HUMAN RESOURCE
MANAGEMENT
AC 2020 - 2021
JANE DOE
VUB AC2021
,Inhoud
introduction _______________________________________________________________ 6
chapter 1: the new human resource management process __________________________ 8
HR Roles ______________________________________________________________________ 8
Assumptions about HR ___________________________________________________________________ 8
HR Roles according to DAVE ULRICH _______________________________________________________ 10
HR roles in context _____________________________________________________________________ 12
Discussion question ____________________________________________________________________ 13
History _______________________________________________________________________ 14
Early beginnings _______________________________________________________________________ 14
Pre-industrial society – before 1750 _______________________________________________________ 14
Industrial revolution – late 18th century – Europe_____________________________________________ 15
Personnel management – 1880 – 1930 _____________________________________________________ 16
Personnel departments - 1945 – 1980 ______________________________________________________ 20
Strategic HRM – late ’70, early ‘80 _________________________________________________________ 21
Future _______________________________________________________________________ 23
Covid-19 _____________________________________________________________________________ 23
Evidence – based HRM __________________________________________________________________ 24
Big data ______________________________________________________________________________ 25
HR-Outsourcing ________________________________________________________________________ 25
Talent management ____________________________________________________________________ 25
Sustainable HRM _______________________________________________________________________ 26
Discussion questions____________________________________________________________________ 26
Chapter 2: strategy driven human resource management __________________________ 27
Resource based view on human resources __________________________________________ 27
Resource-based view of the firm __________________________________________________________ 27
Alignment ____________________________________________________________________ 31
The concept ‘Alignment’_________________________________________________________________ 31
Strategy ______________________________________________________________________________ 32
Organizational structure _________________________________________________________________ 34
Organizational culture __________________________________________________________________ 40
Summary: bringing it all together _________________________________________________________ 42
Michigan matching model _______________________________________________________________ 43
Measuring HR effectiveness ______________________________________________________ 44
HRM systems _________________________________________________________________________ 44
HR scorecards _________________________________________________________________________ 45
HR analytics ___________________________________________________________________________ 46
The HR-Triad __________________________________________________________________ 47
Discussion question ____________________________________________________________________ 47
2
,chapter 4: Job analysis and competency modeling ________________________________ 48
Traditional job analysis__________________________________________________________ 48
Relevance of job analysis ________________________________________________________________ 48
Traditional approaches __________________________________________________________________ 49
Criticism of the traditional approach _______________________________________________________ 54
Cognitive task analysis __________________________________________________________ 54
Challenge 1: new ways of working _________________________________________________________ 54
challenge 2: they don’t act _______________________________________________________________ 55
Competency management _______________________________________________________ 55
Challenge 3: operational navel gazing ______________________________________________________ 55
Strategic job modeling __________________________________________________________ 58
Discussion questions____________________________________________________________________ 58
Chapter 5: recruitment and employer branding __________________________________ 59
Introduction __________________________________________________________________ 59
Traditional recruitment _________________________________________________________ 61
Timing _______________________________________________________________________________ 62
Target population ______________________________________________________________________ 62
Recruitment source ____________________________________________________________________ 63
Recruitment message ___________________________________________________________________ 64
Recruiters ____________________________________________________________________________ 66
Traditional recruitment critiques __________________________________________________________ 66
Recruitment today _____________________________________________________________ 66
Employer branding _____________________________________________________________________ 66
There might Non-traditional applicants _____________________________________________________ 70
Use of technology ______________________________________________________________________ 71
Use of metrics _________________________________________________________________________ 72
Alternatives to recruitment ______________________________________________________ 72
Discussion questions____________________________________________________________________ 73
Chapter 6: selection and assessment ___________________________________________ 74
Introduction __________________________________________________________________ 74
Base model of personnel selection ________________________________________________ 74
Criterion domain _______________________________________________________________________ 74
Criterion measure ______________________________________________________________________ 75
Predictor constructs ____________________________________________________________________ 76
The base model – revisited_______________________________________________________________ 82
Selection basics – testing ________________________________________________________ 83
Sign VS sample ________________________________________________________________________ 83
