HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Topics HRM: Leading teams

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Pay is... … money … compensation … reward … incentive … recognition  Procedural and distributive justice at least as important as absolute amount

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Basics for determining pay Decomposition of pay into –base/fixed pay (task-related) and –variable pay (person-related, e.g. performance, experience, social situation) Considering value of the work done for the company, the market rate for the job, and individual needs Considering task requirements and qualification requirements

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Job evaluation Job evaluations are caried out to determine the base pay for a task/job. Analytic evaluation: Evaluating a task/job by means of several, potentially different- ly weighted criteria, for which individual values are assigned and then integrated into one value for the task/job as a whole Job evaluations allow comparisons between different jobs, e.g. regarding "comparable worth"

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Procedures for analytic job evaluations Selecting criteria Weighing criteria Describing tasks Evaluating tasks by means of criteria="job value" Determining the pay rates corresponding to different job values

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Frequently used criteria and weighing of criteria 1) Knowledge and experience 2) Cognitive abilities 3) Leadership responsibility 4) Physical/emotional demands 5) Strenuous working conditions 1)-3) high weights 4)+5) low weights

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Problems of current job evaluation systems Overestimation of intellectual and leadership requirements Underestimation of physical, social and emotional requirements  Consequence: Low evaluation of many “female-dominated” jobs and person-related service jobs in general

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Cultural determination of job worth Results of anthropologist Margaret Mead: There are villages, in which men fish and women weave cloth, and villages, in which women fish and men weave; in both cases the work done by men is more highly evaluated (...) when men cook, cooking is considered an important task, when women cook, it is simply housework. Jobs that were originally carried out by women are taken over by men when their societal importance grows – and vice versa.

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Characteristics of good job evaluation systems Systematic, non-discriminating, and status quo independent selection of criteria Avoiding the confounding of criteria Representative selection of core jobs Reliable and valid assessment of criteria Independent, well trained, representative evaluation committee No corrections based on additional criteria not introduced at the start

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Performance-related pay A part of the overall pay is determined on the basis of individual/group/company performance. Increasing use: in the US more than in Europe, for managers more than for employees without management responsibilities, in larger companies more than in smaller companies Critical voices become louder: –Performance criteria - is the desired behavior the rewarded behavior? –Danger of reducing intrinsic motivation –Conflict between individual and team performance

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Personnel development Systematic furthering of personal aptitude in relation to individual expectations and organizational requirements by means of -education/training -counselling/coaching -management by objectives -team development -job design

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Basic assumptions in personnel development dynamic relationship between person and work: person and work change continuously, requiring also continuous adaptation Adaptation can happen from the perspective of „fit human to task“ and/or „fit task to human“

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 "Fit human to task": Linking personnel development to strategic HRM demands Analyze requirements –define goals and target group(s) for personnel development –define required qualification profiles –identify indivdiual employees who need development Personnel development intervention Evaluation concerning learning, behavior, and performance outcomes

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 "Fit task to human": Tailoring personnel development to individual career demands Define possible career paths –e.g. management versus technical career Identify individual career needs –e.g. locals versus cosmopolitans Continuous adaptation of career needs and career paths

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Career orientations in Switzerland (Swiss HR-Barometer, Grote & Staffelbach, 2009)

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Career orientations in Switzerland (Swiss HR-Barometer, Grote & Staffelbach, 2009)

HRM: Leading teams – G. Grote ETHZ, Spring Semester 09 Career orientations in Switzerland (Swiss HR-Barometer, Grote & Staffelbach, 2009) traditional/promotion-oriented: men, lower education, matching psychological contract, high satisfaction and commitment, low mobility traditional/loyalty-oriented: women, older, part- time, lower education and position, low expectations in psychological contract, low intention to quit, low mobility independent: younger, higher education and position, very high expectations in psychological contract, high intention to quit, high mobility disengaged: women, higher education, part-time, low expecta- tions in psychological contract, high intention to quit, high mobility