1

Unit 1: Definition and purpose of SHRM

1.1. Changing in biz environment (leads to HR position change in org): Cognitive changes (more orgs see people as their intellectual
assets: new technologies, access to natural resources can be imitated easily gain competitive advantages), Increasing cost of
employment, Business philosophy change that people decide success & failure of org increasing sourcing, deployment (su trien khai) &
development people, Environmental changes (introduction of new technology, new employment legislation, different attitudes in society
expectation of work, economic recession working performance)
- Definition of SHRM: is the process of linking the HR function with orgs strategic objectives in order to improve performance (Bratton
& Gold, 2012) through formulating HR policies and practices that produce the employee competencies and behaviors (Dessler, 2011)
- Three challenges of getting competitive advantages (Mabey & Lawton, 1998): Managing intangible assets (ability to access scare skills),
Managing strategic change: trends towards flexibility in org & job design (require for working attitudes + relationships), Innovation,
development for becoming intangible assets to manage people strategically

1.2. Roles of SHRM (according to Guest, 1992): Integrate with planning coherent HRM policies, Commitment of employees,
Flexibility of org structure + functions (multi-skilled workforce), Quality of good + services

1.3. Approaches to SHRM:

Best Practice View (BPV) Best Fit View (BFV)
Resource-based Approach
(RBA)
Definition A particular set (or number) of HR
practices can help all orgs to improve
their performance (Marchington,
Sargeant & Wilkinson, 2002)
Start from the premise : that a single set
of HR policy and practices lead to better
Org performance, last over a long
period, whatever the bussiness
circumstances. Importance points: This
strategy believe there is one best way
of managing HR to improve bussiness
perfom


There can be no universal prescriptions for
HRM policies and practices (Armstrong,
2003) HR strategies fit with business
strategy
Is concerned with the
acquisition, development and
retention of intellectual capital
to create HR advantage
(Boxall & Purcell, 2003); or
the company see potential
itself, then find ways to
explore or enhance staff ability

Characteristics - Top-down view
- Solution oriented
- The policies focus on: Human
resources issues, promote high
commitment from high employess,
closer hierarchy & supervision by trust
relation & team work practice,
employees regular develop skills to
achieve personal growth and tasks,

- Fit of structure and HR policies
- 4 objectives: (Guest, 1992) strategic
integration, commitment, flexibility, and
quality
- Both top-down and bottom-up view
HR is a full partner in planning process
- Outcomes are prescribed (quy dinh)
- Fit of org strategy
- Focus on : specific business operating
environments by provide competitive
advantages for particular types of firms
depending on their strategic environment and
reaction to it
- Bottom-up view

2

Content - 18 key practices (Guest, 1992)
- 7 key practices (Pferffer, 1994)(more
popular):
Employment security, Selective hiring,
Self-managed teams, High compensation
contingent on performance, Training,
Reduction of status differentials, Sharing
info
- HR strategies link with external
environment and internal environment (the
org itself with culture + operational
processes, and people),
- Best fit integration: step 1 : Economic,
political, culture forces-> mission and
strategy, HRM, Org structure -> Firm.
Step 2 :Selection -> performance->
Appraisal-> reward, training

- 5 propositions (de xuat) of
creating strategic assets
(Mueller, 1998):
Assets are developed based on
biz situation & social
structure; Long-term
commitment of assets are
require; Skills are developed
through important activities
and linked to work;
Development of culture is
requires; Barriers to avoid
imitation of resource are built
through patents, R&D
capability, employee
commitment and advanced HR
policies
Advantages &
Disadvantages
Pros
- Links to biz
performance are
recognized (
related to
performance,
worker training,
compensation, -
> contribute to
org)
- Common,
agreement
between Chief
Executive & HR
manager in
develop quality
of HR policy)
- HR practices
are in line with
SHRM aims
Cons
- May not work
effectively in
implementation
- Does not link to
business strategy ->
difficult to be
relevant with top
manger mgt
- HR is driven by
outside factors such
as : financial crisis,
reduce capital
recourses from
parent company.
Company needs
recourse to survive
not implement
programs & HR
policies -> affect to
real strategic
choices
- Difficult to assess
the impact of HR
interests using
financial measures
Pros
- Match role
characteristics of people
with preferred strategies
It allows organizations to
determine whether a hard
(outsourcing/tighter
contracting) or a soft
(involvement,
communication & sharing)
approach needs to be taken
given the circumstances. -
>build coherent
activities (HR strategies:
Cost-reduction, Quality
enhancement, Innovation

