Human Resource Management (HRM)

1
Human Resource Management (HRM)

• What?
• the functional area of an organization that is
  responsible for all aspects of hiring and
  supporting employees (e.g., providing and
  administering employee benefits).
• all the activities related to the recruitment,
  hiring, training, promotion, retention,
  separation, and support of employees.
• functions within a company that relate to people.
  
• Why?
• is the effective use of human resources in order
  to enhance organisational performance.
• the process of evaluating human resource needs,
  finding people to fill those needs, and getting
  the best work from each employee by providing the
  right incentives and job environment, all with
  the goal of meeting the needs of the firm.
• applying human resources within complex systems
  such that people succeed, performance improves,
  and human error decreases.

(Source web definitions for HRM)
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Effects of HRM

• HRM-practices (especially job design and
  selection/ appraisal/training) better predict
  company performance than RD, QM, strategy and
  technology (West, 2001)
• Empowerment better predicts company performance
  than technology-based management practices
  (Patterson et al., 2004)
• HRM-practices as cause and effect of company
  performance (Guest et al., 2003)

3
Road map for both HRM classes (Work process
design, Leading teams)
4
HRM Work process designOverview
5
Organization of course

• 3 ETCS points (approx. 75-90 work hours).
• Besides the lecture, the prerequisite for credits
  points and exam participation is the completion
  of a semester project in groups of 4 students.
• Topic of semester project Analysis and
  assessment of job and organizational design in a
  company including a written report and feedback
  to the company.
• The exam is written (1.5 hours open book) and
  takes place the 2./3. Week of January. Overall
  grade 50 project 50 exam.
• Material for the lecture at www.oat.ethz.ch.

6
Semester project

• Assessment of job and organizational design in a
  company based on two instruments
• work system analysis (focus on work processes and
  handling of disturbances in the processes)
• job analysis (focus on criteria for humane work)
• Analyses involve 2-3 interviews with managers and
  employees and .5 - 1 day observation of work
  tasks and processes
• To be carried out in groups of four either in a
  company of your choice or in a company provided
• Please send an e-mail to Jacqueline Hohermuth by
  Sept. 30 (jhohermuth_at_ethz.ch) with the names and
  e-mail addresses of the four people in your
  group, indicating also if you want us to provide
  a company and whether you can conduct the
  analyses in English and/or German

7
Required reading
Copies of the texts will be availabe during the
lecture on Oct. 9 (CHF 10)
8
Psychology

• Describing, explaining, predicting and changing
  of human experience and behavior

9
Work and organizational psychology

• Psychologically founded theories, methods and
  solutions for the effective and humane
  interaction between people, techologies and
  organization in order to reach individual and
  organizational goals

10
Methods Psychology as natural and social science

• Methods in natural sciences
• Experiment as core paradigm controlled
  variation of conditions in order to test their
  effects
• Characteristics of social science research
• Control of complexity
• Constraints on manipulation of study conditions
• Studying "hypothetical constructs"
• Limited possibilities for reduction of complexity
• Studies with humans
• Effects through researcher / researched
  individual and social embeddedness
• Ethical principles
• Action research
• Researchers and researchees as subjects in a
  shared process of social change

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HRM from a work and organizational psychology
perspective

• Scientific foundation for HRM tools
• HRM as a function penetrating the whole
  organization
• Focus on working conditions as influences on
  human competence and motivation
• Systematic linking of "fit human to task" and
  "fit task to human"

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HRM Work process designOverview
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Road map for HRM Work Process Design
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Fundamentals of organizational design (Kieser
Kubicek, 1983)

• Specialization Distribution of labor, resulting
  in different kinds of work tasks
• Coordination management of dependencies among
  subtasks, resources, and people
• Configuration Structure of line of command
• Delegation of decision authority Distribution
  of decision authority regarding actions and
  decision rules
• Formalization Determination of rules and
  procedures, e.g. structures, flow of information,
  performance measurement/assessment

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Socio-technical systems approach

• The beginning - Studies by the Tavistock
  Institute in English coal mines One-sided
  adaptation of the work organization in accordance
  with the demands of a new technology lead to a
  suboptimal work system
• Three core assumptions
• Every work system comprises a social and a
  technical sub-system.
• The social and technical sub-system have to be
  jointly optimized.
• The main criterion for the joint optimization is
  the control of disturbances at their source.

