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OBI-Armstrong-HRM-Performance-2012 Made by Anita Nagy Hungary
Transcript of OBI-Armstrong-HRM-Performance-2012 Made by Anita Nagy Hungary
How to improve Human Capital Performance ! Human Capital Management Cees A.M. den Teuling What is employee engagement? Engagement happens when people are committed to their work and the organization and are motivated to achieve high levels of performance. What is job engagement? Job engagement which takes place when employees exercise discretionary effort because they find their jobs interesting, challenging and rewarding. What is organizational engagement? Organizational engagement takes place when employees identify with the values and purpose of their organization and believe that it is a great place in which to work and to continue to work. What are the components of engagement? •Commitment.
•Organizational citizenship behaviour.
•Motivation. What is organizational citizenship behaviour? Employee behaviour that goes above and beyond the call of duty, which is discretionary and not explicitly recognized by the employing organization’s formal reward system, and that contributes to organizational effectiveness. What is the relationship between engagement and commitment? •The concept of commitment is very close to that of organizational engagement.
•Salanova et al (2005) saw commitment as part of engagement but not equivalent to it. Wellins and Concelman (2005) suggested that ‘to be engaged is to be actively committed’. What is the relationship between engagement and motivation? The motivation element in engagement is intrinsic. As Macey et al (2009) observed:
‘When the work itself is meaningful it is also said to have intrinsic motivation. This means that it is not the pay or recognition that yields positive feelings of engagement but the work itself.’ They also commented that engaged employees ‘feel that their jobs are an important part of what they are’. What are the facets of engagement? •Intellectual engagement – thinking hard about the job and how to do it better.
•Affective engagement – feeling positively about doing a good job.
•Social engagement – actively taking opportunities to discuss work-related improvements with others at work. What are the main outcomes of engagement? Research conducted by the Institute for Employment Studies (Robinson et al, 2004) led to the conclusion that an engaged employee:
•was willing to ‘go the extra mile’;
•believed in and identified with the organization;
•wanted to work to make things better;
•understood the business context and the ‘bigger picture’;
•respected and helped colleagues. What are the main conclusions about engagement reached by the research conducted by Saks (2006)? Saks (2006) suggested that a strong theoretical rationale for engagement is provided by social exchange theory. As he described it: ‘Social exchange theory argues that obligations are generated through a series of interactions between parties who are in a state of reciprocal interdependence. A basic tenet of social exchange theory is that relationships evolve over time into trusting, loyal and mutual commitments as long as the parties abide by certain “rules” of exchange … [These] usually involve reciprocity or repayment rules such that the actions of one party lead to a response or actions by the other party.’ What are the main conclusions about engagement reached by the research conducted by Balain and Sparrow (2009)? Balain and Sparrow (2010) considered that engagement should be seen as a ‘belief’ and not an attitude, ie it largely a cognitive construct (intellectual engagement) rather than an affective or behavioural one. They suggested that: engagement will have affective and behavioural outcomes but it is necessary to separate the cause from the effect. What are the main conclusions about engagement reached by the research conducted by MacLeod and Clarke (2009)? In their comprehensive study of employee engagement, MacLeod and Clarke (2009) concluded that: ’The way employee engagement operates can take many forms.’ What are the main conclusions about engagement reached by the research conducted by Alfes et al (2010)? Alfes et al (2010 commented that: ‘In theoretical, conceptual and empirical terms, we in fact know relatively little about the concept of employee engagement.’ They also noted that most consultancies and survey firms regard engagement as something that is done to employees. In contrast, some academics suggest that engagement is experienced by individuals, a state of being that may be affected by management strategies and approaches but is not, in itself, such a strategy. The latter view was the one adopted by Alfes et al as the basis for their research. What is social exchange theory? A theory that explains social change and stability as a process of negotiated exchanges between parties What is discretionary behaviour? The discretion or choice people can exercise about the amount of effort, care, innovation and productive behaviour they display in their jobs and how they carry out their work. What are the main drivers of engagement as listed by MacLeod and Clarke? •Leadership which ensures a strong, transparent and explicit organizational culture that gives employees a line of sight between their job and the vision and aims of the organization. •Engaging managers who offer clarity, appreciation of employees’ effort and contribution, who treat their people as individuals and who ensure that work is organized efficiently and effectively so that employees feel they are valued, and equipped and supported to do their job •Employees who feel that they are able to voice their ideas and be listened to, both about how they do their job and in decision making in their own department, with joint sharing of problems and challenges and a commitment to arrive at joint solutions. •A belief among employees that the organization lives its values, and that espoused behavioural norms are adhered to, resulting in trust and a sense of integrity. How can job engagement be enhanced? Job engagement will be affected by work and job design, the quality of leadership exercised by line managers and the reward system. What is the role of job design in job engagement? •Job design has a key role to play in enhancing engagement. As the saying goes: ‘If you want someone to do a good job give them a good job to do’.