- There is a unitarist
relationship between mgt
and labor employees
are expected to express
the behaviors intended
by mgt (Wilton, 2011)
Cons
- Depends too
much on biz
strategies
limit
development
of HR itself
- Not focus on
distinctive
ability of
individuals

Pros
- HRs can be as
competitive
advantages
(because they
may: add values to
the firm, be unique
or rare, be
inimitable, not be
substituted with
other resources -
Barney, 1991)

Cons
- Neglect
external
forces to
org
Examples Roth (2009) indicates 8 Human
Resources Best Practices (to achieve
profits by reducing their environmental
footprint) for contemporary firms
Walmarts application:
- A focus upon volunteers: Walmart
has a volunteer associate sustainability
program to ask associates for making a
difference in terms of their health,
community or the natural environment?
engage half of its U.S. associates and
more than half the associates in other
markets like Brazil and Canada
- Celebrate success: Walmart grows
their associates support by recognizing
their contributions growing green
revenues and profits, e.g.: In 2009,
Walmart recognized an associate who
helped company to save $1 mil a year
Mercury Hotel chain in UK:
- Org strategy: Differentiation (providing
the best quality of service)
- HR strategy: Enhance quality of
employees:
+ make extensive use of return staff,
mainly students because of a ready supply
of trained labor
+ most employees are provided some
training
+ minimize the use of temp casuals
+ train members of staff across a range
of different areas with skills flexibility
+ Employee Forum
+ reduce staff turnover: focus more on
recruitment process + more staff retention
(e.g. employee of the month award)
+ exceptional package of benefits
available to staffs be central in
Deloitte Touche Tohmatsu:
provides professional services
and advice in audit, tax,
consulting and financial
advisory area HR?
Deep intellectual capital:
135,000 people worldwide

3

recruiting and retaining high-quality,
skilled employees
Discussion The best fit model seems to be more realistic than the best practice model (Armstrong, 2009)
Unit 2: Strategic HR departments
2.1. HR departments and change on function

- Responsibilities of Human Resource Departments
Job Analysis: The process of getting detailed information about jobs.
Job Design: The process of defining the way work will be performed and the tasks that a given job requires.
Recruitment: The process through which the organization seeks applicants for potential employment.
Selection: The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other
characteristics that will help the organization achieve its goals.
Training: A planned effort to enable employees to learn job-related knowledge, skills, and behavior.
Development: The acquisition of knowledge, skills, and behaviors that improve an employees ability to meet changes in job requirements
and in customer demands.
- Challenges of HRM (UK Trade Union Council, 1999): Diversion of communication away from unions toward individual employees,
Work org based on teams, Exclusion (su loai tru) of trade union on quality, Pay system moves away from individual performance HR
specialists must be: More strategic and business led, Improve relationships with employees, Act professional and cooperate with line
managers in policy making
2.2. HRM crisis: 3 concepts in contribution to organizational changes (Sparrow & Marchington, 1998): New biz forms and contracts,
Needs of partnership in employment relationships, Pressure for flexibility at all levels 3 questions for org: How to build trust between
employees and employers, How employees maintain voices and value, What is nature of work, org and work-life balance Problems for
org and employees: Social cost (e.g.: cost of development and career orientation, cost for polluting environment, health cost), Deregulation
(su bai bo) of government policies + social cost reduce org options for training & employment, Impact of culture and behavior on biz
goals, Movement of job based to person-based affects HR policies.
2.3. Requirements for HR specialists (Challenge of SHRM) (Torrington, 1996): Confidence (if not, HR staffs may be reactive rather
than proactive, not strategic, not business focused but too employee focused), Avoid Identity (Personnel activities has not changed over
time), Direction (All managers must be involved in HR capability, not only HR specialists).
Initial
stage
Fulfill a welfare function: improve working conditions or avoid onset (su tan cong) of trade union for worker interest
Trade
uninions
developed
widely
Fulfill a welfare function
Develop expertise in scientific org of jobs
Recruit and train
Develop legal expertise in various employment areas
1980s
Do tasks based on best practice model
Take up integrated HR practices (manage beliefts + asumptions, work with line manager in strategic issues)
Focus on strategy, key policies create values
21st
century