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Organization as socio-technical system
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Managing uncertainty in organizations (Grote,
2004)
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Mechanistic vs. organismic organisation (Burns
Stalker, 1960)
Contingencies Minimizing of uncertainty
possible with few uncertainties Coping
with uncertainty necessary with many uncertainties
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HRM Work process designOverview
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Methods for the psychological analysis of work
processes

• Different goals
• Determination of pay schemes
• Determination of requirments/qualification
  profiles
• Asessment of job and organizational design
  during/after technological/organizational change
• Humane work design
• Different levels of analysis
• Human-technology interaction
• Individual work tasks
• Organization unit / work system
• Firm
• Interfirm processes
• Different perspectives
• "objective" situational demands - Assessment by
  external experts
• "subjective" personal perception - Assessment by
  workers themselves

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Need to combine "objective" and "subjective"
perspective

• Expert for the assessment of a work situation
  external observer and/or workers themselves ?
• Objective conditions and subjective
  re-interpretation of these conditions are
  relevant determinants of action
• Compensation of different kinds of biases
  (stemming from norms, needs, social context,
  different uses for data etc.)

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Empirical methods

• Analysis of documents
• Advantages non-reactive, "condensed
  organizational knowledge" Disadvantages not
  aligned with purpose of the investigation
• Written survey
• Advantages objective, applicable for large
  samples
• Disadvantages no control over the actual data
  collection, response biases
• Interview
• Advantages control over data collection, complex
  issues possible
• Disadvantages resource-intensive, interviewer
  influences
• Observation
• Advantages access to implicit knowledge, natural
  situation
• Disadvantages subjective meaning of the observed
  unknown, no control over the occurrence of the
  events under study

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Work system analysis

• Description and evaluation of work processes in
  work systems based on analysis of variance
  handling and criteria such as independence of
  work system
• Data collection method Interview and
  observation based on guidelines
• Support for assessment through scales with anchor
  descriptions or with lists of relevant
  characteristics

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Work system analysis Examples
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Method for job analysis

• Description and evaluation of work processes on
  the level of the individual task based on
  criteria such as learning opportunities and task
  completeness
• Data collection method Observation with
  integrated interview
• Support for assessment through scales with anchor
  descriptions

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HRM Work process designOverview
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Zwei Gesichter der Arbeit (Lewin, 1920)

• Arbeit ist einmal Mühe, Last, Kraftauf-wand. Wer
  nicht durch Renten oder Herrschaft oder Liebe
  versorgt ist, muss notgedrungen arbeiten, um
  seinen Lebensunterhalt zu verdienen. Arbeit ist
  unentbehrliche Voraus-setzung zum Leben, aber sie
  ist selbst noch nicht wirkliches Leben. Darum
  Arbeit so kurz und so bequem wie möglich! Wenn
  die Arbeit dazu gleich-förmiger und einseitiger
  werden muss, so schadet dies nichts, solange es
  ihrer Produktivität keinen Abbruch tut. Denn
  aller positiver Wert kommt dieser Arbeit nur
  indirekt zu, nur durch die wirtschaftlichen
  Vorteile, die sie dem Arbeitenden bietet.

• Die Arbeit ist dem Menschen unentbehr-lich in
  ganz anderem Sinn. Nicht weil die Notdurft des
  Lebens sie erzwingt, sondern weil das Leben ohne
  Arbeit hohl und halb ist. Dieses Bedürfnis nach
  Arbeit, die Flucht vor dauernden Müssiggang, die
  bei zu kurzer Arbeitszeit zur Arbeit ausserhalb
  des Berufs treibt, beruht nicht auf blosser
  Gewohnheit zu arbeiten, sondern gründet sich auf
  den 'Lebenswert' der Arbeit. Weil die Arbeit
  selbst Leben ist, darum will man auch alle Kräfte
  des Lebens an sie heran-bringen und in ihr
  auswirken können. Darum will man die Arbeit reich
  und weit, vielgestaltig und nicht krüppelhaft
  beengt. Der Fortschritt der Arbeitsweise gehe
  also nicht auf mögliche Verkürzung der
  Arbeits-zeit, sondern auf Steigerung des
  Lebens-werts der Arbeit, mache sie reicher und
  menschenwürdiger.

