Personnel & organization
summary
Chapter 1
Management: Management is the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading and monitoring organizational resources
Good HR is:
• Effective: Do what you promise to do
• Efficient: Within budget
• Calculated: Provide numbers to convince the board of your ideas. (ROI, cost, …)
Shareholders invest in the company and take a risk They want a profit, that is more than the
banks’ interest rate.
Dave Ulrich
Strategic HRM (part of planning)
Where do we want to go?
Which positions do we need?
Which competences? Which structures?
Competitive position, continuity & strategy
Top level decisions with a long term perspective
HR influences choices made by the management
Positioning approach: Doing something that other companies are not doing yet. (Outside-in
approach). The outside world is going to determine what you will be doing on the inside.
1
,Resource-based approach: Doing something that you are good at regardless of what others are
doing. (Inside-out approach). The inside of the company (its talents, competencies, assets, etc.) will
determine what you will be doing.
Best practices: The commercial or professional procedures that are accepted or prescribed as being
correct or most effective. The industry standard. Be careful as it’s not always the best fit for every
organization.
Tactical HRM (part of organizing)
• Getting the strategic plans into practice
• How do we become more flexible?
• Planning of hiring/dismissal phases
• Redesigning jobs and procedures
• More professional and individual impact
Employee champion
HR 2.0: HR 1.0 enables users to query records and report on KPIs; HR 2.0 enables users to drive
decision-making based on past results and, over time, promises to leverage data science and deep
learning techniques to recommend, even automate, decision making.
The HR cycle
The principal-agent relationship
A principal-agent relationship is ‘a contract under which one or more persons (the principal(s))
engage another person (the agent) to perform some service on their behalf which involves delegating
some decision making authority to the agent.’
Agency theory
• Principal and agent have different objectives
• Agent pursues own objectives when possible
• Control is required
2
, Stewardship theory
• Principal and agent may have different objectives
• Agent integrates principal’s utility function
• Building on trust
• Strong company culture
Different ways of looking at HR
1. Business perspective
2. Socio-psychological perspective
3. Interest perspective
4. Societal perspective
1. The business perspective
Humans are seen as production factors
Durable, maintenance & development
Effectiveness and efficiency are key
o Production process determines layout and job design
o Investment cost versus return (ROI)
Hard view on HR, but often done by companies
No focus on the humans, just on the business. Profit over people.
1. The socio-psychological perspective
Labor power + personal characteristics
Development, social group
Needs and expectations
Attention given to social processes
Possibly a different kind of job design
o Job rotation
o Even when replacements are easily available
Making sure employees feel good at their job. (teambuilding, job rotation, etc.)
More human, more pleasant to work at the company but more costly.
1. The interest perspective
Groups of people that are linked and that fight with each other over costs and benefits
interest perspective will treat core personnel better than replaceable personnel.
Organisation = arena
o Various groups fight amongst each other
o Temporary staff versus fixed contracts
o Essential key personnel versus peripheral workers
Dividing costs and benefits
Aggregate of interconnected parts
o Pay raise for one worker
o People in an organization are all connected. What you do for one employee, you
need to do for everyone. Everyone should be treated equal
3
summary
Chapter 1
Management: Management is the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading and monitoring organizational resources
Good HR is:
• Effective: Do what you promise to do
• Efficient: Within budget
• Calculated: Provide numbers to convince the board of your ideas. (ROI, cost, …)
Shareholders invest in the company and take a risk They want a profit, that is more than the
banks’ interest rate.
Dave Ulrich
Strategic HRM (part of planning)
Where do we want to go?
Which positions do we need?
Which competences? Which structures?
Competitive position, continuity & strategy
Top level decisions with a long term perspective
HR influences choices made by the management
Positioning approach: Doing something that other companies are not doing yet. (Outside-in
approach). The outside world is going to determine what you will be doing on the inside.
1
,Resource-based approach: Doing something that you are good at regardless of what others are
doing. (Inside-out approach). The inside of the company (its talents, competencies, assets, etc.) will
determine what you will be doing.
Best practices: The commercial or professional procedures that are accepted or prescribed as being
correct or most effective. The industry standard. Be careful as it’s not always the best fit for every
organization.
Tactical HRM (part of organizing)
• Getting the strategic plans into practice
• How do we become more flexible?
• Planning of hiring/dismissal phases
• Redesigning jobs and procedures
• More professional and individual impact
Employee champion
HR 2.0: HR 1.0 enables users to query records and report on KPIs; HR 2.0 enables users to drive
decision-making based on past results and, over time, promises to leverage data science and deep
learning techniques to recommend, even automate, decision making.
The HR cycle
The principal-agent relationship
A principal-agent relationship is ‘a contract under which one or more persons (the principal(s))
engage another person (the agent) to perform some service on their behalf which involves delegating
some decision making authority to the agent.’
Agency theory
• Principal and agent have different objectives
• Agent pursues own objectives when possible
• Control is required
2
, Stewardship theory
• Principal and agent may have different objectives
• Agent integrates principal’s utility function
• Building on trust
• Strong company culture
Different ways of looking at HR
1. Business perspective
2. Socio-psychological perspective
3. Interest perspective
4. Societal perspective
1. The business perspective
Humans are seen as production factors
Durable, maintenance & development
Effectiveness and efficiency are key
o Production process determines layout and job design
o Investment cost versus return (ROI)
Hard view on HR, but often done by companies
No focus on the humans, just on the business. Profit over people.
1. The socio-psychological perspective
Labor power + personal characteristics
Development, social group
Needs and expectations
Attention given to social processes
Possibly a different kind of job design
o Job rotation
o Even when replacements are easily available
Making sure employees feel good at their job. (teambuilding, job rotation, etc.)
More human, more pleasant to work at the company but more costly.
1. The interest perspective
Groups of people that are linked and that fight with each other over costs and benefits
interest perspective will treat core personnel better than replaceable personnel.
Organisation = arena
o Various groups fight amongst each other
o Temporary staff versus fixed contracts
o Essential key personnel versus peripheral workers
Dividing costs and benefits
Aggregate of interconnected parts
o Pay raise for one worker
o People in an organization are all connected. What you do for one employee, you
need to do for everyone. Everyone should be treated equal
3
