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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.

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Module 2: Overview

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  1. 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

  2. Internal consistency: overview • Where we have been: five factors • Payoff from internal consistency • Example: high-commitment HR system • Caveats

  3. 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

  4. 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

  5. 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.

  6. 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

  7. 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?

  8. High-commitment HR system

  9. 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.

  10. 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.

  11. 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

  12. A comparison of Hofstede’s and Schein’s representations of organizational cultures

  13. 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.

  14. 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

  15. 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

  16. Beer et al.’s ‘bottom-up’ approach to task alignment

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