Preparing to Manage Human Resources, Certification link.
Managerial toolkit:
- HR policies & job design.
- Financial incentives.
- Intrinsic motivation.
- Normative measures.
1. Different Approaches to Managing People
History :
- Authoritarian Drive System : The unquestioned authority of the supervisor.
- Get the technical conditions right : Early 1900s, “Taylorism” : break down jobs into small, standardized, repetitive tasks.
- Get the human conditions right & Social relations: the application of psychological principle to managing workers.
It is a choice:
| HR LOW ROAD | HR HIGH ROAD |
|---|---|
| Minimize labor costs (low wages, few benefits, little training) | Engage employees (above-average pay, benefits, training) |
| Supervisor authority | Employee discretion |
| Union suppression | Union substitution |
| “if you don’t like it, quit” | “If you don’t like it, let’s talk “ |
Six Managerial Styles : (No best choice)
| Style | Want employees to | In a nutshell | Motivates by |
|---|---|---|---|
| Coercive | Comply and obey | “Do it that way” | Threats |
| Authoritative | Mobilize toward a vision | “Come with me” | Persuasion, feedback |
| Affiliative | Be happy | “People come first” | Relationship building |
| Democratic | Participate | “What do you think” | Inclusion |
| Pacesetting | Follow example | “Do as I do, now” | Setting high standards |
| Coaching | Develop | “Try this” | Opportunities for development |
- External influences on HR strategies: (1) Labor markets and demographics; (2) Legal and social pressures; (3) Technology
- Internal influences : The Importance of Organizational Strategy for HR Strategy
Ideas Matter:
- A corporation’s role in society.
- Serve society by creating sharesholder value, via providing what customers want.
- Serve society and stakeholders more broadly; receives privileges to do so.
- The employment relationship Everything you need to know about the employment relationship in one tweet :
- Neo-liberal market ideology : primacy of free markets for creating opportunities alternatives, and value, including in the employment relationship.
- Radicalism : employers & employees have antagonistic interests.
- Pluralism : a plurality of legitimate-but-sometimes-conflicting interests. Shakesholders have unequal bargaining power, and conflicting interests need to be balanced.
- Win-win : stakeholders are important, but with appropriate managerial-designed policies, orgs. can produce win-win outcomes.
- Workers: module 2 & 3.
Will the Real HRM Please Stand Up, or the Problem with Hard Unitarism.
2. Monetary Aspects of Work
Understand why workers work. An economic approach is most applicable when work becomes a negative. Marin = Pay - Cost. Work is a lousy activity with “pain cost” and “opportunity cost”.
- Opportunism and Shirking. Principal-Agent Problem = Self-Interested workers + Costly monitoring (imperfect information).
- Solution : Incentives. and avoid unintended consequences.
- HR Pros Ignore Economics at Their Own Peril: it is important that HR professionals develop an understanding of basic economics principles and how they apply to HR issues.
- Information Signals and Screens
- The Commodification of Work: Label is a special commodity. Labor Market : Labor Supply and Demand - optimization problem to maximize profits.
- Labor as More than a Commodity
3. Non-Monetary Aspects of Work
The Metaphor of the Octopus Worker: “When we work, we do more than earn a living, we also create, care for, and serve others. We hopefully derive some satisfaction, but also a deeper understanding of our own identities.”
3.1 More than money
Self-determination theory. Foundation of intrinsic motivation : competence, autonomy, relatedness.
| Job satisfaction | Commitment | Engagement |
|---|---|---|
| Happy | Attached | Invested |
How to facilitate positive work attitudes and fulfillment:
| The job | Co-workers | Managers |
|---|---|---|
| Skill Variety Task Identity Task Significance Autonomy |
Supportive Trusting Belonging |
Clear Appropriate Goals with Rational Feedback Career Opportunities |
3.2 Identity
Self-Identification by Naming ourselves. define their identities through self-descriptors and by categorizing themselves into groups.
- Social Identity theory - people categorize themselves into groups to enhance self-esteem. emphasis on the positive traits of their in-group compared to out-groups.
- Self-categorization theory - individuals may depersonalize others, viewing them through the lens of group stereotypes rather than as unique individuals.
Dark Side : Group Identity could be conflict with someone’s inner self.
3.3 Other Motivations
To fit Norm: (1) Work group norms; (2) Corporate culture; (3) National and ethnic culture.
Caring for Others: The material discusses the historical and social constructs of gender roles in work, emphasizing the importance and value of care-giving as real work while highlighting the persistent gender inequalities in the workplace that need to be addressed for a more equitable environment.
Serving Others
3.4 Fairness and Justice
- Distributive Justice : Equity Theory. (My outcomes / My inputs) vs (Comparison outcomes / Comparison inputs).
- Procedural Justice. fair processes.
- Interpersonal Justice : fair conversational tone.
- Informational Justice : fair explanations.
3.5 The Power and Limitations of Theories of Human Behavior
Economics
block-beta columns 3 ECAS["Assumptions Self-Interested Rational Extrinsic rewards are key Work is lousy Markets are important "] ECIN["Insights Shirking concerns Overstimulation Opportunism Need monitoring incentives Teamwork issues Strategic use of private information Market alternatives "] ECDA["Dangers if wrong assumptions Crowd out intrinsic motivation Lack of fairness, trust, autonomy Overlook norms Incorrect team solution Info skepticism Overreliance on markets"]
Psychology
block-beta columns 3 ECAS["Assumptions Desire for psychological well-being Self-motivated Cognitive limits Individual diffs Work can provide fulfillment "] ECIN["Insights Intrinsic motivation Importance of positive self-esteem Autonomy, belonging, competence Multidimensional fairness "] ECDA["Dangers if wrong assumptions Shirking conerns Opportunism Inadequate monitoring and incentives Incorrect team solutions Naive use of info Overlook norms, markets "]
Sociology
block-beta columns 3 ECAS["Assumptions Socially-aware Desire for status and acceptance Work is social Norms and social institutions Markets are hierarchical "] ECIN["Insights Status as a driver In-group/out-group Peer and other normative pressure Culture Reciprocity Get group dynamics right Social networks "] ECDA["Dangers if wrong assumptions Shirking concerns Opportunism Inadequate extrinsic & intrinsic motivation Overlook fairness Incorrect team solutions Overemphasis on culture "]
4. Managing in a Complex System
4.1 Constraints
- Internal:
- Organizational strategy.
- Organizational culture & norms.
- Budget.
- Labor Unions.
- External:
- Laws & Regulations.
- Soft Laws - Politics.
- Social Norms.
Unionized workplace : (1) Bilateral - a contract covering wages, hours and scheduling, leaves, layoffs, discipline and discharge, work rules, management rights, etc. (2) Proactive - “management acts and the union grieves”, “companies get the union they deserve”.
4.2 Legal Constraints
The Employment-at-Will Baseline is an employer’s ability to dismiss an employee for any reason (that is, without having to establish “just cause” for termination), and without warning, as long as the reason is not illegal (e.g. firing because of the employee’s gender, sexual orientation, race, religion, or disability status).
- Common Laws: Public policy; Implied contract; Implied covenant of good faith.
- Legislation: Nondiscrimination laws; Standards for terms and conditions of employment; Unjust dismissal protections.
Laws: US Employment Law (Individual Labour Law) : rights of workers as individuals. US Labor Law (Collective Labour Law) : rights of workers as group.
Pay Attention to the Law, But Don’t Be Paralyzed By It.