Incorporate (ket hop chat che) professional HR/personnel practice
Allow for variable approaches, meeting stakeholder interests
Improve HR mgt skills
Give flexibility & innovation for employees
Market HR functions with orgs



Creating HR policies (Guest, 1992): Strategic development of HR functions (Torrington, 1998)
- Reflect new division of labor (choice of
where and how to work with org)
- Balance employee commitment to
- Create different solutions to HR implications of change
- Mgt should not devolve (uy thac) entire responsibility for HR
policy to line managers miss effective people mgt across
4

2.4. Trends in mgt of HR functions (Response to challenge)
Auditing performance Devolution (Uy thac) Decentralization Outsourcing
Objectives Link HR performance
to biz strategy
ensure that investment
in personnel & training
is linked to biz terms
Relocate personnel activities from
specialists to line managers/other
specialists (financial controllers or
secretary)/other locations away
from the headquarters
Make companies to
become more flexible,
have quick decision
making, close to
customers
Achieve flexibility and
reduce cost
Characteristics - Base on cost-
effectiveness,
contribution, service
- Need info from
operational data, costs,
time spent on activities,
costs of external
services and department
structure
Devolution is used most in:
- Work org
- Training
- Recruitment and selection
- Appraisal
- Employee relations
- Influence factors: biz
size and diversification
of biz and market

Advantages &
Disadvantages
Pros
- See
relationships
between HR
function and
biz strategy
- Promote
change and
creativity
Cons
- Not
flexible

Pros
- Faster
and (may)
better
problem
solving
-
Flexibility

Cons
- Conflicts between
HR specialist and
other managers
-
Specialists/managers
in other field may
lack of experience
- Loss integration of
policies
- No criteria to guide
Pros
- Suitable
for cross
functional
working
- Enable
flexible
mgt and
develop
employee
skills
Cons
-
Problems
in 1 unit
can affect
the whole
HR
system
Pros
- Outside
specialist can
have greater
level of
knowledge
- Create
more new
ideas than
the insiders
-
Competition
cost
effectiveness
- Clearer
service level
standard
Cons
- May lack
of
commitment
- Cost vs.
quality
issues
- Be
dependent
on third
party
difficult to
control

2.5. Future roles of HR (Torrington, 1996): Strategic practitioner (align with biz and HR strategy by guiding mgt to fit practice),
Administrative expert (build HRs credibility can advise others on how to achieve similar gains), Employee champion (give employee
voice, provide skills through training to do job increase their commitment and capability), Change agent (manage transformation and
ensure capacity for change)
Requirements for HR: Knowledge of biz (environment, market, culture), Knowledge of HR practices, Change management and
Personal credibility
2.7. Evaluation of HR functions
Key areas: HR policy formulation (how well policies supports biz strategy & goals), Planning (effectiveness of HR planning, recruitment
planning, career planning, succession and workforce planning), Development (effectiveness of training), Staff relations, Performance (code
of conduct and its effectiveness), Staffing practice (effectiveness of selection, remuneration), Health and Safety (level of training for
occupational health and safety)
Example of Clorox - a US-based manufacturer of various food and chemical products: through a survey, HR managers learned that their
department does not manage employee relations well restructured to match the divisional structure of the company + set up a call center
for answering basic questions about payroll and benefits using technology
work/non work activities support for
- Give different levels of commitment
and flexible policies meet employees
expectation
- Offer contractual flexibility
the org
- Focus on the process of how people are employed, deployed,
empowered and motivated


