W1- Human Resource Management and Industrial Relations in Action

What is the purpose of HRM & IR?

 Manage e/ee relationship and interests and conflicts. Align those interests of
e/er and e/ee. best able to harness capacity of work force. Bring interests
together and create synergy b/w key party e/ment relationships. so benefits
both and firms, you create human capital advantages you management interest
aligning them and developing/ training, performance managing. You enhance
human capital.

How can we manage (and align) the interests of employers & employees?
 Heart of e/ment relationship, can be effectively managed. all functions and policy
practice from HRM will build on the fundamental relationships. Create additional
HR advantages.

What benefits would this alignment produce?

 Benefits both, For e/ee get weekly pay. for company: they will be profitable,
grow, expand.
 As customer, they get good service.

The employer/managerial perspective (Goals):

 Recruitment & retention of labour
They are able to create/maintain human capital, to get right staffs, keeping
staffs.
Eg: Qantas beat with China airline firms. Offer better income etcs to recruit.
There is a balance between profit and retention. As bigger office, higher
spending.
 Organisational flexibility & agility
They need particular size of workforce to meet customer demand. If workforce is
too large, their salary cost is too high. Lose potential profit. there is a balance
b/w recruitment and retention. They need to attract workforce to continue work.
 Performance
Managing performance, manage workforce so they deliver performance clients
required. Speed, quality and innovation, we need training and developing,
managing staffs to achieve those levels of performance. We need coaching and
mentoring. Research shown that mentor and coach work most effective in better
performance

The employee perspective (Goals):

 Rewards
› Intrinsic
- How they work meeting their interest, their value, and personality.
- Skill they gain, how they going to be gaining in turn of additional skill for
further
- Control, degree of control. It reduces stress.
- Other resources could access; particular resources help them do the jobs
› Extrinsic

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 - Pay
- Non-finance benefits: status, self-esteem.

The AMO model of performance:

 P=f(A, M, O)
› Performance- depends on individual’s AMO
› Ability- the ability to perform
Whether we can do the job, because we provide the knowledge, skill and
attitudes and. IR. Eg: recruitment, measure their ability to do jobs. Get indication
can they do the job. Training and development. They get what necessary to do
the job. Performance management related to what they can do the job, which
allows them to do the job.
› Motivation- the motivation to perform
Whether e/ee will do the jobs. They may have the ability to do it but they may
not do it. It determines whether they do the job because they want to do it or
they feel they must do it. Recruitment use some indication of it. When recruiting
staff, you try to get idea of not only their ability to do the job but measure their
willing. Through mentoring, coaching.
› Opportunity- the opportunity to perform
Em/ee need work structure to facilitate their performance. Work structure
environment need provide supports and avenues allowing them to perform. If
you have ability and motivation, because of the poor work structure, your
performance is limited. Work design, job design may limit performance. eg: you
may not have right access to perform, not have necessary materials, supports of
functions, mentoring. All these limited opportunities and bring down potential
performance. Job design, work design and training/development ensure
opportunity in respect of AMO.

Individual
factors

Individual:
Individual
Ability
performance
Motivation outcomes
Opportunity
Situational
factors

AMO influenced by individual factors, situational factors and individual

Performance outcomes. The situational factors have highest level of
influence.
eg: IR. HRM

 The AMO model of individual performance

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 › Individual factors
- Experience
- Intelligence
- Health
- Personality….
› Situational factors
- HR policies & practices
- IR policies & practices
- Variables in the production/work system & firm context

 HRM & IR in Action

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W2- Industrial Relations & the Employment Relationship

The legal context of industrial relations

 Influence from state:
› Legislation
Government and e/ment is part of the IR framework. It establishes
legislation. Eg: Fair Work Act. It involves 3 pillars.
1. State/government. Government is important, because it creates legislation
and enforces legislation that underpin e/ment law.
2. How it deals with e/er and representatives e/er associations. Because e/er
is critical to e/ment relationship.
3. Workers.
IR is integration b/w three pillars.
› Third-party intervention
In establishing legislation, mediating if there are disputes. State often has a
role to establish institution. Take the responsibility to ensure laws are pair
and intermediate if there is dispute.

 Labour law regulates union organization and governance, and relations

between different unions, union recognition by employers, collective
bargaining and manifestations of collective workplace conflict, such as strikes

The legal context of industrial relations, in the state level has Fair work act 2009.
Association with that is will be some of Third-party intervention establishing the
legislation and mediating or intervening if there are dispute relate to legislation.
State often has a role to establish institution. Take the responsibility to ensure laws
are pair and intermediate if there is dispute. On the other hand labour law is acted
to standardized bottom level of employees rights, and regulates union organization
and governance, and relations between different unions, union recognition by
employers, collective bargaining and manifestations of collective workplace conflict,
such as strikes.

The employment relationship (charactristics)

 Indeterminacy 不确定 : establish a deal a e/er pay you particular wages to
your potential performance. It is up to the e/er to potential. They purchase
labor. Elements of e/ment relationships will not detail in written contract.
Employment contact will outline the pay, working hours, start date... once in
the place, will be negotiated on an ongoing basis. So it will be indeterminacy
because of all those factors.
 Power unequally distributed. E/er has far more power than E/ee.
 Dynamic: Change over time. Things will change over time. eg: global financial
crisis. Working hours and pay. Negotiate e/ment relationship.

For The employment relationship, it has three key features. Firstly, is Indeterminacy.
Creating a new employment relationship, the relationship between er and ee is
indeterminacy, the employer will pay particular wage for your potential
performance. Employment contract will outline the pay/ working hours / start date/
fix term, determined on the goal, once in place, will be negotiated on a ongoing

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basis, therefore the employment relationship between er and ee will be
indeterminacy. Secondly is power, it is an unequally distributed between the ee and
er. The employer has far more power than employee. Thirdly is dynamic, Things will
change over time. Certain factors will come up that need to be accountable for
negotiating, to be decided on. eg: global financial crisis. Working hours and pay.

Where do trade unions fit in?

Trade unions became important in the past. Why trade unions?
 Economic reasons:
Secure higher wages, better conditions. Join trade union negotiation as a
collective have more power to bargain.
 Voice in decision-making process:
Have the union on behalf, you will be protective. Give worker a seat in
decision-making. When collective bargain been conducted. Union is your
bargaining agent and the representativeness to your voice what the decision
making on pay, working hours. It helps address any problems that in
workplaces. It gives you wider voices in decision making.

Trade union is important party involved in IR and ER. The economic reason for its
involvement is that trade unions can secure higher wages and better conditions for
employees; Joining trade union negotiation collectively will have more power to
bargain. Have the union on behalf, you will be protective. It enables ees provide
voice in decision-making process. And also Give worker a seat in decision-making.
When collective bargain been conducted. Union is your bargaining agent and the
representativeness to your voice what the decision making on pay, working hours. It
helps address any problems that in workplaces. It gives you wider voices in decision
making

Trade Unions in Action in different areas

 Rewards - Control, negotiate and achieve high levels of reward. In particular
industry, e.g construction, unions have high control
They can achieve high level of rewards and compensations. Union can
maximize pay size of wages bargain. They evaluate your wages in
compensation of your efforts. E/er gonna be more concern with efforts and
reducing wages.
 External recruitment and selection
Unions also play roles here to control external recruitment and selection in
particular industries.
 Work-related learning and employee development
They focus on ensuring provisions of training and development of program.
Ensure equity in those.
 Employee performance appraisal (on individual basis)
Performance appraisal systems. Have level of resistance against individual’s
performance appraisal system.
 Occupational health hazards
Union also campaign for health, including remove top substances.

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Trade union put emphasis on rewards, External recruitment and selection, Work-
related learning and employee development, Employee performance appraisal (on
individual basis) and Occupational health hazards. With the assistance of unions,
employees will achieve higher-level rewards and compensations, more opportunities
of training and development programs, collective performance appraisal systems,
and away from health hazards in workplace. They can have a very wide breadth
influence in organization. This is why some employers will try resisting union become
involved.
 Collective Bargaining:
1. Institutional system of negotiation
Which in making and interpreting rules occurring workplaces. It means
once agreement is reached, that represent group of workers. They are the
collectives. The bargaining is the agreement they perform.
2. Union–management negotiating committees engage in bargaining to
form an agreement
Establish pay, job classification, how you develop your career. Including
training and development system
- Workplace democracy
It helps to establish democracy. They ensure those who work within the
organizations have say how organization operates
- Substantive and Procedural rules
Substantive rules are the actual terms and conditions (wages level,
working hours) applied. How things are done. How rules are made and
interpreted. workplace conflicts, organizational change will be managed
in workplace
- Enforcement of agreement
Responsible for ensuring the rules are followed and applied as agreement
dictates

Collective Bargaining: is the Institutional system of negotiation In which making

interpreting administrating rule, accusing workplaces. It simply means that reached
agreement that represents a group of workers they are collective. Union and
management level come together, they negotiate as a committee and go through
what can be extended during the period of bargaining, and they will ultimate form
an agreement that establish a rule for organization. The agreement will provide the
workplace democracy, ensuring those who work within the organization have
understanding on how organization operates. Furthermore, Collective Bargaining
establishes substantive and Procedural rules of the workplace. The substantive rules
contain terms like the wage level, working hours, and the actual term apply. The
procedural rules about how things done, how rule made and interpreted and how
things like workplace conflict or organization change will manage in workplace.
Importantly, the established agreements have enforcement for ensuring rules are
followed and applied as the agreement describe. Each collective agreement will has
Articles called clauses, definition of the of each article, specifies such as substantive
rules and procedural rules, duration of agreement and signatures of both parties.

 The collective agreement: an overview

1. Features:

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 › Articles (called clauses or sections) – index, you can look up JD, leave
provisions, its all in the agreements
› Defines and regulates union-employer relationship
› Specifies
- (i) ‘substantive rules’
- (ii) ‘procedural rules’
› Specifies duration of agreement
› Signatures of the union and employer representatives they are legal
doc. Legal bounding.
The overall of union representative of workers is decline.
2. Collectivist’ traditions of trade unions are at odds with 意见不一致 the
‘individualistic’ goal in normative HRM model.

Trade Unions & HRM

 ‘Collectivist’ traditions of trade unions are at odds with 意见不一致 the
‘individualistic’ goal in normative HRM model.

 Adversarial 对抗 industrial relations elicit ‘low trust’ between

employees and management. HRM model is ‘high-trust.’

the power between labour(ee) and capital(er) is strong will lead to conflict
because er has so much power. HRM is framed very differently, organisation,
everyone is working together and sharing same goals. HRM substitute to
IR/unions. Department take place union’s roles. Trade unions decline,
collective bargaining decline.

However, Collectivist’ traditions of trade unions are at odds with the ‘individualistic’
goal in normative HRM model. When we think about HRM, we think about
organization and workers all work cooperatively to benefit the organization and the
workers. It is underpinned by unit restrict assumption perspective that everyone
working together and sharing the same goals. They presume they will a ‘high-trust’
environment. That is very different in industrial relations. Thus, HRM can Diminish
the use of collective bargaining, emphasize ‘Strong’ corporate cultures, Labour
intensification and Worker commitment. At the same time, organizations have
become probably more strongly engage in varied strategies to substitute or counter
unions. Many organizations have been active in ensuring HRM does substitute
unions. (More common in UK.USA Canada than AU). For the view of Union
resistance, that is managers limit spread of unionization because Organizations want
to contain resist any potential high wages, which is the part of the reason why
organizations willing engaging the strategies resistance, replacement and avoidance.
They want to retain control over the key elements of the employment relationship
that union otherwise to get control over. Union replacement means management
achieve strategic goals without consultation or agreement with union; he strategy to
replace the union with their own HRM and they will directly negotiate with
employee. So, they will have full control. Union avoidance refers to maintain status
quo of non-union workforce. Employee makes the decision and voice for themselves,

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without the union. Union avoidance is a common strategy in USA and UK; it is not
common in AU and US. Because have different industrial relations system.

 HRM is a threat to Industrial relations:

› Diminishing use of collective bargaining.
› ‘Strong’ corporate cultures
› Labour intensification
› Worker commitment

Management strategies
Organizations become strong engage in strategies to count unions. HRM does
substitutes to unions.
 Union acceptance: managers accept legitimacy of union- engaging in
collective bargaining
 Union resistance: managers limit spread of unionization
If there are union in organization represent members. They accept them and
work with them. But resist any further spread. Use this strategy, they wan to
retain control over key elements e/ment relationship IR does, also they want
to keep wages lower.
 Union replacement: management achieve strategic goals
Without consultation or negotiation with trade unions. The strategy is to
replace union with HRM
 Union avoidance: maintain status quo of non-union workforce
By pursing HR policy that give e/ee voice through direct participation rather
union engage in and represent e/ees. The most common strategy in US and
UK, not common in AU

Explaining Union decline

 Long-term economic developments
 Shift towards service sector
Biggest reasons. People most likely to join union are fulltime workers,
male workers, Manufacturing based workers. Where workers are
contracting. Basis for union membership is change. Now, expanding
young workers, women, part time and casual workers whose less likely to
join unions.
 Precarious 危险的 contracts
Biggest. People most likely to join the union, where worker is precarious,
manufacturing, women, full time. Increasing of short-term contract,
casual contract, temporally workers are unlikely to join unions
 Adverse political and legal environments
Government is more interested in business and market taking itself
without union involve. Anti union and strict union by legislation
 Growing adoption of union-exclusion strategy
Against unions by tell workers whether union or business
 Hostile public policy-emphasis on big business

The number of union is declining these years, in1990, 40% are members of
union, 15% now. The big drop in early 2000. it firstly results from Shift towards

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 service sector hiring more young worker, casual work, women, part-time job
leading to more Precarious contracts, secondly, it results form adverse political
and legal environments, that Governments are more interested in business and
market business and taking care with themselves without union involved, So
there are more anti-union, they have strict laws of the union protection out of
legation, which it is hard for union to do something that they tradition have
done, thirdly because There are growing adoption of union-exclusion strategy in
company. It is spread in AU and it is also spread overseas.
 HRM department is taking a place of unions, we represent you as workers,
we all here with shared goals, trading union is declining.
 Coverage of collective bargaining is also declined
 Org has become more strongly in very strategies to substitute accoutre
unions, active in ensuring HRM does substitute unions.

New trend
 ‘Industrial relations’: ‘collectivist’ dimension
 ‘Employee relations’: individual aspects of the employer–employee
relationship.
IR shifts from collectivist to individual e/ee relations.

‘Employee relations’: much more about management in ee without unions

have strong involvement includes:
› Effective communications- between mgrs. And ees eg: staff meeting.
› Employee involvement (EI)
› Individual employee rights
› Grievance 不满-handling –ees have issues with management. E.g. Sexual
harassment
› Managerial disciplinary action.

Employee Relations in Action (Bratton & Gold 2012)

 Employee communication
› All managers engage in downward communication, but to be
effective, employee communication must be a two-way process

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 have mechanism allow e/ee voice upward communication. Employee
relations need to provide those mechanisms. Managers expectation
encourage cooperation, productive interaction b/w managers and
workers. Workers expectation will be communication allows them
capacity to influence managers’ decision making. How the cooperation
working, wages, working hours decided that are used by union collective
bargaining.
 Employee voice
› Workers have some ‘say’ in workplace decision-making
› Two-way communication between management and employees
› Internal management choice and external regulation

The differences between IR and ER. ’Industrial relations’ is a ‘collectivist’ dimension,

while Employee relations is individual aspects of the employer–employee
relationships. However, Employee relation is much about direct interaction between
management and employees, without union employees have strong involvement,
Effective communications, and the abilities of chasing Individual employee rights and
Grievance-handling. For Employee communication, All managers engage in
downward communication, but to be effective, employee communication must be a
two-way process. For strong involvement, Workers have some ‘say’ in workplace
decision-making, Two-way communication between management and employees,
not just manager communicating down, but also have worker communicating up.
Having mechanism to allow e/ee voice upward communication is necessary.
Manages expectation will be achieved by corporation and productive interaction
between workers and mangers, and Workers expectation will be communication
allows them capacity to influence managers’ decision making. How the cooperation
working, wages, working hours decided that are used by union collective bargaining.

Employee Communication
 Direct communication methods
› Regular meetings- emails, ee service providing particular information,
staffing plans. Information sharing, influence trust. Job’s satisfaction.
› Management chain newsletters,
› Notice boards,
› Email
› Suggestion schemes
› Employee surveys
› Work design and workplace communications interconnect
Employee communication can have Direct communication such as Regular meetings,
Management chain newsletters, Notice boards, Email, Suggestion schemes and
Employee surveys, and information disclosed by management such as staffing plans,
financial position of the workplace and company, and investment plans. It is
evidenced that Organizations with recognized unions give more information on all
topics than do managers in non-unionized workplaces, and Information-sharing is
positively related to employee satisfaction and trust.
 Information disclosed by management:
- staffing plans
- financial position of the workplace and company

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 - investment plans
› Organizations with recognized unions give more information on all
topics than do managers in non-unionized workplaces
› Information-sharing is positively related to employee satisfaction and
trust
Workplace becomes productive. Outcome increase. Organization function
more effectively.

Employee Participation & Involvement

 ‘Employee participation’: workers exert 运用 countervailing 对抗 and
upward pressure on management control
They participate in decision making, more active role, exerting some level
of control. They are certain some level of control.
 ‘Employee involvement’: ‘softer’ form. Implies commonality of interest
between employees and management
 Direct:
Individual employees given some ‘say’ on decisions that affect their
everyday work routines.
E/ee engage in decision affect them directly through communication
negotiation with managers.
Eg:
› financial involvement
› task-based quality-problem-solving participation
› team-based high-performance work system (HPWS).
 Indirect:
Representatives of main body of employees participate in the
decision making process. where a union involved. Unions place an
indirect role serving ee.
› JCCs- joint consulting community
› EWCs
› ‘worker directors’
› broader notion of ‘industrial democracy’.
They can tale two forms.
The direct form is where ee engaged in decision affected them,
communication negotiation with them. Involved in financial decision
making, …

Employee Participation & Involvement has Employee participation and Employee

involvement. Employee participation workers exert countervailing and upward
pressure on management control; They are participating decision-making, have
some active role and they are searching some of level control. Employee
involvement is a softer’ form. Implies commonality of interest between employees
and management. Direct Participation & Involvement is Individual employee’s given
some ‘say’ on decisions that affect their everyday work routines such as financial
involvement, task-based quality-problem-solving participation and team-based high-
performance work system (HPWS). Indirect Participation & Involvement is when
there is a union involved to represent main body of employees participate in the
decision making process like JCCs and Ewcs.

