B8204 Human Resource Management

1. B8204 Human Resource Management Strategic Importance of HRM Evidence Based Management High Performance Work Systems

2. 2 Reading Summary Pfeffer, J. (2005). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive, 19, 95-106. Ulrich, D. (1998). A new mandate for human resources. Harvard Business Review, 76, 124-134. Pfeffer, J. & Sutton, R.I. (2006). Evidence-based management. Harvard Business Review, 84, 62-74.

3. 3 Ulrich (1998). A new mandate for human resources. Harvard Business Review, 76, 124-134. According to Ulrich, we “need a new role and agenda for HR that moves away from traditional HR activities and focuses on outcomes to achieve organizational excellence.” Do you agree with this? Have we seen this happen? Ulrich suggests that HR needs to: be involved in “guiding and carrying” out strategy be an administrative expert be an employee champion act as a change agent Do you think this particular HR shift is possible? Is this shift beyond the scope of HR? What does it mean for HR as it was previously practiced?

4. 4 Ulrich (1998). A new mandate for human resources. Harvard Business Review, 76, 124-134. Ulrich recommends that organizations: Communicate that “soft-stuff matters” Ensure that HR deliverables are defined, and hold HR accountable Invest in innovative HR practices Upgrade HR professionals Are these recommendations useful? Do they enable the practice of HR that he is recommending? Strengths and weaknesses of this piece? Is this piece useful for practitioners? Does it suggest any areas for future research?

5. 5 Summary This piece is useful when considering changes to the practice of HR over the past couple of decades As recognized by the class, the shift that Ulrich refers to has occurred (at least to some extent) in organizations. It has not been exactly as he projected, but there is evidence of change (e.g., Canadian workforce, as described in the piece from the Post) As Ulrich points out, there are many HR ‘tools’ that “have the potential to contribute to the strategic goals of the organization” This piece in particular emphasizes the potential strategic role of HR within organizations Future of HRM (true at the time the piece was written, and still true today) Many new roles to play, especially given challenges facing organizations HR professionals need to Be capable Communicate with the organization Use innovative HR practices Demonstrate results

6. 6 This article introduces evidence-based management, and discusses the importance of practicing it. The authors argue that managers will be more effective, and companies more likely to attain competitive advantage, if managers are guided by the best evidence in their work. What are a few of the main reasons that more managers not acting on evidence? Do you think that evidence as important in HRM as it is in other fields (e.g., medicine)? Why or why not? How can organizations become more evidence-based? Is becoming more evidence-based possible/realistic for all types of organizations? (the piece from the Financial Times is an interesting example of how some organizations might begin to become more evidence-based; and perhaps an example of increasing recognition of the value of evidence-based management) Is this piece useful for practitioners? Areas for future research based on this piece? Pfeffer, J. & Sutton, R.I. (2006). Evidence-based management. Harvard Business Review, 84, 62-74.

7. 7 Summary This piece provides a solid overview of evidence-based management There is great variation across the usage of HRM practices (e.g., at times effective practices rarely used, while ineffective practices are used more regularly) Practice and experience is important, but managers need to be guided by logic and evidence Update assumptions, knowledge and skills It is important to do things that increase the usage of evidence-based management (e.g., teaching; management behaviours and attitudes) Must act on the best available evidence We won’t always have all the evidence; recognize that there is always some uncertainty See the best evidence as a moving target Set up conditions – in education and within organizations – that create the conditions to learn more

8. 8 Pfeffer (2005). Producing sustainable competitive advantage through the effective management of people. AME, 19, 95-106. Employees as a primary source of competitive advantage that is difficult for others to imitate Achieving success by working with people Workforce as a source of strategic advantage Outlines 13 practices for managing people Employment security Selectivity in recruiting High wages Incentive pay Employee ownership Information sharing Participation and empowerment Self-managed teams Is this realistic for all organizations? Can individual or combinations of practices be used? Do you believe that employees will response positively to such practices? And would the usage of such practices provide competitive advantage? Strengths and weaknesses of this piece? Training and skill development Cross-utilization and cross-training Symbolic egalitarianism Wage compression Promotion from within Taking the long view Measurement of practices

9. 9 Summary This piece is important in its recognition that bundles of HRM practices have the potential to provide competitive advantage to organizations Superior HR is a primary source of competitive advantage These practices can positively influence the attitudes and behaviours of individuals within the organization It is important to recognize, that the practices must fit with the organization, environment, and people It may not be possible to implement all practices There may be practices that haven’t been discussed in as much detail in the literature that do make most sense for a particular organization