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Psychosocial functions of work (Jahoda, 1984)

• material means of existence
• activity / competence
• structuring of time
• cooperation / social contact
• social approval
• sense of personal identity

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Job design as crucial measure for personnel
development

• Design of humane work tasks in order to further
• health
• competencies
• personality
• based on the psychosocial functions of work

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Criteria for humane work tasks (from Ulich, 1998)
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Core characteristics of humane work Complete
tasks

• sequential completeness
• Cycle of goal setting, planning, execution,
  control and correction
• hierarchical completeness
• demands on action regulation at different levels
  of complexity (skill-, rule- und knowledge-based
  actions)
• Reversal of tayloristic principles

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The five principles of Taylorism

• Separation of planning and doing
• Responsibility for planning at management level
  implementation as sole shopfloor responsibility
• "one best way" of task execution
• Definition of the more efficient way of task
  execution based on scientific methods every
  worker executes only one step in the overall task
• Selection of the best person
• Definition of qualification profile for each task
  step, selection of the appropriate person
• Reduction of training
• Training for the more efficient way of executing
  each task step, workers are easily replaced
• Control
• Surveillance of adherence to the prescribed work
  methods and of achievement of required results

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Objectives of job design

• AutonomySelf-determination regarding goals and
  rules for goal achievement.
• ControlInfluence on situations in order to
  achieve goals which can be self-determined or
  determined by others.
• Prerequisite for effective use of control
  Transparency and predictability of work situation.

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Design rules regarding autonomy and control

• Control should be at a maximum.
• But Management and staff positions can only
  provide indirect control via line employees.
• Control without autonomy is possible if strong
  identification with goals determined by others
  can be achieved.
• Autonomy without control contains high potential
  for frustration (e.g. staff functions without
  direct influence on the line of command)

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Effects of humane job design Stress reduction

• Stress a situation with demands that cannot be
  met by personal resources
• Important resources are
• control (means of influence) given (objective)
  and perceived (subjective)
• qualification
• social support

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Stress at work EU 2002

• 28 of employees in 15 EU member countries answer
  that they suffer work-related stress
• Causes
• Lack of control, e.g. regarding planning (35),
  work duration (55), time pressure (29)
• Monotony
• Mobbing
• Job insecurity
• Effects
• Heart diseases (Men16, women 22)
• Absenteeism (50-60)
• Estimated costs 20 billion Euro

39
Stress at work Switzerland 2002 (BfS, 2004)

• 44 of working people state that they suffer from
  severe work load.
• Of these 27 indicate that they suffer physical
  symptoms.
• 11 of working people fear that they might lose
  their job.
• Of these 37 indicate that they suffer physical
  symptoms.

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Effects of humane job design Furthering
development of competencies and personality

• Results of longitudinal studies on the effects of
  job design changes
• E.g. Baitsch (1985) Increase in technical
  competencies, intellectual flexibility, social
  competence, and moral awareness
• Results of longitudinal studies in the general
  public
• E.g. Kohn Schooler (1982) Reciprocal
  interaction between intellectual demands of work
  andd intellectual development through processes
  of selection and socialization

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Considering individual differences in job design

• Participative und differential-dynamic job
  design
• Involvement in organizational change decisions
  and offer of choices regarding job design options
  allows for consideration of indiviual needs and
  competencies
• Job crafting
• Opportunities for self-determined adaption of
  work tasks according to changing individual needs
  and competencies
• Management by Objectives (MbO)
• Systematic furthering of individual motivation
  through tailored goals and ways for goal
  achievement
• General objective no fixation of individual
  differences, but individually tailored support