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  Theory of EIP

1. Reasons to introduce EIP:

› Ethical
e/ee have role make decision affect outcome impact them.
› Economic
Involvement and participation increase quality of decisions. Because you
have e/ee’s contribute ideas and more commit to decision they made.
Increase productivity and commitment.
› Behavioural
When use involvement participation mechanism, reduce resistance
because we of involving ees to make decisions. They have role in make
decision. They are becoming less to resist. They are becoming more
commitment to work and less to strike or quit.
Employee involvement and participation (EIP Theory) will done effectively when it
outcomes. From ethical perspectives, they allow worker say about the workplace
and how work run. Employees have role in making decision that will affect the
outcomes that impact them. From economic reason, it will increase the quality of
the decision. Because have employees contributing ideas and be more committed to
the decision made, and the chance for succeed rustling in increased productivity and
organization commitment. Employees’ Behaviors will have less resistance and more
committed. These components create the win-win outcomes. Employees’ Rights will
be shaped by individual legal rights, then easily to handle Employee Grievances
about express dissatisfaction about workplace issues, and receive redress for unfair
treatment.

Employee rights and grievances

 Employee Rights: Equality of employee relations is shaped by individual
legal rights.
E/ee can find what are their right.
 Employee Grievances 委屈: The ability of an employee to raise concerns
or express dissatisfaction about workplace issues, allow them have
grievances handle management, so where work place have issues can be
resolved

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Research evidence
 Kaufman (2015)
Employee voice:
Em/ee voice helps solve unparticipation problems. It associated with
incomplete nature of labor contract and E/ee relationship. Because of its
indeterminacy, e/ee voice allows lots of things are not in the contract. Fill
in detail of relationship

‘the ways and means through which employees attempt to have a say
and potentially influence organisational affairs relating to issues
that affect their works and the interests of managers and owners’
(Wilkinson et al. 2014 p. 45)

 Employee voice has benefits and costs:

› Productivity improves; allow e/ee offer ideas and suggestions.
Improve how organization operation and increase productivity.
Problems and grievance are resolved in having these voices.
in having these voices, they are not fear lose of control.
› Organisational climate & trust
More positive org climate. Increase trust e/ee have in manager. They
see manager listen to them and prepare allow to them involve in
decision-making.
› Wages- voice particular in the union increases wages. ER will
consider it as cost than benefit.
› Turnover & absenteeism decrease
that is a benefit for the org because, turnover is expensive. You bring
down cost. Having problems and grievance solved. Higher
commitment
› Authority
Voice dilutes 削弱 authority and control of e/er. Some company see it
as cost
› Conflict
Voice is associated with conflict. It can lead to interpersonal conflict,
specially in resolve grievance. Until they are resolve, there will be
some of conflict.
Benefits outweigh costs.
Kaufman (2015) states that Employee voice will solve anticipate problems,
they associate with incomplete nature of the labor contract and the
employment relationship. Because that indeterminacy. Employee voice allows
for a lot of things a not actual in labor contract; the things come out dated,
need to deiced upon. Employee voices help us to reach these positions and
feeling the detail of the employ relationship. So, is the way main through
which the employee attempt has say and potentially influence organization
affairs related to issues affect their work and interests of manger and owners.
Employee voice has benefits and costs, It can increase the productivity,
because it’s allowing worker to offer their ideas and suggestion. Lots of ideas
and suggestion is very good, it will improve how organization operate and
increase the productivity. It also solves grievance problem issue. Furthermore,

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it will be more positive organization climate. Also increase the trust, employee
have involve management because they say manager listen to them and
prepare allow them to involve decision-making. Moreover, it will increase
wages. Employers will the cost more than benefit. Despite of increasing costs,
it can Decrease the turnover and absenteeism that is the benefit for
organization. Turnover and absenteeism is very expensive. If organization
decrease the turnover and absenteeism will decrease the cost. Also, It will
dilute the authority of the employer and dilute the control, however, it will lead
interpersonal conflict; especially in grievance issue until they are resolved; it
will have some level of conflict.

Holland et al. (2012)

 Employee voice arrangements:
› May be direct, union or hybrid mechanisms- dual voice
Hybrid including direct communication with e/er and also in union.
› At present, the dominant mechanism in Australia is direct voice
Through Direct involvement and communication channel.
› Direct voice can increase employees’ trust in management
Build organization commitment and increase performance. Mgrs are
responsible for their needs.
› Perceived managerial opposition to unions was negatively related to trust
If workers think managers are opposite union, they become aware managers.
Perceive workplace low trust.
› Union voice was associated with reduced trust in management
Because problematic workplace environment when union voice called in,
they tend to be problematic issues when union voice increase in business.
› Hybrid mechanisms were not significant predictors of trust but greater
support now exists under the FWA and GFB - we know that there’s growing
emphasis in hybrid mechanisms, the fair work act has placed a greater
emphasis on it.

 Practical implications:
› It is important to foster direct voice mechanisms
Developing and investing direct voice mechanisms, it increases trust,
commitment, productivity and performance
› Hybrid (dual voice) mechanisms do offer benefits (e.g. research in
Europe) and the FWA and GFB support these arrangements - In org in
AU are using them and do see benefits- e.g. Sydney Water Case Study
Holland et al. (2012) Employee voice arrangements May be direct, union or
hybrid mechanisms. At present, the dominant mechanism in Australia is direct
voice. It is though direct involvement and communication channels. And
primarily operate through interpret bargaining and agreement and the rule
they sat up in organizations. Direct voice can increase employees’ trust in
management, however Perceived managerial opposition to unions was
negatively related to trust. In addition, Union voice was associated with
reduced trust in management. In practice, It is important to foster direct voice
mechanisms, It will increase the level of the trust and commitment, and
increase the performance and productivity. So, it should be developing and
investing the direct voice mechanisms, and Hybrid (dual voice) mechanisms

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do offer benefits (e.g. research in Europe) and the FWA and GFB support
these arrangements.

Valizade et al. (2016)

 Workplace partnership and mutual gains:
› Direct and indirect employee participation
› To establish jointly shared benefits
Increasing productivity and high-level satisfaction.
› Employee attributions regarding direct and indirect participation
are positively related to job satisfaction
- Mediated by employment relations climate
if there is a level of trust, the job satisfaction will be even higher. They
become more commitment to the organising.
› Employee attributions regarding direct and indirect participation
are positively related to organisational commitment
- Mediated by employment relations climate
If e/ee think direct and indirect produce benefits they more
commitment, higher commitment when good e/ee relations with high
trust.
Valizade et al. (2016) summarize Workplace partnership and mutual gains for
Direct and indirect employee participation. It is said that participation will
increase productivity, high level of satisfaction and people wanting to go to
work. Employee attributions regarding direct and indirect participation are
positively related to job satisfaction and organisational commitment.

 Practical implications:
› Partnership practices are more likely to deliver mutual gains for all
stakeholders if a positive employment relations climate exists
› Need to develop quality, high-trust relationships between
organisational members
› Facilitated by extra-firm supports e.g. FWC (& GFB)- Like fair work
commission, identify how they create mutual benefits.

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W3-HRM & the Employment Relationship

Human Resource Management

 Managing people, individually and collectively, at work
Human resource management is fundamentally managing people, and that is
down on form of individual and collective perspectives, and lots of industries
framework is from collective perspective, while HRM tends to be much more
around an individual perspective, however, HRM includes both individual
and collective perspectives. 

 HRM is about Leveraging people’s capabilities and commitment is
critical to achieving sustainable competitive advantage or superior
public services
So being able to take advantages of people's capabilities is critical to org success,
survival. And HR managers will focus on the employee's potentials, so they can
achieve higher levels of performance, productivity, profits and growth.

Human Resource Management is to Managing people, individually and collectively,

at work. Leveraging people’s capabilities and commitment is critical to achieving
sustainable competitive advantage or superior public services, it is critical to the
organization survival. And human resources managers will be focused on harnessing
that potential that employee have and making the most of that. So they can achieve
the high level of performance, productivity, profit and growth.

Development of Human Resource Management

 Keynesianism:
1. Focus more on collectivism and personnel management
 The recognition of both comment and goals is between employers and
employees.
 Part of this management is through employee regulation and 
 having
strong willing of employee regulations, and providing a framework for
managing employee relationship 

 It means that there will be different goals among the parties 
 that
employers and employees didn't always have the same sharing goals, so
we need to balance those potentially competing goals and manage them
effectively, and still allow the workforce to perform, profit and grow.

 Neoliberalism:
1. individualism and human resource management
 This focus on individualism, and HRM become more strategic than
personnel management, so neoliberalism 
 become more strategic focus



 Individualism believes that too much government intervention is

16
 problem, it's unnecessary for natural function 
 market, so neoliberalism
is based on the idea of u let the market function without unnecessary
interventions from 
 the state, units or other parties 


 This extends market power, limits the role of government and units. 


 Within this overall approach, HRM subscribes the idea of harmony, it's
underpinned by the notion that employer and employees have the shared
goals

The Development of Human Resource Management, Keynesianism focus on

collectivism and personnel management. These recognitions of both common
and conflicting goals between employees and employers, and need to
manage these potential conflicts. And part of this management will through
employment regulation. The status has strong role and regulating in
employment relationship and providing the framework for managing the
employment relationship. Employee and employer has different share goals;
they have competing goals. Manger needs to balance the competing goals
and managing them effectively to still allow the workforce to perform, profit
and grow. Neoliberalism put emphasis on individualism and human resource
management. In concert with the development of human resource
management being named becoming more strategic then personnel
management. So, the big change was the focus on individual and more
strategic focus. Neoliberalism is based on the idea you let the market function
without unnecessary intervention from the government or unions or other
parties. So it will function tightly efficiently when it’s left to the devices of
employer and employee. This is the dense market power; it is limit the role of
the government and unions. With in this overall approach, human resource
management subscribes to the idea of harmony, it is underpinning by the
notion that employer and employees have share goals. So it is based on unit
restrict foundation.

Management & HRM

 ‘Human capital’: traits that people bring to the workplace
 Human capital is essential because HRM is all about bringing out the best
potential that we have in our human capital. Human capital involves the
traits that people bring to the workplace and then we develop those traits,
so we can utilize the best levels of performance from our workforce. The
basic traits include intelligence, attitude, knowledge and skills
 Management: process designed to coordinate and control productive
activity. Managers will coordinate, control within the org
 Human resource management: (unlike other resources) requires the
coexistence of control and cooperation.
the major effort is done by HR mangers, focus on the HR within the firm.
Control and cooperation, need to gain some control in order to direct the
efforts, and utilise the superior levels of performance. Coordination to to
balance benefits and goals within er and ee.

17
Human capital is the central of HRM,. Because human resources
management is all about bring out the best potential that we have in all human
capital. Human capital involved traits that people bring to the workplace and
we developed these traits. So, we can extract and harness the best of the
level of performance from the workforce. The basic traits include intelligence,
attitude, knowledge and skills. You can think it is a rare resource that people
bring with them; need to refine these rare resources and develop them further,
so then can really flourish. Management is the process designed to
coordinate and control productive activity. Human resource management
unlike other resources) requires the coexistence of control and cooperation.
Because We need to gain some control of workers in order to director their
behavior and effort and to extract this spirit level of performance. We also
need corporation to ensure we balance the needs and goals of employers and
employees.

HRM Models
 The Fombrun, Tichy and Devanna model (the earliest model-
Strength: Fit and alignment +Weakness: Integrated stakeholders and
other contextual factors will influnce strategic hr):
What organisation should be doing
 Four key components:
1. Selection
2. appraisal
3. development
4. rewards
Involves 4 key components, the key thing about this model is that emphasis
the interrelatedness and coherence of HR activities. It says that we need that
kind of coherence of our selection practices, appraisal practices, development
practices and rewards practices in order to increase firm performance

 And it does emphasis the idea of fit and alignment

 What it does not do is integrating stakeholder’s interests and other

contextual factors that influence HRM practices and not integrate
strategic HRM practices 


 The Harvard model:

1. However, Harvard model does that, it integrates stakeholder’s interests
and other contextual factors. 


 It shapes HRM policy choices within org

 It also incorporates feedback loops, so it notices the long-term
consequences and then feedback to influence stakeholder’s interests
and situational factors

18
Organizational system is like ecosystem; the model is effective

 Six components:
1. situational factors
 Means Environment that org fit in, includes things like laws, and it's
not just employment laws, it's all laws that impacts org.
 Includes workforce characteristics, eg: aging workforce which is
something that predominant now, so the wider labour market is aging,
that will affect org HRM policies
 Includes business strategies and conditions, management philosophy,
unions and technology

2. stakeholder interests:
particular influence. Includes shareholders, management+ Employees
+ Government community and unions
3. HRM policy choices:
include all HR major functions: recruitment & selection….
4. HR outcomes:
 Really important construct, coz it shapes our performance. How to
quit or stay in the org. Have impact on the labour cost in the
organisation.
 Include competencies-whether we are able to do the job, how well we
do the job and cost –effective
5. long-term consequences:
 individual wellbeing, whether your workforce is fit and healthy.
 Organisational effectiveness – profit. Social well being
6. feedback loop

 The Guest model (Six components): Focus much more on the idea of
developing high employee commitment, high quality and flexibility, which
claims it will lead to performance
1. HR strategy
2. set of HR policies
3. set of HR outcomes
4. Behavioural outcomes
5. Performance outcomes
6. Financial outcomes

19
The Fombrun, Tichy and Devanna model all emphasize the interrelatedness and
coherence of HR activity. We need that kind of coherence of our selection
practice, appraisal practice, development practice and rewards practice, in order
to increase firm performance. It does to emphasis that idea of fit and alignment
in HRM unit. The most famous HRM model is Harvard model, which has six
components, are situational factors, stakeholder interests, HRM policy choices,
HR outcomes, long-term consequences and feedback loop. The way this model
running is situational factors like laws and societal factors, workforce
characteristic, business strategy and condition, management philosophy, unions
and technology, and Technology change will change human resources
management policy. Stakeholder interests include shareholders; increase the
organization profit to increase shareholder’s interest. Stakeholder interests also
include management, employees, government, community and unions, which can
also influence HR policies. HRM policy choices will include all of the HR
functions, so the policies around the policy function like recruitment and
selection, training and development, performance management. Different
policies will lead to different HR outcomes. HR outcomes like commitment; how
commit it the workforces. it is will shape the performance. And also influence
how likely we are to quit or to stay in the organization. So it has impact in costs,
labor cost in organization. HR outcomes also include competence, able to do the
job, how will to do the job and cost effectiveness. And the HR outcomes will lead
to different long-term consequences including individual wellbeing, organization
effectiveness, profit level growth and societal wellbeing. Then back influence
situational facts and stakeholder interests. The Guest model does knowledge the
link between HR strategy and business strategy. It is focus on the idea of
developing high employee commitment, high quality

Critique & Paradox in HRM

 External Critiques:
A critical of HR practices not reflecting the right culture and economy
where existing, HR neglect the directly impacted ees. HR is based on
individualism and unionistic, so not realistic.
Focus much more on the idea of developing high employee commitment,
high quality and flexibility, which claims it will lead to performance

1. academics within the broad field of critical management studies and

labour process theory
2. Alvesson and Willmott (2003), Godard (1991), Thompson and
McHugh (2009) and Watson (2004)
 Internal Critiques:
Highlight the exposed divide between the ideal and reality of HRM, they
emphasis the inconsistency and contradictions that exist in HRM models

1. Legge (2005), Townley (1994), Winstanley and Woodall (2000)

Keenoy and Anthony (1992)
Many critiques for critical management studies and labour process theory,
externally, they believe a critical of HR practices not reflecting the why cultural
political economy that we exist in. And they argue that HR neglect and
marginalize those directly impact employees, Also the other special critical

20
because HRM is based on individualism rather than unitary perspective,
arguing that not realistic; Internally, academics highlight and expose divide
between the rhetoric and reality of HRM. Internal critical emphasis the
inconsistency and contradiction that exist in HRM model.

HRM & the Employment Relationship

How HRM influence the employment relationship
 The employment
relationship involves reciprocal relationship between employee and employer,
there is no doubt that employer has more power, exist imbalance and inequality
of power. 4 key components in Employment relationship

• Economic: ‘exchange of pay for work’ (Brown, 1988).

1. Agree on wage in exchange of you provide labour.
2. The term “pay effort bargain’, the agreement you come to will be pay
for efforts, u are paid for efforts u provide to the org, so that is
potential performance u will provide, it's up to manager to transform
that potential into actual value labour, so manager need to make sure
when u come to work on ur desk, u won't play Facebook. So they have
to ensure the potential efforts u brought to the org is realized, and
HRM has the key roles of that, so HRM has to motivate, train, manage
ur performance, so that there is a transformation from potential firm
and actual valued effort labour.
• Legal : contractual and statutory rights and obligations
Employment relationship based on certain rights and control, written
contract, legislation affects the relationship between er and ee as well as er
union legislation.
• Social : social relations, social structure and balance of power
Employment relationship Involves social relations, social structure and
balance of power between employers and employees, so employees need
to observe social norms, and they will shape their behaviours in
workplace.
• Psychological : two-way exchange of perceived promises and obligations
There are understandings of the parties about the mutual obligation. large
based on written obligations. They are forms psychological contract

The employment relation is reflected on many factors. Economic perspective,

When employee reach agreement with employer that is mean employee
agree wage and exchange, employee will provide labor. Employee get pay
from the effort for the organization, that is a potential performance employee
will provide. It is up to management transformed that potential in to actual
value to the labor. Management have role to making sure the employee’s
potential effort has been realized; human resource management has key role
for this. Human resource management has to motive employee and train
employee and manage employees’ performance. So, it will transform potential
effort to actual value. For legal relations, Contractual and statutory rights and

21
obligations will be included contract affecting employee and employer
relationship. As well as some employee union related on legalization. E,ees
and E ers also have social relations, social structure and balance of power;
Employees need to observe certain social norms and they will shape the
behavior at the workplaceSocial component also acknowledge employer
power and that power imbalance between employers and employees. It also
combines Psychological factor, which recognize HRM is two-way exchange of
perceived promises and obligations. This is largely unwritten expectation and
they understand the parties about mutual obligations.

