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Are we having this process. What? Is it intended to achieve. How? Does it contribute to the achievement of
organization goals.
Ex: medical test prior to joining.
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Topics to be covered
Behavioral Sciences
Linkage with HRM
Organization
- Certain percepts / lowest common denominator
Strategy
Difference between strategy and tactics Different levels of strategy Strategy in fast changing world: mechanistic vs complex paradigm
HRM Definition Its relevance Its interface with strategy Major areas
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Behavioral Sciences: Involves systematic analysis and investigation of human behavior studied through experimental and observational methods. Organiz ational Behavior:
Ex: Understanding human beings. your project team member, and what makes him tick the set of relationships surrounding you and your team member, including authority relationship small-group dynamics, working together to accomplish well defined tasks Organization as a whole: its culture, processes and ways of doing things that affect you, your member, the relationship and the small project team of which both of you are a part.
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Motivation
The basic motivation process:
NEEDS
DRIVES
INCENTIVES
Needs: get created when there is a physiological or psychological imbalance. Drives: Or motives are set up to alleviate needs. Action oriented. Incentives: Anything that will alleviate a need and reduce a drive.
Motivation theories Content theories: ways to analyse individuals by identifying needs that motivate their behavior. Maslows (physical and conceptual needs) and ERG (existential, relatedness and growth)
Process theories: seeks to understand the thought processes that take place in the minds of people that act to motivate their behaviour. Equity theory
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Motivation
Motivation: describes the forces within an individual that account for the
level (amount of effort), direction (what he chooses to do when presented with a no. of options), and persistence (how long will he stick to exert effort)
Motivation
Job Performance? individuals attributes: capacity to perform organizational support: opportunity to perform work effort: willingness to perform
Linkage with HRM: Recruitment and Selection Job design, Right person in Right role, Training, employee/labour relations, safety and health Right Incentives : Performance appraisals, Compensation and benefits, Developmental inputs
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Ex: ITES sector: attrition What motivates people to stick around in company X? Organization Development (OD): a planned effort, organization-wide managed from top to increase organization effectiveness and health through interventions in the organizations processes, using behavioral science principles and practices. It is a complex strategy intended to change the beliefs, attitudes, values and structure of organizations so that they can better adapt to new technologies, markets and challenges
Topics to be covered
Behavioral Sciences
Linkage with HRM
HRM Definition Its relevance Its interface with strategy Major areas
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What is an Organisation:
Collective Purpose
Brings together an array of resources and applies their specialisations to a common end-product.
- Open system : they take input from the environment, transform them and discharge outputs in the form of products and services. Organisation and its ecosystem Ex: watch & mobile Second law of thermodynamics, entropy - What distinguishes business organisation?
Ramdev vs Brinda Karat
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III. EMPLOYMENT ?
Employment is a contract. Entails expectations from each party.
Exercise: Tell me something about your relationship with your employer.
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Employment
Employment: nature of relationship between individual and firm has components that makes it different from other contractual relationship
Economic: pay-effort bargain. Legal: network of common law and statutory rights and obligations governing both the parties to the contract.
Various employment Acts and Rules of India.
Social relationship: members of social groups. Responding to social norms that influence their actions in place of work.
Mentorship
Psychological relationship: dynamic two-way exchange of perceived promises and obligations between employees and firm.
Model Code of Conduct
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Psychological relationship: dynamic two-way exchange of perceived promises and obligations between employees and firm.
These are shaped by the social and economic context, leadership, communication and HR practices.
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Effective Manager?
performance efficiency: measures how well
resources are being used. focus on efficiency and cost containment. Means ends relationship is certain. So, managers monitor & control performance.
Middle managers:
accountable to higher level for work unit results, and dependent on the efforts of subordinates and other team members to make this happen. link between brains and its hands. depends on them for organizational performance Increasingly, they are taking up leadership roles. Ex: ABB, Microsoft
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High performance=effectiveness+efficiency
Good
Effective and efficient: Effective, but not goals achieved Performance efficient: and resources well Effectiveness some used: area of high How well are
resources wasted Goals being attained? productivity
Poor
Performance efficiency
How well are resources being used?
Management as politics
Successful managers are those who work out and cope with unwritten laws in the organisation.
(knowledgeable agents working in dynamic arena,where resources and outcomes are shaped by actions, networks, alliances)
MANAGEMENT
Management as practice
Successful managers are those who can work out and cope with contradictory demands and purposes. (activities aimed at continual
melioration of diverse, fragmented and contested complex practices) Eg, INTEL
Management as control
Successful managers are those who can exploit and control resources.