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Fundamental objective of job design
Create conditions that support people in being
capable (competence) and also wanting
(motivation) to do their job well
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HRM Work process designOverview
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Road map for HRM Work Process Design
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Extrinsic versus intrinsic motivation
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Individual differences in motivation
Different needs Motivation f (satisfaction /
frustration of needs) ____________________________
______________________ e.g. Physiological
needs Security needs Affiliation and affection
needs Appreciation needs Self-actualization
needs
Different goals and expectations Motivation
Valence x Instrumentality x Expectancy
_________________________________________________
_ Decision to (not) undertake a certain action
depends on the answers to three questions Which
goal do I want to achieve? Does this action lead
to this goal? How likely is the success of the
action?
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How satisfied are you with your job?
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Development of job (dis)satisfaction (Bruggemann,
1974)
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Discussion in small groups

• What is good performance in your studies/your
  job/voluntary work?
• How is it measured?
• How satisfied are you with how it is measured?

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"Good" performance indicators

• Adequate for task
• Sufficient influence -gt Based on behavior and
  results, not personal traits
• Reliability, validity, objectivity
• Constructive feedback
• Participatory development
• Fit with organizational culture

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Motivation, satisfaction and performance an
imperfect relationship
r .3
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HRM Work process designOverview
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HRM Work process designOverview
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Design of complete tasks

• individual tasks
• horizontal (job enlargement), i.e. adding tasks
  with the same qualification profile Usually
  neither improvement of sequential ( complete
  cycles of goal setting - planning - executing -
  controlling - correcting) nor hierarchical
  completeness ( different levels of task
  complexity)
• vertical (job enrichment), i.e. adding tasks with
  more complex qualification profiles
  Opportunity for improving both sequential and
  hierarchical completeness
• job rotation, i.e. changes between tasks with
  same or different qualification
  profilesOpportunity for improving sequential and
  hierarchical completeness depending on tasks
• collective tasks
• self-regulating teams, i.e. assignment of a
  complete task to a group Opportunity for
  improving both sequential and hierarchical
  completeness

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Work in self-regulating ("semi-autonomous") teams

• Team
• several people,
• working together for some time,
• in order to reach common goals,
• having a group identity.
• "semi-autonomous"The team can decide or
  participate in decision-making on several of the
  following issues
• production goals (amount and quality)
• task spectrum
• production methods
• work schedule
• representation of group in the organization
• internal management of the group
• group membership
• internal distribution of tasks
• individual work methods

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Example Reorganizating production of medicinal
instruments
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Advantages of teams

• developing ideas
• discovering and compensating individual errors
• furthering systems view
• supporting shared task orientation
• offering reciprocal support
• alleviating individual work load

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Disadvantages of teams

• friction
• conformity
• levelling of individual performance
• diffusion of responsibility
• devaluation of other groups

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Prerequsites for good team work

• Adequate common task
• Complexity higher than individual competencies
• Clear performance criteria
• Collective decision competence
• Shared goal orientation
• Positive goal coupling
• Goal transparency and feedback
• Adequate group composition
• Different perspectives on the task
• Shared language
• Development of group rules
• Adequate group size
• Support for team development (form, storm, norm,
  perform)
• Explicit handling of conflicts between individual
  and collective autonomy

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And dont forget individual job design ...

• Empowerment better predicts company performance
  than technology-based management practices
  (Patterson et al., 2004)

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Fundamentals of organizational design (Kieser
Kubicek, 1983)

• Specialization Distribution of labor, resulting
  in different kinds of work tasks
• Coordination Management of dependencies among
  subtasks, resources, and people
• Configuration Structure of line of command
• Delegation of decision authority Distribution
  of decision authority regarding actions and
  decision rules
• Formalization Determination of rules and
  procedures for work processes

64
Changes in organizational design Examples

• Functional specialization vs. integration
• Line vs. group production
• Centralization vs. decentralization
• Increase in formalization (e.g. management
  systems)
• ...