HRM & the Psychological Contract

•‘Individual beliefs, shaped by the organisation, regarding the terms of an
exchange agreement between the individual and their organisation’ (Rousseau
1995: 9)
1. So we all have different perception and psychological contracts 


2. As managers, u will need to tend to manage whole 
 range different

psychological contracts within the org. 

3. These psychological contracts will be shaped by HR 
 practices, HR
policies and practices seems to signal the workforce about what they
expects from the org and what org expects from them. And those signals
are what overtime shaped the development and changes our
psychological contracts. 


•It is important because: Impacts work attitudes and behaviours, including:

particularly -affective commitment, organisational citizenship behaviour &
intention to stay (Bal et al. 2008)
1. It also affect our intention to stay in org, so if the contractis being failed,
we might quit, so the org lose skills knowledge, and investment in
employees 


2. Psychological contract is important for individual, but also impact the

org, so we need to be aware of employee psychological contracts, and
try to manage them, and then take advantages of increasing effective
affective commitment, increasing organisational citizenship behaviour
and minimising turnover 


As mentioned before, Psychological factor is important in employment

Relationship, crating Psychological Contract. Rousseau 1995: 9) states that
Psychological Contract is Individual beliefs, shaped by the organisation,
regarding the terms of an exchange agreement between the individual and

22
their organisation’. As the manger, need to be dealing with and attempting to
manage a whole range of different psychological contract within the
workforce. Psychological contract will shape by HR practice. HR policy and
practice is a signal for workforce about what employees can expect for
organization and what organization expect form the employees. Those signals
are what overtime shape the development and changing to psychological
contract. All have different needs, so need to pay more attention to all aspects
of the obligation that perceived. It Impacts work attitudes and behaviours,
including: affective commitment, organisational citizenship behaviour &
intention to stay (Bal et al. 2008) It is also affect for organization citizenship
behavior; organization citizenship behavior is what can make hug different to
performance and organization, because employee should be interest in
completing job effectively. If can increase organization citizenship behavior, it
will extract more effort and great performance from employees. Psychological
contract also affect intention to stay in organization. If employees fell contract
does not be fulfill, they will leave organization. The organization will lose
investment, knowledge and all the things they put in employees.
Psychological contract is important for individual but also have impact for the
organization. Organization need to be aware the employees’ psychological
contract and try to manage them. Organization can take advantage of
increase that potential affect commitment, increase the organization
citizenship behavior and decrease the turnover.

Different Types of Contracts

 Transactional contracts:
Are those applied to shorter term employment fixed duration, things like
fixed term contracts, casual employment, temporal work agency
employment
 And because of the absence of long-term employment,
these contracts focus on economic dimensions, employees are more think
about how much u could be paid for that short-term work period.


1. Economic
 Relational contracts:
This exists when we have long-term during ongoing relationships with
employer, the contracts will develop and change overtime, include
economic and non- economic dimensions, so we still interest in how much
we get paid, and start to think about other things, eg: how support our
employers, because it's an ongoing relationship

1. Economic & non-economic

There are two kind of contracts which are Economic contract, and Economic
& non-economic contract. Economic contract Apply to short-term employment
of fix duration, like fix time contract, casual employment, and temporary work
agency employment. Because it is absent long-term employment, these
contract focus on economic domination. As the employee who have fix term
contract or casual employment contract, they will interest in how much will
give in the short-term period time. It is the key psychological contract for

23
employee. Economic & non-economic exits in long-term in during, ongoing
relationship with the employer. The psychological contract will develop
overtime and can change overtime. It will include economic and non-
economic domination. Expect the pay, employee will also think about
something like supportive, trust and so on. Because is an ongoing
relationship.

Mutual obligations
•Employer obligations:
1. Promotions
2. High pay
3. Training
4. Job security
5. Career development
6. Support with personal problems
•Employee obligations:
1. Working extra hours
2. Loyalty
3. Volunteering to do non-essential tasks
4. Willingness to accept a transfer
5. Protection of propriety info.
6. Spending minimum two years with firm
*obligations may be breached or fulfilled

Some obligations that employer and employee might involves.

 These obligations are what we are going to give to org, and expect
what org would return. The obligations may be fulfilled. When we are
fulfilling obligation what we give to org, and in return, the org provide
what we want.

 It also might be breached. We might have certain ideas about what we

are going to give to org and what we receive in return, and org may
not fulfil obligation, this is breach. 


Employers and employees have different obligations in the employment relationship. Employer
obligations include Promotions, High pay, Training, Job security, Career development and
Support with personal problems, while Employee obligations have Working extra hours, Loyalty,
volunteering to do non-essential tasks, Willingness to accept a transfer, Protection of propriety
info and Spending minimum two years with firm. These obligations we have about what we give
to organization and what we can expect return from organization, may overtime be fulfilled
where we are fulfilling what we fell obligated to the organization and in return, the organization
providing what we want. Organization may not fulfill the obligations, when it happens, it will
beach of the psychological contract. When an employee experiences a discrepancy between the
actual fulfilment of obligations by the organisation, and the promises previously made about
these obligations. It will lead to Anger, Lower trust, Lower commitment, Withdrawing effort,
Quitting, Sabotage and Expensive lawsuits. It may be less expensive in term of what then cost in
organization, or it may extremely cost for organization.

24
Breach/Violation of the contract
•When an employee experiences a discrepancy between the actual
fulfilment of obligations by the organisation, and the promises previously
made about these obligations

Reactions…
This breach or violation might lead to many reactions- attitudinal and/or
behavioural:

 Anger (Rousseau 1989)

 Lower trust (Anderson & Schalk 1998)
 Lower commitment (Robinson & Morrison 1995
 Withdrawing effort (Anderson & Schalk 1998)
 Quitting (Robinson et al. 1994)
 Sabotage (Greenberg 1990)
 Expensive lawsuits (McLean Parks & Schmedemann 1994)

HRM & the Psychological Contract

Lub et al. (2016):
How generation impact psychological contract and how generational values
reflect broader formative experiences:

 Managing the multi-generational workforce

 Generational values reflect broader formative experiences:
1. Baby boomers: values success, rewards, teamwork and cooperation.
They are known for their work efforts, loyalty. 

2. Generation X: grew up during globalisation, massive downsizing, show
less loyalty to org, more interdependent 


3. Generation Y: grew up in relatively wealthy world during global

prosperity, and low unemployment. Expect more from employer.

Lub et al. (2016) states that Managing the multi-generational workforce, Generational values
reflect broader formative experiences. For Baby Boomers, they are distinct generation, because
what characterises the baby boomer generation is they grow up during past world war two
prosperity. Baby boomer is a non-for the work ethic and loyalty. For Generation X, they Grow up
during globalization and economic crisis and mass downsizing. It is an insecure generation; show
less loyalty for organization and more independent. For Generation Y, they Grow up in relative
wealthy, during globe prosperity and low unemployment. Generation Y expect more from
employers and will leave when not satisfy.

 Types of psychological contract fulfilment:

1. Job content – having variation work down, having challenge works and
autonomy at work
2. Career development – caterer development opportunity, training and
coaching
3. Social atmosphere: includes a good working atmosphere, appreciation

25
 and supports from supervisor
4. Fairness of organisational policies: includes fairness treatments, rules/
supervision
5. Rewards: includes salary & wages, other benefits and job security

So they look at how important for fulfilling those elements of psychological contracts, for
different generations, how impact their commitment and turnover intention. Just to show how
generations put different emphasis on elements of psychological contract

There are five Types of psychological contract fulfillment which are Job content, Career
development, Social atmosphere, Fairness of organisational policies and Rewards. Job content
includes things like have variation in the work done, having challenge work and autonomy. (Job
content very important for Generation Y. It is important for all generations, but especially
important for Generation Y. Predict their affective commitment and turnover intension.
Generation Y are really focus on challenging variable job. If they have it, it will increase affective
commitment and reduce potential turnover intension.) Career development includes career
opportunities, training and coaching. (Career development predicts Generation Y affective
commitment. If organization could provide some career development that Generation Y desire,
they will more commit to organization.) Good standard for it, is to do things like have variation
work done, have change work and autonomy. Social atmosphere includes good working
atmosphere, appreciation, support from colleague and supervisors. (Social atmosphere were
strong predict affective commitment for Baby Bomber and Generation X, it not so important for
Generation Y. It is stronger predict turnover for Baby Bomber than Generation Y. So for Baby
Boomers, the really big thing is social atmosphere. If organization can provide supportive
working environment and harmony and loyalty for Baby Boomer, it will increase affective
commitment and reduce potential turnover intension.) Good standard for it, is to career
opportunities, training and coaching. provide Fairness of organization polices includes fair of
treatment, fair rules and fair supervision. (Fairness of organization polices stronger predict
turnover for Generation X either for other Generations. Generation X look for fair policy,
probably provide some degrees of security.) Good standard for it, is to offer fair treatment, fair
rules and fair supervision. Rewards include salary, wages, any other benefits and job security.
(Rewards stronger predict turnover for Generation Y than Generation X. It is a basic level.) Good
standard for it, is to provide appropriate salary, wages and other benefit, job security. In
summary, Generational differences moderated the relationship between psychological contract
fulfilment and affective commitment and turnover intention (Lub et al. 2016). He also states that
Understand preferred psychological contract elements & career stages can improve attraction &
retention and strengthen the employment relationship. However, it is necessary Need to
understand what people prefer psychological contract are as they move through different career
stages. The psychological contract will be change as the transition to one stage of the career to
another. If organization can understand what employee prefer psychological contract are,
organization can improve the attraction and retention and strengthen the employment
relationship. And it will increase the commitment, performance and reduce the turnover. The
real benefit is organization can take the potential benefit. In different career stages Start as
apprentice, we take on simpler and model retain work, because we junior and unexperienced.
The next stage is colleague, we take more substantial works and we work more independently.
In the mentor stage, we become to expertise to others, we have lots of experiences that we can
share to others. We do own work and also as an expertise to share our experience. The final
career stage is sponsor; we have significant influence in organization. Different stages have
different contribution to the organization. In apprentice stage, the contribution is learning and
wants to be efficient and quickly. As the colleague, work independently and capability. As
mentor, adopt formal and informal responsibility to oversee others and share the knowledge. As
the sponsor, exercise influence and been countable for organization outcomes.

26
 Generational differences moderated the relationship between
psychological contract fulfilment and affective commitment and
turnover intention
 The explained variance in endogenous variables:
1. 27% & 9% for Baby Boomers- The fulfillment of psychological
contract is a big
2. 35% & 14% for Generation X potentially reduce potential turnover
3. 28% in affective commitment & 23% turn over intention for
Generation Y

 Psychological contract fulfilment and work outcomes:

1. Job content - is important for all generation, but especially important
for generation Y, predicting their affective commitment and turnover
intentions. So generation Y are very focusing on challenge variance
work, if we give them that, increase affective commitment and
decrease turnover intentions 

2. Career development –is strong predictor of affective commitment for
generation Y. So we give it, they will be more committed 

3. Social atmosphere - is strong predictor of affective commitment for
baby boomers and generation X. not so important for generation Y.
and is a strong predictor of turnover intention for baby boomers than
generation Y. so if we can give them supporting working environment,
harmony, and then increase...decrease. 

4. Fairness of organisational policies: is strong predictor of turnover
intention for generation X than others, maybe because generation Y
were insecure and that can give some degrees of security
5. Rewards are predictor of turnover for generation X and Y, but it is basic
level of necessity, so maybe it is not so important, but we need that

Low et al. (2016):

Look at psychological contract elements across career stages. We need to
understand preferred psychological contract. if we understand preferred
psychological contract elements in different career stages, it helps to improve
attraction and retention, and we can strengthen the employment relationship, which
will increase commitment, performance and reduce turnover

 Understand preferred psychological contract elements & career stages

1. To improve attraction & retention
2. To strengthen the employment relationship

 Dalton’s (1977) career stages & the employment relationship:

Dalton's career stages to understand employee's contributions, what

27
 employees bring to the org, what they can provide to org

1. Apprentice- start at apprentice where we take on simpler and team work,

because more junior experience
2. Colleague – we take on more s more substantial work/ more
independently
3. Mentor – impart our expertise to others, perform our own task and will
be involve in sharing expertise to others
4. Sponsor – significant influence within org, quite superior at this stage.

 Super’s (1980) career stages & the employment relationship:

use Super's career stages to understand inducements, what employees
expect to get from the org 


1. Exploration- is about starting to make vocational choices

2. Establishment – we commit our career, interested in gaining success
3. Maintenance focus on being productive, work and non-work aspects
4. Disengagement preparing for retirement

Super’s (1980) states different stages have different employment relationship. Firstly is
Exploration is about studying make a vocation choice. Secondly, Establishment is we
commence our career and we interested in gaining success. Thirdly, Maintenance is the
stage we focus on productive, work and non-work aspects. Finally is Disengagement when
we prepare for retirement. Low et al. (2016) states that To understand inducement, what
employees are going to potential expect from organization. Different stages prefer different
inducement, have different obligation that they expect form employer. As the exploration
stage, employee will seek career guidance, mentoring and interesting work. As
establishment stage, employees seek more responsibility and opportunity for promotion. In
maintenance stage, employees seek autonomy, control and flexible work arrangement. As
disengagement stage, employees want to white clock time.
 Workers at different career stages prefer different psychological
contract contributions:
1. Apprentice- contributing to org through learning 

2. Colleague working independently and capably
3. Mentor: adopt to formal and informal responsibilities to oversee
others and sharing knowledge and expertise
4. Sponsor- exercise influence, and being able to account for org
outcomes

 Workers at different career stages prefer different psychological

contract inducements:
1. Exploration: Seeking different guiding and interest in work
2. Establishment – seek more responsibilities and opportunities for
promotion
3. Maintenance more autonomy and control and flexible work

28
 arrangements
4. Disengagement – seeks to reduce involvement transitioning into
retirement

Practical Implications
Lub et al. (2016):
So we have different needs, we form different psychological contracts depends on
generations and different career stages.
 In terms of practical implications: 


 Varied, interesting and challenging work with balanced workloads- is

important for all generations, so we can do somethings in org is regards the
type of workforces because it's predictable for generations 

 Career development options, incl. promotions, training & coaching- are
especially important for generation Y. that should be components of our HR
policy. clear and fair policies are especially for generation X
 Clear & fair organisational policies- clear and fair policies are especially for
generation X and baby boomer.
 Good working atmosphere with supportive co-workers - are especially for
generation X and baby boomer.
 Rewards- are basic factors, we need them but that not sth can make huge
differences
 One-size-fits-all is not the best approach we need to start thinking more
about how key elements will vary to different ees.
 Employees have differential expectations of contributions and
inducements depending on their career stages
 We should try to customise HRM practices to employees’ psychological
contract preferences related to their career stages
 Regular meetings, especially around periods of career stage transition,
are necessary in order to evaluate preferences as well as contract
fulfilment or breaches

Lub et al. (2016) sates that Varied, interesting and challenging work with balanced
workloads s important for all generations. Career development options, incl.
promotions, training & coaching is especially important for Generation Y. Clear & fair
organisational policies is especially important for Generation X. Good working
atmosphere with supportive co-workers is very critical for Baby Boomers and
Generation X. Rewards is a high gain factor, organization need it but it will not show
enormous different.

Low et al. (2016) states that One-size-fits-all is not the best approach. We do need
to think more about how key elements will vary for different works. Employees have
differential expectations of contributions and inducements depending on their
career stages. It is very support career stage. We should try to customise HRM
practices to employees’ psychological contract preferences related to their career
stages. Regular meetings, especially around periods of career stage transition, are
necessary in order to evaluate preferences as well as contract fulfillment or breaches

29
 W4 - Strategic Human Resource Management

Strategy: essence of managerial activity.－Long term planning and activity

to reach organizational goals.
Strategic HRM: developing and implementing HR policies and practices
that will enable the organization to achieve its strategic objectives.
Strategy is about long term planning and activities org need to engage in in
order to reach desired setting goals
Strategic HRM is based fundamentally on strategy, the essence of
managerial activity. So strategic HRM is about developing and implementing HR
policies and practices that will enable the org to achieve its strategic objectives.
So it does integrate strategy and HRM, and also integrate vertical and horizontal
alignment or fit. That vertical fit is between org business strategy and HRM
strategy, ensure that they are consistency with other, and that HRM strategy will
reinforce the org business strategy, so they can achieve the goals: the horizontal
component is ensuring that HRM policy and practice is consistent, and we have
consistency and integration between different functions of HRM, so they
reinforce one and another, so they way recruit, train, develop, management
performance should be consistent and element should reinforce one and
another.
Vertical and horisantal fit
Vertical: Oganisational/ business strategy and HR strategy are in consistent
Horisontal: Ensuring policies and practices is consistency, we have consitency
and integration between different functions in HR
Vertical integration, the fit between organisational/ business stratey and HR
strattegy
Horisontal integration: e.g. Selection and hiring processes
Google: business strategy is innovation; therefore HR strategy will be
consistency with the business strategy. E.g. recruit people with innovation
based, people will fit the culture. Choosing your own hours, dressing as you like.
It’s about the innovated outcomes you produced. In most cases, they call the
workplace as campus, creating culture allowing people innovated. All these
things reinforce on and another. Training and development, leadership
development programs, mentoring and job rotations. They have cut edge
expertise.

Strategic Human Resource management is based on strategy which is the essence of

managerial activity. It is long-term planning and activities that we need to engaging
in order to get desire goals. Strategic HRM is about the long term plan that need to
be progressed to achieve goals more specifically to workforce. For example, how
many people do we need? What trainings do they need? How we best able to assist
their performances, to direct them and reward them to achieve organizational

30
goals? Therefore, Strategic HRM refers to developing and implementing HR policies
and practices that will enable the organization to achieve its strategic objectives. It
integrates strategies and human resource management. It also integrates vertical
and horizontal alignment; the vertical fit means human resource strategies and
organizational strategies can fit each other; the horizontal components ensure the hr
policy and practice is consistent and reinforce one another. Typical example is that
google hired many people having a extreme high talents who can innovate, also fit
the culture of innovation in google and act many policies that encourage this culture
like choosing your working hours, dressing as you like.