(structures and strategies are instrument and techniques to control and raise productivity) Eg, Manufacturing
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Topics to be covered
Behavioral Sciences
Linkage with HRM
Organization
- Certain percepts / lowest common denominator
Strategy
Difference between strategy and tactics Different levels of strategy Strategy in fast changing world: mechanistic vs complex paradigm
HRM Definition Its relevance Its interface with strategy Major areas
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What is strategy?
Strategy is the creation of a unique and valuable position, involving a different set of activities. Strategy is making trade offs in competing. The essence of strategy is deciding what not to do. Strategy is creating fit among a companys activities. Michael E Porter, What is strategy?, HBR, 1996
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Strategy:
1. A process through which - the basic mission and objectives of the organisation are set, and - the organisation uses its resources to achieve its objectives. 2. Concerned with the definition of competitive advantage and the development of activities, resources and capabilities that enable the firm to sustain advantage in a changing world. 3. A bridge between high-order goals (vision/mission) and concrete actions (money out) Tactics = actual means to achieve the end
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Strategy: its three levels - corporate values financial goals non financial goals - competitive how a firm competes in a given industry - functional marketing financial research operations HR, and so on.
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Strategy development process: Industry analysis today and tomorrow Positioning sources of competitive advantage Competitor analysis past and predicted Current strategy assessment relative position and sustainability Option generation a creative look at new customers and positions Assessment of capabilities positioning for future opportunities Choosing or improving a strategy position, trade offs, fit
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Hierarchy of strategy
Business Level: How do we compete.
Porters competitive strategy model (1985): cost leadership, differentiation and focus.
Competitive advantage
Low cost Uniqueness
Low-cost leadership
eg, Wal-Mart (10 feet rule)
Differentiation
eg, Levis
Focused differentiation
eg, High priced boutiques
Topics to be covered
Behavioral Sciences
Linkage with HRM
Organization
- Certain percepts / lowest common denominator
Strategy
Difference between strategy and tactics Different levels of strategy Strategy in fast changing world: mechanistic vs complex paradigm
HRM Definition Its relevance Its interface with strategy Major areas
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hRm
Focus people as resources to be utilised like any other resource: management as a control labour is disposable commodity to be bought and controlled. takes a rational approach towards managing employees, that is, views it as a any other economic factor, or takes a marginal cost decision invest in labour or technology. Bureaucratic control, technical control
Henry Ford: production lines
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Manpower: peculiarities
Traits that people bring to the work place intelligence, aptitudes, commitment, tacit knowledge and skills, and the ability to learn. But, the contribution of this human resource to the firm is both variable and unpredictable. This, indeterminacy of an employees contribution makes human resources most vexatious of assets to manage.
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hrM
Management of people - Looks at sophisticated ways of enhancing performance thro forms of control that are based on commitment rather than compliance Management as a politics Commitment strategies to ensure that employee give an organisation its competitive advantage. Needing to be managed ? To be motivated to produce the best.
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Hrm
Focus on people as complex and valuable members or stakeholders of the firm. Management as a practice To be attracted, retained and developed. The sum of peoples knowledge and expertise, and social relationship has the potential to provide non substitutable capabilities that serve as competitive advantage. Characteristic of resource value, rarity, inimitability, non substitutability drive the competitive advantage. Ex: knowledge worker
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HRM is..
HRM is the set of philosophies, processes and procedures that a company uses to manage: The entry and exit processes in the firm The growth and development of employees The reward and recognition systems The total organizational climate for how people are treated
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HRM is..
The entry and exit processes in the firm:
Earlier: implicit psychological contract ~ life long employment for loyal and productive work. Today: implicit psychological contract ~ create employability Microsoft: Recruitment is every bodys business AT&T: took advertisement offering good people to other companies. Make workers into suppliers.
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HRM is..
The growth and development of employees: Training vs Development
Learning is a relatively permanent change in behavior that occurs as a result of experience. Internalising and not acquiring facts.
- Fewer managerial positions for promotions up: so move employee into a number of lateral positions. - 360 degree feedback
Ex: Motorola : two weeks of mandatory training. Education is a strategic tool here. As the Co. dominates its core market through expertise and technology. Quick learning needed to enter new markets
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HRM is..
The reward and recognition systems: Reward refers to all of the monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for the work they perform. Pay: an actual income in exchange for labour/effort. Recognition: psychological income, or what makes coming to work really worth while. Psychological contract : perceived incongruence? notion of fairness? tensions?
