The Human Resource Frame

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The Human Resource Frame
By Team Two
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HR FRAME GAME
Professor Kehoe Edition

• Name the four different frames of management.

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HR FRAME GAME
Professor Kehoe Edition
Fill in the blank.
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Pioneers of HRM

• Mary Parker Follet (1918)
• American social worker and consultant

• Elton Mayo (1933)
• Australian organization theorist

Both believed that peoples skills, attitudes,
energy and commitment are vital resources that
can make or break an enterprise.
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Four HR Assumptions

• Human Needs
• Organizations exist to serve human needs rather
  than the reverse
• Interdependency
• Organizations and people need each
  other Organizations need ideas, energy and
  talent People need careers, salaries and
  opportunities
• Poor Fit unhappy organizations and/or unhappy
  people
• When the fit between individual and system is
  poor, one or both suffer Individuals are
  exploited and/or exploit the organization
• Good fit happy organizations and happy people
• Individuals find meaningful and satisfying
  work Organizations get the talent and energy
  they need to succeed

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Human Needs
HRM believes that humans have needs
Maslows Hierarchy of Needs

• Organizes human needs based on their priority
  level
• Physiological and safety needs must be satisfied
  first
• Once the bottom two are satisfied, individuals
  are motivated by the higher needs

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Theory X and Theory Y

• Douglas McGregor (1960)
• Saw work as a way to achieve personal development
  and growth
• Applied Maslows theory to management by adding
  another idea
• Idea managers assumptions about people tend to
  become self fulfilling prophecies

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Theory X and Theory Y
McGregors description of managements
assumptions about workers


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Theory X and Theory Y
Thus...
Main Idea Workers will act the way you treat
them. If you treat people as if theyre lazy and
unmotivated, they will act lazy and unmotivated.
Key Proposition of Theory Y Organize the job so
that workers can achieve their goals through
their work.
P
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Effects of Theory x

• Chris Argyris (1957,1964)
• Theory X management practices that produce
  conflict between workers and organizations
• Organizations treat workers like children
• Task specialization jobs that are repetitive,
  easy, and boring

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Workers respond by...

• Withdrawing quitting, absenteeism
• Psychologically withdrawing
• being uninterested and lifeless actions drinking
  and playing games on the job
• Retaliating
• B restricting output, deception, featherbedding,
  or sabotage
• Trying to climb hierarchy to find better jobs
• Forming alliances
• ex unions to correct power imbalance
• Teaching children that work is unrewarding

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Effects of Theory x
Peter Gibbons (Worker)
Bill Lumbergh (Manager)
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Effects of Theory x
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HR FRAME GAME
Professor Kehoe Edition
Whats missing?
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To make matters worse.....
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THE CHANGING EMPLOYMENT CONTRACT
beginning in 1990s organizations have ...
to save more

• downsized

• outsourced

• increasingly relied on part-time temporary
  workers

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but the economy has also changed...
production intensive economy
information intensive economy
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Two Types of Organizations types of organizations
Lean and Mean
Invest in People
vs.
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Lean and Mean

• Shamrock Form Core group, basic workforce,
  contractual fringe

3. Contractual Fringe outside workers who do work
inexpensively
1. Core Group managers and professionals
2. Basic Workforce increasingly part-time workers
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Lean and Mean

• Adapts by Downsizing, outsourcing, hiring
  part-time staff
• Advantages Lower costs, higher efficiency,
  greater flexibility
• Disadvantage Long-term decay, limited
  relationship with customers, employees and
  suppliers, demoralized employees
• Personal and Social Costs low wages, minimal
  benefits, job insecurity, stress and burnout.

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Lean and Mean
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Invest in People

• Considers workforce an investment instead of cost
• understanding and responding to the needs of both
  employees and customers

• Advantages
• Attracts best workers
• enables a more complex organizational system to
  organize
• good relationships with employees, customers and
  suppliers

• Disadvantages
• lower efficiency and more costly
• due to the inability to adjust quickly to changes
  in the market and changes in the needs of workers

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KEY pOINTS

• The Human Resource Frame highlights the
  relationship between PEOPLE ORGANIZATIONS.
• Remember, organizations need people people need
  organizations.
• Lean Mean VS. Invest in People

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HR FRAME GAME
Professor Kehoe Edition

• What are the three clusters of the shamrock form?
  What are their components?

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Improving HRM

• 6 Step System
• Build and Implement an HR Philosophy
• Hire the Right People
• Keep the Employees
• Invest in Employees
• Empower Employees
• Promote Diversity

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1. BUILD AND IMPLEMENT AN HR PHILOSOPHY

• An effective HR philosophy provides overall
  guidance and direction
• Develop a public statement of the organizations
  HR philosophy
• e.g. Federal Express People-Service-Profit
• Build Systems and Practices to Implement the
  Philosophy
• ex. FedExs Survey-Feedback-Action An annual
  employee satisfaction survey, which rates
  management's performance and forms a basis for
  improvement through formal written action plans
  gained by employee feedback sessions (Fedex.com)

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2. HIRE THE RIGHT PEOPLE
Hi! Im Bill Gates, chairman of Microsoft.