Strategic Management
 Model of strategic management
1. Mission and goals
2. Environmental analysis
3. Strategic formulation
4. Strategy implementation
5. Strategy evaluation.
A normative model: how strategic management should be done rather than
what is actually done by senior managers.
It’S a normative model, it tells us how strategic manage should be done
rather than what is actually done by senior manager, so if u take on these
within the org, they might say well it is nice theory but it doesn't actually make
that way
Strategic decision making as a political process implies potential gap between
theoretical model and economic and social reality.
Strategic decision making is a political process, so there are gaps between
theoretical model and economic andsocial reality of strategic management, it's
good basis, but it is more difficult than those 5 steps. There would be all
sources of challenges, and in many cases, there will be more reactive than
proactive. So strategic management also has to be learned and practices in
contexts, make it adaptive to changes

How the strategic management is done, rather than what is strategic

management?
If u want develop strategy within org, these are sources of things u need to
think about:(5 steps)
 What are ur missions and goals, what u want to ur company to do, to achieve
 Then Think about environment that you are in, what kinds of strengths and
weakness do u have, how can u leverage these strengths and how minimize
the weaknesses, what kinds of opportunities can you leverage and what
kinds of threatens can you minimize, what kinds of opportunities can u take
advantages of to be a highly successful org, and what potential threats are
there, u need to consider and try to minimize and overcome
 Strategic formulation: think about a number of business strategies, and then
u need to make final decision about ur chosen business strategy - what is
exactly to be
 Then implement that strategy

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  Over period of time, assess effectiveness of it, get some indications of how
well u are going in order to achieve ur
goals
In organization, strategies should be formalize in the following five steps Mission and
goals, Environmental analysis ( what strength and weakness do you have? and how
can you leverage these strength and minimize your weakness, what opportunities
you can take advantages of that you can lead to a highly successful organization,
what threats that you should minimize and overcome), Strategic formulation ( if you
come up with initially many strategies under these consideration, you will need to
make a final decision about your chosen), Strategy implementation, Strategy
evaluation ( after a period of time, asses the effectiveness of the strategy, get some
indications how well you achieve the goals). A normative model is how strategic
management should be done rather than what is actually done by senior managers.
It is a political process implies potential gap between theoretical normative model
and economic and social reality of strategic management. It si a good basis but it is a
lot more difficult tan five steps. You have to do some reactive rather than proactive
in some cases.

 Hierarchy of Strategy
1. Corporate: organization’s overall direction and general philosophy. Key
question: What business are we in?
Corporate strategy: top level is corporate strategy, it is organisation's
overall direction and general philosophy
2. Business: Make each business unit more competitive in market-place.
Key question: How do we compete?
Business strategy: it is what we talk most, because that apply to business
unit, and it's within those business units we tends to see most of HRM
strategies, policies, strategies put in place, so it's the business strategy within
those business units that will inform the most of HRM strategy
3. Functional: major functional operations to maximize resource
productivity. Key question: How do we support the business-level
competitive strategy?
Functional strategy: relates to major functional operations to maximize
resource productivity. This includes HR strategies Resource development
strategies. Cooperate strategy and so on.
Strategies also have multiple levels, that is the Hierarchy of Strategy. The top level is
corporate strategy; it is the organization’s overall direction and general philosophy
for example the first choice of your industry. Business strategy is talked most it
applies to each units, within the unit we can see the practice of HRM putting in
place, for example, design different service quality or level that varies hr
activities.Then, the functional strategy, relates to major functional operations to
maximize resource productivity including hr strategies, market strategies and
research and development strategies.

Ethics and Corporate Social Responsibility

 Business Ethics

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 1. Ethics has been largely left out of the HRM discourse but is central to the
employment relationship.
2. Ethics: moral principles and values
Ethics relates to moral principles and values, and these should
influence decisions and actions of individual in org
3. Ethical dilemmas: two or more values conflict.
Ethical dilemmas: it may arise when there are two or more values
conflict
4. Ethical stance 伦理上的立场: exceed minimum obligations
Ethical stance: we should try to take ethical stance, which involves
exceed minimum obligations. So rather than comply with legal
requirements, we take steps beyond that, we exceed our minimum
obligations.
Increasingly, we now think about Ethics and Corporate Social Responsibility, not
simply about strategy and hrm. We should incorporate these ethics in addition,
which relates to an organizational morale and values, influencing the decisions and
actions in organizations. There will have ethical dilemmas where there two or more
values exist. We should take an ethical stance which involve exceed minimum
obligations, which should act beyond legal requirements.

 Corporate Social Responsibility

Iincreasingly, we need to think about ethics and corporate social responsibility,
not simply about strategy and HRM.
1. It involves the ways in which manager’s behaviour and actions exceed
minimum compliance-based regulations, and how an org affects local
communities, wider society and the planet.
European commission defined corporate social responsibility as a
concept whereby firms integrate social and environmental factors, and
integrate it into business operations, and integrate with stakeholders.
2. Whistle-blowing: a practice that exposes unethical or illegal processes and
practices.
Encouraging support policies that will protect whistle-blowing, so if
there are unethical or illegal processes and practices, they can be exposed
Corporate Social Responsibility involves The ways in which managers’ behaviour and
actions exceed minimum compliance-based regulations. How an organization affects
local communities, wider society, and the planet. It is a concept that a company
integrates the social environmental concerns to cooperation and interaction with
stakeholders. Apart form this, it is necessary to pay attention to whistle-blowing that
is a a practice that exposes unethical or illegal processes and practices.

 Exploring Corporate Sustainability

4 approaches to explore corporate sustainability

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 1. Economic: Sustainability defined in money values (as opposed to life
values).
 Involves two thinking: neoclassical - firms seek to maximize their profits.
Ecological- is critique orthodox growth models
o Neoclassical: firms seek to maximize their profits.-the eco system is
seen as sth will serve, to extract value to gain profit
o Ecological: critique orthodox growth models- profit driven,
Neoclassical are responsible for ecosystem crisis, Ecological school
view eco system is central value for itself must protect and reserved
2. Environmental: productivity and functioning of the ecosystem.
Environmental: We need to ensure the productivity and functioning of
the ecosystem, otherwise we destroy our basis of renewable resources
3. Social: importance of human society.
Social: involves improving quality of human life, living within the capacity
of our ecosystem.
4. Cultural: cultural enrichment.
Cultural: relies on cultural enrichment, it’S the idea that our human
needs require life values.
The corporate sustainability can be worked out from 1 Economic way, it is
Sustainability defined in money values (as opposed to life values), which involve two
kinds of thinking neoclassical refers firms seek to maximize their profits and
ecological, and ecological of think which refers to the critique orthodox growth
models, recognizing the neoclassical view take responsibility to sustainability crisis. 2
Environmental way requires the productivity and functioning of the ecosystem,
otherwise we destroy the basis of our resources. 3 social way involves improving the
quality of human life and living with the carrying of the capacity of ecosystem. 4
Cultural approach relies on the cultural enrichment. It has the idea that our human
needs require our life values and civil comments. So corporate sustainability tend
balance the these four approaches.

34
a.

The overlap in the center: economic… Balancing all four approaches - economic,
environment, cultural and social, can achieve certain levels of sustainability

These responsibilities should build into SHRM to achieve sustainable advantages

outcome through people. There are also some academics state that these
responsibilities link the SHRM to business strategies. Whether it is an outcome or a
process, there are many core responsibilities that critical to SHRM, such as having
Right number of qualified employees, Right skills and knowledge, ensuring
Appropriate behaviours, Meet organization’s motivational needs.

When we link between business strategy and HR strategy, three importances are 1
Linking HR policies/practices with strategic management, 2 ensuring the line
manager internalize the importance of HR, and 3 integrates the workforce to foster
commitment to strategic goals.

 Strategic Human Resources Management

1. Outcome or process?
We should build corporate sustainability into strategic HRM, so it is certainly
about strategy and HRM coming together and reinforcing one and another, but
it's even more than that, we should keep in mind ways which we balance those
key approaches in order to foster corporate sustainability.
There are lots of literatures talking about strategic HRM in terms of
outcomes, they say it’s about achieving a sustainable competitive advantage
through people, so the outcome is the competitive advantage, which we
arrive that by way of strategic HRM.

35
 There are also some academic saying that strategic HRM is a process, it's
a process linking HR practices to business strategies.
Whether it is a outcome or process, there are some core responsibilities
of the HR function, which are critical to strategic HRM
2. Core responsibilities of the HR function
o Having right number of qualified employees
o Having right skills and knowledge to perform effectively and efficiently
o Ensuring employees exhibit appropriate behaviors, and their behaviors are
consistent with org values and culture
o Having the employees that meet org's motivational needs

3. Link between business strategy and HR strategy

o Link HR policies/practices with strategic management.
o The key component in strategic HRM is linking HR policies/practices
with strategic management
o Line managers internalize importance of HR.
o  Ensuring line managers internalize importance of HR, and also
emphasis the horizontal alignment of HR
o Integration of the workforce to foster commitment to strategic goals.
o Integration of the workforce to foster commitment to strategic goals,
so they need to be participation involvement and commitment on the
part of workforce
4. ‘HR strategies’: patterns of decisions regarding HR policies and practices
that are used by management to design work and select, train, develop,
appraise, motivate and control workers.
And, when we look the performance of the SHRM, it refers to the holy grail. It has
strong association between strategic human resource management (SHRM) and
organizational performance

 Strategic HRM & Performance

“holy grail” of HRM = strong association between strategic human
resource management (SHRM) and organizational performance
The really fundamental reason study SHRM because it does increase org
performance.

The evidences around performance of the SHRM still have gaps in knowledge
regarding how bundles of HR practices can impact on the HR–performance
relationship. The HR performance relationship focus on four major parts
including bundles of HRM, employee performance measures such as
turnover, accident rates, organizational commtiment and output measures,
organizational performance measures that refers to how the HRM improve the
entire organization performance, such as productivity, unit costs, profits,

36
market share and return on investment, and other factors would be conditions
of economy, technology.

 Modelling HRM and Performance

Evidences around the association between strategic HRM and performance
1. Gap in knowledge regarding how bundles of HR practices can impact
on the HR–performance relationship.
so which talks about bundles of HR practices, not only about short
hand but also about development…the synergy between praticular HR
practice, which particaly practices help in the bundles.
2. Theoretical framework for HR–performance relationship with four
major parts:
The research looks at HR -performance relationship focus on 4 parts:
o HRM
Look HRM as bundles or systems, looks at what particular practices
might be important in these bundles
o employee performance measures
Attach measure in employee performance to see whether these
bundles increase performance of workforce, they does that by examining
things like rates of absenteeism and turnover, accidence rates,
organisational commitment, and it also examine hard measures of
performance, usually output- based measures
o organizational performance measures other factors.
Also looks at measures of org performance, so at this broader level,
how HRM improve entire org performance, so it tries to look at
productivity, product or service quality, unit costs, profits and market
share.
o Other factors : technologies, particular industry operate in
 Other factors can be important, such as state economy, so how that
factor influence org performance, are the things happening in the economy
that out way whatever u doing in terms of HRM. Also includes things like
technology, particular industry u operating
So the better research on HRM and performance links look those major
parts in order to determine how well HRM might boost levels of
performance

 Demonstrating the HRM–performance relationship

1. Arthur (1994)
o Integrated, and sets of, best HR practices had greater impact than
individual HR practices
Anthur was the first people looking at integrated HR practices, the
bundles of HR, and found they have greater impact than individual

37
 practices. So he is the first person started to raise our awareness of the
importance of having these integrated HR practices and creating bundles
of HR
2. MacDuffie (1995)
o ‘High-performance’ HR practices: (i) worker skills, (ii) worker
motivation
MacDuffie looks at high performance HR practices, and they produce
two benefits in particular, they improve worker skills and worker
motivation

3. Delery and Doty (1996)

o Strategic HR practices linked to organizational performance
Delery and Doty looks linking strategic HR practices to org
performance, showing that internal career opportunities, employment
security,training, appraisal, employee security , all of these functions of HR
were critical to increase org performance
4. Youndt et al.’s (1996)
o two indexes ‘administrative HR system’ and the ‘human-capital-
enhancing HR system’
Wide levels of support of HRM .Youndt found that when HR practices
align with business strategies, was vertical integration, again we say it
increase org performance
These are the supports for the models of strategic HRM, they can produce
org performance , the benefits to org, How it can increase performance
5. Betcherman et al. (1994)
o Association between ‘new’ HR practices and lower unit costs
Bercheman also found that the association between 'new' HR practices
and lower unit’s costs
6. Wright et al. (2003)
o ‘progressive’ HR practices improve operational performance and
profitability through increase commitment
Academics to demonstrate the HRM- performance relationship, Arthur (1994)
Integrated the sets of, best HR practices, and found greater impact than individual
HR practices. MacDuffie (1995) states that ‘High-performance’ HR practices provide
two particular benefits, they improve woke skills and worker motivation. Delery and
Doty (1996) linked Strategic HR practices to organizational performance showing
internal career opportunity, training, appraisal, employment security will critically
increase the organizational performance. Youndt et al.’s (1996) found that HR
practices align with business strategies will critically increase the organizational
performance. Betcherman et al. (1994) believes there are positive Association
between ‘new’ HR practices and lower unit costs. Wright et al. (2003) found

38
‘progressive’ HR practices improve operational performance and profitability
through the increase of workforce commitment.

7. New acronyms 首字母缩略词 for HR ‘bundles’:

There some new terms are used to increase performance such as HPWP
(high-performance work practice), HCM (high-commitment management
o HPW, HPWS, HPWP (high-performance work practice),
o HCM (high-commitment management)
o HIWS (high-involvement work system)
8. Key premise: increased performance is a function of interactions
between employee ability, informal learning, discretionary
opportunities and multitasking.
There are still some gaps in our knowledge. There are areas in which we can't
necessarily simply apply something to any given org and produce increased
performance, but we have a lot of evidence to suggest that it can definitely
lead to these benefits.

 HRM and Performance

1. Human Resource Management:
What is the best way to adopt or implement HRM There are two competing
approaches
o “best fit” Manager should adopt HR in align with business strategy
and environment . Context is critical and HR strategy should based
on that, still needs to be consistency running through. Fits with
situational context and business strategy. Harvard model suggests,
environmental factors shape HR practices
o “best practice”

2. “best fit”
o Contingency perspective
Is contingency perspective, argue that managers should adopt HRM, in
align with elements of their business strategies and wider environment, so
ur HR practices and policies are going to be different from one org to
another, because business strategies and environmental context are
different.
9. The role of context
Best fit approach said that the context is critical, and HR strategies
should vary based on contextual factors, but they will do it in a consistent
manner. HRM should consistent with the situational constrains and
business strategies
o E.g. Harvard model

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 This is also Harvard model suggests, it take into account those
environmental external factors and they shape HR practices

 “best practice”
1. Theoretical universalism
'best practice' approach relies on Theoretical universalism argues that
all firms would be better of adopting HR practices best for managing
people
 The role of context
It says that context isn't really important, it downplays the role of
context, and instead relies on universalism of best HR practices
3. E.g. Pfeffer’s 7 practices
Examples: Pfeffer's 7 practices, the best things org can do is offer
security, engage in selecting hiring, use self- manage teams, offer high pay
based on performance, engage excessive training, reduce status
differences and share information

1. ‘Best fit’: the evidence:

1. Societal fit
Societal fit: we look at HR practices, they vary in accordance with
different societal practices, which could produce superior outcomes, so we
do see variation in different HR practices, for example, across countries. Eg:
we also see adaptation of HR practices when there are strong or weak
facets of economy, and those shifts in HR practices as we see ups and
downs in economy would also important for how well org perform, so they
take in account of what happens in that context and vary their HR practices
as they need to. HR strategies vary on societal fit. E.g. Macdonald’s
HR strategy in Russia $ China
2. Industry fit-variations, in the public sectors & Private sector
Industry fit: industry also is variation, HR practices is different in public
sectors with it in private sectors, and we also see HR practices variation in
different industries, eg: HR practices in manufacturing companies are
different with it in services companies. variations, in the public sectors &
Private sector
3. Organisational fit-
We also see variation in terms of organisational fit, that links between
business strategies and HR strategies, it's fundamental to performance
levels
So all three levels of analysis is a research demonstrating how adapting HR
practices to context high performance

 ‘Best practice’: the evidence:

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 1. ‘best’ for whom?
o e.g. Legge (1978)
o Marchington & Grugulis (2000)
2. Shareholders vs sustainability
Overwhelmingly, it was shareholders whose interests were served,
whereas a better approach would be if the interests of employees and
communities were also served
3. Macro best practice
When we look are macro level of best practices evidence, there are not
many evidences
4. Micro best practice
When we look at micro/individual level of best practices, there are some
supports, eg: there are best approaches to recruitment and selection, use
strategic interview, these are the best way of assessing candidates
What is best way to adopt or implement HRM, there are two competing approaches
which are best fit and best practice. Best fit is a contingency perspective, and it argus
that managers should adopt there HRM strategies in line their business strategies
and wider environment. Therefore, a firms HR strategies should be different from
others, because business strategies will be different from one to another, and
slightly different in context. The best practice approach relies on theoretical
universalism. It argus that, all firms will be better- off, if they identify and adopt HR
practices known best for managing people. It says context is not very important,
instead, emphasize on the universalism of best HRM practices. For example, Pfeffer’
seven practices says the best organization can do offer employment security,
engaging selective hiring, use self-manage teams, offer high pay based on
performance, engage extensive training, reduce status differences, and share
information.

More academics provide evidence for best fit than best practice. These evidences
can be divided from societal fit like different HRM in different countries, industry fit
like different HRM in public sector and private sector, different HRM in manufacture
company and service company, and organizational fit.

For best practice, Marchington & Grugulis (2000) propose the tension of different
interest between employers and employees would be typically overload by best
practice. Overwhelmingly, shareholders were served whereas the interest of
employees in best practices are still served. So when we look broadly the best
practice approach, there are not much evidence to support it. But in micro level,
there are some support, like the use of structural interview in selection is a best way
to asses candidates tied with job attributes. Therefore, the surface layer of HRM in
macro level we should relies on context fit, but in underpinning layer, the micro HRM
we can draw on individual best practice principles.

41
Finally, we do need to keep mind on that the SHRM is still criticized because it is still
the Assumption of logical, linear relationship between firm’s business-level strategy
and HR system, the real practices are often more complex, political influenced. we
still not fully understand the functions.

