Human Resource Management (HRM)

1. Human Resource Management (HRM) What? • the functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits). • all the activities related to the recruitment, hiring, training, promotion, retention, separation, and support of employees. • functions within a company that relate to people. Why? • is the effective use of human resources in order to enhance organisational performance. • the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting the needs of the firm. • applying human resources within complex systems such that people succeed, performance improves, and human error decreases. (Source: web definitions for HRM)

2. Effects of HRM • HRM-practices (especially job design and selection/ appraisal/training) better predict company performance than R&D, QM, strategy and technology (West, 2001) • Empowerment better predicts company perfor-mance than technology-based management practices(Patterson et al., 2004) • HRM-practices as cause and effect of company performance (Guest et al., 2003)

3. HRM from a work and organizational psychology perspective • Scientific foundation for HRM tools • HRM as a function penetrating the whole organization • Focus on working conditions as influences on human competence and motivation • Systematic linking of "fit human to task" and "fit task to human"

4. Task / Work process Satisfaction Motivation Performance Road map for HRM: Work Process Design (Fall semester) Organization as socio-technical system

5. Personnel selection Satisfaction Motivation Personnel development Organization as socio-technical system Performance Performance appraisal / Compensation Leadership Team Road map for HRM: Leading teams (Spring Semester) Task / Work process

6. Topics HRM: Leading teams

7. Organization of course • Course provides 3 ETCS points (approx. 75-90 work hours). • Besides the lecture, the prerequisite for credits points and exam participation is the completion of a semester project in groups of 4 students. • The exam is written (1.5 hours; closed book) and takes place during the first two weeks in June. Overall grade: 50% project & 50% exam • Material for lectures/semester project: www.oat.ethz.ch.

8. Topic 1: Leadership assessment Marius Gerber & Michaela Kolbe • Assessment Center: Evaluation of personal characteristics based on behavior in realistic situations • Task: develop and test an assessment method based on a chosen model of effective leadership • Methods: determine relevant personal characteristics related to good leadership behavior, create an assessment scenario and carry out an assessment

9. Topic 2: Best Practice in HRMSifra Corver & Julia Belting • Best practice: finding businesses with an excellent HRM (Swiss HR-Award), focus on practice, not results • Task: evaluate a company’s HRM and create a ranking list • Methods: create interview guidelines and conduct structured interviews with HR, general managers and employees

10. Topic 3: Pay for PerformanceCécile Tschopp & Nadine Bienefeld • Pay for performance systems: potential for serious unintended negative results, but also for substantial performance improvements • Task: systematically evaluate an existing pay for performance system • Methods: interviews with system designers and employees; benchmarking using ProMES

11. Topic 4: Cooperation in distributed teamsDaniel Boos & Johann Weichbrodt • Distributed teams: necessity in global business, difficulty of communicating and cooperating mainly via electronic means • Task: Conduct a small exploratory study about a distributed team and reflect on your findings with reference to organizational science literature • Methods: interviews with the leader and one member of a distributed team, plus a short questionnaire for all team members

12. Semester project • Selection of topics/assignment to groups: Please send e-mail to Jacqueline Hohermuth (jhohermuth@ethz.ch), indicating • your name, • your preferred topics (1st and 2nd priority), German/English preference, • people you want to form a group with (group size is 4, if needed people will be assigned to groups by us) • Deadlines • send e-mail by Feb. 23 • information about group composition by Feb. 25 • changes possible until Feb. 27 (e-mail to Jacqueline again) • Final assignment to groups March 2 (no changes or additions of new students possible after that date) • final report due May 25

13. Required reading The texts will be available on Feb. 23 & March 2 during the break for CHF 10

14. Topics HRM: Leading teams

15. Core functions of HRM • Job analysis and design • Recruitment and selection • Training and development • Performance management and compensation • Labor and employee relations

16. Examples in the news – HR implications? • Bonus payments in banks • Swiss Re: CEO Aigrain quits after major losses • SR Technics closes Dublin plant with more than 1000 employees • Hitzfeld on managing a national football team as a distributed team of club players • Increasing use of short time work

17. Examples in the news – HR implications