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Module 2: Overview . Discussion: Consistent HR practices Discussion: How could HRM influence organizational culture Reading : Strategic human resource management: Linking the people with the strategic needs of business.

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Module 2: Overview


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module 2 overview
Module 2: Overview
  • Discussion: Consistent HR practices
  • Discussion: How could HRM influence organizational culture
  • Reading: Strategic human resource management: Linking the people with the strategic needs of business.
  • Case Study: Shangri-la hotels and resorts – Achieving service leadership

http://www.mba.hku.hk/CurrentStudents/course.detail.aspx?course=PMBA6008&yearheld=2009-2010

internal consistency overview
Internal consistency: overview
  • Where we have been: five factors
  • Payoff from internal consistency
  • Example: high-commitment HR system
  • Caveats
five factors model
Five factors model
  • What it is: a checklist of things to think about
  • What it concerns: fit of HR policies with organization, workforce, and society
  • What it is not: a deterministic model
  • What is missing: which HR policies work together and which do not
hr and business strategy
COST LEADERSHIP

Tight job descriptions

Emphasize technical skills

Job-based pay

Appraisals used to control

=> EFFICIENT PRODUCTION

DIFFERENTIATION

Broad job classes

Emphasize people skills

Individual-based pay

Appraisals used to develop

=> INNOVATION & FLEXIBILITY

HR and business strategy
consistent hr policies
Consistent HR policies
  • Types of consistency:

-- Single-employee: Different parts of the HR system that bear on individual employees should be complementary.

-- Among-employee: The treatment of different workers should be consistent.

-- Temporal or continuity: Consistency of an organization’s HR philosophy over time.

consistent hr policies6
Consistent HR policies
  • Payoff to consistency:

-- Technical complementarities

-- Symbolism: keeps it simple, promote understanding, and aids learning

-- Attracts right type of employee

-- Avoids perception of inequality

measuring consistency
Measuring Consistency
  • Fair easy with among-employee and temporal consistency
  • No easy answer for measuring single-employee consistency

-- How does a given policy or practice affect the costs and benefits associated with other HR activities?

-- Whether the various messages communicated are congruent with one another?

important caveats
Important caveats
  • Span of consistency & distinction: Do you really want to treat ALL of your workers the same?

-- Legit: job titles, location, product lines, organizational boundaries

-- Careful: proximity, desire for organizational culture

  • Inertia matters
  • The three aspects of consistency may be mutually inconsistent.
the organizational culture
The Organizational Culture

The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments

Subcultures often form around social units within a organization when these units develop their own common frame of references, common languages, and common assumptions of how the world is.

slide11

Levels of Corporate Culture

Culture that can

be seen at the

surface level

Visible

1. Artifacts, such as dress,

office layout, symbols,

slogans, ceremonies

Invisible

2. Expressed values, such as “The

Penney Idea,” “The HP Way”

3. Underlying assumptions and

deep beliefs, such as “people

are lazy and can’t be trusted”

Deeper values

and shared

understandings

held by

organizational

members

maintaining a culture
Maintaining a Culture
  • Recruitment of like-minded employees who ‘fit”
  • Maintaining Cultures through Steps of Socialization

The process by which people learn the norms and roles that are necessary to function in a group or organization.

slide14

The Organizational Socialization Process

Removal of

candidates

who do not “fit”

Careful selection of new

employees who fit the culture

Consistent role

modeling tied to

company culture

Challenging early

work experiences

Use of folklore

to validate

cultural values

Extensive training to

help develop

needed skills

Careful adherence

to cultural values

rewarded

Use of reward

systems tied to

company culture

Removal of

employees who

deviate from culture

strategies for cultural alignment
Strategies for cultural alignment
  • Top-down
    • Programmatic change, typically initiated and led from the top
    • Focusing on the artifacts of culture, creating formal structures and systems
  • Bottom-up
    • Incremental approaches, alignment is developed from the bottom up, tied to an organization’s critical path and spread through that organization