Strategic Human Resource Management 1 Masaryk University Introduction Corporate Strategy Work Design Personnel Planning Recruitment Selection Direct Compensation Indirect Compensation Performance Management Socialization Training Development Performance Appraisal Staffing Compensation Performance 2 Masaryk University Corporate Strategy 3 Masaryk University Section Overview •This section focuses on Corporate Strategy •We will link Leadership, Culture, and staffing to Strategy 4 4 Masaryk University Corporate Strategy •The direction an organization takes with the objective of achieving business success in the long term. •Recent approaches focus on the need for companies to adapt to and anticipate changes in the business environment. •The formulation of corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration. •Corporate planning and business plans are used to implement corporate strategy. 5 Masaryk University Corporate Planning Horizons 2 – 5 years, based on industry 6 months – 3 years, based on industry Day-to-Day, Week-to-Week…. 6 Masaryk University Staffing follows Strategy D:\teaching\MBA Jan 00\Strategy\Staffing follows.bmp 7 Masaryk University Leadership Styles 8 Masaryk University D:\teaching\MBA Jan 00\Strategy\Leadership styles.bmp Organizational Cultures 9 Masaryk University D:\teaching\MBA Jan 00\Strategy\culture consid.bmp “Culture/Leadership follows Strategy” Creative Culture Inspirational Leadership Supportive Culture Supportive Leadership Logical Leadership Quality Culture Directive Leadership Production Culture Effectiveness Efficiency Transformational Transactional Revolutionary Evolutionary Culture and Leadership 10 Masaryk University Staffing: Work Design 11 Masaryk University Section Overview •This section focuses on job design, analysis and their relationship to job descriptions and specifications. •We will link this to Corporate Strategy. 12 Masaryk University 13 Masaryk University Job Analysis •Definition of Job Analysis: systematically identifying tasks, duties and responsibilities expected to be performed in a job as well as competencies to be successful •Uses of Analysis: –Realistic Job information –Identifies reporting relationships –Provides data for job descriptions/specifications –Information for Business Process Engineering • 13 Steps in Job Analysis • 14 Masaryk University 15 Masaryk University Sources of Information •Job Incumbents (SME) •Supervisors (SME) •Trained Analysts •Selecting Sources: –Each has strengths and weaknesses –Use more than one source –Use others included in the appraisal process 15 16 Masaryk University Data Collection Methods 16 17 Masaryk University Job Analysis Techniques 17 18 Masaryk University Job Analysis Techniques 18 19 Masaryk University Job Design •Determining job tasks and responsibilities employees are expected to perform •Key issues to consider: •Which tasks should be emphasized •How simple or complex are these tasks •How many tasks can employees perform •How much flexibility is given to employees 19 20 Masaryk University Why Perform Job Design •Each job is unique and adds value in different ways •How employees will perform their jobs will affect employees’ contributions •Ensure jobs meet organizational requirements as well as employee needs. 20 21 Masaryk University Approaches to Job Design •Mechanistic Approach •Human Factors Approach •Motivational Approach 22 Masaryk University Mechanistic Approach •Scientific management pioneered by Frederick Taylor in 1911 sought to maximize efficiency •Emphasized standardization of production processes •Time and motion studies were conducted •Job specialization focused on breaking jobs down into core elements •Repetition increased skill and speed 22 23 Masaryk University Mechanistic Approach (cont’d) •Job simplification removed decision-making authority from employees and placed it with a supervisor •Training requirements were reduced •Still used today, often in a modified approach –Fast Food Industry –Piece-part Manufacturing –UPS 23 24 Masaryk University Using the Mechanistic Approach •Advantages –Ensures Predictability –Provides job clarity –Clear responsibility –High measurability •Disadvantages –Can be boring for employee –Absenteeism –Turnover –Lack of employee growth 25 Masaryk University Human factors Approach •Based on the study of human motor skills, looks at: –Physical dimensions of the human body –Principles of physical movement –Human physiology •Understanding the human body aids in the design of tools, equipment, work places, etc •Focuses on ergonomics 26 Masaryk University Human factors Approach (cont’d) •Used in conjunction with the mechanistic