•Macey et al (2009) commented that: ‘People come to work for pay but get engaged at work because the work they do is meaningful’.
•Intrinsic motivation and therefore increased engagement can be generated by the work itself if it provides interest and opportunities for achievement and self-fulfilment. How can organizational engagement be enhanced? Organizational engagement will be affected by the quality of life provided by the working environment and by having an employee value proposition that ensures the organization is an employer of choice. What is high-involvement management? •High-involvement management involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them.
•It is concerned with communication and participation. What is motivation? Motivation is the force that energizes, directs and sustains behaviour. High performance is achieved by well-motivated people who are prepared to exercise discretionary effort. What is the difference between extrinsic and intrinsic motivation? Extrinsic motivation occurs when things are done to or for people to motivate them, including rewards, such as incentives, increased pay, praise, or promotion; and punishments, such as disciplinary action, withholding pay, or criticism.
Intrinsic motivation is provided by the work itself and is associated with the concept of engagement. What is instrumentality? If we do one thing it leads to another. People will be motivated to work if rewards and punishments are directly related to their performance. What is reinforcement? As experience is gained in satisfying needs, people perceive that certain actions help to achieve goals while others are unsuccessful. The successful actions are repeated when a similar need arises What is content or needs theory? People are motivated by their needs, which are translated into goals for them to attain. In Maslow’s (1954) theory a hierarchy of needs exists: physiological, safety, social, esteem and self-fulfilment. Needs at a higher level only emerge when a lower need is satisfied. How valid is Maslow’s concept of the hierarchy of human needs? Maslow`s needs hierarchy has an intuitive appeal and has been very popular. But it has not been verified by empirical research. It has been criticized first for its apparent rigidity – different people may have different priorities; second, because it is difficult to accept that needs progress steadily up the hierarchy; and third for the misleading simplicity of Maslow’s conceptual language. How valid is Herzberg’s (1957) two-factor theory of motivation? Herzberg’s two-factor theory of motivation states that there are two groups of factors affect job satisfaction: 1) those intrinsic to the work itself; and 2) those extrinsic to the job (extrinsic motivators or hygiene factors) such as pay and working conditions. It has been heavily criticized as follows: the research method was dubious because no attempt was made to measure the relationship between satisfaction and performance the two-factor nature of the theory is an inevitable result of the questioning method used by the interviewers wide and unwarranted inferences have been drawn from small and specialized samples and there is no evidence to suggest that the satisfiers do improve productivity the underpinning assumption that everyone has the same needs is invalid What is expectancy theory? Effort (motivation) depends on the likelihood that rewards will follow effort and that the reward is worthwhile. What is goal theory? Motivation will improve if people have demanding but agreed goals and receive feedback. What is equity theory? People are better motivated if treated equitably, ie treated fairly in comparison with another group of people (a reference group) or a relevant other person. Which motivation theory provides the best guide on the principles of performance-related pay and why? •When designing an incentive scheme and assessing its effectiveness, expectancy theory has considerable face-validity as a common sense explanation of the factors affecting motivation and what makes incentive schemes work, ie the incentive has to be worthwhile and attainable.
