Summary Human Resourch Management

No examination material: Chapters 3 and 12 (already treated in law lectures in the 1st year), chapter
13 (in Management Skills already have been extensively treated during the education) and chapter
15 (less relevant or !M proession)"
#he examination material consists o the required chapters from the book, the article belonging to
college 2 and additional matters which have been treated in all lectures"
hapter 1 Meeting present and emerging strategic HR challenges
$ine employees: an employee involved directly in producing the company%s good(s) or delivering the
service(s)"
Sta employee: an employee who support the line employees
Senior employees are those who have been with the company longer and have more responsibility
than &unior employees" 'xempt employees are those who do not receive extra pay or overtime
work"
#hree types o () challenges acing managers today:
* Environmental - orces external to the irm
inluence organi+ational perormance
largely beyond management%s control
managers need to monitor the external environment or opportunities and threats
* Organizational , concerns or problems internal to the irm
* eective managers spot organi+ational issues and deal with them beore they become ma&or
problems
* important or irms to be proactive, to take action beore problems get out o hand
* can be done only by managers who are well inormed about important () issues and
organi+ational challenges
* the relationship between environmental and organi+ational challenges is a one way
relationship (see !igure 1"1)
* ew organi+ations have much impact on the environment
* Individual , deal with decisions pertinent to speciic employee
* almost always relect what is happening in the larger organi+ation-
* how the company treats its individual employees is also likely to aect the organi+ational
challenges discussed
* e"g" i many key employees leave the irm to &oin competitors, the organi+ation%s competitive
position is aected
* there is a two*way relationship between organi+ational and individual challenges (see !ig 1*
1)
Strategic () policies beneits:
'ncouraging .roactive /ehavior
Communicating Company 0oals
Stimulating Critical #hinking and 1ngoing 'xamination o 2ssumptions
3dentiying 0aps /etween Current Situation and !uture 4ision
'ncouraging $ine Managers% .articipation
3dentiying () Constraints and 1pportunities
Creating Common /onds
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Strategic () policies challenges:
Maintaining a Competitive Advantage
)einorcing 1verall /usiness Strategy
2voiding 'xcessive Concentration on 5ay*to*5ay .roblems
5evelop () Strategies Suited to 6ni7ue 1rgani+ational !eatures
Coping with the 'nvironment
Securing Management Commitment
#ranslating the Strategic .lan into 2ction
Combining Intended and Emergent Strategies
2ccommodating Change
Strategic (): choices
8ork !lows
Staing
'mployee Separations
.erormance 2ppraisal
#raining and Career 5evelopment
Compensation
'mployee )ights
'mployee and $abor )elations
3nternational Management
Selecting () strategies


() strategies: it with organi+ational strategies:
Corporate Strategies
'volutionary
Steady State
.orter%s /usiness 6nit Strategies
Cost leadership
5ierentiation
!ocus
Miles and Snow%s /usiness Strategies
5eender
.rospector
!it with environment:
5egree o 6ncertainty
Magnitude o Change
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Complexity
4olatility
!it with organi+ational characteristics:
.roduction .rocess
!irm%s Market .osture
!irm%s 1verall Managerial .hilosophy
!irm%s 1rgani+ational Structure
!irm%s 1rgani+ational Culture
!it with organi+ation capabilities:
5istinctive Competencies
0ive irm competitive edge
() Strategies should
(elp irm exploit its competencies
2ssist the irm to help use its () skills
() and managers: a partnership
)ole o () 5ept:
#o support manager%s () responsibilities
() 2udit:
Conduct .eriodically
'valuates how eective irm is at using human resources
1ten evaluates () too

hapter 2 Managing !ork flo!s and conducting "ob analysis





hapter # Managing di$ersity

hapter 5

hapter %

hapter &
.erormance appraisal: the identification, measurement and management o human perormance in
organi+ations"
3dentiication: determining what areas o work the manager should be examining when measuring
perormance
Measurement: making managerial &udgments o how 9good: or 9bad: employee perormance was
Management: the overriding goal o any appraisal system
* appraisals should be more than a past*oriented activity that critici+es or praises workers
or their previous perormance
* must take a uture*oriented view o what workers can do to achieve their potential in the
organi+ation"
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2dministrative .urposes: used administratively whenever they are the basis or a decision about
employee%s work (includes promotions, termination, and rewards)
5evelopmental:
* uses o appraisal are uture*oriented
* geared toward improving employees% perormance and strengthening their &ob skills,
* includes providing eedback, counseling employees on eective work behaviors, and oering them
training and other learning opportunities"
5imension;aspect o perormance
5etermines eective &ob perormance
Should be based on &ob analysis
E.g. quality, quantity, and interpersonal skills
Competencies: 3ncreasingly popular basis or perormance appraisal dimensions
)elative &udgment: an appraisal ormat that asks supervisors to compare an employee%s perormance
to the perormance o other employees doing the same &ob"
Cons:
* relative &udgments (such as ranks) do not make clear how great or smalle the dierence between
employees are
* such systems do not provide any absolute inormation, so managers cannot determine how good or
poor employees at the extreme ranking are"
* relative ranking systems orce managers to identiy dierence among workers where no many tru
Cons:
* relative &udgments (such as ranks) do not make clear how great or smalle the dierence between
employees are
* such systems do not provie any absolute inormation, so managers cannot determine how good or
poor employees at the extreme ranking are"
* relative ranking systems orce managers to identiy dierence among workers where no many truly
exist" #his can cause conlict among workers"
* relative systems typically re7uire assessment o overall perormance truly exist" #his can cause
conlict among workers"
* relative systems typically re7uire assessment o overall perormance
* hard to deend in court
2bsolute &udgment: an appraisal ormat that asks supervisors to make &udgements about an
employee%s perormance based solely on perormance standards
.ro%s:
* they avoid creating conlict among workers
*easier to deend in court
Cons:
* all workers in a group can receive the same evaluation it eh supervisor is reluctant to dierentiate
among workers
* dierent supervisors can have markedly dierent evaluation standards