approach to reduce fatigue •Helps increase labour pool by accommodating aging workers and physical disabilities •Helps find ways to accommodate Principle of Reasonable Accommodation 27 Masaryk University Using the Human Factors Approach •Advantages –Accommodates disabled and older workers –Less physical strain –Reduces job related injuries –Greater employee comfort •Disadvantages –May be very costly –Factors regarding disabled or older workers –Not possible in some cases 28 Masaryk University Motivational Approaches •Maximize employee motivation to perform •Focused on making jobs more interesting, challenging and complex •Individual Contemporary Approach –Focuses on individual motivational requirements –Suited to workforces that have a growth need •Team Contemporary Approach –Focuses on social motivation concept –Suited to work that requires diversity in decision making 29 Masaryk University Individual Contemporary Approach •Based on 5 positive personal & work outcomes: –High motivation, quality work performance, satisfaction, low absenteeism, and low turnover •Requires work that enables obtainment of 3 psychological states: –Meaningfulness, responsibility, knowledge of results •Design based on 5 core job dimensions: –Skill variety, job significance, job identity, autonomy, feedback 29 30 Masaryk University Job Characteristics Model • • • 30 31 Masaryk University Design Strategies for Core Dimensions •Job enlargement: –Assign additional tasks, increase volume or skill variety of the work –Task identity increases when employee completes a whole and identifiable piece of work •Job rotation: –moving workers from one job to another in a systematic manner –Increases task variety and boosts job identity and scope of purpose 31 32 Masaryk University Design Strategies (cont’d) •Job enrichment –increasing level of responsibility or control over tasks of a job –Increases autonomy, job significance •Empowerment –employees have input and authority over how they work and participate in decisions –Increases autonomy, job significance 33 Masaryk University Job Autonomy •Recruitment and selection must consider ability to handle workplace freedom •Flat hierarchy with open and strong vertical and horizontal communication •Decision making boundaries are well defined •Responsibility and accountability are linked and is paramount •High quality performance is prized and expected from all •Employee satisfaction is a core value 34 Masaryk University Using the Individual Contemporary Approach •Advantages –High employee satisfaction –Provides growth opportunity –Reduces boredom –Improves morale •Disadvantages –Generally, requires higher pay –Hard for people who like high standardization and routine –Hard to do with some industries and jobs –Large changes required in HR System –May be costly to implement 35 Masaryk University Team Contemporary Approach •Groups who work collaboratively toward a common goal •Dedicated work teams—well defined, stable, full-time members •Parallel teams—cross functional group to address problem or issue (members retain their formal positions as well) •Project teams—exist for limited time to accomplish an objective •Self-managed teams— dedicated work team where members work collaboratively to make decisions, hire, plan, schedule work, and accomplish goals • 36 Masaryk University Team Member Requirements •Advocating: sell their point of view to members •Inquiring: learn to listen and interview •Tension Management: create constructive conflict and manage tension •Sharing Responsibility: align personal goals with team objectives, create shared outcomes •Leadership: participate in leading the team to success •Valuing Diversity: value team members diversity •Self-awareness: accept constructive criticism, be self critical 37 Masaryk University Using the Team Contemporary Approach •Advantages –High social interaction –Provides variety –Higher innovation and creativity –Easier to implement quality circles, TQM –Reduces absenteeism •Disadvantages –Some people want to work alone –Highly specialized, technical jobs are not suitable –Requires interpersonal training and skills –May require extensive structural changes to organization and HR System 38 Masaryk University Alternative Work Arrangements •Required due to: –Changing workforce demographics –High costs of commuting –Desire for greater personal time –Other personal requirements •Reduce tensions caused by time conflicts •Increases employer attractiveness 39 Masaryk University Popular Alternatives •Flexible Schedules •Compressed Workweeks •Permanent Part-time Employment •Electronic and Industrial Cottage •Work from Home