HRM

Recruitment sources

Realism hypothesis: accurate
understanding
• The individual difference hypothesis:
selective methods
• Media richness: complexity of information
• Credibility: reliability and expertise

Q: What makes human resources a competitive advantage?

Unique historical conditions, causal ambiguity, social complexity, and being non-substitutable.

Q: What are common critiques of HR?

Lack of strategic alignment, failure to understand business needs, and neglect of individual uniqueness.

Name the four HR roles

3. A: Administrative Expert, Employee Champion, Change Agent, Strategic Partner.

Q: How did the industrial revolution influence HR?

Shifted people from self-employment to organizational employment, creating the need for structured personnel management.

Q: What is the difference between traditional and modern HRM?

Traditional HR views employees as costs and emphasizes control, while modern HR views them as assets and focuses on coaching

Q: What is the main focus of job analysis?

Tasks, duties, and responsibilities of a specific job

How does competency modeling differ from job analysis?

It focuses on the skills, behaviors, and attributes required for success, often aligned with strategic goals.

What is the purpose of performance appraisal?

• A: Decision-making, feedback, communication, and validation.

Name three common rating errors in performance appraisals.

Leniency error, halo error, recency error

Q: What are the steps in designing an effective training program?

• A: Needs analysis, setting SMART goals, training design, implementation, and evaluation.

Q: What is Kirkpatrick's evaluation model?

A: Reaction (level 1), Learning (level 2), Behavior (level 3), and Results (level 4).

What is the resource-based view (RBV) of the firm?

Sustained competitive advantage comes from resources that are valuable, rare, inimitable, and non-substitutable.

What is alignment in HRM?

Vertical alignment connects HR strategy with business strategy, while horizontal alignment ensures consistency among HR practices.

What are the two key effects of pay?

• Incentive effects (motivation) and sorting effects (attracting the right employees).

What is the difference between wages and salaries?

Wages are paid hourly; salaries are fixed regardless of hours worked.

What is talent management?

Focusing on pivotal positions and employees to achieve strategic returns.

incremental validity

adds extra predictive power

Face validity

Candidates think test is relevant and fair

What is adverse impact

Systematic differences in tset outcomes across groups( gender, ethnicity)

why people hate HR

HR does not understand all aspects of business

HR does not contribute to the bottom line : HR uses easy-to- measure metrics, such as % of employees with advanced training or degree of employee satisfaction.

HR isn’t working for you : Hr doesn’t concentrate on individual uniqueness and differences

Theory X & Y (D. McGregor)?

opposing methods by which supervisors perceive employee motivation.

Theory X: states that people dislike work & need the constant threat of job loss

& financial incentives to work hard workers are irresponsible & need to be controlled. Theory Y: people are self-motivated, responsible, creative & need to work

traditional personnel management,?

(employees) were viewed as cost. Its personnel management department was in

charge of managing and controlling.

Modern personnel management

sees employees as assets. Management stimulate and coach.

Evidence-based HRM?

Systematic reviews: you select those w/ higher impact factors

Meta-analyses

MBTI =

Human Resource Info Systems (HRIS)/e-HRM

(PeopleSoft, SAP): to store & access info, for line managers & employees

(selection, training, performance appraisal, absence, salary,

corporate strategy?

“what business should we be in?”

Porter’s Five Forces Model

i) Threat of new entrants

ii) Bargaining power of suppliers

iii) Bargaining power of buyers

iv) Rivalry among existing competitors

v) Threat of substitute products

Business strategy

“how do we compete in our own industry?”

i. What is it that differentiates us from our

competitors?

ii. How do we stand out and perform better than

the competition?

what is Span of control

Number of employees that each manager supervises

Horizontal structure,?

decentralized decision-making, structure created around cross-functional processes to

increase flexibility and communication

HR deliverable? in HR scorecard

behaviors or outcomes directly related to firm strategy

HR performance drivers:

KSAOs (Knowledge, skills, abilities, and other characteristics)

HR enablers:

HRM practices that enhance the effect of the performance drivers

HR doables:

simple efficiency measures that do not necessarily have a link to the strategy

What is assessment centers in selection method

Multiple exercises

High validity

costly

What is situational judgment test in selection method

Job related scenarios

Response options

Cheaper than ACs

How can job analysis become more strategic?