hapter '

hapter (
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hapter 1)

hapter 11

hapter 12

hapter 1#

hapter 1%

hapter 1& *nternational HRM challenge
Stages o international involvement:
Epatriate!citi+en o one country
$ives and works in another country
"ultinational corporation (M<C)
!irm with assembly and production !acilities in several regions o the world
#ransnational corporation
!irm with highly decentrali+ed operations
3n many countries
(as little allegiance to its country o origin
8eak ties to any given country
1utsourcing
6sed extensively by irms in stages = to >
Challenges include
1nline security
Saety issues
Client complaints
!alling /arriers
#rade, production, services, and inances barriers largely disappeared
#he mix o host*country and expatriate employees:
8holly owned subsidiary and &oint ventures
Must decide who will manage overseas unit
#hree approaches
'thnocentric approach
.olycentric approach
0eocentric approach
)eliance on expatriates increases when:
Suicient local talent is not available
.art o irm%s overall business strategy is to create a corporate*wide global vision
3nternational units and domestic operations are highly interdependent
#he political situation is unstable
2re signiicant cultural dierences between the host and home countries
Challenges o 'xpatriate 2ssignments
?@,A@B ailure rate or 6"S" expatriates
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=,A times higher than 'uropeans or 2sians
Many reasons assignments end in ailure
Career blockage
Culture shock
$ack o predeparture cross*culture training
1veremphasis on technical 7ualiications
0etting rid o a troublesome employee
!amily problems
5iiculties on )eturn
$ack o respect o ac7uired skills
$oss o status
.oor planning or return position
)everse culture shock
6sing (M) to eectively manage expatriate
Selection
'mphasi+e cultural sensitivity as a selection criterion
'stablish a selection board o expatriates
)e7uire previous international experience
Consider hiring oreign*born employees who can serve as uture expatriates
Screen candidates% spouses and amilies
5evelop an eective selection program or expatriates and the locals who help
#raining:
Should begin C,1? months in advance o the assignment
2t least some training should go to the expatriate%s amily
2re three approaches to training:
3normation*giving approach
2ective approach
3mpression approach
$ocal managers need to be prepared to train incoming expatriates
Career development:
.osition the international assignment as a step toward advancement within the irm
.rovide support or expatriates
.rovide career support or spouse
Compensation:
.rovide a disposable income e7uivalent to what the expatriate would receive at home
.rovide an explicit 9add*on: incentive or accepting an international posting
5on%t put expatriates in the same &obs held by locals or lower*ranking &obs
Calculating compensation or expatriates is very diicult
!luctuating exchange rates
Cost o living varies tremendously
6sing ()M to 'ectively Manage 'xpatriates
)ole o () 5epartment
8omen and 3nternational 2ssignments
5eveloping ()M .olicies in a 0lobal Context
8estern*style management likely to clash with oreign norms and values
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Must mold practices to culture
(ostede%s > 5imensions o Culture
.ower distance
3ndividualism
6ncertainty avoidance
MasculinityDemininity
$ong*termDshort*term orientation
''1 in the international context
''1 prohibition o discrimination based on age, sex, race, etc" apply to international
assignments too
!oreign national employees o 6"S" companies working outside the 6S are not covered by
6"S" employment law
3mmigration and Control 2ct (1CEF)
<on*6"S" citi+ens living and working in the 6"S"
May not be discriminated against
5eveloping ()M policies: caveats
<ational culture: may be an elusive concept
Culture changes over time
Companies sometimes blame international personnel problems on culture without study
4irtually no data on the successDailure o ()M practices as a unction o culture
5ierent cultures oten have very dierent notions o right and wrong
#he business laws o other countries oten orce companies to change their practices
()M and exporting irms
Gey impediments to exporting:
$ack o knowledge about international markets, business practices, and competition
$ack o management commitment to generating international sales
3mpediments can be attributed to lack o utili+ation o human resources
1ther international () considerations:
'thics and Social )esponsibility
Many ethical dilemmas ace expatriates
'thical and legal are not the same
!oreign Corrupt .ractices 2ct (1CHH)
.olitical )isk
.ossibility that social or government pressures negatively impact operations
'xpatriates oten caught in middle
Should understand political situation



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