Human Resource Management

- views firm as a "bundel of resources"

- the way resources are combined can differentiate the firm --> analysis starting point is internal

1. Change capability: Processes to integrate, reconfigure, gain and release resources - to mach and create change

2. Knowledge Management:

Creation: Human Capital Pool (Knowledge, skills, ability, behavior)

Transfer: Relationships

Integration: Organization Capital (Processes, Routines)

Core competencies:

-       skills and technologies enabling company to provide particular benefits to customer

-       not product-specific

-       sum of learning across individual skill sets and organizational units

-       Based on developing HRM policies acc. to business strategy (planning future activities, performance objectives, policies towards corporate aims

-       HRM designed and applied to support given coporate strategy

Claims that certain HR activities exist that universally support companies in gaining competitive advantage regardless of setting or industry

- performance management needed

-       Must be linked to org. overall strategy to compete domestically or globally

-       Process of anticipating / making provisions for flow of people into, within, out of org.

("right number of people, with right skills, at right place, at right time")

Critical element of planning:

- Demand of labor

- Supply of labor

- Balancing supply and demand considerations

Strategic Workforce Planning

- Forecasting future workforce and determining most effective practices and policies to close gaps and meet future workforce needs

- financial, customer, internal business process, learning and growth

--> all these points influence vision and strategy

Right service skills: Learning and growth

Effective Customer Service: Internal Business Process

Industry leading customer loyalty: Customer

Max. returns: Financial

Strategic: alignment to organizations business strategy

- Effective, timely, quantitative, qualitative data capture --> predicting future risks and alternative futures

Operational: shorter forecast horizon (3-12 months)

Focus on identifying skill gaps, number of people to satisfy immediate needs and mechanical processes (recruitment, training spend) --> tool to manage "business as usual"

Transactional change: short-term resource needs --> modify/improve existing process

Transitional change: new processes replacing existing ones requiring resources in medium term (over one or two year period)

--> operational planning or budgeting cycles associated with change project / program

Transformational change: shift in business culture of company (change in underlying strategy and process used in past)

--> designed to be organization-wide and enacted over period of time

1. Analyze current workforce: employees in post, employee movements, skills capability, attitudes, external labor market info

2. Gap analysis: identifying workforce gaps against future needs

3. Actions to address shortages, surpluses or skill mismatches

1. Identify Strategic Job Families

2. Define Competency Profile

3. Assess Strategic Readiness

4. Human Capital Readiness Report

5. Human Capital Development Program

--> linked with balance score card

- Emergency Successor

- Successes measured < 1 year

- Successes measured < 3 years

-       Expand global presence

-       Leverage digitalization: Products->Marketing->Workforce Capabilities->Leadership:

different: business strategy, model, IT- Function:

e.g. Combining physical and digital play in products --> Crowd sourcing I & D

different: people mindset and competence, workplace

e.g. strategy for training & development

-       Sustain core commercial & operational momentum

-       Create organization of the future

-        conceptualize impact of digital technologies on business processes/models

-       Experimentation and taking risks

-       Using digital technologies (social, mobile, analytics to execute job)

-       Working in digitally savvy teams in fast-paced environments --> flexibility

-       Embrace digital technologies

-       Streamline decision Making

-       Flatten Organization

-       Build Digital Workforce

- Organization meet individual

- Job requirement meet qualifications

- Rewards meet motivation

1. Reasons for vacancy: expansion, employee left the business

2. Manage vacancy effectively: Job redesign, part time work etc.

3.  Internal or external hire

Activities:

- define job tasks

- job description (info regarding tasks, responsibilities)

- Job specification (minimal qualifications)

Competence model: technical, methodical, social, personality

PAQ: questionnaire covering 194 tasks (analyzes job)

CIM: Focuses on "what someone did" with the goal of finding out behavior

- Channels (Job boards, social, external candidate database)

- Communications (Video, Emails, Career fairs)

- Nurturing (Newsletter, educational content, stories)

- Social Media (post often, active sourcing)

Employer Branding: describes the identity of a firm as an employer

EVP: Employer value proposition: "why" around organization, set of values, benefits that company promises to employees

- Using Job description and employee specification to compare to CV

- interviewing Candidates

- Interview types (On the job, Phone, Skype, Panel, Group)

- Methods (Situational, Behavioral, Case, Structured, Unstructured, Strength based)

WASP: Welcome, Acquire information, Supply information, Plan and Part

STAR: Situation, Task, Action, Result

--> reflect on bad behavior

--> customer Orientation, People/Team Orientation

- Criteria matrix:  helps in selection by weighting candidates individualy by criteria and comparing them

- Compensatory Model: high score in one area of the test makes up for low score in other area

- Multiple Cutoff Model: Min. level of proficiency required on all selection dimensions in order to pass test

- Multiple Hurdle Model: Candidate needs to reach sufficiently high scores at each stage in the test

- Smooth out early stages when everything is strange and unfamiliar to new employee

- establish a favorable attitude in mind of new employee in order to keep them

- gain effective output from new employee in shortest possible time

Components of Induction:

- Company

- Department

- Ongoing Training and Development

Monitoring employees is an on-going activity

for new employees it’s in defined phases:

-       End of first day/week

-       End of first month

-       End of probation period

Recruiting Metrics: increases impact of a better hire over time

Frequent examples: Time to fill, Time to hire, Source of hire, first year attrition, quality of hire

- dynamic, continuous process

- improves effectiveness

- strategic goals

--> used for many puposes

- periodic (annually) event

- formal review

- last step in performance management

--> influences the rating and effectiveness

Input control: who

-       Knowledge

-       Skills

-       Abilities

-       Values

-       Motives

Process control: how

-       Process rules

-       Behavioral norms

Output Control: what

-       Profits

-       Customer Satisfaction

-       Production Volumes

- Identifies constellation of traits or characteristics, qualities, personal attributes

- Focuses not on result or "doing", but on what kind of person one is

- Forced distribution method: the raters are forced to distribute ratings for the individuals being evaluated

- Paired Comparison: employee and job is compared with each other employee and job

- measures how the person went about doing something

Graphic rating scale method: Knowledge of work, initiative, application, quality of work, volume of work

Mixed standard scale method: is individuals perfromance above (+), equal (0) or lower (-) than standarts listed

Critical incident: Unusual event denoting superior or inferior employee performance, manager keeps log or diary throughout appraisal period

Behaviorally anchored rating scale BARS:

1. Competence 2. Definition 3. Ranks of tasks (high, average, low)

Behavior Observation BOS: Ranks behavior from 1-5 (each numer represents percentages)

- Focus of Competency defined (e.g. client focus)

- Various levels with description of competencies required

- Perfromance Indicators under each level

A (greatly exceeds profile)

B (exceeds profile)

C (meets profile)

D (below profile)

E (mostly below profile)

X (not applicable)

With numbers: 1,2,3,4,5,6,X

Vision and Strategy gets influenced by:

- Market/clients (How to act upon market/clients to realise our strategy?)

- Financials (What financial gain do we need to survive?)

- Employees (How can we make best use of HR resources?)

- Business process (In which process should we lay our focus to achieve goals?)