Psychometric properties ________________________________________________________________ 84
3
, Predictor instruments ___________________________________________________________ 85
Biodata (via application form) ____________________________________________________________ 85
References and recommendations ________________________________________________________ 86
Personality inventories __________________________________________________________________ 87
Integrity tests _________________________________________________________________________ 89
Cognitive ability test ____________________________________________________________________ 90
Emotional intelligence test _______________________________________________________________ 91
Selection interview _____________________________________________________________________ 92
Medical and physical examination _________________________________________________________ 94
Work sample __________________________________________________________________________ 95
Assessment center method (ECM) _________________________________________________________ 96
Situation judgment tests ________________________________________________________________ 97
How to make a decision _________________________________________________________ 97
Recommendations _____________________________________________________________________ 98
Questions ____________________________________________________________________________ 99
chapter 7: training and development _________________________________________ 100
Ideal model in theory __________________________________________________________ 101
Conduct a needs analysis _______________________________________________________________ 102
Set training goals _____________________________________________________________________ 102
Training design and method _____________________________________________________________ 102
Increase transfer ______________________________________________________________________ 106
Training evaluation ____________________________________________________________________ 109
Informal learning _____________________________________________________________ 111
Conceptual model _____________________________________________________________________ 111
Discussion questions___________________________________________________________________ 113
Chapter 8: performance appraisal and management _____________________________ 114
Introduction _________________________________________________________________ 114
Building blocks of performance management_______________________________________ 115
What to evaluate _____________________________________________________________________ 115
What instruments to use _______________________________________________________________ 117
Who should assess ____________________________________________________________________ 123
Can we train people to become better raters _______________________________________________ 124
The performance appraisal interview _____________________________________________________ 125
General principles _____________________________________________________________________ 126
Reality of performance management _____________________________________________ 126
Problems ____________________________________________________________________________ 126
Causes ______________________________________________________________________________ 126
Possible solutions _____________________________________________________________________ 126
Future ______________________________________________________________________________ 127
Discussion questions___________________________________________________________________ 128
4
,chapter 9: compensation and benefits ________________________________________ 129
Introduction _________________________________________________________________ 129
Pay-for-performance systems ___________________________________________________ 131
Individual pay-for-performance __________________________________________________________ 131
Group pay-for-performance _____________________________________________________________ 133
Lessons learned_______________________________________________________________________ 135
Benefits: fringe compensation ___________________________________________________ 136
Cost and expenses ____________________________________________________________________ 136
Retirement plans _____________________________________________________________________ 136
Medical plans ________________________________________________________________________ 136
Work-family balance ___________________________________________________________________ 137
Perks _______________________________________________________________________________ 137
Flexible benefits plans _________________________________________________________________ 137
____________________________________________________________________________________ 138
Establishing a pay structure _____________________________________________________ 138
Pay structure _________________________________________________________________________ 138
Internal equity _______________________________________________________________________ 140
External equity _______________________________________________________________________ 141
Integrating internal and external equity ___________________________________________________ 142
Individual equity ______________________________________________________________________ 144
General solution ______________________________________________________________________ 145
____________________________________________________________________________________ 145
Discussion question ___________________________________________________________________ 145
5
, INTRODUCTION
The research shows that investments in human resources lead to better firm performance
• Resource based view
• Contingency theory
• AMO framework
Resource based view
There are differences in the performances form 2 firms in the same sector (exp.: 2 accounting firms)
=> why do they differ in their performance
• Firm size, proximity, capital, …
• Reputation, corporate culture, …
• Service quality, client satisfaction
Resources work together (bundles of resources) to provide a basis for competitive advantage
• Puts the company in a superior business position
• Identify things that the company does particularly well relative to its competitors
• Fundamental to a firm’s strategy = need for alignment
For resources to establish a sustainable competitive advantage, several conditions must be present
• Must provide value = requires heterogeneity
• Must be rare
• Must be inimitable
• Non-substitutable
So yes! Human resources can be a source of sustained competitive advantage