5

Unit 3: Employee resourcing strategies
3.1. Nature of Human Resource Planning (HRP)
- Manpower Planning (MP): a fundamental of HRP, showing process to achieve resource capability to meet org goals. Roles of HR
managers in this process: determine right employees at right position and time, balance demand and supply of HR (Internal: promotion,
transformation, External: Advertisement) Exampleof The Mercury Hotel: 300 guestrooms located in the center of a large UK city, with
over 200 staffs. 2/3 full-time employees + 1/3 part-time (return staff, casual labor recruited via temping agencies) flexibility in
predictably busier periods and as cover for short-term increases in demand
This process requires making inventory of present manpower resources + assessing the way these resources are employed optimally
needs of positive requirements efforts + development of a variety of recruitment resources, which is considered abt conditions of external
labor market and presence of qualified people in the org. Besides, planning for manpower problem solving = projecting present resource
into future, comparing them with forecast requirement + planning programs of requirement (selection, training development, motivation,
compensation)
- Nature of HRP: the process of reviewing HR requirements to ensure right employees (right number + right skills) are available when
needed. HRP includes 4 factors for employee requirement: Quantity, Quality, Space, Time.
HRP definition: is a process of analyzing and identifying the availability and the need for HR so that the org can meet objectives. The
focus of HR planning is right number of human resources, with right capabilities, in right time, at right place (Jackson & Marthis, 2011)
Main principles of HRP (Virmal Kurmar Chief founder of Nitin International): Integrate to other areas of biz strategies, Coordinate and
reconcile demands for HR from different departments standardize and supervise departmental assessments of requirement + produce
organizational plan, In larger organizations a central human resource planning unit responsible to senior management needs to be
established, The time span to be covered by the plan needs to be defined, The scope and details of the plan have to be determined, Human
resource planning must be based on the most comprehensive and accurate information that is possible
Features of HRP: Systemic approach to ensure a continuous staffing, Avoid/check on occupational imbalances (shortage or surplus),
Visible continuity, Flexible (quickly response to organizations needs or circumstance change) Biz focuses on HRP because: Planning
fits future biz environment, Demand and supply changes in both external and internal biz, Supply of skills change based on demographic
and strategic changes.
- 2 aspects of biz design in HRP: The needs to change policies + ways of work to meet demand of some skills (E.g.: Earnt and Young:
use young employee who are dynamic, creative, energetic Change policy in recruitment + working environment), Requirement of
flexibility to minimize costs + encourage qualified employees.
- 4 responses of balancing demand and supplying of labor: Do nothing (outsourcing reduce internal skills, reduce production output),
Compete (recruit staffs + pay higher salary increase costs, short-term poaching of staffs), Substitute (review new labor market
source), Act (improve organizational image + working environment, restore employee turnover). Example of the Mercury Hotel: Use both
Substituting + Acting strategic responses: An environment in which team-working and a degree of peer pressure discourages unnecessary
absence of employees + their image as a good employer (by provides)
3.2. Model of HRP (to forecast long-term requirement of HR)
Social science approach (Bennison & Casson, 1989): Wastage (include physical staff + key skills, experience high turnover),
Profiling (expansion and contraction of the business, key skills, attitudes better match between the activities of org and skills required
of staffs), Replacement (decisions abt structuring/profiling of jobs, developing staff from within or buying in from outside)
Quantitative, qualitative or judgmental type
3.3. Concepts of competencies and the ways to use competencies in recruitment and selection process, PMS and reward system
- Role of competence assessment: Underpin (lam nen) change, Profile people for their development in jobs, Underpin selection decisions,
Focus education and training, and personal development plans, Contribute to performance planning and reward decisions
6