•It provides the theoretical basis for the concept of ‘line of sight’ developed by Lawler (1988), which states that for a scheme to be effective there has to be a clear and easily perceived link between effort and reward What message for HR policy is provided by the belief that motivation is a highly complex process? Avoid the trap of developing or supporting strategies that offer prescriptions for motivation based on a simplistic view of the process or fail to recognize individual differences. Why is recognition so important
as a means of motivation? People are more likely to be motivated if they work in an environment in which they are valued for what they are and what they do. This means paying attention to the basic need for recognition. Why are there limitations to the power of money to motivate? •Extrinsic motivators such as incentive pay can have an immediate and powerful impact, but it will not necessarily last long. •Some people will be much more motivated by money than others. What cannot be assumed is that money motivates everyone in the same way and to the same extent. It is naive to think that the introduction of a performance-related pay scheme will miraculously transform everyone overnight into well-motivated, high-performing individuals. Why is intrinsic motivation through the work itself likely to be more effective in the longer term than extrinsic motivation? Intrinsic motivators are likely to have a deeper and longer-term effect because they are inherent in individuals and the work they do and are not imposed from outside in such forms as performance-related pay. COMMITMENT What is commitment? Commitment represents the strength of an individual's identification with, and involvement in, a particular organization What is mutuality? The belief that management and employees share the same concerns and it is therefore in both their interests to work together. What are the three
characteristics of commitment? 1.A strong desire to remain a member of the organization.
2.A strong belief inand acceptance of the values and goals of the organization.
3.A readiness to exert considerable effort on behalf of the organization. Why is commitment important? The importance of commitment was highlighted by Walton (1985).His theme was that improved performance would result if the organization moved away from the traditional control-oriented approach to workforce management, which relies upon establishing order, exercising control and achieving efficiency. What impact can high levels of commitment have on performance? It is probably unwise to expect too much from commitment as a means of making a direct and immediate impact on performance.It is not the same as motivation. It is possible to be dissatisfied with a particular feature of a job while retaining a reasonably high level of commitment to the organization as a whole. But it is reasonable to believe that strong commitment to work may result in conscientious and self-directed application to do the job, regular attendance, the need for less supervision and a high level of discretionary effort. What is the relationship between commitment and engagement? The notion of commitment appears to be very similar if not identical to that of organizational engagement.Robinson et al (2004) suggested that the closest relationship of commitment to engagement was ‘affective commitment, ie the satisfaction people get from their jobs and their colleagues and their willingness to go beyond the call of duty for the sake of the organization’.Salanova et al (2005) saw commitment as part of engagement but not equivalent to it. What did the research conducted by Purcell et al (2003) tell us about the factors affecting commitment? The research conducted by Purcell et al (2003) identified the following key policy and practice factors that influence levels of commitment:Received training last year.
Satisfied with career opportunities.
Satisfied with the performance appraisal system.
Think managers are good in people management (leadership).
Find their work challenging.
Think their firm helps them achieve a work-life balance.
Satisfied with communication on company performance. Is a belief in the virtues of commitment
based on an unrealisticunitary view
of employment relationships? The concept of commitment, especially as put forward by Walton (1985), can be criticized as beingsimplistic, even misguided, in adopting a unitary frame of referencethat assumes organizations consist of people with shared interests.It has been suggested by people like Cyert and March (1963)that an organization is really a coalition of interest groups where political processes are an inevitable part of everyday life. Do high levels of commitment result in lack of flexibility and if so, what can be done about it? •It was pointed out by Coopey and Hartley (1991) that:'The problem for a unitarist notion of organizational commitment is that it fosters a conformist approach which not only fails to reflect organizational reality, but can be narrowing and limiting for the organization.'
•If commitment is related to tightly defined plans, this will become a real problem. To avoid it, the emphasis should be on overall strategic directions. These would be communicated to employees with the proviso that changing circumstances will require their amendment. What are the essential features of a commitment strategy? A commitment strategy can be based on the high-commitment model incorporating policies and practices in areas of HR such as job design, learning and development, career planning, performance management, reward management, participation, communication and employee wellbeing. TALENT MANAGEMENT What is talent management? Talent managementis the process of ensuring that the organization has the talented peopleit needs to attain its business goals. It involves the strategic management of the flow of talent through an organization. What is talent? Talent is what people have when they possess the skills, abilities and aptitudes that enable them to perform effectively in their roles. They make a difference to organizational performance through their immediate efforts and they have the potential to make an important contribution in the future. Talent management aims to identify, obtain, keep and develop those talented people. What are the elements of a talent management programme? •Talent management starts with the business strategy and what it signifies in terms of the talented people required by the organization, which is the basis for talent planning. Ultimately, the aim is to develop and maintain a pool of talented people. •This is done through the talent pipeline,which consists of the processes of resourcing, retention planning, succession and career planning and learning and development (especially leadership and management development)that maintain the flow of talent needed by the organization. What is management succession planning? Management succession planning is the process of assessing and auditing the talent in the organization in order to answer three fundamental questions:
1.Are there enough potential successors available – a supply of people coming through who can take key roles in the longer term?