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Phases of organizational change Unfreeze - Move
- Freeze
New level of equilibrium
Restraining forces
Current level of equilibrium
Driving forces
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Organizational change through the lens of the
learning organization
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Change strategies
Personal versus structural approach
Expert versus process consulting

• Planned change (e.g. BPR) versus organization
  development

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Kotter (1996) to manage change to tell people
what to do to lead change to show people how
to be
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Resistance against change

• Causes Uncertainty regarding novel things
• Sense of loss of control
• Sticking to old norms/privileges
• One-sided perception of old/new situation
• Strategies dealing with resistance
• rational Informing about advantages of new
  situation
• normative/ Developing new compatible values and
  norms ("speaking re-educative differently
  rather than arguing well as chief instrument for
  cultural change")
• coercion sanctioning change through exercising
  power
• Requirements for constructive handling of
  resistance
• Participation
• Trust/openness
• Qualification for change
• Avoiding strain/threat

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Participation
"Opportunities for individuals and groups to
follow their interests by influencing the choice
of alternatives in a given situation" Degree of
influence Information no influence Consultat
ion opportunity for expressing opinions
versus due consideration
of all opinions Veto Common decision Effects of
participation Control, motivation,
competence development Common decision as link
between change motivation and changed
behavior Attention! Fit between chosen form of
participation and general principles of operation
in the organization is crucial
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Degree of participation in decision-makingThe
decision tree by Vroom Yetton (1973)

• Is there a quality requirement Is one solution
  better than another?
• Do you yourself have enough information to make a
  good decision?
• Is the problem well-defined? Has it been reduced
  already to choosing among a set of alternatives?
• Is it important for implementation that the
  decision and its effects are accepted by your
  team?
• Would your team accept the decision if you made
  it alone?
• Does your team share the organizational goals
  which are to be reached through the decision?
• Will the chosen solution lead to conflicts among
  your team?

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HRM Work process designOverview
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A process approach to work process design
Organization development

• Change of the entire organizational system with
  active participation of all people involved in
  order to increase organizational performance and
  individual development
• ? Participation and openness of the change
  process as core characteristic
• ? Taking into consideration the linkages
  between subsystems in the organization
• ? Linking organizational and individual goals
• ? Change through the process of changing (i.e.
  participatory diagnosis and implementation)

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Basis for organizational diagnosis
Socio-technical systems analysis

• 1. - 4. Analysis of work system and its
  organizational integration
• Description of most important elements of work
  system and its environment (Layout,
  organizational structure and processes,
  relationship to other parts of the organization,
  etc.)
• Detailed description of the production processes
• Identification of main variances and disturbances
  and their sources
• Detailed description of the social system
  (distribution of labor, work role assignments,
  reulation requirements and possibilities, etc.)
• 5. Perception of task requirements and their
  fulfilment by members of the work system
• 6. - 8. Analysis of external influences on the
  work system
• 6. Maintenance system
• 7. Supplier/costumer relationships
• 8. Context (market, societal factors etc.)
• 9. Design propositions

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Introducing an intranet at Admin (Grote, 1993)

• Introduction of an intranet in part of a large
  administration for supporting professionals in
  carrying out long-term cross-departmental
  projects with high cooperation demands
• Company objective in phase 1 Increasing
  efficiency of communication in existing
  structures
• Revised company objective in phase 2 Increasing
  efficieny and effectiveness of work processes
  through participatory use of organizational
  options

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Design decisions phase 1 (top-down)

• All heads of groups/departments and some
  professional staff are included in intranet.
• Distribution of tasks and work processes are to
  remain unchanged.

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Task profiles for different occupational groups
in Admin based on task diaries
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Profile of intranet usage in year 1
once per day
several times per week
once per week
never
80
Communication network in year 1
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Technology use as reflection of organizational
culture (Grote Baitsch, 1993)
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Technology use as reflection of organizational
culture (2)(Grote Baitsch, 1993)
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Technology use as reflection of organizational
culture (3)(Grote Baitsch, 1993)
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Design meetings after phase 1

• Meetings per department/group with
  representatives of all occupational groups
• Information on results of phase 1
• Analysis of own current work situation
• Analysis of typical work processes with strengths
  and weaknesses
• Discussion on potential of intranet to improve
  individual work situation and work processes

85
Design decisions phase 2 (bottom-up)

• All administrative assistants are included in
  intranet.
• Redistribution of tasks between admini-strative
  assistants and professional staff (more
  adminstrative tasks for professio-nals, more
  professional tasks for assistants)
• In some groups delegation of decision authority
  to professional staff.