Example of McDonalds competencies related to employees: Communicates Effectively, Teamwork and Collaboration, Values and
Respects Others, Leadership Competencies (Maximizes Team Effectiveness)
- Competence models:
Roles: Identify mgt skills + set directives for organizational development
Different competence models (Nordhaug, 1993):
+ Meta-competences: skills needed for all levels, especially mgt (creativity, analysis, communication, negotiationskills)
+ Industry competencies: industry skills (structure, competitor strategies, key netwrork, person, for management level)
+ Intra-organizational competencies: organizational culture (knowledge of colleagues, culture, communication, for operational level)
+ Standard technical competencies: specification of task (computer, accounting, for operational level)
+ Technical trade competencies: task & industry specification (bartending skills, assembling computer skills)
+ Unique competences: firm & tasks specification (maintenance of materials)
- Competencies in Performance Management: In PMS, orgs define competencies needed for present and future jobs, and agreement
between employers & employees about level of competencies needed, check of competencies through appraisal for rewarding.. Level of
employees competencies will link to reward system through appraisal which is assessed by managers, colleagues or other external parties
payment based on competence assessments and position in pay range.
Benefits from competency- based PMS and reward: motivate employees, support of a change initiative, the pursuit of flexibility, and
the need to build a broader skills base within the organization, giving employees access to job progression.
- Example models and selection decisions
Model of 9 competences to recruitment and development (WH Smith model): Written communication, Oral communication, Leadership,
Team member, Planning and organizing skills, Decision making, Motivation, Personal strength, Analytical reasons
Or model of 11 competences (Pedlar & Burgoyne, 1994)
- Strategic approaches to recruitment and selection (Rynes & Barbour, 1990): Changing attraction practices, Changing inducement
offered to applicants, Targeting non-traditional sources of applicant
Recruitment methods used by McDonalds: advertising in restaurants, local job centres, career fairs effective hiring material with a
clear message targeted at the right audience
Recruitment and selection process in McDonalds:
Define requirements: Set skills requirement into job description (type of job, salary, specific position, performance standard for
the job) + person specification (personal quality, skills, experience, qualification)
Attract potential employees: Announce recruitment notice through advertising in restaurants, job centres and official website
Select right people:
Staffs in restaurants Office staffs at McDonalds Corporation Note
- Step 1: Online application form, including: contact details
including personal email address, dates and details of any
work history, current contact details of at least two referees,
the hours and days applicants want to work + Do initial online
psychometric test
- Step 2: Face-to-face interview ( invited to an interview via
email) takes place at the restaurant + takes approximately 30
minutes
- Step 3: Step Three - Reference checks
- Step 4: Make final decisions
- Step 1: Online application form
- Step 2: Initial screen of applicants
qualifications: phone interview,
questionnaire, or a combination of both
- Step 3: On-site interview with the
hiring manager and (possibly) key
stakeholders, peers, and leadership
- Step 4: Pre-employment screening
process: employment & education
verification, social security check,
Using an interview guide
help the company predict
how an applicants past
behaviour is likely to
influence future performance
7



criminal record review, and reference
checking
- Step 5: Make final decisions

Unit 4: Performance Management
4.1. Definition of Performance Management System (PMS): is a set of interrelated activities and process, which are an integrated and
key component of an orgs approach to managing performance through people and developing skills and capabilities of its human capital
enhance organizational capability and the achievement of sustained competitive advantage (Armstrong, 2009)
Objective: Achieve human capital advantage by maximize individuals performance
Features: Objective setting, Review of objectives, Personal development plan + Training and development, Formal appraisal with
feedback, Pay review, A competence-based organizational capability review
Example of PMS in McDonalds:
Step 1: Objective settings - Develop employees skills to meet higher requirement of using
technology, innovations 3 sets of skills: General Skills,
Professional Skills, Leadership Skills
- Develop personal skills, especially soft skills
Step 2: Formal appraisal:
Clarity on what is expected & measure it:
- Strategy into action plan (linking to
business targets) quarterly update: review
progress of functional activities
- Individual work plan (reviewed
quarterly):
+ Basic info: Name, Job title,
Department, Work level
+ Content: Objectives, Activity, Key
Performance Indicator (KPI), Timings,
Individual performance against work plan
Personal development
plan, training plan and
career plan
- Personal development plan: plan of actions needed for catching
achievements in work + self-developing soft skills + building
networks with colleagues
- Training plan:
+ 1
st
stage of training - Welcome Meetings, applied for all areas
of business: learn the operations skills necessary, learn to operate
equipment, gain knowledge of McDonalds operational
procedures
+ Ongoing training
- Career plan
Feedback - Use Observation Checklists get appraisal grading
- Use appraisal tool: 360 degree feedback (employees ask peers,
line manager, people they work with, to give feedback on the
way they perform)
Step 3: Pay review - Differentiation in pay performance rates is introduced
- Performance rating is based on individual performance against
goals and job fundamentals
- Performance ratings are directly linked to bonuses