• Know what you want be selective
• Microsoft intelligence and smartness over
  anything else, even, in many cases, experience
  (p.137)
• Hire people who bring the right skills and
  attitudes

I am LOVING this presentation!!!
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"If you leave us our money, our buildings and
our brands, but take away our people, the Company
will fail. But if you take away our money, our
buildings and our brands, but leave us our
people, we can rebuild the whole thing in a
decade." (P G)
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HR FRAME GAME
Professor Kehoe Edition
How does Investing in People reflect the core
assumptions of HR Frame?
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(No Transcript)
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3. Keep Employees

• For companies to
• Get the people
• offer attractive competitive pay benefits
• Keep the people
• Protect jobs
• promote from within
• and keep them involved

• Four Parts to Keeping Employees
• Reward Well
• ex. FedEx
• ex. SAS
• 50 M in HR savings.

• Protect Jobs
• Mazda

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3. Keep Employees

• Promote from Within
• Costco tries to promote at least 80 of its
  managers from inside
• 90 of FedEx managers started in non-management
  jobs

• 4. Share the Wealth
• linking employee rewards directly to corporate
  productivity
• gain sharing, profit sharing
• employee stock ownership plans (EOSPS)
• ex. SCANLON plans
• works as long as there are rewards but cause
  anger and disappointment if the company
  experiences a financial downturn

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Share the Wealth
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4.Invest in Employees
Learning in an organization takes place when
three elements are in place 1) good mentors who
teach others, 2) a management system that lets
people try new things as much as possible, 3)and
a very good exchange with the environment.


(Aubrey and Tilliette, 1990)
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5. Empower Employees

• Five Step Process
• Provide information and support
• Encourage autonomy and participation
• Redesign work
• Foster self-managing teams
• Promote egalitarianism

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5. Empower Employees
Im Jack Stack, CEO of SRC Holdings.

• 1. Provide Information and Support
• open book management rooted with 3 basic
  principles
• All Employees...
• See and learn to understand financial and
  performance measures
• Are encouraged to think like owners (do what you
  can to improve numbers)
• Get a piece of the action a stake in the
  companys financial success

• Why it works
• Sends a message that management trusts people
• Incentive for employees to contribute
• Furnishes the info they need to do a better job.

Think like me!!
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5. Empower Employees

• 2. Encourage Autonomy Participation
• Give more workers more opportunity to influence
  decisions about their work and working
  conditions.
• Participation is associated with higher
  performance.

• Participation improves productivity through
• increasing effectiveness of the individual
• enhancing organizational learning.
• (Appelbaum,
  Baily, Berg and Kalleberg, 2000)

• However, participation has failed because
• theres difficulty in designing workable
  participative systems
• managers ambivalence espouse participation
  but fear people will abuse it

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5. Empower Employees

• 3. Redesign Work
• Trist Bamforth
• creation of composite work groups

• Frederick Herzberg
• Job enrichment is central to motivation
• Job enrichment 1) more freedom and authority,
  2) more feedback and 3) greater challenges.

• 3 Critical Factors in Job Redesign
• Individuals must...
• See their work as meaningful,
• Use discretion and judgment so they can feel
  accountable for their results,
• Receive feedback about efforts to leave room for
  improvement.

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5. Empower Employees

• Assumption that jobs should be organized around
  technical imperatives, and that repetition makes
  people feel efficient
• Belief that workers produce more in a Theory X
  environment
• Economic lots of jobs cannot be altered without
  major investments in redesigning physical plant
  and machinery
• Workers may demand more

Four Job enrichment barriers
Benefits
Cost
????
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5. Empower Employees

• 4. Foster Self-Managing Teams
• Emphasizes a connection between work design and
  team work.
• Ex Whole Foods Market
• Workers need to learn group skills and a broader
  range of technical skills

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5. Empower Employees

• 5. Promote Egalitarianism
• Egalitarianism the doctrine that our actions
  should be aimed at respecting and advancing the
  equality of persons.
• Translates into organizational democracy
• Example SEMCO
• at SEMCO, workers hire new employees, evaluate
  bosses and vote on major decisions.
• Another way to increase egalitarianism
• replace symbols of hierarchy with symbols of
  cooperation equality
• Ex Saturn

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HR FRAME GAME
Professor Kehoe Edition

• Name ONE reason why Open Book Management works?

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HR FRAME GAME
Professor Kehoe Edition

• What is it called when an organization treats all
  individuals as EQUALS?

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BREAK TIME