Lecture3+SHRM

High commitment HR strategies
Components of low commitment strategy (HR creates low levels of uncertainty for managers) ORGANISATIONAL CULTURE • rule-based • emphasis on authority •task-focus •mistakes punished •hierarchical •top-down •centralisation •mechanical bureaucracy •deskilled/fragmentatio n •conception-execution split •single skill •direct control
Resource-based View of the Firm
• Focus on the internal resources • Strengths – human and non-human • Rarity, un-inimitable and non-substitutable • Added value • Human process advantage • VRIO
Organisational Strategy: Approaches
Rationality Evolution Process Systems
Managing People
• A history of people management • Early history of people management
Best Fit
• Different HR strategies required depending on key
strategic option (Schuler and Jackson, 1987) • i.e. Innovation, quality enhancement, cost reduction • Different strategies for different stages in the organisation’s lifecycle (Kochan and Barocci, 1985) • i.e. Start up, growth, maturity • Different strategic configurations • i.e. Internal employment system, market employment system • Competitive advantage
HRM Best Practices
• HR considerations are part of all strategic level
deliberations • High employee commitment and continuous improvement encouraged by strong culture, high levels of worker involvement and consultation • High trust relationships and teamworking • Employees undertake continuous skill development for personal growth and task flexibility (Watson,
Criticisms of RBV
• Importance of external environment • Organisations are not ‘free standing’ • Global competition • Importance of sectoral similarities • Plurality of organisations/labour markets • Inward looking
performance? • Many organisations do not adopt this approach, but remain competitive – WHY? • If firms can relocate to countries where low-pay, sweatshop conditions and insecurity prevail – WHY NOT?
•two-way communication •information shared for general advantage •business information is shared
EMPLOYMENT RELATIONS
•adversarial, collective, win/lose •trade-unions as inconvenient constraints OR as convenient intermediaries •training for specific tasks •emphasis on courses •appraisals: Management setting and monitoring of objectives •focus on the job •marginal and restricted to welfare and administration •reactive and ad-hoc •staffed by personnel specialists
2005)
• HR issues are the concern of ALL managers
Criticisms of Best Practice
• Logical – what IS best practice? • How does best practice link to organisational
High and Low Commitment Strategies: High
• Best practice HR model • Close relationship between workers and firm • Psychological and emotional commitment • Opportunities for personal and career development
Best Practice
• One ‘best’ way • ‘Adoption of
‘enlightened’, ‘progressive’, ‘people first’, ‘high performance’ or ‘high commitment’ employment practices, regardless of the organisations circumstances
Local/national/global political, economic and cultural patterns
Strategy makers values and personal/group interests
Managerial debate, negotiation and choice
Components of high commitment strategy (HR creates high levels of uncertainty for managers •shared values •emphasis on problemsolving •customer focus •learning from mistakes •flat •mutual influence •decentralisation •organic/flexible •job enrichment •conception-execution combined •multi-skilled individuals •indirect control/autonomy
Comparative and International HRM
Strategic HRM
Structure
• Approaches to strategy • SHRM models • High and low commitment models • The SHRM/performance link • Ethics and SHRM
The degree of uncertainty employee constituencies are seen as creating for the organisation’s long-term future
Low commitment HR strategies
Watson, T. (2005)
ORGANISATIONAL STRUCTURE
JOB DESIGN
PERFORMANCE EXPECATIONS
•objectives to minimum levels •external control and inspection •quality = acceptable
•objectives designed to ‘stretch’ and ‘develop’ •self-control •self/peer inspection •continuous improvement in quality •variation related to group performance •pay linked to skill
REWARDS
•variation related to individual incentives •individual pay linked to job evaluation
COMMUNICATION
•managers seek and give information •information used for sectional advantage •information on a need to Βιβλιοθήκη Baidunow basis
Criticisms of Best Fit
• Contingent factors are important, but do not
necessarily shape organisational forms and practices • Importance of choice and mediation • Importance of political factors, human values etc.
• HRM in modern industrial
capitalism
• The rise of strategic HRM
• Work, people and HRM
Managing HRM Strategically
• The nature of HRM strategies • HRM as strategy • HR strategy and corporate strategy • What comes first, ‘chicken or egg’ • Models • Best fit • Best practice • Resource-based view of the firm
built into employment • Long-term employment • Task variability
High and Low Commitment Strategies: Low
• Hire and fire principles • Task simplification • Little or no training • ‘Arms length’ relationship • Instrumentality and calculation