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HRM is..
The total organizational climate for how people are treated: - Alignment with vision, strategy, competitive advantage and function. - HR paradigms
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HRM is..
seeking alignment of the employment system of a firm with the strategy, internal context, and nature of the circumstances (external context) that an firm faces. Integration is the key word. The set of employment policies, programmes and practices needs to be coherent and integrated with above three.
Exercise: Give examples of contexts in Intel.
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Each HR strategy represent a distinctive HR paradigm, or a set of beliefs, assumptions and values that guide the managers . One example:
Acquisition of employees
Internal Outcomes External
Commitment
HR Strategy (sales driven)
Collaboration
HR Strategy (IT)
Paternalistic
HR Strategy (Govt dept)
Traditional
HR Strategy (manufacturing?)
Changing contexts
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Changing expectations
Of workers: Allegiance to his branch of specialised knowledge, so First loyalty is to others of same profession??? Thus, point of reference may lie outside the organisation. Each is an autonomous entity, who come together for project, but can easily disband.
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Changing expectations
Of workers: Organisation can therefore be conceptualised as an collective of autonomous units workers. Organisation is defined by interactions, relationships and networks between these autonomous entities, as well as with outside environment that create unexpected outcomes.
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Changing expectations
Of workers: The success of organization depends on potential power of its workers, and how they interact to produce something unparallel. That is, there has to be a mutually symbiotic relationship. With mobility, and self confidence, no more adult-child relationship inside the organisation. People practices that tend to be One size fit all will no more suffice.
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Changing contexts
External contexts:
Global integration
Fewer tariffs Easy flow of capital, labour, know-how Interdependency
Linkage to capitalist system Maturation of markets in developed economies Technological change Political change
New employment and environment laws
Social change
Aging population in developed countries Young population in developing countries Value system
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Changing contexts
Internal context
Educated work force Increased awareness More women Knowledge work Movement of labour across time and space Competition Constant learning
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Coming together of equals: Knowledge workers need access to an organisationa collective that brings together an array of resources and applies their specialisations to a common end-product. But, for organisation, these are the main factor of production, the primary capital.
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Virtual workplace:
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New forms of organisations Necessity to learn continually: Job is life: Earlier, mostly job is an means to an end,
now job mostly is an end in itself
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HR Strategy
Environmental/internal influences
Business strategy
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Human resource management policy choices -Employee influence -Human resource flow -Reward systems -Work systems
Strategy
Internal/external contexts -Workforce characteristics -Business strategy and conditions -Management philosophy -Labour Market -Union strength -Task technology -Law and societal values
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What do HRM professionals do? What affects what they do? And, how do HR professionals do what they do?
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Skills
Communication Legal Power Instructional Interpersonal Cognitive Technical
HR strategy Matching Ps
Philosophy Policies Programmes Practices Processes
External context
Strategy
Internal context
Contingencies
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Strategy
Core processes
Organisation structure
The performance of the system is not the sum of its parts, but product of their interactions.
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Strategy
Which executes the strategy
Human organisation
The characteristics of the human organisation set the criteria for: Which creates the human organisation
Organisational initiatives
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Competitive advantage
-organisational capability: represents the businesss ability to manage organisational systems and people in order to match customer and strategic needs. Ex: restaurant In complex, dynamic, uncertain and turbulent environment, this capability derives from the flexibility, adaptiveness and responsiveness. In less dynamic environment, the capability derives from maintaining continuity and stability of organisational practices.
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Complex paradigm: y
y Keen to espy patterns in the seemingly discrete sets of phenomena. Comfortable with incomplete set of information, and is able to take small, iterative steps rather than wait for the best solution to evolve. Keeps on seamlessly moving between past, present and future through simultaneous attention and linkage. Doesnot believe that there is one best way; instead uses maps as thinks fit in the given situation. Believes that situations and results that are unknown and unstable cannot be analysed using present days tools and frameworks.
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y y
Complex paradigm:
Encourage new ideas Stimulate innovative approach. Is comfortable with improvisations Can take leaps of faith, even with incomplete information. Thrives on constant changes. Uses collaborative and participative approach. Does not control, but content with advise and boundary management.
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Enhancing possibility space Self organizing around new opportunities Recognition of new patterns emerging Managing co evolution with other players
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Complex paradigm:
Leader: Mirroring the future:
Enhancing the possibility space: beacon Self organising around new opportunities: torchbearer Recognising new patterns emerging: seller of dreams Manage coevolution with other players: enablers