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Human Resource Management (HRM)

Human Resource Management (HRM). What? the functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits).

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Human Resource Management (HRM)

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  1. Human Resource Management (HRM) What? • the functional area of an organization that is responsible for all aspects of hiring and supporting employees (e.g., providing and administering employee benefits). • all the activities related to the recruitment, hiring, training, promotion, retention, separation, and support of employees. • functions within a company that relate to people. Why? • is the effective use of human resources in order to enhance organisational performance. • the process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting the needs of the firm. • applying human resources within complex systems such that people succeed, performance improves, and human error decreases. (Source: web definitions for HRM)

  2. Effects of HRM • HRM-practices (especially job design and selection/ appraisal/training) better predict company performance than R&D, QM, strategy and technology (West, 2001) • Empowerment better predicts company perfor-mance than technology-based management practices(Patterson et al., 2004) • HRM-practices as cause and effect of company performance (Guest et al., 2003)

  3. HRM from a work and organizational psychology perspective • Scientific foundation for HRM tools • HRM as a function penetrating the whole organization • Focus on working conditions as influences on human competence and motivation • Systematic linking of "fit human to task" and "fit task to human"

  4. Task / Work process Satisfaction Motivation Organization as socio-technical system Performance Road map for HRM: Work Process Design (Fall semester)

  5. Personnel selection Satisfaction Motivation Personnel development Performance Performance appraisal / Compensation Leadership Team Road map for HRM: Leading teams (Spring Semester) Task / Work process Organization as socio-technical system

  6. Topics HRM: Leading teams

  7. Organization of course • Course provides 3 ETCS points (approx. 75-90 work hours). • Besides the lecture, the prerequisite for credits points and exam participation is the completion of a semester project in groups of 4 students. • The exam is written (1.5 hours; open book) and takes place during the first two weeks in June. Overall grade: 50% project & 50% exam. • Material for lectures/semester project: www.oat.ethz.ch.

  8. Semester project • Selection of topics/assignment to groups: Please send e-mail to Jacqueline Hohermuth (jhohermuth@ethz.ch), indicating • your name, • your preferred topics (1st and 2nd priority), German/English preference, • people you want to form a group with (group size is 4, if needed people will be assigned to groups by us) • Deadlines • send e-mail by Feb. 20 • information about group composition in the lecture Feb. 25 • changes possible until Feb. 27 (e-mail to Jacqueline again) • Final assignment to groups March 3 (no changes or additions of new students possible after that date) • final report due May 26

  9. Topic 1: Leadership assessment Marius Gerber, Barbara Künzle & Michaela Kolbe • Assessment Center: Evaluation of personal characteristics based on behavior in realistic situations • Task: develop and test an assessment method for leadership based on a chosen theory of leadership • Methods: determine relevant personal characteristics related to good leadership behavior, create an assessment scenario and carry out an assessment

  10. Topic 2: Best Practice in HRMJohann Weichbrodt & Daniel Boos • Best practice: finding businesses with an excellent HRM (Swiss HR-Award), focus on practice, not results • Task: evaluate a company’s HRM and create a ranking list • Methods: create interview guidelines and conduct structured interviews with HR, general managers and employees

  11. Topic 3: Pay for PerformanceHannes Günter & Cécile Tschopp • Pay for performance systems: potential for serious unintended negative results, but also for substantial performance improvements • Task: systematically evaluate an existing pay for performance system • Methods: interviews with system designers and employees; benchmarking using ProMES

  12. Required reading The texts will be available on Feb. 25 & March 3 during the break for CHF 10

  13. Topics HRM: Leading teams

  14. Core functions of HRM • Job analysis and design • Recruitment and selection • Training and development • Performance management and compensation • Labor and employee relations

  15. Examples in the news – HR implications? • Société Générale: 4.82 billion Euro trading losses caused by one trader • New England Journal of Medicine: Reviewer releases confidential information to pharmaceutical company • Skyguide: Too few air traffic controllers • BP: Downsizing 5000 jobs mainly in middle management • Social Services Zürich: Resignation by Monika Stocker • World Bank: First non-western (Chinese) chief economist • English football team: New Italian coach

  16. Examples in the news – Main HR implications

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