1. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Topics HRM: Leading teams

2. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Strategic Human Resource Management "a pattern of planned human resource deploy- ments and activities intended to enable an organization to achieve its goals" (Noe et al., 2005) Derive human resource needs (skills, behaviors, culture) from strategy formulation Strategy implementation by means of HRM practices, which further individuals' capabilities and motivation as well as actual performance

3. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 HRM practices: Strategic choices Job analysis and design –e.g. simple vs. complex tasks, specific vs. generic job descriptions Recruitment and selection –e.g. external vs. internal recruitment, specific vs. general skills Training and development –e.g. focus on current vs. future skills, train few vs. all employees Performance management and compensation –e.g. behavioral vs. results criteria, internal vs. external equity, input vs. behavior vs. output control Labor and employee relations –e.g. GAV vs. individual contracts

4. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Linkage between HRM and company strategy Administrative (no) linkage –HRM as purely administrative task One-way linkage –HRM implements strategic goals, but is not involved in strategy formulation Two-way linkage –HRM executive shows human resource implications of different strategic choices, but does not directly participate in strategic decision making Integrative linkage –HRM executive is integral member of senior manage-ment team and participates in all phases of strategy formulation and implementation

5. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Example of contingencies in strategic HRM (Snell & Youndt, 1995; Lepak & Snell, 1999) Input vs. behavior vs. output control –Behavior control only works with low uncertainties –input control most effective with high uncertainties –output control has no effect on performance in any condition Uniqueness and value of human capital –traditional, loyalty based employment relationship when knowledge and skills are firm-specific and of high competitive value –purely economic employment relationship when knowledge and skills are neither firm-specific nor of high competitive value

6. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 HRM as operational leadership task: Key success factors Performance Motivation Satisfaction

7. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 "Good" performance indicators Adequate for task Sufficient influence -> Based on behavior and results, not personal traits Reliability, validity, objectivity Constructive feedback Participatory development Fit with organizational culture

8. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Development of job (dis)satisfaction (Bruggemann, 1974) Needs and expectations at work Characteristics of the work situation (Mis-)match SatisfactionDissatisfaction Keeping expectations Problem solving Constructive dissatisfaction Raising expectations Progressive satisfaction Stable satisfaction Keeping expectations Lowering expectations Resigned satisfaction Fixed dissatisfaction

9. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08

10. Extrinsic versus intrinsic motivation The less intrinsic motivation … The less extrinsic motivation … … the more intrinsic motivation is needed … the more extrinsic motivation is needed

11. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 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?

12. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 HRM as operational leadership task: Linking motivation, satisfaction and performance PerformanceMotivationSatisfaction Clear performance-reward relationship Congruence of formal/informal performance criteria Continuous feedback Performance criteria adequate for task Continuous monitoring of difference between expectation and reality Active coping with unfulfilled expectations Fit between individual and organizational goals Clear instrumentalities for individual goals

13. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 HRM practices: Operational decisions Job analysis and design –e.g. individual adaptations in job assignments Recruitment and selection –e.g. changes in specific job requirements or in priorities of job requirements Training and development –e.g. individual career planning Performance management and compensation –e.g. individual pay raises Labor and employee relations –e.g. adjustment of individual expectations and company inducements as part of the psychological contract

14. HRM: Leading teams – G. Grote ETHZ, Spring Semester 08 Influence of normative assumptions on strategic and operational HRM Example: assumptions about human nature (Schein, 1988) Economic man: Employees will do whatever affords them the greatest economic gain Social man: Social needs are the prime motivator of human behavior, and interpersonal relationships the prime shaper of a sense of identity. Self-actualizing man: People seek a sense of accomplishment in their work and are primarily self- motivated and self-controlled Complex man: Human needs fall into many categories and vary according to stage of development and total life situation