 Practical Implications
Boxall & Purcell (2016):

We should think about both to extent at the surface level and micro level, then
we should use best fit HRM, and we should be adapting our HR practices and
policies to context.
But at underlying level, when we think about our micro HRM and individual HR
practices, then we can start to draw on some best practice principles,
particularly in selecting process, training approaches, performance appraisal

 Critiquing SHRM
We need to keep in mind, SHRM is still critique.
1. Assumption of logical, linear relationship between firm’s business-level
strategy and HR system
Because it is based on an assumption of logical, linear relationships,
and we know that these might be underestimated the complexity.
Relationships between business strategies and HR system are often more
complex and can be much more reactive rather than proactive.
2. The ‘black box’
There are also gaps in how we understand the links between SHRM
and performance - the 'black box' of HRM, because we are not entirely
sure happening in that middle part of the Harvard model or any other HR
models, we don’t fully understand the functions
3. Research evidence…
However, there are a great deal of research evidence does provide
supports for SHRM and performance

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W5- Work & Work Systems

Introduction
The way work is organized is a critical internal contingency affecting both
micro and strategic human resource management.

Different work design systems have important consequence for employee

outcomes:
Like their level of job satisfaction, their skills and their level of stress
For organization outcomes:
Like organizational performance in costs
So you might have exactly same organization but if organize your org on one
particular Work system and job design approach, you will have quite
different employee and org Outcomes

Work and work systems which Involves a lot of job design, theory and that of course
critical to the way we perform our work. The way work is organized is a critical
internal contingency, affecting both macro- and strategic HRM. Different work
design systems have important consequences for employees outcomes, like a level
of job satisfaction, they skills and the level of stress; and also has consequences for
organizational outcomes, they effect things like organizational performance and
costs. So you might have exactly the same organization, and if you organized
according one particular work system or job design approach, you will have quite
different employee and organizational outcomes compared with you structured
quite differently and used different work system and job design approach. Thinking
for instance about work systems based on scientific management, a typical kind of
production-line approach, the way workers respond and the way the organization
uses levels of performance or costing will be quite different using that factory
scientific management system to adopted high performance work systems, just an
example.

Primacy 首位 of Work Thesis

The relations into which men and women enter as they join the workforce
have significant effects on their individual lives and on contemporary
society in general.
 For Individuals
1. Income derived from employment –it affects life/ social mobility:
education for children
2. Work is dominant waking activity-So it impacts our life on a consist
basis. How we live our lives and our relationship whether we are able
to live work and day in time and go home with family. So like work
shift will have important impact on workers in terms of external
duty, like pend time with family.
3. Personal dimension, Social Identity- is part of our social identity, our
connection at work. Social identity can be positive and negative

43
 (stress…) can have very vary outcomes dependes on different
experiences.
 For Society- Work and work systems are transformational
If we think about the factory system, when a first became prominent it
leads to large scale of migrations, worker move from rural layers to
urban centre to gain works. Also like the platform were change
fundamentally like Uber, the access to work, they way we paying all
changed
 For the State- Education, Sustainability policies etc.
is important to stay revenue, the Tax going to influence other structure
like education, how they need to be set up to meet skill demands of
organizations. Or the sustainability policies that government developed
to protect the eco-system
The relations into which men and women enter as they join the workforce have
significant effects on their individual lives and on contemporary society in
general. For individuals, Work for individuals is critical because Income derived
from employment; And for most people that they sell source income. So in the
facts their life chances, how well they able to do in life, like social mobility, the
kinds of education on the children, they also impacted by the income they gain
through work. Secondly, Work is dominant waking activity, So impact our life on
consequent bases, how we leave our lives, and our relationships, wether we are
able to leave work at the decent time and go home spend time with family as
well. The types of shifts we doing at work, we have a very immediate impact on
our ability to maintain external responsibilities and maintain context with
friends and families. Thirdly, it is crucial to Personal dimension, Social Identity,
social identity can be positive or negative: we may have a very good relationship
at our work and it leads to a very positive social identity, and that will improve
our own personal identity, Or we can have very negative experiences: we will be
much more negative social identity as a result, we will be stress and anxious. So
work can have various outcomes for individuals depending on the particular
experiences we have at work. For Society, Work and work systems impacts a
society in variable ways. If we think about the factory system when it first
became prominent it link to large scale migration, workers move from rural
areas to urban city centre to gain work in factories. And now we think about the
influences that take based platforms for wok having that also transformational,
that fundamentally changing the way we work and the time we have to work, the
waste of pay. For the state, It is important to state revenue, the taxes going to
government apartments from our work and from companies, and influences
other things, like the structure of education systems how they need to be set up.
Or the sustainability

The Nature of Work

 Work:
“physical and mental activity carried out to produce or achieve something of
value at a particular place and time; it involves obligation and explicit or
implicit instructions, in return for a wage or salary” (Bratton and Gold,
2012:110).

44
  Key Features:
1. Economic- work to earn money
2. Structured spatially 与空间有关的 and geographically- in most cases,
we go to offices in urban area
3. Social relations between people –er and ee/ stakeholders
4. Reward-not just the salary
5. Intrinsic– especially in occupations in medical sector. Intrinsic
including the meaning of our work, and the meaning that give to our
lives to things of identity and stem and states for instance. Particular
the occupation like medical center Their intrinsic meaning is that they
can healing people, take care for people.
6. Extrinsic-primarily pay. including financial reward but also non-
financial. We cannot just think the payment element; it is far more
broad than that.
 Problems with defn:
1. ‘Hidden work’-particular unpaid work, cooking, cleaning, caring for
children.
2. Gender, Age, Ethnicity, Disability- these are a factors of shape of
opportunity often involve discrimination
3. Uneven distribution of hazards and risk
Work means physical and mental activity carried out to produce or achieve
something of value at a particular place and time; it involves obligation and
explicit or implicit instructions, in return for a wage or salary” (Bratton and
Gold, 2012:110). It has four key features which are economic, Structured
spatially and geographically, Social relations between people, Reward from
intrinsic containing the meaning of our work: identity, esteem and status for
instance. Particularly, occupation in the medical center, possibly sell the
intrinsic rewards really highly, being able to help people care for people
resolve people healthy issues, they get intrinsic rewards from being able to do
that, to make people feel better and extrinsic like pay elements. However, in
the definition of work, it does not reflect the un-paid work, Gender, Age,
Ethnicity, Disability, and Uneven distribution of hazards and risk in practice.

Job Design
 Job design:
particular configuration of job tasks and overarching relationships between
them and operational exigencies, leadership style and management policies
and practices of the organization.

Refers to the content and method of job and employee performance in their
work, it defined as follow
It breakdown as the diagram:

45
 If we think about a job, we have various approach about how this work
boundary was set up and how work will be completed. We can silt up very
narrow components, or we can live it abroad, so if we think about any Job in
term of these exercise, these vertical exercise related to level of decision
making that we have related to the job. So at the high point where we allow
the worker to related to do a deal and decision Making and give them high
autonomy, so have the description to decide, how they complete Their task
with the job, which one goanna to do the first how they do about it
even the timing. We might decide we not give m that kinds of control or
autonomy, so we will put them down here, and going to Control exactly what
they do.

Job design refers to the content and methods of jobs that employees
performing in their work. It defined as particular configuration of job tasks and
overarching relationships between them and operational exigencies,
leadership style and management policies and practices of the organization.
Different Approaches proposed by Bratton & Gold, 92012) stating that If we
think about a job, we have various options for setting the boundaries of that
job, we can spelt it up into very narrow component or we can leave it very
broad and wide. So if we think about any job in terms of these access, vertical
access related to a level of decision-making that related the job, at the high
point we will allow workers a quite deal decision-making and give them high
autonomy, they have the discretion to decide how they will complete the
tasks, which one they going to do first, how they going to about it even the
timing. Or put them down to the bottom: We might design to control exactly
what they do. Along the horizontal access, we have the numbers of tasks, so
it might be that we give people a very wide range of tasks to complete and
can be functional, all we might give them very few tasks so they doing same
thing over and over again.

 Different Approaches (Bratton & Gold, 2012):

46
  High autonym decision making, even the timing
 Low autonym control exactly what they do
 A wide range of tasks to play, could be functional tasks, enlarging jobs
adding more tasks
Job A: pretty low autonomy, not do many tasks either, narrow defining job,
the main reason we do that is to increase speed, they do the same thing over
and over again, they get fast. Give manager control and continuing monitor.
Pretty low level jobs. So just for increasing the speed and guarantee
manager can control and monitory what happening. Example: most are low
level jobs, like mc download, like production liners, they just want speed
efficiency
Job B: much boarder, gives the worker more autonomy, they get more
control, make decisions, require to complete more tasks, more Varity of the
work they do. The main reason we do this: potentially, job satisfaction. On
average, people will happy when they can control more. And when you
expand the number of tasks. If you want your employee be motivated, you
should use job b rather than a.

Classical Work Systems

 Scientific Management: Taylorism
1. Maximum job fragmentation
2. The divorce of planning and doing
3. The divorce of ‘direct’ and ‘indirect’ labour
4. The minimization of skill requirements and job-learning time
5. The reduction of material handling to a minimum.

The most famous work system, Taylorism, was really Based on job a. it is
scientific management, which is The war of management being the in
analysis of tasks
and designing job to a laminated time and emotion ways So you study
particular jobs and break them down into very narrow components, to
establish job aims to approach Where you got people very narrow task and
low autonomy So that they can do the same thing over and over and you get
efficiency. You also can hire much less skilled workers, so get Cheaper
labour.

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  What they dose is maximum job fragmentation rather than like you
have one people to do the car, you break them down probably
hundreds components and have people sit at production line.
 What they dose is allow you to divorce of planning and doing. So
workers don’t have to make decisions, they don’t have to think, they
just do. It removes decision making from worker’s job
 It also divorces of 'direct' and 'indirect' labor, so all of the preparation
and servicing is taken away from skill workers and stand by cheaper
and unskilled labor. All the meaning of jobs other one stand by cheaper
workers, you just need reserve to the work of higher paid workers
 It also leads to minimization of skill requirements and job-learning
time. You don’t need to long time to learn how to script a boat for a car,
you don’t need to waste time on training and invest on them, the
production line already be set up. The labor cost also reduced, due to
they can come to work immediately, you don’t need to spend money on
training, it also reduces labor's control on the labor process, they are
not skilled workers, so you don’t need to concern about potential
leaving like skilled workers, they are unskilled, means no power,
anyone can do the job.
 This system also leads to the reduction of material handing to a
minimum. You have machine can have figured at such way, again it can
increase efficiency and bring down costs - Office mangers knew skills
of control. Revolution- Before scientific management we did not see
factories.

Scientific Management: Taylorism is a job design approach that fits for job that has
pretty low autonomy. It Maximizes job fragmentation, divides jobs planning and
doing, divides skilled workers and unskilled workers, minimizes skill requirements
and job-learning time to bring down the costs, because they immediately able to do
the job, you do not spend time on training, reducing labour control over the labour
process, making anyone can do the job, and finally reduces the material handling to
minimum. Another job design approach is Fordism, similar to Taylorism but it has
other features that Interlinking system of conveyor lines, and Standardization of
parts to gain economies of scale. So it can be used to job design to increase
productivity by fragmenting jobs using Taylorism. That allowed short task times
which increased productivity.

 Fordism-on the basis of taylorism

1. Applied major principles of Taylorism
2. Two other essential features:
a. Interlinking 互连 system of conveyor 传送机 lines
b. Standardization of parts to gain economies of scale
3. Ford’s style of paternalism attempted to inculcate new social habits,
and new labour habits to facilitate job performance.

48
 He uses job design to increase productivity by using Taylorism for
fundamental jobs, and this allowed short time cycle task.

 Limitations
1. Work simplification – boredom and dissatisfaction
Heavy work in terms of simplification because the tasks are narrowed
to very small component of the entire work. It does boredom, very
routine work and this can increase job dissatisfactions. Then this can
lead to high absenteeism and turnover
So although you increase your efficiency and productivity, you have to
do more in terms of ensuring you have enough production planers,
controllers and supervisors to oversee the work was being done
because you removing that thinking and planning from workers, so
you need higher level of planners and supervisors to ensure work
runs smoothly
2. Taylor-style designs – also involve control and coordination costs
ensure you have enough controllers/ planers/ supervisors to oversees
the work has been done.
3. Cooperation costs
Because workers often become boredom, they will reduce
commitment. So you have to invest more in ensuring they are
continuing make commitment and ensuing quality.
There're three limitations for these classical work system. Firstly is Work
simplification – boredom and dissatisfaction. Because tasks are very narrowed, it
does lead to boredom, and this can increase job dissatisfaction. That boredom and
dissatisfaction can also increase absentee and turnover. Secondly, Taylor-style
designs needs much control and coordination costs. Because Taylorism requires to
do more in terms of insurance you have production plan, control, supervisors and
inspectors to oversee the work is done, because you removing that thinking and
planing from the worker, someone else does to do it. So need a higher level of
planers and supervisors to ensure those things do run. Thirdly is Cooperation costs,
Because workers often become boredom, so you have to invest more in ensuring
that their continue into work at right kinds of pace, ensuring quality.

Sociotechnical Work Systems

 Human Relations Movement: (Elton Mayo)
1. Shifted attention of managers to perceived needs of workers.
Another very big approach work system Mainly the human relations
movement
this began at around 1920, if we pay attention to ees demands and
needs they will increase performance. intrinsic rewards, looks much
more in psychological and social needs, which has been neglect in
Talorism. So rather than focus on managing controls and extrinsic
rewards, shifted attention to enhance intrinsic rewards, recognizing
their needs, good human relations, treat workers more like humans
not robots.

49
 2. Job design had to consider psychological and social aspects of work.
It looks at more on psychological and social aspects of work. Involve
meeting their psychological and social needs. So this method started to
focus on increase the work participation, recognizing their needs,
enveloping more positive elements that will lead to good physical
relations, to meet social needs of workers. It treats worker more like
humans rather than Roberts
After classical work system, people started to Shifting attention of managers to
perceived needs of workers with the Human Relations Movement establishing
Sociotechnical Work Systems. It focus on from management control and
extrinsic rewards, moving to enhance intrinsic rewards to ensure that our
workers are happier and more productive. Job design had to consider
psychological and social aspects of work, developing more positive climates
where good human relations to meet social needs of workers. It treat workers
more like humans rather than robots.

 ‘Neo-Human Relations School’

The foundation of job quality, workers have more autonomy and Varity task,
dominated from 1960-1970, it is quality of work movement, which was the
foundation of latest fid, which is the job quality. Job quality is really based on
the quality of worker’s life movement in 1960-1970. this focus on fulfilment
of social needs by recomposing fragmented work tasks. So you could give
back some of the decision making and variety that have been removed by
Taylorism and Fordrism. There are 5 features of a good job design systems
1. Fulfilment of social needs by recomposing
 fragmented work tasks.
 Closure-jobs should include all the tasks necessary to complete the
product processes, recomposing fragmented work tasks. Doing more
tasks, entire thing, get see this is what I created, you get much feel of
fulfilment
 Incorporated control and monitoring of tasks-workers assume
responsibility for quality control
 Task variety-workers completed a number of task use a range of skills.
No longer they doing the same things over and over
 Self-regulation-workers control the speed of work they have
autonomy whereas Talorsim and Foudism is based on management of
speed.
 A job structure that permits social interaction-workers are able to
fulfil their social needs, they allow to talk, the interactions are
encouraged.

‘Neo-Human Relations School’ Fulfill social needs by recomposing fragmented work

tasks, having 5 key things which are Closure, Incorporated control and monitoring of
tasks, Task variety, Self-regulation and A job structure that permits social interaction.
Closure means Jobs should includes all the tasks necessary to complete the product
or process, you will get the sense of you have created. Incorporated control and

50
monitoring of tasks means Workers have responsibilities for quality control. Task
variety refers to Workers complete a numbers tasks and use a range of skills no
longer doing the same thing over and over. Then Self-regulation need Workers to
control the speed of work. Finally, A job structure that permits social interaction
requiring that Workers are able to fulfill their social needs.

Sociotechnical Work Systems

 Job Rotation
Worker shift from one task to another, they will still involve relative simple
tasks, but at least shift from one task to another, so you will do different
tasks, it reduces boredom increase Varity, and it can be a useful way of
keeping workers happy, and keeping them motivated.

 Job Enlargement

Job enlargement is Horizontal task, additional task will be added to your job,
and that produce reputation and autonomy, its also a useful way of giving
you more variety. The enlargement will be based on doing additional task
over similar level of skill

Bratton & Gold (2012)

Job Enrichment
The enrichment, it called vertical expansion, because doing the task require
high level of skills, it will be involving some upper skilling, you will not just
doing, it will be planning, managing, that dose require more thinking and
higher level of skill. It also increases worker’s responsibility, we will give
them more challenging job, and hopefully more rewarding job

51
 Therefore, these techniques can be used to fix some problems of Taylorism
and Fordrism system. Make use of 1job rotation, 2job enlargement and3
enrichment
Bratton & Gold (2012) present three techniques in Sociotechnical Work Systems
made forward movement than traditional methods, which are Job Rotation, Job
Enlargement and Job Enrichment. Job Rotation requires shifts form one to another,
you do different tasks, reduce boredom, increase variety, keeping workers happy.
Job Enrichment requires vertical expansion, because you do start doing tasks that
require higher levels of skill, you doing advanced work rather than just doing things,
requiring more and higher level of skills. It increases workers’ responsibility, give
them more challenging job. Job Enlargement are the horizontal expansions of tasks,
reduce repetition and monotony, and it also give more variety. Enlargement will be
based on doing additional tasks of a similar level of skill. So, these kind of technique
to resolve some of the problems associated with Taylorism , the problems of
boredom, job satisfaction,because it allow you to enlarge and enrich expansion of
jobs, and build in more variety, higher skills, more responsibility.

Sociotechnical Work Systems

 Job Characteristic Model (Hackman and Oldham, 1980)
Another thing sociotechnical work system do is job characteristic model,
that will have motived workers, and increase productivity and quality and
job satisfaction.
The kinds of job characteristics will motivate workers. This model often
used to analyse the score of worker’s motivation and diagnose the areas that
workers are not motivating and to make them more motivating. So what we
do is to analyse a job from these five characteristic.
Hackman and Oldham, (1980) introduced the Job Characteristic Model, providing
demotion like Motivating potential, Skill variety, Task identity, Task significance,
Autonomy and Feedback to define a job.