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Profile of intranet usage in year 2
once per day
several times per week
once per week
never
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Conclusions on introduction of intranet at Admin

• Participatory reflection on technology use
  improves organization-technology fit.
• Organizational culture shapes technology use.
• Intranet technologies have the potential for
  furthering decentralization.
• Organizational diagnosis and continuous
  description of changes are main instru-ments for
  supporting decisions on work process design.

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HRM Work process designOverview
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Road map for both HRM classes (Work process
design, Leading teams)
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Two perspectives on the relationship person - work

• static relationship person and job stay the
  same, fit has to be established once.
• dynamic relationship person and/or job change
  continuously, continuous adaption needed.
• ? Fit / adaptation can happen based on fit
  human to task and/or fit task to human.

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Fit task to human (focus in HRM A)

• Job design
• Job crafting
• supports dynamic relationship between person and
  work if tasks are created that include autonomy
  and learning requirements

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The product of work is people (1)

• Jemand, der tagtäglich nur wenige einfache
  Handgriffe ausführt, die zudem immer das gleiche
  oder ein ähnliches Ergebnis haben, hat keinerlei
  Gelegenheit, sich im Denken zu üben. Denn da
  Hindernisse nicht auftreten, braucht er sich auch
  über deren Beseitigung keine Gedanken zu machen.
  So ist es ganz natürlich, dass er verlernt,
  seinen Verstand zu gebrauchen, und so
  stumpfsinnig und einfältig wird, wie es ein
  menschliches Wesen nur eben werden kann. Solch
  geistige Trägheit macht ihn nicht nur unfähig,
  Gefallen an einer vernünftigen Unterhaltung zu
  finden oder sich daran zu beteiligen, sie stumpft
  ihn auch gegenüber differenzierten Empfindungen
  (...) ab, so dass er auch seine gesunde
  Urteilsfähigkeit vielen Dingen gegenüber, selbst
  jenen des täglichen Lebens, verliert. (Adam
  Smith, 1776)

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The product of work is people (2)

• Cross-sectional studies comparison between
  people at one point in time
• e.g. relationship between work and leisure
  activities
• no relationship - empirical finding only for
  subjective assessment by people themselves,
  especially for "identity threating work" (Hoff,
  1986)
• work changes leisure - most frequent empirical
  finding (e.g. Meissner, 1971 Leitner, 1993)
• leisure compensates for work - empirical finding
  especially regarding compensation of strain
  (e.g. Bamberg, 1986)

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The product of work is people (3)

• Longitudinal studies Observe the same people
  over a period of time
• e.g. reciprocal relationship between
  intellectual job demands and development of
  intelligence (Schallberger, 1987)
• selection effect (more intelligent people get
  more demanding jobs) and
• socialization effect (demanding jobs further
  intelligence) result in
• widening gap (for more intelligent people
  intelligence increases, for less intelligent
  people intelligence stays the same/decreases)

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The product of work is people (4)
Career orientations and their change through job
experience (Rosenstiel et al., 1998)
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Fit human to task (focus in HRM Leading teams)

• Personnel selection
• Training
• supports dynamic relationship if people are
  chosen/trained for motivation and capability to
  learn

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When to use which strategy with which objective ?

• fit human to task versus fit task to human?
• select the right people or train people to become
  right?
• strive for stable fit versus continuous
  adaptation?

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Integration of "fit human to task" and "fit task
to human"

• Strive for dynamic relationship between people
  and work to keep people and organization moving
• Select people that want to and can develop gt
  learning ability and willingness as important
  selection criterion
• Personnel development via training and via work
  assignments that further learning
• Support for lateral und vertical careers in
  syste-matic processes of selection and
  development