Summary HRM

8/12/2019 Summary HRM

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Summary Human Resourch Management

No examination material: Chapters 3 and 12 (already treated in law lectures in the 1st year), chapter13 (in Management Skills already have been extensively treated during the education) and chapter15 (less relevant or !M pro ession)"

#he examination material consists o the required chapters from the book , the article belonging tocollege 2 and additional matters which have been treated in all lectures "

hapter 1 Meeting present and emerging strategic HR challenges$ine employees: an employee involved directly in producing the company%s good(s) or delivering theservice(s)"Sta employee: an employee who support the line employeesSenior employees are those who have been with the company longer and have more responsibilitythan &unior employees" 'xempt employees are those who do not receive extra pay or overtime

work"#hree types o challenges acing managers today:

*Environmental - orces external to the irm in luence organi+ational per ormance largely beyond management%s control managers need to monitor the external environment or opportunities and threats

*Organizational concerns or problems internal to the irm* e ective managers spot organi+ational issues and deal with them be ore they become ma&or

problems* important or irms to be proactive , to take action be ore problems get out o hand* can be done only by managers who are well in ormed about important issues and

organi+ational challenges* the relationship between environmental and organi+ational challenges is a one way

relationship (see !igure 1"1)* ew organi+ations have much impact on the environment

* Individual deal with decisions pertinent to speci ic employee* almost always re lect what is happening in the larger organi+ation-* how the company treats its individual employees is also likely to a ect the organi+ational

challenges discussed* e"g" i many key employees leave the irm to &oin competitors, the organi+ation%s competitive

position is a ected* there is a two*way relationship between organi+ational and individual challenges (see !ig 1*

1)Strategic policies bene its:

'ncouraging .roactive /ehavior Communicating Company 0oals Stimulating Critical #hinking and ngoing 'xamination o 2ssumptions 3denti ying 0aps /etween Current Situation and !uture 4ision 'ncouraging $ine Managers% .articipation

3denti ying Constraints and pportunities Creating Common /onds

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Strategic policies challenges: Maintaining a Competitive Advantage ein orcing verall /usiness Strategy 2voiding 'xcessive Concentration on 5ay*to*5ay .roblems 5evelop Strategies Suited to 6ni7ue rgani+ational !eatures Coping with the 'nvironment Securing Management Commitment #ranslating the Strategic .lan into 2ction Combining Intended and Emergent Strategies 2ccommodating Change

Strategic : choices 8ork !lows Sta ing 'mployee Separations

.er ormance 2ppraisal #raining and Career 5evelopment Compensation 'mployee ights 'mployee and $abor elations 3nternational Management

Selecting strategies

strategies: it with organi+ational strategies:Corporate Strategies

'volutionary Steady State

.orter%s /usiness 6nit Strategies Cost leadership 5i erentiation !ocus

Miles and Snow%s /usiness Strategies 5e ender .rospector

!it with environment: 5egree o 6ncertainty Magnitude o Change



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Complexity 4olatility

!it with organi+ational characteristics: .roduction .rocess !irm%s Market .osture !irm%s verall Managerial .hilosophy !irm%s rgani+ational Structure !irm%s rgani+ational Culture

!it with organi+ation capabilities: 5istinctive Competencies

0ive irm competitive edge Strategies should

elp irm exploit its competencies 2ssist the irm to help use its skills

and managers: a partnershipole o 5ept:

#o support manager%s responsibilities 2udit:

Conduct .eriodically 'valuates how e ective irm is at using human resources ten evaluates too

hapter 2 Managing !ork flo!s and conducting "ob analysis

hapter # Managing di$ersity

hapter 5

hapter %

hapter & .er ormance appraisal: the identification, measurement and management o human per ormance inorgani+ations"3denti ication : determining what areas o work the manager should be examining when measuringper ormanceMeasurement: making managerial &udgments o how 9good or 9bad employee per ormance wasManagement: the overriding goal o any appraisal system

* appraisals should be more than a past*oriented activity that critici+es or praises workersor their previous per ormance

* must take a uture*oriented view o what workers can do to achieve their potential in theorgani+ation"



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2dministrative .urposes : used administratively whenever they are the basis or a decision aboutemployee%s work (includes promotions, termination, and rewards)5evelopmental:* uses o appraisal are uture*oriented* geared toward improving employees% per ormance and strengthening their &ob skills,* includes providing eedback, counseling employees on e ective work behaviors, and o ering themtraining and other learning opportunities"