2.Are they good enough?
3.Have they the right skills and competencies for the future? What is career management? Career management is complementary to management succession planning in that it aims to ensure that the organization has the flow of talent it needs. But it is also concerned with the provision of opportunities for people to develop their abilities and their careers to satisfy their own aspirations. It is about integrating the needs of the organization with the needs of the individual. STRATEGIC L&D What is learning and development (L&D)? Learning and development is defined as the process of ensuring that the organization has the knowledgeable, skilled and engaged workforce it needs. It involves facilitating the acquisition by individuals and teams of knowledge and skills through experience, learning events and programmes provided by the organization, guidance and coaching provided by line managers and others, and self-directed learning activities carried out by individuals. What is learning? The process by which a person acquires and develops knowledge, skills, capabilities, behaviours and attitudes. It involves the modification of behaviour through experience as well as more formal methods of helping people to learn within or outside the workplace What is training? The systematic application of formal processes to impart knowledge and help people to acquire the skills necessary for them to perform their jobs satisfactorily. What is development? The growth or realization of a person’s ability and potential through the provision of learning and educational experiences. What is education? The development of the knowledge, values and understanding required in all aspects of life, rather than the knowledge and skills relating to particular areas of activity. What is strategic L&D? Strategic L&D is an approach to helping people to learn and develop that is concerned with how the organization’s goals will be achieved through its human resources by means of integrated learning and development strategies, policies and practices. What are the aims of strategic L&D? •Strategic L&D aims to produce a coherent and comprehensive framework for developing people through the creation of a learning culture and the formulation of organizational and individual learning strategies.•Its objective is to enhance resource capability in accordance with the belief that a firm’s human resources are a major source of competitive advantage. What is a learning culture? A learning culture is one in which learning is recognized by top management, line managers and employees generally as an essential organizational process to which they are committed and in which they engage continuously. What is an organizational learning strategy? An organizational learning strategy aims to improve organizational effectiveness through the development and acquisition of knowledge, understanding, insights, techniques and practices. What is an individual learning strategy? Individual learning strategy is concerned with the processes and programmes used to ensure that individual employees acquire and develop the new knowledge, skills, capabilities, behaviours and attitudes required to perform their roles effectively and to develop their potential. HRM AND PERFORMANCE How does HRM make an impact on performance? •HR practices can make a direct impact on employee characteristics such as engagement, commitment, motivation and skill.•If employees have these characteristics it is probable that organizational performance in terms of productivity, quality and the delivery of high levels of customer service will improve.•If such aspects of organizational performance improve the financial results achieved by the organization will improve. What is a high performance culture? High performance cultures are ones in which the achievement of high levels of performance is a way of life:•Management defines what it requires in the shape of performance improvements.•Alternative work practices are adopted.•People know what's expected of them.•People feel that their job is worth doing.•People are empowered to maximize their contribution.•There is strong leadership from the top.•There is a focus on promoting positive attitudes that result in an engaged, committed and motivated workforce. •Performance management processes are aligned to business.•Capacities of people are developed through learning at all.•A pool of talent ensures a continuous supply of high performers.•People are valued and rewarded according to their contribution.•People are involved in developing high performance practices.•There is a climate of trust and teamwork.•A clear line of sight exists between the strategic aims of the organization and those of its departments and its staff at all levels. What is a high performance work system? Highperformance work systems (HPWS)are bundles of HR practices that facilitate employee involvement, skill enhancement and motivation. What are the typical features of a high performance work system? •Job infrastructure –workplace arrangements that equip workers with the proper abilities to do their jobs, provide them with the means to do their jobs, and give them the motivation to do their jobs. These practices must be combined to produce their proper effects.•Training programmes to enhance employee skills – investment in increasing employee skills, knowledge and ability. •Information sharing and worker involvement mechanisms – to understand he available alternatives and make correct decisions.•Reward and promotion opportunities that provide motivation – to encourage skilled employees to engage in effective discretionary decision-making in a variety of environmental contingencies. How can performance management contribute? Performance management can contribute to the development of a high performance culture by delivering the message in an organization that high performance is important Any question? Leadership is a process of influencing the behaviour of others to achieve results. Trait theory explains leadership in terms of the traits (enduring characteristics of behaviour) all leaders are said to possess. The studies at the Survey Research Centre in Michigan identified two dimensions of leadership behaviour: 1.Employee-centred behaviour, focusing on relationships and employee needs.
