HST5504 Lecture Notes - Lecture 5: Absenteeism, Society For Human Resource Management, Ingroups And Outgroups
WEEK 5: LINK BETWEEN HR SYSTEMS AND ORGANISATIONAL PERFORMANCE
HR strategy is a cluster of overlapping HR systems
Internal Fit within HR systems:
• There should be a high level of coherence aog the H‘M praties ithi a H‘ syste positie
udlig.
• Positie udlig is a searh for poerful oiatios aog praties.
• H‘ aagers should aoid deadly oiatios: poliies hih ork i diretly opposite diretios suh as
strong training for teamwork but appraisal which only rewards highly individualistic behaviour).
• Coheree i H‘M iplies desigig H‘M praties that pull i the sae diretio.
Example of Coherence in HRM:
• An airline that wants to be known as the o-tie airlie will need to:
– Design training so that eployees ko ho to ake o-tie happe.
– Create reogitio ad reard systes hih ietiise eployees to e o-tie.
– Implement suggestion schemes that facilitate idea-sharig o ho to e o-tie.
HRM Performance:
• In the field of SHRM, there has been extensive effort to demonstrate a link between HRM practices and firm
performance.
• We have studied three theories underpinning the link
Theories underpinning the HRM-Performance Link:
• Tailor their HRM to their specific context (Contingency theory)
• Combine HR practices into a consolidated HRM system that is aligned with strategy and focuses on the
elements of ability, motivation and opportunity to perform (AMO theory)
• Attract, develop and maintain capabilities and resources that are valuable, rare, hard to copy and non-
substitutable (Resource-based theory).
Black Box of HRM: the murky chain of links between HRM and organisational performance - the unknown processes
that occur between HR interventions, on the one hand, and performance outcomes
Intended HRM Practices: praties that the firs deisio-makers believe will elicit the kind of employee responses
that are necessary for organisational success
Actual HRM Practices: the designed or intended HRM system is rarely perfectly applied by those charged with its
implementation - the practices must usually be implemented by multiple individuals who will not be uniform in their
implementation
Perceived HRM Practices: each employee in a work group is likely to perceive HRM practices differently due to
factors such as:
– Variatio i the atual H‘ praties e.g. the aagers i-group and out-group members receive different
treatment)
– Variation in how individuals perceive and interpret the practices.
find more resources at oneclass.com
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Document Summary
Week 5: link between hr systems and organisational performance. Hr strategy is a cluster of overlapping hr systems. Example of coherence in hrm: an airline that wants to be known as the (cid:858)o(cid:374)-ti(cid:373)e(cid:859) airli(cid:374)e will need to: Design training so that e(cid:373)ployees k(cid:374)o(cid:449) ho(cid:449) to (cid:373)ake (cid:858)o(cid:374)-ti(cid:373)e(cid:859) happe(cid:374). Create re(cid:272)og(cid:374)itio(cid:374) a(cid:374)d re(cid:449)ard syste(cid:373)s (cid:449)hi(cid:272)h i(cid:374)(cid:272)e(cid:374)ti(cid:448)ise e(cid:373)ployees to (cid:271)e (cid:858)o(cid:374)-ti(cid:373)e(cid:859). Implement suggestion schemes that facilitate idea-shari(cid:374)g o(cid:374) ho(cid:449) to (cid:271)e (cid:858)o(cid:374)-ti(cid:373)e(cid:859). In the field of shrm, there has been extensive effort to demonstrate a link between hrm practices and firm performance: we have studied three theories underpinning the link. Black box of hrm: the murky chain of links between hrm and organisational performance - the unknown processes that occur between hr interventions, on the one hand, and performance outcomes. Intended hrm practices: pra(cid:272)ti(cid:272)es that the fir(cid:373)(cid:859)s de(cid:272)isio(cid:374)-makers believe will elicit the kind of employee responses that are necessary for organisational success.
