1. VL HRM B – G. Grote ETHZ, SS07 Topics HRM B: Leading teams

2. VL HRM B – G. Grote ETHZ, SS07 "Benchmarking": Characteristics of HRM in successful companies (Pfeffer, 1998) 1.Employment security 2.Selective hiring 3.Self-managed teams and decentralization 4.High compensation contingent on organizational performance 5.Extensive training 6.Reduction of status differences 7.Sharing information

3. VL HRM B – G. Grote ETHZ, SS07 Pay is... … money … compensation … reward … recognition … incentive …

4. VL HRM B – G. Grote ETHZ, SS07 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

5. VL HRM B – G. Grote ETHZ, SS07 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"

6. VL HRM B – G. Grote ETHZ, SS07 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

7. VL HRM B – G. Grote ETHZ, SS07 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

8. VL HRM B – G. Grote ETHZ, SS07 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

9. VL HRM B – G. Grote ETHZ, SS07 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.

10. VL HRM B – G. Grote ETHZ, SS07 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

11. VL HRM B – G. Grote ETHZ, SS07 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

12. VL HRM B – G. Grote ETHZ, SS07 "Benchmarking": Characteristics of HRM in successful companies (Pfeffer, 1998) 1.Employment security 2.Selective hiring 3.Self-managed teams and decentralization 4.High compensation contingent on organizational performance 5.Extensive training 6.Reduction of status differences 7.Sharing information

13. VL HRM B – G. Grote ETHZ, SS07 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

14. VL HRM B – G. Grote ETHZ, SS07 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“

15. VL HRM B – G. Grote ETHZ, SS07 Basic model of strategic personnel development (PD) Analyze requirements –define goals and target group(s) for PD intervention –define required qualification profiles –identify indivdiual employees who need PD measures PD intervention Evaluation concerning learning, behavior, and performance outcomes

16. VL HRM B – G. Grote ETHZ, SS07 Career orientations in Switzerland (Grote & Staffelbach, 2007) Traditional-promotion oriented Traditional-loyalty oriented independent disengaged

17. VL HRM B – G. Grote ETHZ, SS07 Career orientations in Switzerland (Grote & Staffelbach, 2007) Traditional-promotion oriented - 33% more managers, less university education, more stable organizations Traditional-loyalty oriented - 28% lower education, more fulfilled psychological contract, lower turnover intention, lower employability Independent - 19% more university education, higher income, less fulfilled psychological contract, highest turnover intention, higher employability Disengaged - 19% lower job position  tailor personnel development to career orientations