2.Job centred-behaviour, focusing on getting the job done. The theory of contingent leadership developed by Fiedler (1967) states that the type of leadership exercised depends to a large extent on the situation and the ability of the leader to understand it and act accordingly. What is a transactional leader? Transactional leaders trade money, jobs and security for compliance What is a transformational leader? Transformational leaders are able by their force of personality to make significant changes in the behaviour of their followers in order to achieve the leader’s vision or goals. What is a charismatic leader? Charismatic leaders rely on their personality, their inspirational qualities and their ‘aura’. They are visionary leaders who are achievement-oriented, calculated risk-takers and good communicators. What is an authentic leader? Authentic leaders act in accordance with deep personal values and convictions to build credibility and win the respect and trust of followers. By encouraging diverse viewpoints and building networks of collaborative relationships with followers, they lead in a manner that followers perceive and describe as authentic. What do leaders do – their essential roles? The three essential roles of leaders as described by John Adair (1973) are to:
1.Define the task – they make it quite clear what the group is expected to do.2.Achieve the task – that is why the group exists. Leaders ensure that the group’s purpose is fulfilled. If it is not, the result is frustration, disharmony, criticism and, eventually perhaps, disintegration of the group.3.Maintain effective relationships – between themselves and the members of the group, and between the people within the group. These relationships are effectiveif they contribute to achieving the task. They can be divided into those concerned with the team and its morale and sense of common purpose, and those concerned with individuals and how they are motivated. What are the three needs that leaders must satisfy as defined by John Adair? 1.Task needs – to get the job done.
2.Individual needs – to harmonize the needs of the individual with the needs of the task and the group.
3.Group maintenance needs – to build and maintain team spirit. What are the main types of leadership styles? Leaders can be autocratic or democratic, controlling or enabling, task-oriented or people-centred. What are the leadership styles identified by Hay/McBer? •Coercive – demands compliance (use in a crisis or with problem people).•Authoritative – mobilizes people (use when new vision and direction is needed).•Affiliative – creates harmony (use to heal wounds and to motivate people under stress). •Democratic – forges consensus (use to build agreement and get contributions).•Pacesetting – sets high standards (use to get fast results from a motivated team).•Coaching – develops people (to improve performance and develop strengths). What choice of style do leaders have? In line with contingency and situational theories it should not be assumed that any one style is right in any circumstance. There is no such thing as an ideal leadership style. It all depends.The factors affecting the degree to which a style is appropriate will be the type of organization, the nature of the task, the characteristics of the individuals in the leader’s team (the followers) and of the group as a whole and, importantly, the personality of the leader. Effective leaders are capable of flexing their style to meet the demands of the situation.Normally democratic leaders may have to shift into more of a directive mode when faced with a crisis, but they make clear what they are doing and why. Poor leaders change their style arbitrarily so that their team members are confused and do not know what to expect next. What qualities do good leaders have? Research conducted by the Work Foundation (Tamkin et al, 2010) involving 260 in-depth interviews conducted with 77 business leaders from six high-profile organizations found that outstanding leaders:•view things as a whole rather than compartmentalizing them;•connect the parts through a guiding sense of purpose; •are highly motivated to achieve excellence and are focused on organizational outcomes, vision and purpose;•understand they cannot create performance themselves but are conduits for performance through their influence on others;•watch themselves carefully and act consistently to achieve excellence through their interactions and their embodiment of the leadership role.