5imension;aspect o per ormance 5etermines e ective &ob per ormance Should be based on &ob analysis E.g. quality , quantity, and interpersonal skills

Competencies: 3ncreasingly popular basis or per ormance appraisal dimensions

elative &udgment: an appraisal ormat that asks supervisors to compare an employee%s per ormance

to the per ormance o other employees doing the same &ob"Cons:* relative &udgments (such as ranks) do not make clear how great or smalle the di erence betweenemployees are* such systems do not provide any absolute in ormation, so managers cannot determine how good orpoor employees at the extreme ranking are"* relative ranking systems orce managers to identi y di erence among workers where no many truCons:* relative &udgments (such as ranks) do not make clear how great or smalle the di erence betweenemployees are* such systems do not provie any absolute in ormation, so managers cannot determine how good orpoor employees at the extreme ranking are"* relative ranking systems orce managers to identi y di erence among workers where no many trulyexist" #his can cause con lict among workers"* relative systems typically re7uire assessment o overall per ormance truly exist" #his can causecon lict among workers"* relative systems typically re7uire assessment o overall per ormance* hard to de end in court2bsolute &udgment: an appraisal ormat that asks supervisors to make &udgements about an

employee%s per ormance based solely on per ormance standards.ro%s:* they avoid creating con lict among workers*easier to de end in courtCons:* all workers in a group can receive the same evaluation it eh supervisor is reluctant to di erentiateamong workers* di erent supervisors can have markedly di erent evaluation standards

hapter '

hapter (



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hapter 1)

hapter 11

hapter 12

hapter 1#

hapter 1%

hapter 1& *nternational HRM challengeStages o international involvement:

E patriate! citi+en o one country

$ives and works in another country "ultinational corporation (M

Challenges include nline security Sa ety issues Client complaints

!alling /arriers #rade, production, services, and inances barriers largely disappeared

#he mix o host*country and expatriate employees: 8holly owned subsidiary and &oint ventures

Must decide who will manage overseas unit #hree approaches

'thnocentric approach .olycentric approach 0eocentric approach

eliance on expatriates increases when: Su icient local talent is not available .art o irm%s overall business strategy is to create a corporate*wide global vision 3nternational units and domestic operations are highly interdependent #he political situation is unstable 2re signi icant cultural di erences between the host and home countries

Challenges o 'xpatriate 2ssignments ?@ A@B ailure rate or 6"S" expatriates



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= A times higher than 'uropeans or 2sians Many reasons assignments end in ailure

Career blockage Culture shock $ack o predeparture cross*culture training veremphasis on technical 7uali ications 0etting rid o a troublesome employee !amily problems

5i iculties on eturn $ack o respect o ac7uired skills $oss o status .oor planning or return position everse culture shock

6sing M to e ectively manage expatriate

Selection 'mphasi+e cultural sensitivity as a selection criterion 'stablish a selection board o expatriates e7uire previous international experience Consider hiring oreign*born employees who can serve as uture expatriates Screen candidates% spouses and amilies 5evelop an e ective selection program or expatriates and the locals who help

#raining: Should begin 1? months in advance o the assignment 2t least some training should go to the expatriate%s amily

2re three approaches to training: 3n ormation*giving approach 2 ective approach 3mpression approach

$ocal managers need to be prepared to train incoming expatriatesCareer development:

.osition the international assignment as a step toward advancement within the irm .rovide support or expatriates .rovide career support or spouse

Compensation: .rovide a disposable income e7uivalent to what the expatriate would receive at home .rovide an explicit 9add*on incentive or accepting an international posting 5on%t put expatriates in the same &obs held by locals or lower*ranking &obs Calculating compensation or expatriates is very di icult

!luctuating exchange rates Cost o living varies tremendously

6sing M to ' ectively Manage 'xpatriates ole o 5epartment 8omen and 3nternational 2ssignments

5eveloping M .olicies in a 0lobal Context 8estern*style management likely to clash with oreign norms and values



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Must mold practices to culture o stede%s > 5imensions o Culture

.ower distance 3ndividualism 6ncertainty avoidance MasculinityD emininity $ong*termDshort*term orientation

'' in the international context '' prohibition o discrimination based on age, sex, race, etc" apply to international

assignments too !oreign national employees o 6"S" companies working outside the 6S are not covered by

6"S" employment law 3mmigration and Control 2ct (1 EF)

Summary HRM

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