Motivating potential:

52
 1. Skill variety
That is the degree which the job required of different activities or
skills in this job, we doing different things, we completed variety of
tasks
2. Task identity-degree to which job require completion of whole job, not
just one, you doing whole job
3. Task significance- degree to which job requires you have substantial
impact on of the others, so particular jobs will be special high position
in terms of significance. E.g: doctors
4. Autonomy

Is the degree to which job requires worker’s discretion 自由裁量权 to

complete their tasks
Feedback
is the degree that the worker poses information related to their actual
results and their performance so they get the information of how they
do their job
So according to them, we need increase these five job characteristic to
motivate workers. So when we design work system we need to think
about from these view.

Post-bureaucratic Work Systems

Then the Post-Bureaucratic Work Systems era was coming, and the typical example
is Team-Based Systems. It has Flexible specialization, and was famous in Europe. It
shows the Small-scale production of large variety of products, and needs Highly
skilled workers with considerable control and autonomy over labour process, having
abilities in Process and information technology. Strong networks of small producers
that achieved flexibility and efficiency through collaboration. Japanese Work
Systems is another example. It has horizontal and vertical job enlargement, team
makes production and quality improvement decisions,, especially in the Car
manufactures. High-Performance work systems (HPWS) si also used in this era, it
consist Teams of 8-20 members performing a task that amounts to a ‘rounded off’
product or service. Team members performing multiple skill enhancement tasks with
Highly autonomy, relatively highly skilled workers, a wide level of job tasks, also
Team members participating in operational decision-makings achieving Win-win
outcomes: high skilled, autonomy. Furthermore, the Knowledge-based work
systems, it focuses not about mass production of tangible commodities but
concerned with organization’s intangible assets – knowledge. It is different from
what we have traditionally associated with the ‘machine age’ and mass production
and marketing, but main like Mainly about the management of knowledge and the
management of knowledge workers.
 Team-Based Systems
Flexible specialization- became most famous in Europe. Within the same
industry.
1. Small-scale production of large variety of products.

53
 To develop competitive advantage, the workers were benefit in the
things like higher level control of their work, higher pay…
3. Highly skilled workers with considerable control and autonomy over
labour process.
4. Process and information technology.
5. Strong networks of small producers that achieved flexibility and
efficiency through collaboration.
 Japanese Work Systems
Characteristics:
1. horizontal and vertical job enlargement
2. team makes production and quality improvement decisions
They are expected to be consistently improving system and process
Distinctive Features:
1. dependency relationships: High interdependency 互相依赖, worker
strongly rely on their fellow workers, they have to worker together.
Based on the success of Toyota
2. ‘normative’ dimension;
Which means worker will continuity improve their production and
systems, maintaining high quality of products.
 High-Performance work systems (HPWS)
Refer to work and HR practices, involves teams performing a task. Relatively
skilled workers, they have a wide level of job tasks. Team members have high
levels of decision making
long going debate: whether they produce disadvantage by intensify the work.
It makes worker work incredibly hard, they work too hard to become
stressed. But more article say that workers also benefit from this, high skill,
high payment, high level of autonomy, that is win-win outcome
1. Teams of 8-20 members performing a task that amounts to a ‘rounded
off 完成’ product or service
Again they are given a high level of autonomy, high skilled workers
 Team members performing multiple skill enhancement tasks
They have a wide level of job tasks
3. Team members participating in operational decision-making.
They do have high level of autonomy

 Knowledge-based work systems

a. Not about mass production of tangible commodities but concerned
with organization’s intangible assets –It is the knowledge worker who
is the fundamental to this system

54
 b. Different from what we have traditionally associated with the ‘machine
age’ and mass production and marketing. Is about the management of
knowledge and knowledge workers.
Quite different not about mass production, concern org insensible assets:
knowledge
Management of knowledge and management of knowable workers.

Research Evidence
 Morgan et al. (2013)
Morgan et al. (2013) Studied frontline workers in US healthcare Sought to
determine how intrinsic & extrinsic factors influence workers job satisfaction and
intention to stay, finding that Job satisfaction Primarily associated with intrinsic
factors Meaning of job tasks, Input into job tasks, Supervisor support, Workload
and Financial rewards; intention to stay Primarily associated with extrinsic
factors like Financial rewards, Promotion opportunities and Workload. Do the
positive HR activities can enhance job satisfaction and reduce turnover.

1. Studied frontline workers in US healthcare

2. Sought to determine how intrinsic & extrinsic factors influence
workers job satisfaction and intention to stay
a. Intrinsic factors
I. We need to increase the significance of job, we can do things
like offer job rotations, job enrichment. job satisfaction is
primarily linked with the intrinsic factors. If the job has more
meaning will increase satisfaction
II. Think about how to increase work autonomy and participation
III. Improvement of support system from supervisors, that could
include training supervisors
IV. We need manage workload ensure that not too heavy
V. We need to ensure we offering attractive pay and pay increase
if we want happy workers we need to reward them
b. Extrinsic Factors
I. Including financial reward
II. Ensuring that we provide healthy insurance, promotion
opportunities, training and development
3. Job satisfaction
a. Primarily associated with intrinsic factors
i. Meaning of job tasks-The meaning of job means the
significance of job.
ii. Input into job tasks- variety tasks
iii. Supervisor Support-We need to try and provide the resource
system that supervisor can support more
iv. Workload –negative impact on workers, managing work
load can increase satisfaction
v. Financial rewardsWe cannot ignore wages, high wage
will increase job satisfaction
b. Intention to stay

55
 i. Primarily associated with extrinsic factors
1. Financial rewards-wages, pay, Pay increase people's
willing to stay,
you would better control turnover if
you maintain wage levels.
2. Promotion Opportunities-Also increase intention to
stay.
Ensure we have cohesion career
structure.
3. Workload –reduced worker’s intention to stay, turn
over rates will increase

 To enhance job satisfaction

a. Primarily focus on intrinsic factors
i. Meaning of job tasks
ii. Input into job tasks-how we increase autonomy and
participation job enrichment
iii. Supervisor support-include training supervisors, make
resources available
iv. Workload –do not become too large or too heavy
v. Financial rewards-ensuring adequate pay
 To reduce turnover
b. Primarily focus on extrinsic factors
i. Financial rewards-increasing rewards and pay
ii. Promotion opportunities building career ladders
iii. Workload-managing workloads

 Kilroy et al. (2016)

Kilroy et al. (2016) presents the Study for frontline workers in Canadian healthcare,
Sought to determine how high involvement work practices (HIWPs) impact workers’
perceived job demands and burnout. HIWPs involve Power which is the measure
from autonomy, Information which is based on information sharing and
participation, Rewards is reflected on really recognition of employees contributions,
and Knowledge which is based on training and development. Role conflict consist of
Role ambiguity and Role overload. And Burnout involves means Emotional
exhaustion & depersonalization. It is find that HIWPs were associated with lower job
demands and lower burnout, and HIWPs enable workers to meet their job demands
and ameliorate burnout. To reduce burnout we should reduce job demands and
supplement resources for workers, wile HIWPs can facilitate the reduction of job
demands and, in turn, reduce burnout. HIWPs involving: autonomy; information
sharing; recognition/reward; and training & development may be especially
valuable.

1. Studied frontline workers in Canadian healthcare

2. Sought to determine how high involvement work practices (HIWPs)
impact workers’ perceived job demands and burnout
burnout is big problem in healthcare, because the emotionally
demanding
3. HIWPs involve:

56
 a. Power-information sharing/ participation, autonomy
b. Information: based on information sharing and patient
c. Rewards-recognition of ee contributions
d. Knowledge-based on training and development
4. Job Demands involve: how would impact job demands, increased
stressed levels
They are all stressors or potential stressor we would face in workplace
a. Role conflict-when the tasks we completed in the job incompatible
with one an another
b. Role ambiguity lack of specificity of tasks, unsure of what we
should be doing, or role is quite uncertain, what we need to be
doing
c. Role overload the demands exceed the ability to perform
5. Burnout involves:
a. Emotional exhaustion & depersonalisation
6. HIWPs were associated with lower job demands and lower burnout
7. HIWPs enable workers to meet their job demands and ameliorate
burnout
Using this particular combination of hr. practices and system is a effective
way to reduce job demands and burnout

Practical Implications
 Kilroy et al. (2016)
1. To reduce burnout, we should reduce job demands and supplement
resources for workers
2. HIWPs can facilitate the reduction of job demands and, in turn, reduce
burnout
3. HIWPs involving: autonomy; information sharing; recognition/reward;
and training & development may be especially valuable
 Improving participation in decision making, recognizing and rewarding
worker’s contributions; training and develop them to have further
knowledge and skills These actions not only will reduce burnout but actually
can improve worker’s performance.

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W8－ Workforce Planning
It is something that will ensure a firm is able to plan or predict the correct
number of people they will need with the right skill combinations in the right
positions at the right time. So it does involve quite number factors, and the most
difficult aspects is a prediction. You are making a prediction based on what you
focus demand and supply be at the particular in time. This kind of workforce
plan will be made for one or two even five years in advance. if it is a long range
forecast time, then regular check is needed
A workforce plan provides some degree of certainty and control over future events.
it is something ensure the firm is able to plan or predict the correct number of
people that will meet with the right skill combinations in the right positions at the
right time. the most difficult aspect is a prediction, you are making a prediction
based on what you focused and supposed to be. maybe made 1 year or 2 or 5 in
advance, you need to collaborate a long way, especially 5 year workforce plan, you
need to check incremental long away to revaluate will that need to remain, because
the present condition will change. An organization should be aware of demand and
supply. Demand Relates to workers, what is demand for workers say in 12 month
time, how many workers will you required on 12 month. so this will based on the
requirement of the firm in relation to environment. Supply is supply of workers,
what is the supply of workers will be like in 12 month, based on labour market
factors, which will be things like participation rates, how many people are in the
market looking for work, how big is that pool of worker you have available to you,
what kind of skills exist in the labour pool, is this for instance a skill shortage that you
need to take account of and fact in, are there other factors in the labour market that
will impact how you able to source labour, things like population aging. if that pool
of labour is older that means is difficult for you to get more junior workers. other
factors will Include labour market, things like migration policies, looking particular at
457visa. and competition for labour, how much compeletion do you face in seeking
labour, are there other firms like you who are competitive, who can pay more, offer
more, and its more difficult for you to get access to labour. Demand and supply
factors that would be parts of forecast, you need to come up with a balance, which
eualibrian in demand for workers within your firm and availability supply of workers
in the labour market.

Introduction
 A workforce plan provides some degree of certainty and control over future
events.
In the right position at right time
 Forecasts:
1. Demand- how many ees you need in 12 months’ time, the supply of
workers – based on labor markets, what kinds of skills in the labor pool, if
there is a skill shortage, things like population aging affect the labor
market and immigration markets. And competition for labor. Come up
with a balance, A demand for workers and availability for the supply
market

58
 2. Supply - Is the supply of workers, based on labor market factors, which
will be things like participation rate, how many people in the labor
market, looking for work. What kind of skills exists in the labor pool, if the
skill you want is in shortage, you need to take special account? Other
factors in labor market also will have impact, like population aging, if the
labor pool is too older, you will feel difficult to hire junior workers. Like
migration policies, like your competition compared with other firms, if
they can pay more

People and Planning

 ‘War for talent’: competition between organizations to attract and develop
the most valuable people. - Organisation are competing to one and another,
most talented employee, Ange quite critical on this, this War will be an issue,
short sighted, they should do workforce planning
 Human resource planning: development and provision of framework to
integrate key HR practices to better meet employee needs, enhance their
potential and meet performance needs.- HR planning old phrases for
workforce planning, it is about to align hr planning to business strategy,
requires longer term perspective, also require a longer investment.
 Workforce Planning: more varied approaches and methods relating to
planning due to growing uncertainty and complexity. - short term reactive
approach

Today is the era of War for talent, which is competition between organizations to
attract and develop the most valuable people. Organizations will competing with one
or another in order to source employees who have adequate skill and high level of
skill, the most talented employee. Thus, the Human resource planning about
development and provision of framework to integrate key HR practices to better
meet employee needs, enhance their potential and meet performance needs is
important; it is tied very much to business strategy, and it’s a quality approach. it is
about a learning your human resource needs and planning to the business strategy.
that requires a longer term perspective. it also need a gravel level of investment.
And Workforce Planning are more varied approaches and methods relating to
planning due to growing uncertainty and complexity. it is organization’s response to
growing uncertainty and complexity, its a more short term reactive approach.

hr planning/workforce planning has four processes, firstly is the Evaluation or

appreciation of existing manpower resources. Secondly is the Estimation of
proportion of currently employed manpower resources likely to be within the firm
by forecast date. The following is the Assessment of labour requirements needed to
achieve overall objectives by forecast date. Finally is Measures to ensure that the
necessary resources were available as and when required. After these processes, you
are able to recruit require levels of labour, at same time retaining your core
workforce, and Reducing potential turnover. this manpower planning shows how the
demand for
people and the skills could be balanced against supply. if you want to solve people
retire or turnover, you need to revaluate, because that will shift workforce plan has
been estimated, so you will need to make a judgment.

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Manpower Planning
UK Department of Employment, 1974
Manpower Planning would have some problems for some reasons. It might be
Economic or labour market reasons impacting labour market conditions,
resulting a very tight market which means its difficult to source labour and
organization will in engage approaching to get the best candidates. it also
might be Psychological reasons, which means Something has changed in the
organization dropping a lot, employee dissatisfaction has increase,
psychological contract has been breached. this will increase turnover. To
Minimize the effects, organizations should Do survey of workforce to identify
what the key problems are, engaging in other firm’s consultation, also do
Exert interviews, to find out why they are leaving. in this way, employee
turnover is a particular issue that needs to be examined, it is also a common
problem in organizations, especially if there are management issues or culture
issues. a very good way of getting a indication of whether an organization is
function well or you be happy working in an organizations to get some
indication of turnover rates. the turnover rates are allocated you know there
are problems.

1. Evaluation or appreciation of existing manpower resources.

2. Estimation of proportion of currently employed manpower resources likely
to be within the firm by forecast date.
3. Assessment of labour requirements needed to achieve overall objectives by
forecast date.

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 4. Measures to ensure that the necessary resources were available as and
when required, (manpower plan).
If we look back further, Originally the idea of WP and HRP are called
manpower planning, this kind of approach about diagnosing workforce
needs and problems, it did stem from organizational strategies and targets.
And then organized practices and methods, moving to actual forecast based
on internal and external forecast, evaluating demands and supply, and then
reaching that equality, so that you able to recruit required labor and
retaining your core workforce and reducing potential turnover, you don’t
need constantly replacing your staff, it is damage to your firm due to lose
knowledgeable labor. It could be balanced against supply

 Diagnosing Manpower Problems

We need to reevaluate it because that will shift the workforce plan had been
in the past, so we need make adjustment. In this way, employee turnover is a
particular issue and it is a common problem within the org. Especially if there
are management issues or culture issues in the org, a very good way of
getting in indication of whether a org assumption well is to get some
information of turnover rate, the turnover has reason for problems that need
to be explored, that is indication of something going wrong

 Employee Turnover
1. Economic or labour market reasons - Might be external factor- tired
market difficult to source labor
2. Psychological reasons- Something has changed in the organization, ee
dissatisfaction, physiological contracts has been breached, which caused
turn over. We used exit interview, you may identify very particular
pattern of people leaving. Leaver profile filling, who is most acceptable to
try why they are leaving and address that. You might loosing older
workers, the kind of strategy to redress the problem. Older people quit
mostly because of injuries

Human Resource Planning

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 High-Road HRM－is based oon High training ….based on quality strategies,
in some cases is based on innovation strategies, For instance, most Germany
firms, who known for high quality. Which are famous representatives of high
road. For org, a good example is Aldi.
1. High training
2. High involvement
3. High rewards
4. Quality commitment
 Low-Road HRM - Low road hrm based on cost minimised strategy countries
like UK and US, particularly organisations
1. Low pay
2. Low job security
3. Work intensification
High-road HRM is based oon High training ….based on quality strategies, in
some cases based on innovation strategies,

Workforce Planning
 Forecasting (Cappelli, 2009)
1. Internal Forecasts to do with future workforce.
2. Prediction of demand, which has to be considered against the demand
for products and services.
This is a more recent approach, short-term and based on response to
uncertainty, it is a process of forecasting the plan demand skills against required
production and services. It could be the combination of global financial even
before that the way in Yreka, that has increase the financial uncertainty, and the
financialization is far stronger emphasize on shareholder modelling rather than
stakeholder. The uncertainty and un-prediction increased because too short-
term focus.
Cappelli, (2009) states the Forecasting is to forecast the supply and demand
of skills, against the requirements of future production and service, and dose
that in a situation of uncertainty and change. It should be the combination of
world financial crisis that increase the financial uncertainty through globally
and financialization as well, they are far stronger emphasis on shareholder
modeling rather than stakeholder modeling, because the focus is so short
term. It should include Internal Forecasts to do with future workforce, involving
forecasting the number of staff and skills along with how this will be effected
by competition, and the competition for staff and requirement for work. Also
should involve Prediction of demand, which has to be considered against the
demand for products and services, to Determine the skill requirements in
future and staff needed to meet the demand.

 The Use of ICT

1. Human Resource Information systems (HRIS)

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 It’s kind of database of organization, in order to help you forecast on
supply and demands. This will support our workforce planning. This
system allows you to create, gather information and analysis your current
situation, so that you can plan your further workforce in advance based
on that. They will use the information to find what they think are the best
options, reduce bias out of subjective. Using those to determined the kind
of information that we need to develop workforce planning.
 Enhance systemic consideration of HR activities and their linkage with
the organization’s vision and goals.
 Objective view of an organization.
 Constructs organization realities, including the categories and
classifications.
 Makes sense of what is going on within an organization and what
needs to be done
The use of Human Resource Information systems (HRIS) can Enhance

systemic consideration of HR activities and their linkage with the

organization’s vision and goals. it is like a database for organization, they will
also use those databases refer to earlier in order to help you to forecast
supply demand, so managers will use them for a range of reasons, some for
gain an objective view of the organization. Objective views of an organization,
they will use the information to make what they think are the best decisions
using this objective database to Construct organization realities, including the
categories and classifications to determine the kinds of information that
needed to develop workforce plan. Finally, Makes sense of what is going on
within an organization and what needs to be done.

