 11 Tuesday: 9-13 Day 12 Wednesd ay: 9-13 Case: HCM Beverage Co. Strategic HRM issues in global Readings: Group 8 business management: Holbeche, Chs. 13 & 14 Key Qs.: Internationalization 1. What challenges does Saini & strategies of companies Johnson face? Khan (2000), Approach of staffing in Ch. 15 2. In case he stays, what global organizations should be his Management of crosstransformational change cultural issues agenda? Building global mindset and developing global 3. Is he fit for the Job of a leaders global manager? HRM strategy, human capital Readings: management and creating Holbeche measures for high performing 2009), Ch. 4 organization Phillips (2005), Ch.9 Strategy implementation through Balanced Score Card (BSC) Steps in building a BSC HR Score card as a measure of HR’s contribution to business strategy Building an HR scorecard Nature of human Capital (HC) development Various types of HC measures; their merits & limitations 9 Day 13 Thursday : 9-11 a.m. Aligning HRM strategy with Readings: business strategy: Holbeche, Ch. 5 Developing HR strategy; & aligning it to business Ulrich & Brockbank Identifying critical success factors for comptt. (2005), Ch. 7 advantage Identifying desired culture & behaviours Exercise: Building and aligning HR Strategy (To be supplied later) Also, Applying alignment knowledge in the HCM Beverage Co. case discussed on Day 11—All groups to come read and participate in discussion Identifying HR interventions & aligning them to culture Day 13 Thursday 11.15a.m to 1.00 p.m. And 23.45 p.m. Embodying organizational culture & capabilities in organizational members through HRM strategy: Learning from the course through presentation of the project summary by each student individually. Week 4 Exam Preparation LIST OF LITERATURE (COMPULSORY) Basic Text: Holbeche, L. (2009), Aligning Human Resources and Business Strategy, Butterworth Heinemann, Chapters 1, 2, 4,5, 6, 13, 14, 15, 17. (Each student will procure a copy of this text book). Other Compulsory Readings: Mabey, C., Salaman, G., and Storey, J (eds.) (1998) Strategic Human Resource Management: A Reader, Los Angeles, London, Delhi: Sage Publishers. Chs. 12. Torrington, D., Hall, L. and Taylor, S. (2008) Human Resource Management, 7th edition, Prentice Hall, London. Chapters 5, 21 Beardwell, I., Holden, L. and Claydon, T. (2004), Human Resource Management (4th edition), London: Prentice Hall, Chapter 2. Saini, D. & Khan, S. (eds.) (2000) Human Resource Management: Perspectives for the New Era, Los Angeles, London, Delhi: Sage Publishers. Chapters 1, 2, 3. Forster, Nick (2005), Maximum Performance: A Practical Guide to Leading and Managing People at Work, Cheltenham: Edward Elgar. Ch. 9. 10 Phillips, J. (2005) Investing in Your Company’s Human Capital: Strategies to Avoid Spending Too Little or Too Much, New York: American Management Association., Ch. 9. Wilkinson, A., Bacon, N., Redman, T., and Snell, S. (Eds.) (2010), The Sage Handbook of Human Resource Management, Los Angeles, London, Delhi: Sage Publishers. Chapters 6. Saini, D. (2007), “Manpower Diversity for Business Success: Some Emerging Perspectives,” Manpower Journal, XLII (2). Ulrich, D. and Brockbank, W. (2005), The HR Value Proposition, Boston: Harvard Business School Press, Ch. 7. Ulrich, D., Allen, J., Brockbank, W., Younger, J. and Nyman, M. (2009), HR Transformation: Building Human Resources from Outside In, New york: McGraw-Hill, Ch 2. Boxall, P., Purcell, J. and Wright, P. (2007) Oxford Handbook of Human Resource Management, Oxford: Oxford University Press. Ch. 7. Stein, S. (2007), Make Your Workplace Great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, Chs. 5, 12. LIST OF LITERATURE (OPTIONAL) Boxall, P., Purcell, J. and Wright, P. (2007) Oxford Handbook of Human Resource Management, Oxford: Oxford University Press. Chs. 13. Beardwell, I., Holden, L. and Claydon, T. (2004), Human Resource Management (4th edition), London: Prentice Hall, Chapter 7. Atkinson, J. (1984), Manpower strategies for flexible organizations. Personnel Management, pp. 28–31. Barney, J. (1991), "Firm resources and sustained competitive advantage, Journal of Management, 17 (1), pp.99--120. Gupta, A. (1986), “Matching Managers to Strategies,” Human Resource Management, 25 (2). Hollinshead, G., Nicolls, P. and Tailby, S. (2003), Employee Relations, 2nd ed., London: Prentice Hall, Chs. 2, 13. Wilkinson, A., Bacon, N., Redman, T., and Snell, S. (Eds.) (2010), The Sage Handbook of Human Resource Management, Los Angeles, London, Delhi: Sage Publishers. Chapters 11, 21 Ulrich, Dave (1998) “A New Mandate for Human Resources”, Harvard Business Review, JanuaryFebruary. 11 Storey, J., Wright, P. and Ulrich, D. (eds.) (2009), The Routledge Companion to Strategic Human Resource Management, London: Routledge. Chapter 18, 30 Wilkinson, A., Bacon, N., Redman, T., and Snell, S. (Eds.) (2010), The Sage Handbook of Human Resource Management, Los Angeles, London, Delhi: Sage Publishers. Chapters 3, 15 Stein, S. (2007), Make Your Workplace Great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, Chs. 9. Torrington, D., Hall, L. and Taylor, S. (2008) Human Resource Management, 7th edition, Prentice Hall, London. Chapters 5, 21 THE CASES TO BE USED ARE AS FOLLOWS: Cases to be bought from the Copyright holder: Saini, Debi S. (2006), People Management Fiasco at Honda Motorcycle and Scooters India Ltd. Available Harvard Business Publishing Delong, Thomas (2006) S.G. Cowen: New Recruits, Harvard Business Publishing. Ely, Robin (2006) Managing Diversity at Spenser Owens & Co., Harvard Business Publishing. Black, S., and Morrison, A. (1998), HCM Beverage Company, Harvard Business Publishing Complementary Cases from the course faculty, Dr Debi Saini: Case: People Management in Gabston & Hammings Case: Labour-Mgt. Partnership: How to make it Work Case: IBM: Strategies & People Issues Case: Dynamics of Change at NDPL Case: Westing Tours & Travels Inc. 12