Switch to competence based model analysis which is based on work activities and firm strategy (core competence) to derive the work requirements; specifications of individual competences

what is critiques of traditional job recruitment?

Reactive instead of proactive ; focus on filling job vacancies

• Not sufficiently linked with firm strategy

• Not in pace with technology

what is criterion domain’s in base model of selection?

Definition of good performance

a) Task performance: formal job duties

b) Contextual performance: extra role based on context

c) Counter-productive performance: doing things that are against the company’s rules, culture, etc.

Criterion measure?

“How can we measure good performance?”

• Subjective measures : Based on personal opinion or bias(e.g., supervisors, colleagues, self)

Objective measures: Productivity index, salary growth, number of errors, number of customer complaints,

what is Criterion deficiency?

measure leaves out important aspects. Do not include certain essential aspects of the job.

what is Criterion contamination:

Things that shouldnt be there (luck, customer mood) Includes factors beyond the person’s control.

what is BIG 5 (Ocean) on personality traits

Openness to experience

Conscientiousness

Extraversion:

Agreeableness:

Neuroticism:

R-I-A-S-E-C typology by Holland (1959)?

Realistic (Doers):Like to work with “things”.

Investigative (Thinkers): Like to work with “data”.

Artistic (Creators): Like to work with “ideas and things”.

Social (Helpers): Like to work with “people”.

Enterprising (Persuaders): Like to work with “people and data”.

Conventional (Organizers): Like to work with “data”.

Supplementary fit in organization (P-O fit)

: Characteristics of the

individual must match those of the organizations. Values, goals,

Complementary fit in organization

The individual fulfills certain needs of the organization (skills orga lacks)

Transfer of training?

The extent to which new knowledge, skills learned during training are applied on the job

Positive transfer: performance increase after training

• Negative transfer: the control group performs better than

the training group

• Zero transfer: no differences between the two groups

Trait appraisals in performance (What to evaluate?)

These systems define performance as characteristics the employee has. Focus on measuring employees’ different attributes such as dependability, helpfulness, and product knowledge.

Behavioral appraisals:

Assess the frequency with which employees demonstrate specific behaviors at work.

Results-based appraisals:

Define performance in terms of the outcomes of a job

Management-by-objectives (MBO) ( How to evaluate?)

manager and employee set smart goals together

periodically evaluate performance, and reward employees according to the results.

What is relative ranking

Compare employees

What is absolute ranking

Compare to standards, not others

What standards should be used to establish fair wages?

Pay for performance is considered to be fair

what is market pricing when it comes to pay structure

Statistical pay levels on their competitors

Pay policy line

Companys specific choosen strategy

What is pay grades

Group similar jobs into ranges

What merit pay in individual pay for performance

Added to base pay based on value

What is profit sharing

Employees share companys profit

Gainsharing

Rewards group for achieving certain goals

Stock options

Employees buys shares of company

What is validity

Accuracy of test

Construct validity?

Measures what it claims

Criterion validity

Predicts performance(which :

Predictive validity- test scores collected first then criterion( job performance) measured later

Concurrent validity- test, performance measured together at the same time)

What is HR deliverable

Its about end result, not the activity

“What” HR must achieve

Hr enabler

The “how” HR helps achieve it

HR doable

Easy to measure stuff thats not critical ( nice to haves)

HR driver

Hr outcome that directly boosts business results

What is universalistic perspective on HRM

Some hr practices are always good everywhere (the more high quality, better the performance)

Contingency perspective on Hrm

Hr practices should fit with the business strategy (cost leadership etc)

Michigan matching model?

Hrm should match organizational strategy but in more controlled way

AMO model

Employees perform best when they can do it, want to do it, are allowed to do it. It explains why HR practices work.