Flexibility
 A Flexible Firm
(Atkinson and Meager, 1985)
Organizations now increasingly modeling themselves on flexible firm.
organizations were segmenting the workforce. They try to realize Functional,
Numerical, Temporal and Financial flexibility. Functional means organizations
had a core permanent staff, that were functionally flexible with a rang of skills.
Numerical means Around that core workforce, organizations has perreferal
workforce, casuals, part-time, temporary employment, and that provide the
firm with numerical flexibility, temporal and financial flexibility, because you
could change the numbers which is numerical flexibility. Temporal refers to
You could hire extra staff, casual or pat-time staff, you can not hire disengage
casual to reduce your numbers, you can change the hour very easily in order
to response to demand levels increase or drop off. Financial means You could
change your wage costs by disengaging. The ways can be used include
Annualized hours, Compressed hours, Flexi-time, Job-sharing, Shift-working,
Staggered hours and Term-time working. Huws (1997) proposes Types of
Teleworking increased incredibly because the technology can let you you
work cross a multi number firms, Tele-home-working, for verity, different
clients and through mobile. It has the features of Elimination of traveling to

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increase productivity, out that time into doing extra work, stress reduction,
Work-life balance and Isolation especially working from home, they don’t have
office time, create communication problems. So So we need to ensure we are
meeting the needs and preferences of workers, and monitoring hoe they sorts
of arrangements functioning.

1. Functional
means organizations had a core permanent staff, that were functionally
flexible with a rang of skills.
2. Numerical
means Around that core workforce, organizations have peripheral
workforce, casuals, part-time, temporary employment, and that provide
the firm with numerical flexibility, temporal and financial flexibility,
because you could change the numbers which is numerical flexibility
3. Financial
Financial means You could change your wage costs by disengaging. The
ways can be used include Annualized hours, Compressed hours, Flexi-
time, Job-sharing, Shift-working, Staggered hours and Term-time
working.
 Ways of Working
1. Annualized hours- In conjunction organization use analyzed hours to
create flexibility, you might be working 45 hours, then next week 28
hours, in total give you yearly working hours
2. Compressed hours- They also use compressed work hours, very short
period 34 hours in 4 day week.
3. Flexi-time- they organisation can change hours in very short notice,
they might to decide 2 at particular day, they can change their hours,
4. Home-working- allows org and their staff between office and home
5. Job-sharing- two part times do one-part time job
6. Shift-working- most often night shift a rotation between night shift and
day shift
7. Staggered 错列的 hours-ou want to standard finishing time to change
8. Term-time working- aligns with school terms and then when school
holiday takes unpaid leave

 Teleworking Huws (1997)

1. Types of Teleworking:
 Multisite
Increased fast 1999, working multiple sites of organization (nurses)
part time at office part time at home, it could be freelance, moving
between sites, mobile workers
 Tele-home-working

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 For mostly workers increased productivity, telework can reduce
stress but can sometimes increase stress, can create communication
problems
 Freelancing
 Mobile
 Relocated back functions (call centres)
2. Features:
 Elimination of travelling
 Stress reduction
 Work-life balance
 Mainly found in information or knowledge-based services
 Isolation
3. Offshoring and Outsourcing
 Offshoring: Move operations to low-wage economies. Reduce labor
cost, may cause domestic job loss, it can create customer bad actions,
it makes quality control more difficult, also will have culture,
economic/ political risks
 Outsourcing: source aspects of organization’s production or service
processes by setting up a contractual relationship with an external
provider.
It can be within same country or other countries. That also can reduce
costs even not always successful, also difficult to control the quality

Offshoring and Outsourcing are also effective ways to increasing flexibility.

Offshoring is to Move operations to low-wage economies. it allows
organizations to reduce labour costs, it will cause domestic or local job lost
and dislocation, it can create customer backlashes or boycotts. it can make
quality control more difficult. We also need to be aware of cultural issues,
when we move to different country. Risks: political risks, economic risks.
Outsourcing is the source aspects of organization’s production or service
processes by setting up a contractual relationship with an external provider. it
can be retained with in the same country, but it is contractive or arrangement
that you set up with a different provider, and you give them the contract
complete services. You simply pay them for the product service. It also reduce
costs, not always successful, difficult control quality when you sigh over
product services to another provider, and also be risks associate with that.

4.Attitudes to work
Lead to a range of attitudes shift because worker require to work as
different forms
 Contract work
is very insecurity unpredictable and creates problems more stressful
form of worker, will affect their life style
 Lifestyle
Lifestyle. For those worker who have high skills it can enhance their
life style, because they can choose what and when to do. But for other
people, flexibility will detrimental their lifestyle, it can lead to health

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 problems or financial issues. financial problems, affect commitment to
the organization, they going to be less committed to the organization,
they going to have different type of physiological contracts, has
instrumental physical contracts, managers need to be aware of this.
 Commitment
When employee at insecurity environment, they will have less
commitment

5. Redundancy
Flexibility in many cases involves redundancy, people are losing
permeant jobs being made insecure, they will be violation to the
psychological contract, lose social capital, which will impact
productivity and performance, they will feel guilt losing fellows stress
levels will increase, especially for losers and survivors, Flexibility not
always good, need to be cautious, don’t take it too far

However, flexibility not all good. it can be used well. we still need to be
cautious though how we do it and don't do too far, because we will shift into
those negative attitudes and experiences that impact how well the
organization functions. To Contract work, contract work is more unpredictable
insecure and create problems. it is more stressful, because unpredictability
and insecurity. For those workers who has very highly skill, it can enhance
their life style, because they can choose the contract they want but for
workers don't have that high level skills, contract work and insecurity will have
detrimental effect on their life, it can lead to help problems, financial
implications because they don't have on-going work. when you have
employees insecure position, they are going to less committed to
organization. they going to have a different psychological contract. Short-time
workers have instrumental psychological contract, they are not building up
trust commitment with your organization, because they are work impermanent
and insecure. Flexibility needs Redundancy, and lots of organizations are
replacing permanent jobs with insecure jobs, so people are losing permanent
jobs, and being made insecure, non-standard. It would lead to the Violation of
the psychological contract, Loss of skills, Survivor syndrome’ and stress.

 Violation of the psychological contract

 Loss of skill
 ‘Survivor syndrome’
 Stress

Talent Management
 Succession Planning:
It is also a workforce planning but more upper level plaining. Talent
management, the main thing, the most difficult thing is succession plan. This is a
way of developing staff for filling the senior role and preparing those staff to
move into senior roles someone suddenly retired

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Succession Planning is the most difficult thing of talent management, because
Ensure smooth replacement for senior managers and leaders means less
disruption to performance. it is also part of hr planing or workforce planing, but
more the up level. It is A plan that considers organization’s future direction
and requirements against capabilities and potential of ‘talent pool’. In large
organisations, the talent pool into hierarchy would from Entry level, Emerging
talent, Rising stars to Executive talent: those who in organization perhaps
best suit move to senior positions, we could build that into our planning, that
will developing staff for the senior roles and prepare those staff to move to
senior roles, before someone suddenly retired.

1. Ensuring smooth replacement for senior managers and leaders means

less disruption to performance.
2. A plan that considers organization’s future direction and requirements
against capabilities and potential of ‘talent pool’.
3. In large organisations:
 Entry level
 Emerging talent
 Rising stars
 Executive talent.

 Career Management
More long-term view, focusing on retention of committed staff
Talent management also be influenced by Career Management in More long-
term view, focusing on retention of committed staff, and ensure best use of
those committed or talent staff, so we can extract the knowledge ad value of
our workforce to make them benefit; Changes in organizational
career philosophy. Actually, Each person can use Lifespan approach to seek
a best fit of choices based on parameters of Authenticity, Balance and
Challenge, so as we move through our lifespan, we will find one or more of
this parameters is more important than others, and will change the progress of
our lifespan. so we will use the to make decisions about which jobs are going
to be best for us for that particular point in time. as organizations can also do,
matching up employees and organization. it doesn’t really do a lot though for
organizations helping them succession plan.

 Changes in organizational career philosophy:

1. Lifespan approach
Each person can seek a best fit of choices based on parameters of:
 Authenticity – Which is about aligning your internal values to those of
your org
 Balance – Having a balance between work and norm work demands
 Challenge – Is having steaming lading work advancement

As we move through our lifespan, we will find one or more paradise will occur
and that will change along with expand our lifespan, so we will use those to make

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decision about which jobs is the best fit for that particular point in time. As org
can also do match up between employees

Diversity Management
workforce planning also need Diversity Management, even they should be
provided Equal opportunities, but there are differences between people, which
should be valued, and are the source of productive potential within an
organization. these things can help the organization to create their competitive
advantage. Liff, (1997) states that 4 approaches to managing diversity which
are Dissolve differences and stress individualism, Value differences,
Accommodating differences and Utilize differences.

Help organization create competitive advantage

 Equal opportunities: people should be treated
equally regardless of race, ethnic origin, gender, sexual orientation and other
social categorizations.
 Diversity: there are differences between people, which should be valued, and
are the source of productive potential within an organization.

Diversity Management
 Managing Diversity (Liff, 1997)
1. Dissolve differences and stress individualism
2. Value differences
3. Accommodating differences
4. Utilize differences
Value differences culture differences, they key thing is we do draw on
these diversities and use on managing diversity

Research Evidence
 Wang (2016) - his paper focus on flexibility
1. Studied relationships between hours’ underemployment, employee
turnover and HR practices in Canada
2. Underemployment is increasing across the developed world.
Underemployment: workers don’t work as many hours as they want, they
want more hours to work
3. Underemployment negatively impacts employees’ attitudes and
behaviours
4. HR practices can mitigate or exacerbate these problems
Org can take long-term employment and offer development
opportunities, that will increase work commitment and reduce turnover

Wang (2016) Studied relationships between hours underemployment,

employee turnover and HR practices in Canada look into flexibility and
relationship to workforce planning and the kinds of difficulties occur in
organization on managing flexibility and workforce planning. Evidences

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showing that Underemployment is increasing across the developed world, and
employees are not be given the numbers of work hours that they want, they
not work as many hours as they want, so they being under employed. this
made between 17%-30% across numbers of develop country are
underemployed. It is find that Underemployment negatively impacts
employees’ attitudes and behaviours because the organizations want to be
flexible, they want to have lower labour costs. when employees underling this
underemployment, they have worse life satisfaction, they are stressed, it is
link to depression and even alcohol abuse. And HR practices can mitigate or
exacerbate these problems, when look in particular how organizations that
offer internal labour markets can provide grader opportunity to workers who
are underemployed. so organizations focus on longer-term investment in
employees, and career development opportunities can increase worker
commitment and reduce turnover. Wang (2016) also finds that Hours
underemployment increases employee turnover, while HR practices can
minimise turnover when HRM is ocusing on career develop opportunities and
offering part-time employees who are underemployed opportunities to move
into batter jobs by engaging in internal hiring. Thus Internal hiring plays an
important role in reducing underemployed employee turnover.

Practical Implications
 Wang (2016)
1. Hours underemployment increases employee turnover
‘..it is important for employers to consider that, although using part time
employees may reduce labour costs, it may not enhance employee
attendance and retention… practices aiming to reduce labour costs may
negatively impact the security, commitment, loyalty and retention of
employees’ (p. 19)
2. HR practices can minimise turnover
3. Internal hiring plays an important role in reducing underemployed
employee turnover

We can minimize the turnover, offering part time employee, opportunities to

move into better jobs by engaging internal hiring

Research Evidence
 Zeytinoglu et al. (2015)
‘As the work environment evolves and part time and casual hours and
insecurity become more common, questions about their effects on workers’
health are being raised’ (p. 2504)
1. Studied associations between non standard hours, insecurity and health
among home care workers in Canada
2. Non standard hours and insecurity are common characteristics of work
3. Health outcomes include stress & musculoskeletal disorders (MSDs)
4. Non standard hours- As part-time and casual work hours
5. Insecurity: Was in two forms: the job itself and the likelihood losing job
6. Stress: Including mental problem, like you have problem on concentrating.
are you suffering with sleep problems do you have headache do you have
problems of concentrations

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 1. MSDs: pain of low back

High levels of insecurity report have high levels of MSDs

Practical Implications
 Zeytinoglu et al. (2015)
1. The associations between non standard hours and MSDs are mediated by
symptoms of stress, and job and employability insecurity are directly
related to MSDs
2. Non standard hours and insecurity are positively and significantly
associated with workers’ ill health
3. Employment characteristics affect workers’ health
4. Matching hours to workers’ preferences may improve workers’ health
5. Continuity, security and stability can assist in reducing workers’ stress
and MSDs

Zeytinoglu et al. (2015) focus on how insecure work impacts stress levels, did study associations
between non standard hours, insecurity and health among home care workers in Canada,
showing that Health outcomes include stress & musculoskeletal disorders (MSDs) are increasing
inline with the non-standard hours and insecurity occurring. Zeytinoglu et al. (2015) also states
that Non standard hours and insecurity are positively and significantly associated with workers’
ill health which can increase stress levels, compensation claims, reduce performance and
increase uncertainty and turnover rates. all very high costs for organization. Therefore, Matching
hours to workers’ preferences may improve workers’ health. some of problems are being
reported might be minimized if we offer workers a grade level of control of their work hours and
we may meet their preferences and needs. Continuity, security and stability can assist in
reducing workers’ stress and MSDs, which need to rethinking and existing approach
W10 - Performance Management
 Performance management: interconnected practices designed to achieve a few
key functions
1. Appraise a person’s overall capabilities and Potential-Identify key
competency of job, to measure those competencies by annual
performance management appraisal.
2. Set relevant goals for work and development

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 3. Collect and review data on work behaviour and performance -mentoring
and coaching
o Performance management is an ongoing process of communication
between a supervisor and an employee that occurs throughout the year, in
support of accomplishing the strategic objectives of the organization. The
communication process includes clarifying expectations, setting
objectives, identifying goals, providing feedback, and reviewing results.
o Performance Management is the process by which Business Strategy is
translated to Individual Work Tasks.
Performance management is practices designed to achieve a few key
functions in the organization. It Appraise a person’s overall capabilities and
potential, So we engage in some kinds of measurement and appraisal, often
tied to competency and identify key competencies within particular jobs, so
then the next stage during performance management will be to measure
those competencies, to see how well employees are performing and
achieving or fulfilling those competencies, and then (next week) will engage
training and developing appropriate to fill or gap the competency that not be
achieved. To mange performance, it is necessary to set relevant goals for
work and development, In most cases, you would have annual performance
management appraisal, but in some organizations that will be into the burst
with regular meetings to see how you tracking and to make changes
(mentoring & coaching) necessarily. Afterwards, management level need to
Collect and review data on work behaviour and performance.

 Work performance: the principal dimensions of a person’s work can be defined

precisely in performance terms, allowing measurement over agreed periods of
time that also takes account of particular constraints.
0. Produce data used for decision making regarding performance.
1. Decision making is about training, also the decision making about potential
promotion, succession planning and related to the next phrase of what
your targets and goals are.
2. Measures of performance, to align business objectives, aligning HR
practices with business strategy
3. Vertical alignment, you will need to set goals and targets integrated
innovation as core competence, to measure particular aspects of
innovation, designing particular aspects to measure innovation

Work performance is the principal dimensions of a person’s work can be

defined precisely in performance terms, allowing measurement over agreed
periods of time that also takes account of particular constraints. So that
measurement will produce data that is used for decision-making regarding
performance. It will also be decision-making about potential promotion
opportunities and succession planing, especially you are a high performer.
And it would also relate of course to decision-making about the next phase of
what your goals are and what your targets are. Performance management
and the way that we look at work performance and measure work
performance also need tie to business strategy, so performance management

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is at the core of strategic link between HR inputs, HR practices and
organizational performance. So we use these measures of performance, our
system metrics to align business objectives to our performance management
system; aligning our HR practices with business strategy.

 Performance Management Methods

- Suitable (relevant for the person’s job and level of competency and experience)
- Measurable (need to have defined targets)
- Achievable (challenging, extending, but can get there)
- Reviewed (Not always static, changing circumstances, allows for FEEDBACK)
- Timeframe (Relevant times to achieve outcomes)
- Action Plan (What/How/Who/When) – Puts it all together - how the Tasks get
done
Therefore, Performance Management Systems (PMS) must be linked to
business strategy, that enhance firm performance and competitiveness. Goals
are derived from business strategy and adapted for each sector, department,
manager and employee and/or team respectively. It also designed to increase
employee motivation and engagement.

 Dealing with Performance Issues -Its either an Ability issue or a Motivation

Issue?
1. Ability Issues
a. Training, On the Job Support, Coaching, Mentoring, etc, are all valid
responses that can work. But need to be monitored, reviewed, (eg.
SMARTA)
2. Responding to (Motivation Issues) that result in Poor Performance. - Re-
establish required Standards (SMARTA)
a. Closely monitor Behaviour. If it improves – Good, keep going.
b. f it doesn’t improve:
c. Raise the level of concern
d. Seek the other person’s understanding of the Behaviour issue – not the
Attitude

issues
 First Warning / Final Warning – Person needs to understand the seriousness
of situation.
 Provide a sensible time frame for demonstrated performance Improvement.
Closely monitor Behaviour. If it improves – Good, keep going.
 If no improvement – Need to move to Separation (Termination).

Purpose and Processes of Performance Management

 Performance Management Systems
1. A PMS links all levels of an organization through goals, critical success factors
and performance measures.

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 2. Goals are derived from business strategy and adapted for each sector,
department, manager and employee and/or team respectively. Designed to
increase employees' motivation and engagement

We need to ensure at each stage we use performance indicators to ensure

goals been achieved, goals been reviewed based on measurable indicators
and reset, continue recycle.