Step 4: Organizational capability and competence review - Evaluate core skills in serving, customer behaviour learning
- Review size to develop existing staffs or recruit more from
external labour market
4.2. Comparison between PMS and MBO
PMS MBO
Characteristics - Apply to all staffs
- Emphasize on corporate goals and values
- Focus on qualitative performance
- Job divided to principle accountabilities
- Objects set for each KRA
- Personal indicators
- Tasks & personal goals
- Annual appraisal
- Apply to managers
- Emphasize on individual
objectives
- Job divided into key results
areas
- Objectives set for each key
result areas (KRA)
- Performance mgt
- Tasks & personal goals
- Annual appraisal


Problems (Flower,
1990)
- Overtime to complete the paperwork
- Inconsistent (mau thuan) standards of objective setting
- Emphasize on getting review over than on the quality of the interview
- Isolated (mixed) objectives
- Lack of ownership
- Not focus on performance +
8

process
- Dependence culture: manager judges and informs, staffs await outcome
rather than be proactive in its development
- Lack of responsiveness to formalized objective setting, inflexibility
- Poorly designed PMS in many organizations
- Mgt puts low priority on the implementation while the implementation
requires more time and effort than expected
- There are insufficient resources and capacity available for the
implementation
development
- Too focus on quantity
Example of org applying MBO - The Norwegian Public Roads Administration: develops a comprehensive system of road safety
MBO. A broad set of objectives regarding road user behaviour, vehicle safety standards and the safety of roads has been formulated as part
of the National Transport Plan for the term 2010-2019
4.3. Appraisal performance
- Why uses?: The basic for pay and promotion decisions, Plays an integral role in performance mgt, Help in correcting deficiencies &
reinforcing good performance, Useful in career planning
- Roles of supervisor: Do the actual appraising, Must be familiar with basic appraisal technique, Must understand and avoid problems
cripple appraisal, Know how to conduct appraisal fairly and how to give feedbacks
- Roles of HR department: Serve a policy-making and advisory role, Provide advice regarding the appraisal tools to use, Train supervisors
to improve their appraisal skills, Monitor the whole of performance appraisal system
- Steps in appraising performance: Define the job and performance criteria Appraisal performance of individual employees
Provide feedback sessions
Unit 5: Reward Management
- Nature of reward system: is a set of methods and procedures designed to administer (quan ly) things which are valued by
organizational members (Flamholtz, 1996)
Elements in reward system design (Lawlers model): Value (what the org informs to be fundamental for reward system), Process
(communication policies, decision-making practices and the mgt style demonstrated in implementing the system), Structural issues
(dominate practitioner attention)
5.1. Strategic issues of reward systems (Lawler, 1984):
- Base of rewards: Job based (the job of person does), Person based (personal contribution they make), Skill based (level of skill and
knowledge that employee have)
- Performance and incentivisation (cac khoan khen thuong)
Individual bonuses
Additional pay high commitment of employees, but in longer term, employees lacks of performance
development
Profit-related pay
Based on achievement of whole organization, after minus dividend, tax motivate employees, but it
might non-equation because success of biz might only come from some individual activities, not focus
on individual contribution
Performance-related pay
Link to individual & functional objectives motivate higher commitment of employees develop well-
PMS, but employees might feel unequal when they compare their job is difficult than others, dilute
motivational outcomes.
Share option schemes
Potential option to buy share with preferential rate keep employees to long term, let them contribute
their best and understand position of biz, promoting share value commitment. However, share price is
changeable, affect to employee beliefs.
Piece of work measured day
output and time related pay
system
Reward by gaining additional products/services: insurance, supermarket purchasing card motivate
employees, but sometimes not matched with expertise contribution
Added- value organization wide
incentives
Proportion from cost-effectiveness, sales and producing strategies is paid back to employees link
employee commitment with biz objectives, but equation of input cost & sales often complex, external
factors out of control
Example of Unilever: (Performance-related pay) applies FROM MEET TO BEAT: Typically incentives are linked to the
achievement of targets in a mechanistic way people need to be incentivized to meet targets motivate?
9