6
MANAGEMENT
AC 2020 - 2021
JANE DOE
VUB AC2021
,Inhoud
introduction _______________________________________________________________ 6
chapter 1: the new human resource management process __________________________ 8
HR Roles ______________________________________________________________________ 8
Assumptions about HR ___________________________________________________________________ 8
HR Roles according to DAVE ULRICH _______________________________________________________ 10
HR roles in context _____________________________________________________________________ 12
Discussion question ____________________________________________________________________ 13
History _______________________________________________________________________ 14
Early beginnings _______________________________________________________________________ 14
Pre-industrial society – before 1750 _______________________________________________________ 14
Industrial revolution – late 18th century – Europe_____________________________________________ 15
Personnel management – 1880 – 1930 _____________________________________________________ 16
Personnel departments - 1945 – 1980 ______________________________________________________ 20
Strategic HRM – late ’70, early ‘80 _________________________________________________________ 21
Future _______________________________________________________________________ 23
Covid-19 _____________________________________________________________________________ 23
Evidence – based HRM __________________________________________________________________ 24
Big data ______________________________________________________________________________ 25
HR-Outsourcing ________________________________________________________________________ 25
Talent management ____________________________________________________________________ 25
Sustainable HRM _______________________________________________________________________ 26
Discussion questions____________________________________________________________________ 26
Chapter 2: strategy driven human resource management __________________________ 27
Resource based view on human resources __________________________________________ 27
Resource-based view of the firm __________________________________________________________ 27
Alignment ____________________________________________________________________ 31
The concept ‘Alignment’_________________________________________________________________ 31
Strategy ______________________________________________________________________________ 32
Organizational structure _________________________________________________________________ 34
Organizational culture __________________________________________________________________ 40
Summary: bringing it all together _________________________________________________________ 42
Michigan matching model _______________________________________________________________ 43
Measuring HR effectiveness ______________________________________________________ 44
HRM systems _________________________________________________________________________ 44
HR scorecards _________________________________________________________________________ 45
HR analytics ___________________________________________________________________________ 46
The HR-Triad __________________________________________________________________ 47
Discussion question ____________________________________________________________________ 47
2
,chapter 4: Job analysis and competency modeling ________________________________ 48
Traditional job analysis__________________________________________________________ 48
Relevance of job analysis ________________________________________________________________ 48
Traditional approaches __________________________________________________________________ 49
Criticism of the traditional approach _______________________________________________________ 54
Cognitive task analysis __________________________________________________________ 54
Challenge 1: new ways of working _________________________________________________________ 54
challenge 2: they don’t act _______________________________________________________________ 55
Competency management _______________________________________________________ 55
Challenge 3: operational navel gazing ______________________________________________________ 55
Strategic job modeling __________________________________________________________ 58
Discussion questions____________________________________________________________________ 58
Chapter 5: recruitment and employer branding __________________________________ 59
Introduction __________________________________________________________________ 59
Traditional recruitment _________________________________________________________ 61
Timing _______________________________________________________________________________ 62
Target population ______________________________________________________________________ 62
Recruitment source ____________________________________________________________________ 63
Recruitment message ___________________________________________________________________ 64
Recruiters ____________________________________________________________________________ 66
Traditional recruitment critiques __________________________________________________________ 66
Recruitment today _____________________________________________________________ 66
Employer branding _____________________________________________________________________ 66
There might Non-traditional applicants _____________________________________________________ 70
Use of technology ______________________________________________________________________ 71
Use of metrics _________________________________________________________________________ 72
Alternatives to recruitment ______________________________________________________ 72
Discussion questions____________________________________________________________________ 73
Chapter 6: selection and assessment ___________________________________________ 74
Introduction __________________________________________________________________ 74
Base model of personnel selection ________________________________________________ 74
Criterion domain _______________________________________________________________________ 74
Criterion measure ______________________________________________________________________ 75
Predictor constructs ____________________________________________________________________ 76
The base model – revisited_______________________________________________________________ 82
Selection basics – testing ________________________________________________________ 83
Sign VS sample ________________________________________________________________________ 83
