1. H UMAN R ESOURCE M A N A G E M E N T A N E X P E R I E N T I A L A P P R O A C H Irwin/McGraw-Hill S E C O N D E D I T I O N B E R N A R D I N R U S S E L L © The McGraw-Hill Companies, Inc., 1998

2. 1 C H A P T E R HRM IN A CHANGING ENVIRONMENT Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

3. Chapter 1 Human Resource Management in a Changing Environment Objectives 1. Increasing importance of HRM 2. Discrepancy between practice and research 3. Activities of HRM in context of eight domains: 4. Employee involvement in HRM programs 5. Trends 6. Measurement in HRM Irwin/McGraw-Hill 1-1sSlia © The McGraw-Hill Companies, Inc., 1998

4. Figure 1.1: A Model of the HR-Shareholder Value Relationship Employee Skills Design of Productivity Business Human Employee Improved Profits Market and Strategic Resource Motivation Creativity Operating andValue Initiatives Management Performance Growth System Job Design Discretionary & Work Effort Structures Source: Becker, B.E., Huselid, M.A., Pickus, P.S. and Spratt, M.F. (1997). HR as a source of shareholder value: Research and recommendations. Human Resource Management 36, 39-48. Copyright 1997. Reprinted with permission John Wiley & Sons, Inc.605 Third Ave., New York, NY 10157-0228. 1-2Slia

5. Figure 1.2 Sample of Discrepancies Between Academic Research Findings and HRM Practices Academic Research Findings HRM Practice Recruitment Use of Yield RatiosLess than 5% use yield ratios Less than 20% know how Staffing Realistic Job PreviewsLess than 5 % use RJP in high turnover jobs Weighted Application BlanksLess than 10% know what a WAB is; less than 1% use Structured, behavioral, or 18% use structured interviews situational interviews Statistical Models Less than 5% use actuarial No GraphologyUse is on the increase Irwin/McGraw-Hill 1-3sSlia © The McGraw-Hill Companies, Inc., 1998

6. Figure 1.2 Sample of Discrepancies Between Academic Research Findings and HRM Practices (continued) Academic Research Findings HRM Practice Performance Appraisal No TraitsMore than 75% use traits Train Raters Less than 24% train raters Accountable for appraisals Less than 30% of managers are evaluated on appraisals given Compensation Merit pay not in baseMore than 75% tie merit into base pay GainsharingLess than 5% use it Irwin/McGraw-Hill 1-4sSlia © The McGraw-Hill Companies, Inc., 1998

7. Figure 1.3: Major Domains/Activities of Human Resource Management Organizational Design HR planning Job analysis Job design Work teams (Sociotechnical systems) Information systems Staffing Recruiting/interviewing/hiring Affirmative action Promotion/transfer/separation Induction/orientation Employee selection methods Irwin/McGraw-Hill 1-5 © The McGraw-Hill Companies, Inc., 1998

8. Figure 1.3: Major Domains/Activities of Human Resource Management (continued) Employee Training and Organizational Development Management/supervisory development Career planning/development Employee assistance/counseling programs Skill training, nonmanagement Retirement preparation programs Attitude surveys Employer/Employee Relations Labor relations Collective bargaining Employee grievances Alternative dispute resolution Attitude surveys Employee communications/publications Irwin/McGraw-Hill 1-6sSlia © The McGraw-Hill Companies, Inc., 1998

9. Figure 1.3: Major Domains/Activities of Human Resource Management (continued) Productivity Improvement Programs TQM programs Quality circles Productivity/enhancement programs Suggestion systems Teambuilding Reward Systems and Benefits Safety programs/OSHA compliance Health/medical services Complaint/disciplinary procedures Compensation administration EEO compliance Wage/salary administration· Insurance benefits administration Unemployment compensation administration Pension/profit sharing plans Outplacement services Irwin/McGraw-Hill 1-7 © The McGraw-Hill Companies, Inc., 1998

10. Figure 1.3: Major Domains/Activities of Human Resource Management (continued) Performance Appraisal and Management Management appraisal/MBO Customer-focused performance appraisal Health and Safety OSHA compliance Accident prevention Stress reduction Wellness programs Employee assistance/counseling programs Irwin/McGraw-Hill 1-8 © The McGraw-Hill Companies, Inc., 1998

11. Figure 1.4: Contemporary Trends That Affect HRM Trend 1: Concern over productivity Trend 2: The need to be flexible in response to changing business environments Trend 3: Increasing international competition and the expanding global economy Trend 4: Increase litigation related to HRM Trend 5: Changing characteristics of the workforce Irwin/McGraw-Hill 1-9 © The McGraw-Hill Companies, Inc., 1998

12. Figure 1.5: Unique Challenges in International Joint Ventures HR Activity HRM Challenge Staffing Host country may demand staffing policies contrary to maximizing profits. Decision makingConflicts among diverse constituent groups; complexity of decision processes. CommunicationInterpersonal problems due to geographical dispersion and cultural differences. Compensation Perceived and real compensation differences. Career planning Perceptions regarding value of overseas assignments; difficulties in reentry. Performance management Differences in standards; difficulties in measuring performance across countries. TrainingSpecial training for functioning in international joint ventures (IJV) structure. Source: Adapted from O. Shenkar and Y. Zeira, Human resource management in international joint ventures: Directions for research. Academy of Management Review, 12, 1987, 546-557. Reprinted with permission. 1-10

13. Table 1.1.1 Most Common Private Sector Problems Irwin/McGraw-Hill 1-11 © The McGraw-Hill Companies, Inc., 1998

14. Table 1.1.1 (continued) Most Common Public Sector Problems Irwin/McGraw-Hill 1-12 © The McGraw-Hill Companies, Inc., 1998

15. Chapter 1 Important Terms Productivity Productivity growth rate Malcolm Baldrige National Quality Awards Diversity Structural unemployment Job skills gap Organization design Staffing Reward systems, benefits, and compliance Employee and organizational development Performance management Effectiveness Efficiency Effectiveness criteria Irwin/McGraw-Hill 1-13 © The McGraw-Hill Companies, Inc., 1998