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Strategic HRM andPerson-Environment Fit

Strategic HRM andPerson-Environment Fit. Grand Theory for Human Resource Management. Goals. Develop strong understanding of different types of fit. Develop a system to assess different types of P-E fit. Begin to think about applications. Review SHRM. About competitive advantage and HR.

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Strategic HRM andPerson-Environment Fit

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  1. Strategic HRM andPerson-Environment Fit Grand Theory for Human Resource Management

  2. Goals • Develop strong understanding of different types of fit. • Develop a system to assess different types of P-E fit. • Begin to think about applications.

  3. Review SHRM • About competitive advantage and HR. • Human resource assets are most difficult to replicate and have clear value. • During the IT bubble, Cisco bought some firms just to get specialized knowledge

  4. SHRM is about linking HR to competitive advantage. • Linkage number 1. Vertical linkage. Linking the human resources of the firm to corporate strategy. • What types of skills, knowledge, abilities, values do your employees as a whole need to assist the firm in its strategic efforts. • Knowledge management and Organizational competencies.

  5. Examples • 3M Leading through innovation. 3Ms success is based on being product leader. • Wells-Fargo: “We know that our brand doesn't serve customers, our people do - in our business, customer service means everything." Goal is one stop shopping for ALL financial services.

  6. Honda “the power of Dreams” • Expertise in power drives. State of the art systems.

  7. Pella • “Pella is primarily a human institution which depends for success upon the excellence of performance of its members.” • Extensive use of decentralized teams to make decisions.

  8. In teams: • What types of Human resource qualities are needed to succeed at 3M • What types of Human resource qualities are needed at Wells Fargo. • Honda • Pella

  9. Think about your firm • What are its competencies that others do not have? • How can HR nurture those competencies?

  10. Second linkage • Horizontal linkage. How does one develop INTEGRATED HR practices to promote those S, K, A, and Vs that are critical to the success of the firm. • They need to work together. What should be emphasized in recruitment, selection, orientation, training, performance appraisal, and compensation.

  11. Person-Environment fit becomes the Key for both types of linkages

  12. What is job-fit. • Free associate with words

  13. Fit Images

  14. Correspondingly two types of fit • Supplementary fit. Sharing similar characteristics • Complementary fit. Having contrasting characteristics.

  15. Benefits of Complimentary PE fit • Improved performance • Diversity of Human Resources • Creativity and innovation • Improved Decision Making

  16. Benefits of Supplementary PE fit • Low Stress • Less negative conflict • Group cohesiveness • low turnover • high job satisfaction • improved communications • Strong citizenship behaviors.

  17. Dark side of PE fit • Diversity is two edged sword for managers. • Cohesiveness creates complacency. • Others?

  18. Werbel and Gilliland mentioned different types of fit. • Briefly describe Person-job fit? What types of knowledge are emphasized with PJ fit. • Briefly describe Person-group fit? What types of knowledge are emphasized with PG fit. • Person-organization fit? What types of knowledge are emphasize with PO fit.

  19. How do you create and assess fit? Horizontal linkages

  20. General principles • Assess the work context (job, organization, group occupation). Demands of the context. • Logically assess personal attributes (SKAV’s) that are compatible with the work context.

  21. Person-Job fit • Job assessment through job analysis. • Assess the demands and expectations. Assess tools needed to do job. • Infer attributes needed to meet demands and expectations with required tools.

  22. How can you gather this information?

  23. examples • Job description. P. 216 • job specification • Assessment of quality. Specificity. Is it clear that this job is different from other jobs. If not then broadband. • Match of duties and skills. To perform duties, are the SKAS clear. Unrelated or left off.

  24. How many brought a job analysis? • Analyze quality. What would you change?

  25. Trends in Job Analysis • Emphasize roles rather than duties. Jobs are less relevant. • Elimination of job analysis as a tool. Flexibility is needed. Team environment. Job is dead.

  26. How you conduct • Not so relevant in this course. Often outside experts hired to write job descriptions. How do you use them is clearly more relevant.

  27. Apply a similar model for Person-Organization Fit How would you do an organizational analysis. What type of organizational information would be important for PO fit. How does this relate to the person. What type of SKAVS would be

  28. Apply a similar model for Person-Group fit Werbel and Johnson.

  29. Uses of fit • Recruitment • Selection • Orientation • Training • Performance Appraisal • Compensation • Career development

  30. Alignment of fit with HR practices

  31. Bottom line • Better employee and team Performance • Higher levels of morale • Lower levels of negative stress • Supportive management • Less bias in line management decisions

  32. Which type of fit is most important in your organization? Why?

  33. Current mode • Exclusive use of job analysis. • Initial efforts for organization fit. • Match what you feel is most important?

  34. Role of HR Dept. • Linking of types of fit to strategic plan. EAI. • What about a baseball culture? • Developing processes to assess fit. • Developing forms/procedures to create fit.

  35. cont • Working with supervisors and resistance to use of fit.

  36. Supervisors • Effective supervisor and care about performance and morale. • Realize fit has fair degree of objectivity. • Evaluate others based on attributes that achieve fit.

  37. cont • Provide opportunities to create a better fit. • Acknowledge when fit is not appropriate (employees create their own fit). • Fit is more than supplementary fit. Diversity is positive.

  38. Quantum and Miller Cases. Types of fit which are important in the organization. Does it link vertically, If so how? In not, what would be better. Does it link horizontally. If so how. If not what are the problems?

  39. Summary • Uncommon views • Organizational competencies as key link. • Aware of all different types of fit. • Importance of different types of fit. • Difficulties in achieve fit. • Limitations of fit.

  40. Next week Recruitment • Online recruitment article. More informational. • Presentations. Who is up for benchmarking?

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