Psychometric properties ________________________________________________________________ 84
3
, Predictor instruments ___________________________________________________________ 85
Biodata (via application form) ____________________________________________________________ 85
References and recommendations ________________________________________________________ 86
Personality inventories __________________________________________________________________ 87
Integrity tests _________________________________________________________________________ 89
Cognitive ability test ____________________________________________________________________ 90
Emotional intelligence test _______________________________________________________________ 91
Selection interview _____________________________________________________________________ 92
Medical and physical examination _________________________________________________________ 94
Work sample __________________________________________________________________________ 95
Assessment center method (ECM) _________________________________________________________ 96
Situation judgment tests ________________________________________________________________ 97
How to make a decision _________________________________________________________ 97
Recommendations _____________________________________________________________________ 98
Questions ____________________________________________________________________________ 99
chapter 7: training and development _________________________________________ 100
Ideal model in theory __________________________________________________________ 101
Conduct a needs analysis _______________________________________________________________ 102
Set training goals _____________________________________________________________________ 102
Training design and method _____________________________________________________________ 102
Increase transfer ______________________________________________________________________ 106
Training evaluation ____________________________________________________________________ 109
Informal learning _____________________________________________________________ 111
Conceptual model _____________________________________________________________________ 111
Discussion questions___________________________________________________________________ 113
Chapter 8: performance appraisal and management _____________________________ 114
Introduction _________________________________________________________________ 114
Building blocks of performance management_______________________________________ 115
What to evaluate _____________________________________________________________________ 115
What instruments to use _______________________________________________________________ 117
Who should assess ____________________________________________________________________ 123
Can we train people to become better raters _______________________________________________ 124
The performance appraisal interview _____________________________________________________ 125
General principles _____________________________________________________________________ 126
Reality of performance management _____________________________________________ 126
Problems ____________________________________________________________________________ 126
Causes ______________________________________________________________________________ 126
Possible solutions _____________________________________________________________________ 126
Future ______________________________________________________________________________ 127
Discussion questions___________________________________________________________________ 128
4
,chapter 9: compensation and benefits ________________________________________ 129
Introduction _________________________________________________________________ 129
Pay-for-performance systems ___________________________________________________ 131
Individual pay-for-performance __________________________________________________________ 131
Group pay-for-performance _____________________________________________________________ 133
Lessons learned_______________________________________________________________________ 135
Benefits: fringe compensation ___________________________________________________ 136
Cost and expenses ____________________________________________________________________ 136
Retirement plans _____________________________________________________________________ 136
Medical plans ________________________________________________________________________ 136
Work-family balance ___________________________________________________________________ 137
Perks _______________________________________________________________________________ 137
Flexible benefits plans _________________________________________________________________ 137
____________________________________________________________________________________ 138
Establishing a pay structure _____________________________________________________ 138
Pay structure _________________________________________________________________________ 138
Internal equity _______________________________________________________________________ 140
External equity _______________________________________________________________________ 141
Integrating internal and external equity ___________________________________________________ 142
Individual equity ______________________________________________________________________ 144
General solution ______________________________________________________________________ 145
____________________________________________________________________________________ 145
Discussion question ___________________________________________________________________ 145
5
, INTRODUCTION
The research shows that investments in human resources lead to better firm performance
• Resource based view
• Contingency theory
• AMO framework
Resource based view
There are differences in the performances form 2 firms in the same sector (exp.: 2 accounting firms)
=> why do they differ in their performance
• Firm size, proximity, capital, …
• Reputation, corporate culture, …
• Service quality, client satisfaction
Resources work together (bundles of resources) to provide a basis for competitive advantage
• Puts the company in a superior business position
• Identify things that the company does particularly well relative to its competitors
• Fundamental to a firm’s strategy = need for alignment
For resources to establish a sustainable competitive advantage, several conditions must be present
• Must provide value = requires heterogeneity
• Must be rare
• Must be inimitable
• Non-substitutable
So yes! Human resources can be a source of sustained competitive advantage
6
