Best Practices in HRM

1
Best Practices in HRM

• Employment security
• Selective recruiting, promotion from within
• High wages, incentive pay, wage compression
• Employee ownership
• Information sharing
• Participation and empowerment
• Self-managed teams
• Training, skill development, cross-training
• Symbolic egalitarianism

2
Strategic HRM Practice Choices

• Planning
• formal versus informal
• short-term versus long-term
• job simplification versus job enrichment
• level of employee involvement
• Staffing
• internal versus external
• broad versus narrow career paths
• explicitness of job descriptions
• level of socialization

3
HRM Practice Choices (contd)

• Training and Development
• short versus long-term
• narrow versus broad application
• planned versus spontaneous
• Appraisal
• behavior versus results criteria
• developmental vs. remedial vs. maintenance
• level of employee participation
• individual versus group criteria

4
HRM Practice Choices (contd)

• Compensation
• level of base salary
• incentives and perks
• internal versus external equity
• employment security

5
Cost-Reduction Strategy

• Explicit job analysis, fixed narrow job
  responsibilities
• Minimal risk taking activity
• Minimal recruitment selection procedures
• Narrow career paths (expertise efficiency)
• Minimal socialization, training, and development
• High concern for outputs and results
• Short-term, results-oriented, remedial appraisals
• Pay based on market equity

6
Quality Strategy

• Explicit job analysis, broad job responsibilities
• Explicit job descriptions
• Narrow career paths (expertise quality)
• Socialization, continuous extensive training
• High concern for process
• Short-term, appraisal of behavior and results
• Mixed individual group evaluation criteria,
  employee participation
• Pay based on internal equity, emphasis on job
  security

7
Innovation Strategy

• Less explicit job analysis, broad
  responsibilities
• Less explicit job descriptions
• Broad career paths
• High creativity and high risk taking activity
• Minimal socialization, training will vary
• Developmental, long-term appraisals
• Mixed individual group evaluation criteria
• Pay based on internal equity, but perks and
  incentives are given

8
Take Home Points

• Understand main elements of S-HRM
• planning, staffing, training, appraising,
  compensating
• Understand how S-HRM practices support strategy
  and structure
• Know the key S-HRM choices for different
  strategic orientations
• Cost-reduction, quality, and innovation