- Market position: Rewards are aligned with supply and demand in the labour market. Job categories that are lack of resources will require
higher pay structure may ignore internal fairness and relationships
- Internal vs. External comparison: Org uses pay and benefit survey (to ensure the competitive and cost-effective pay and benefit rates +
providing guidance from internal differentials between jobs by reference to national and regional labor markets), then use results to make
adjustment for level of pay
HR mgt focuses on: market rate, sources to collect data, how to present collective data and develop strategic relation through pay club
Job evaluation: used to determining the relative worth of a job by comparing it with other jobs.
- Centralized versus Decentralized Reward:
Centralized/system- based reward: a set of reward controls decision making. All salaries are raised by the same amount, however, it is
associated with standardization of pay grades based on job evaluation which can limit innovative and flexible responses to employee
contribution within job performance.
Decentralized reward: When company had multi-products/services, managers had to use the movement of pay to their staffs more
business focus and encourage key skills & talent.
- Degree of pay hierarchy: pay upon level of hierarchy. In mgt level, skilled and professional staffs, rewards are paid through individual
performance. In administrators, pays through company performance. However, this types seems discourage commitment of employees,
sees as traditional methods, level of hierarchy might break down relationship between individuals move to other salary structure
- Reward Mix: related to organizational decisions based upon benefit policies: benefits from promote retention, work-life balance,
encourage achievement, non- financial benefits: job interest, nature of job.
- Process Issues: include 2 strategic issues: communication and transparency; involvement in pay decisions
- Reward system: reward objectives need to match changing HR objectives over time have an impact on employee behavior and the
performance culture of an organization.
Unit 6: Human Resource Development Strategies
6.1. HRD in the context of Organizational Development:
- Organizational Development helps for achieving a flexible + creative org that constantly seeks for improving the ways to do biz and serve
customers Goal is high-performance culture
- Roles of HRD in OD: Build creative and flexible organization to embrace change, exploit change, Facilitates teamwork and cross-
functional collaboration, Concept of life-long and organization-wide learning, Build a learning organization: knowledge is a strategic asset,
importance of learning culture, Develop learning culture: align performance evaluation and reward process with organizational learning
goals, Role of leaders and managers in promoting a learning culture, Focus on leadership and management development
Some definitions:
- Learning: self-learning of employees from employers in order to fulfil the works
- Training: is the process of teaching new employees the basic skills they need to perform their jobs
- Development: broader than learning, combines any activity org provides for employees develop skills, knowledge, and experience
- Education: broader than development, help employees to get an occupation
6.2. Purpose of learning and development
- Learning: (A central process in achieving an SHRM approach) Address skills gaps for individuals and orgs (by development of skills like
negotiating or communicating skills), Using HRD as a catalyst (chat xuc tac) for change (change the ways employees think abt org
commitment), Using HRD as a basic for competitive advantage (see HRD as a means of integrating biz planning with human capability),
Creating learning environment (focus individual learning needs through self-learning + team-based activities)
If org wants to improve performance, they need to develop capacity to change, and learning is essential to this capacity
10

