1. Course Check-up
HRM today plus JP article (Seven Practices)

2. Case Presentations Present the Case – Gentleman’s Threes
Class work on the Case –
Step 1 – Core Elements (short summary of main factors in the case)
Step 2 – Critical Issue (one sentence)
Step 3 – Relevant Theories that will help you to answer the problem
Step 4 – Options (3) – possible solutions
Step 5 – Supported Argument for the “Best” one

3. Gentleman’s Three Must “cut” $20M from budget Staff layoffs
Performance review system seems to be a problem. (1) Above average (2) All 3s
What to do?
VP HR Nils Ekdahl
CFO Anita Fierst
Michael Milanese (previous VP HR)

4. Seven Practices of Successful Organizations Jeffrey Pfeffer
Employee Security
Selective Hiring
Self-managed teams
Comparatively high compensation
Extensive training
Reduced status distinctions
Extensive sharing of information

5. Employment Security Employment Security Policy Avoid “Dumbsizing”
more careful / leaner hiring
Avoid “Dumbsizing”
buying high selling low (IT industry)
doing their job (Bank - loans officers)
Fire when necessary

6. Selective Hiring High number of applicants
Screen for cultural fit and attitude
What are important skills
Several rounds to scrutinize
Involve senior people
Assess the results and performance

7. Self-Managed Teams Research = they work! Why? peer-control
pooled ideas
decrease administrative overhead

8. High Compensation Contingent on Performance
Relationship between money paid and attracting right workforce
Can take other forms than just a pay-cheque (i.e. employee ownership or profit sharing)

9. Training Affords flexible production Competitive Advantage
NA / Japan differences reflects differences in “time horizon” for holding on to employees

10. Reduce Status Differences
Make all organizational members feel important
How - symbolically
“associates”
How - figuratively
parking
dining hall
offices
freeze salaries

11. Share Information ‘Open Book’ management
Shows organizational members that they are trusted
People must know what is happening to make changes
(but fears that information will leak out to competitors is troublesome)

12. Summary 7 Practices
Difficult to do them in a staged approach - jump in!
Some will take longer to work (training)

13. Chapter 10 - HRM The role of HRM Recruitment – employment decisions
Retention – working conditions, compensation
Rouse – motivate employees, intrinsic rewards
Redevelop – employee training and development

14. Toward a New HRM Model

15. Recent Developments
Profit / Customer focus – companies became more focused on generating shareholder value, and they looked to HR departments to take more long-term, profit oriented perspective; HR is a source of competitive advantage
New Technology – new technology allowed outsourcing of many activities and handling many administrative aspects of HR electronically; firms focus more on “core competencies”

16. Recent Developments
Diversity – HR were asked to reconcile the social demand that employment practices be open and inclusive with respect to diverse cultures and lifestyles and the need for high-performing, employees
Globalization – Global trade and global capital mobility increased dramatically in the last two decades of the 20th century

17. Recent Developments
Deregulation – has resulted in declining unionization and wages in industries

18. Lessons Learned
Profit calls the tune – profit is the invisible hand that guides and shapes all aspects of company’s HR practices
Strategic – the more that labour issues have the potential for impacting the bottom line, the more that top management will start to look at HR from a strategic perspective

19. Lessons Learned
Contingency – HR practices that work well for one company or in one situation may be an embarrassing failure in another (don’t just follow the leader) – it depends on your organization’s strategy (low cost producer vs. differentiator)
Alignment - management must adopt a holistic, systems view of HR and mix and match HR practices so they interact with each other to maximize overall performance
Human Resources are people – every person wants to be treated with respect and fairness

20. Strategic Typology of HRM
Important
To Execs
Staff planning
Benefit planning
Retirement planning
Compliance
Payroll
Benefit Admin.
Retirement Admin.
Employee records
Relocation Admin.
Performance enhancement
Employee relations
Labour negotiations
Employee development
Managerial development
Recruitment
Employee assistance programs
Recruitment Information Processing
High
Strategic value
Low
Important to
Employees
Transactional
Type of HR activity
Relationship

21. Core Elements of The New Model
Flexible job design
Teamwork
Quality circles
Job rotation
Worker training and development
Pay-for-performance compensation
Employment (in)security
Employee involvement in decision making

22. Two Work Systems Old New HRM Practices Command & Control
High Performance
Internal career opportunities
Hiring mainly from outside the firm
Very little use of internal career ladders
Hiring mainly from within the firm
Extensive use of well defined career ladders
Training
No formal training provided
Extensive formal training provided
Result-oriented appraisals
Performance measured by quantifiable output
Performance measured by behavior-oriented measures
Incentives
Mainly extrinsic
Extrinsic and intrinsic
Employment security
Little
High Benefits to outpaced employees
Formal dismissal policies
Participation in decision making
High
Job descriptions
Jobs are clearly/tightly defined
Jobs are broadly defined

23. Next Day Chapter 12: Individual Behaviour
Read and Prepare Case on Webpage
One pager: Answer following the 5 steps
Step 1 – Core Elements (short summary of main factors in the case)
Step 2 – Critical Issue (one sentence)
Step 3 – Relevant Theories that will help you to answer the problem
Step 4 – Options (3) – possible solutions
Step 5 – Supported Argument for the “Best” one