Development: prepares employees for the future, focuses on competency, motivation (expectancy level) and personal development.
Employees require both formal learning and self-development orientation to engage in flexible, high performance organizations
- Principles for strategic approach to HRD (Burgoyne, 1977): Invest in VET (Vocational and educational training) and HRD achieve
biz objectives, Line managers must involve in training program to monitor & develop staff activities, VET links to HRM achieve
horizontal integration, Learning must match to biz learning objectives, Activities of employees training must relevant to their work. Senior
managers participate to create learning climate, HRD must be a part of organizational culture
6.3. Learning Organization concept
- Definition (Pedler et al, 1988): An org which facilitates the learning of all its member and continuously transforms itself.
- Key terms define LOs: Adaptive learning (develop skills in coping, reflecting and improving), Generative learning (org develops a
capacity to think differently abt themselves and market), Creative tension (describe how the process of understanding the present can
assist with developing a shared consensus of the future)
11 features of Learning Organization (Pedlar, 1991):
1. Learning approach to strategy
2. Participative policy making: policies will be influenced by stakeholders views
3. Informating: informing and empowering to every individual or department
4. Formative accounting and control: by developing systems to encourage people acts as their small business, assist learning
5. Internal exchange
6. Reward flexibility
7. Enabling structures: Roles and careers are flexibility structure, appraisals are fore learning rather than rewards
8. Boundary workers as environmental scanners: the process of receiving, sharing information from external to review business
activity around its environment
9. Inter-company learning: regular meeting with customers, suppliers, competitors to learn
10. Learning Climate: The learning company notion is that managers should encourage, member projects and experiments in learning
11. Self-development opportunities for all: The learning company gives its people access to resources and facilities for self-
development
- Responses to criticism of LOs (Burgoyne, 1999): Companies need to be aware of internal politics and question existing practices and
beliefs, Managers need to be aware of where the collective learning process and knowledge reside, Strategies are required to enable
collective learning, and centralization may be the answer, The organization must create its own development tools, Interests of stakeholders
must not be in conflict, Issues of ownership of competence and intellectual property must be addressed, Processes are needed to deal with
interaction between tacit and explicit knowledge
Unit 7: Managing employee relations
7.1. Trade Union
- Trade union is organized group of workers who collectively want to improve the terms and conditions at their workplace and to enhance
their status in society
- Functions: represent their members and to negotiate with employer
- Objectives: Collective bargaining: negotiate with employers; Safeguard jobs: protect jobs of its members, Cooperation with the
employer: resolve disputes in mutual acceptable manners, Political activities: play active role in politics, Social activities: provide financial
support to their members for sickness, unemployment, retirement
- Benefits for workers: High wages and better working conditions, Job security, Social need, Upgrading of skills, Peer group pressure,
Self-fulfillment
3 models of mgt: System actor, Strategic actor (make decision that do not confict but harmony with IR), Agent of capital
11

7.2. Organizational culture, values, attitudes
- Culture: A common perception held by the organizations members, a system of shared meaning
3 types: Dominant culture (express core values that are shared by majority of orgs member), Sub-cultures, Core values (primary or
dominant values that are accepted throughout the org)
- Value: basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable
2 types: Terminant values (goals that people wants to achieve all their life, Instrumental values
- Attitudes: Evaluative statements or judgment concerning objects people or events
Unit 8: Managing change: Culture and performance
8.1. Role of HR in Organizational Development
-Working with the business to align the OD strategy with key corporate objectives.
- Promoting a high-performance people management culture
- Designing OD frameworks such as PMS and rewards system to help deliver changes
- Integrating OD into employee communications, HR development and other aspects of high-performance working
- HR planning to build appropriate organizational skills, competencies
- Assisting the business in establishing priorities for learning and development
- Managing knowledge about OD activities across the organization, and managing relationships across functional boundaries to share
development activities
8.2. Challenges facing HR on Culture Change
- How do we develop committed employees?
- How do we develop their potential and identity with enhancing personal and organizational improvement?
- What forms of job design and structures, leadership styles, HR practices will secure the change in culture?
- Culture will affect employee performance
Hofstede culture dimensions