Performance, judgements and feedback

 PMSs also support performance through diagnosing development needs,
providing ongoing feedback and review and coaching where required.
 A PMS might incorporate, especially for managers:
1. A development centre
2. A performance and development plan (PDP)
 setting targets and reviewing, but also provide ongoing support in order
to maintain motivations and morale.
 PMS s derived from HR, our line managers are carrying out performance
management, alignment organizational goals and business strategy and
how we manage performance, line managers need training and support.
Maintain vertical alignment.
 Professionals including high level in the organization, the development
center/ assessment center, diagnosing developmental needs.
 Goal setting for employees involved, still have measurable objectives.
 The purpose of a PMS:

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The primary purpose of performance management system is to support
performance through diagnosing development needs, providing ongoing
feedback and review and coaching where required. Line managers will be
specially important here, for really most employees, it will be very mediate
supervisors, line manager who is responsible for their performance
management. It is not the HR department, and because performance
management is devoted form HR directly, we do need to make sure that
our line managers are carrying out performance management in a kinds of
way that might be conducted, so that there is the attention to business
strategy and alignment between organizational goals and business
strategy and how we manage performance. So line managers need
training and support, so they are aware of that vertical link and need to
maintain the vertical alignment between business strategy and
performance management. It is easier to look sight day-to-day in running
of the business. Also, A PMS might incorporate, especially for managers,
for example A development centre is used for identifying strengths and
limitations, and diagnosing developmental needs. So rather being used in
selecting and recruitment proposes it being use for performance
management proposes and developmental needs, and A performance
and development plan (PDP) Link overall business aims with key areas
responsibility and the competency and goal-setting for employees involve.
Then a PMS is able to direct they performance in particular way, and this
is also the bases of making-decision about pay, promotions, careers, work
responsibilities for control purpose. It is an incentive to encouraging ees
continue developing, and working invest in. This can be very motivational
functions of performance management. So through this development aim
we would be having discussions about developmental needs and identify
particular training opportunities and plans of actions in order to increase
performance or even further, or to develop competencies or capabilities in
deeply and related direction.

1. Control: retain control overall workforce, direct performance in particular

way, making decisions on pay, work responsibilities
2. Development: we see them as important in organization and worth investing
in. Developmental needs, training opportunities, in order to increase
performance even further. In most organizations tend to be control
elements, because development is expensive and can involve downtime,
more and more evidences to show that development strategy have very
positive effects on reducing turn over
Key tension between appraisal as process to control employees and as
supportive developmental process.

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  Performance management will involve judgment, appraisal, you need to
measure how effectively the employees meet the goals and KPI and
provide feedback. Making judgment is difficult for managers, they can
perceive the judgment as critical, guilt and awkward. Paying attention to
timing of feedback, measure the feedback remains objective in formaty
and fair.
 If the employee agrees with the feedback will relates to valadation
 If will be occationly diagreement regarding the feedback, employees will
take defense attitude, that allow needs to a drop off in motivation and
peformance, it is very demotivationg to recieve critical feedback. Will
have negative effects on performance.
 If more postive, a case of validation, we can not assume it relates to
positive performance, it make no difference on performance. But for
receiveing negative feedback is relates to negative effects on
performance
 Therefore, performance appraisal is unpopular, mostly of organizations
integrating mentoring and coaching

 Diversity Agenda:
After acting performance management system, gathering performance
measurement, the judgement will be involved. making those judgement
often difficult for managers, because they can perceive making
judgements as hostile, critical, and also can involve feeling of guilt.
During the provision of feedback we need to pay particular attention
timely feedback,we have to make sure that the feedback remain
objective in formative fair. Response: if employees agree with the
feedback it will lead to the validation; however, there would be a
disagreement regarding the feedback, and employees will take up a
defensive posture, that lead to the drop of motivations and
performance, it very demotivating to receiving negative or critical
feedback. In practice, there also has Difficulties for women and ethnic
minorities like Glass ceiling, Shortfall in salaries, Biased and
stereotyped judgements and Distortions in ratings of people and their
performance by using first impressions
Difficulties for women and ethnic minorities

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 1. ‘Glass ceiling’
2. Shortfall in salaries
3. Biased and stereotyped judgments
4. Distortions in ratings of people and their performance (e.g. stereotyping and
generalizing, similarity bias, using first impressions)
 social role theory (Eagly, 1987; Eagly, Wood, & Diekman, 2000) proposes
that managerial behavior is influenced by the gender role. To the extent
that gender role affects managerial behavior, female and male managers
would behave dif- ferently in accordance with gender stereotypes (Costa,
Terracciano, & McCrae, 2001).
 Gender stereotypes refer to consensual beliefs regarding gender
differences in traits and behaviors, which are pervasive and widely shared
by both men and women (Kark & Eagly, 2010). Typically, women are
expected to hold communal qualities (such as being sympathetic, friendly,
helping and supporting). In contrast, men are expected to hold agentic
attributes, such as being assertive, dominant, ambitious and confident
(Eagly & Karau, 2002). These stereotypical attributes have been adopted
to explain gender differences in leadership styles. Stereotypical masculine
leadership style characterizes directive and command-and-control
behavior, while stereotypical feminine leadership style characterizes
collaborative and participative behavior (Eagly, 1987; Eagly & Johnson,
1990).
 We argue that managerial coaching, as a collaborative developmental
intervention, is more aligned with the stereotypical feminine leadership
style. Coaching involves fre-quent communication and mutual acceptance
between the manager and the subordinate.
 Similarly, Anderson, Lievens, Van Dam, and Born (2006) showed that
females were rated notably higher on interpersonally oriented leadership
style, including oral commutation and interaction. Thus, it is reasonable
to expect that the advantage in interpersonal behavior will facilitate
female managers to display more coaching behavior towards their
subordinates.
 Ye et al. (2016)-Studied the relationship between coaching, gender and
societal culture across 51 countries - Based on social role theory, role
congruity theory, and cross-cultural theory, we first expect female leaders
to engage in more coaching behavior than male leaders. Second, we
expect that male leadership, particularly coaching behavior, is more
influenced by societal culture than female leadership.

 Appraisal Interviews Benefits:

Appraisal interviews can be adopted to make judgement providing benefits
for organizations such as improving motivation and morale, Clarifying
expectations and reducing ambiguity about performance, Determining
rewards, Identifying training, Improving communication and development
opportunities etc. Appraisal is most contentious and least popular of HRM
activities. Managers do not seem to like doing it, and employees see no

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 point in it (Heathfield, 2007), because it relates to Issues of control,
subjectivity/bias, criticism. Thus, Procedural justice is critical to attitudes
and behaviours associated with appraisal. Procedural justice is
transparent procedures, So when we are involved in performance
management we should ensure that the way we conduct performance
management is transparent and consistent, and ensure that there is
procedural justice because we have follow the procedure in the correct
manner. When we perceive there is a lack of procedural justice, we
become dissatisfied and morale drops, and job satisfaction drops,
commitment drops, performance drops. Therefore, Strength-based
performance appraisals are adopted, focusing on identifying strength and
enhancing strength. That can be used very effectively in conjunction with
mentoring and coaching. Notably, Meyer et al. (1965) states that Criticism
often has a negative impact, while Performance improves with specific
goals, and Participation in goal-setting improves outcomes, mean while
Coaching should be regular rather than sporadic.
1. Improving motivation and morale
2. Clarifying expectations and reducing ambiguity about performance
3. Determining rewards
4. Identifying training and development opportunities
5. Improving motivation and morale
6. Clarifying expectations and reducing ambiguity about performance
7. Determining rewards
8. Identifying training and development opportunities

 Appraisal = most contentious and least popular of HRM activities. Managers do

not seem to like doing it, and employees see no point in it (Heathfield, 2007).
Many confuse Performance Appraisal with Performance Management.
Appraisal may be a once or twice a year process. Performance Management is a
constant – Daily, Weekly, Monthly, Yearly!!
1. Issues of control, subjectivity/bias, criticism
2. Procedural justice is critical to attitudes and behaviours associated with
appraisal
3. Strength-based performance appraisals
 Regardless of those negative effects performance still be using, there are
certain benefits, but not mean overcome potential problems
 Managers and ees don’t like doing it, the standpoint for ees and mgrs
because interventions involved and both feel uncomfortable
 We can do to improve the process and the outcomes, organizations
frequent forget to do perhaps they don’t have time and energy to do.
 The way we conduct performance is transparency.
 We become dissatisfied, our commitment drops when we released that
there is a lack of justice. When we realize there is a justice we will move
on even the performance management result is not positive

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  Use strength-based performance, identify enhance our strength and
develop our strength rather than emphasizing weakness, in conjunction
with mentoring and coaching

 Meyer et al. (1965)

1. Criticism often has a negative impact
2. Praise has little effect
3. Performance improves with specific goals
4. Participation in goal-setting improves outcomes
5. Interviews directed towards improving performance should not put salary or
promotion at risk
6. Coaching should be regular rather than sporadic
 This is old study, it is special relevant, providing criticism, negative impact
on motivation and performance. What does help is specific goals, if we
provide specific clear goals, if we involve employees in goal setting. You
will establish a great level in goal setting process, performance will
increase. The use of coaching should be regularly

Performance and Development

 A developmental PMS would mean a more inclusive approach 利益兼容法 to
talent management. A shift towards future-oriented review and development
that actively involved employees in continuously developing ways of
improving performance in line with needs.
 A shift towards future-oriented review and development that actively involved
employees in continuously developing ways of improving performance in line
with needs.


 Engaging in performance management, slightly difference to traditional

performance management system. Take account of things like resources,
time available any interdependency will impact our performance.

 Performance Meeting
1. Confirmation of Job Description

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 2. Review of previous Work Objectives, Confirmation/ Explanation of
Business Strategy (Within this context)
3. Establishment of future Work Objectives
4. Review of Job Competencies
5. Establishment of Personal Development Plan (to develop further
Competencies)
6. Identification of Career Aspirations

 Approaches to rating performance

Approaches to rating performance, the inputs method which is traditionally
concerned with listing traits/ personality attributes but it Lacks reliability.
More objective technique is Results and outcomes approach which collect
data for appraisal allowing comparison, can not be independent with
performance. Alternatively, can use Behaviour in performance method ,
which is a continuous process, taking account of both subjective and
objective data, focusing on behaviors that effect performance.
1. Inputs - traditionally concerned with listing traits/ personality attributes.
Lacks reliability.
2. Results and outcomes - the most objective technique for collecting data
for appraisal.
3. Behaviour in performance - a continuous process, taking account of both
subjective and objective data
 Combination of results and outcomes and behavior in performance are
more popular
 Inputs is not effective, because the traits and personality is not reliable
 Results and outcomes, have objective aspects, customer complaints, we
need to make sure whatever we measuring is controllable, it cannot
undependable about their performance, it must be measurable

 Coaching & Mentoring

Mentoring is a close interpersonal relationship between a senior more
experience colleague (the mentor) and a less experienced junior colleague
(mentee) in which the mentor provides support, direction and feedback
regarding career plans and personal development. It is informal or formal
with a big wider directions. Coaching refers to managers (incl. supervisors)
communicate goals and expectations with subordinates, provide them
with regular feedback and learning opportunities, in order to enhance
performance and facilitate professional development. Coaching tend to be
shorter period, more formalized. These two activities are Career-related,
Involve sharing ideas, feedback and strategy aiming to achieving
objectives. It can also include provision of protection, ensuring challenging
assignments, and making the promotes more visible, giving exposure. It
can also include direction sponsorship, so the mentor coach might be
nominating proteges for particular programs, that really push them forward
and getting them in the eye. Psychosocially, these activities Involve great
attention on attitudes, value and behavior, friendship consulting, and
helping proteges learning organizational political life. The mentoring will

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increase Job satisfaction (Noe 1988), Organisational commitment (Viator
& Scandura 1991), and decrease Turnover intentions (Allen et al. 2006,
Ghosh & Reio 2013). It provides Role clarity, Job satisfaction,
Organisational commitment (Park 2007).

1. Mentoring = is a close interpersonal relationship/exchange between a

senior more experience colleague (the mentor) and a less experienced
junior colleague (mentee) in which the mentor provides support,
direction and feedback regarding career plans and personal development
(Kram, 1985; Russell & Adams, 1997) - most effective mentoring is
informal.
2. Mentors are ‘individuals with advanced experience and knowledge who
are committed to providing upward mobility and support to their mentee
(Ragins, 1997, p.484).

Outcomes
 Job satisfaction (Noe 1988)- Increase job satisfaction reduces stress bring
to family
1. Mentoring functions have been shown to lead to desired organizational
outcomes. For example, the quality of mentoring functions has been
found to be positively related to the job satisfaction of the mentee (Noe,
1988).
2. Similarly, Liu, Mitchell, Lee, Holtom, and Hinkin (2012) found that the
quality of mentoring has a positive effect on career satisfaction and voice
behavior, and reduces work-to-family spillover. Studies have also found a
positive relationship between the quality of mentoring functions and the
organizational commitment of the menteé.
 Organisational commitment (Viator & Scandura 1991)
 Turnover intentions (Allen et al. 2006, Ghosh & Reio 2013) - have been
defined as ‘a conscious and deliberate willfulness to leave the
organization’ (Tett & Meyer, 1993, p. 262). One mechanism that has been
shown to limit employee turnover intentions and behavior is the
provision of effective mentoring by organizations
o A quality mentoring relationship might be expected to reduce employee
turnover intentions for two main reasons. First, the psychosocial and
career support provided by an effective mentor will enhance perceptions
of a supportive organizational climate (Joiner et al., 2004). This will
reduce the likelihood that the mentee will consider leaving the
organization through facilitating socialization into an organization’s
culture, enhance identification with the organization and make them feel
confident in their ability to do their job (McBain, 2005; Viator & Scandura,
1991). Second, a strong mentoring relationship represents an investment
for the mentee that they will lose if they leave the organization (Payne &
Huffman, 2005). This will lead to a reluctance on their part to consider
leaving the organization, as doing so will require them start-over and
invest in building a relationship with a new mentor.

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 o Similarly, Viator and Scandura (1991) found that employees who had an
informal mentoring relationship reported lower intentions to turnover
than those without a relationship.
o Mentoring has positive effects on employee performance as a means by
which to achieve and maintain competitive advantage (Allen, Smith,
Mael, O’Shea, & Eby, 2009; Smith, Howard, & Harrington, 2005),
o There is growing evidence that turnover intentions are the most
significant attitudinal predictor of actual turnover behavior (Ajzen &
Fishbein, 1980; Kraut, 1975; Mobley, Horner, & Hollingsworth, 1978;
Steel & Ovalle, 1984; Tett & Meyer, 1993).
o Retaining talented and dedicated employees can provide organizations
with a competitive advantage (Holtom, Mitchell, Lee, & Eberly, 2008;
Pfeffer, 1994). Research has shown that significant costs result from
losing skilled employees (Hatch & Dyer, 2004; Shaw, Gupta, & Delery,
2005), and that a high turnover rate may impair organizational
effectiveness (Hom & Griffeth, 1995).
o The provision of quality mentoring relationships by an organization will
lead employees to feel supported by the organization, and in turn feel
obligated to reciprocate 报答 this positive treatment by heightening their
willingness to stay with the organization and not to seek alternative
employment opportunities outside their present organization. Better
understanding of how mentoring functions influence turnover intentions
will enable organizations to design mentoring programs with the aim of
limiting the negative effects that high turnover rates bring.

 Research Evidence
Recent empirical findings suggest that mentoring has a positive influence on
employee perceptions of the organization Park et al. (2016)

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  Despite an increasing number of studies investigating the effects of
mentoring on employee work outcomes, limited attention has been
placed on the relationship between mentoring functions and turnover
intentions. In this study, we examined the relationship between
mentoring functions and turnover intentions, and the mediating role of
perceived organizational support (POS) on this relationship.
 Mentoring is negatively associated wit turn over, will increase
performance and reduce turnover intentions. Has positive associated
with perceived organization support. There is a negative associated
between perceived organizational support and turnover intentions

 Development of effective mentoring programs would benefit individuals and

organisations
1. Attention must be devoted to the selection and training/development of
mentors
 organizations should consider providing training and support for mentors to
ensure they provide appropriate career-related and psychosocial support to
theirmentees. They might also consider providing sufficient incentives to
encourage employees to take on the role of a mentor such as including effective
mentoring as key criteria in the performance appraisal and promotion process. In
addition, organizations may use selection processes to identify individuals that
are likely to do an effective job as mentors.
 organizations should be careful to choose mentors that closely identify with the
organization and embody the organization’s values. In line with recent findings
from Baranik et al. (2010), organizations should consider providing mentoring
support that is specific to the organization as it was found to have a greater
effect on POS than more general support.

2. Coaching =managerial coaching is generally viewed as a managerial behaviour

intended to improve subordinates’ performance and facilitate their learning and
development. Ye et al. (2016). Managers (incl. supervisors) communicate goals
and expectations with subordinates, provide them with regular feedback and
learning opportunities, in order to enhance performance and facilitate
professional development
 To facilitate employee development, human resource management now may
need to switch their emphasis from organizing off-site training and development
programs to helping line managers conduct effective on-site coaching with their
subordinates (Mindell, 1995; Yarnall, 1998).
 Specifically, managerial coaching is not a one-way, directive, or short-term
performance-driven-only intervention (Agarwal et al., 2009; Anderson, 2013;
Ellinger, 2013; Ladyshewsky, 2010). In contrast, it is a long-term collaborative
process, during which the manager acts as a partner with the subordinate.
Instead of simply providing answers and directions, the manager actively listens
to the subordinate and works together with the subordinate to find the solution
(Peterson & Little, 2005). The manager also needs to adapt to individual
differences and provides feedback, supports and resources according to the
subordinate’s progress and development (Duff, 2013). For any coaching to be

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 effective, the manager–subordinate relationship, with mutual trust and shared
values, is a fundamental feature (Egan & Hamlin, 2014), a basic element (Gregory
& Levy, 2010) and ‘the real vehicle for change (Gyllensten & Palmer, 2007, p.
168)’.

Outcomes:
1. Role clarity (Ellinger & Bostrom 1999) & learning (Park 2007)
 Job satisfaction (Hamlin et al. 2006) & work attitudes (Kim et al. 2013) work
attitudes
 Organisational commitment (Park 2007)
 Turnover intentions (Park 2007)
 Individual performance (Liu & Batt 2010) & organisational performance
(Ladyshewsky 2010)
2. Empirical evidence has also demonstrated the positive effects of managerial
coaching on subordinates’ role clarity (Ellinger & Bostrom, 1999), work attitudes
(Kim, Egan, Kim, & Kim, 2013), personal learning (Beattie, 2002; Park, 2007),
organizational commitment and decreased turnover intention (Park, 2007), job
satisfaction (Hamlin, Ellinger, & Beattie, 2006) and work-related individual
performance as well as organization perfor- mance (Agarwal, Angst, & Magni,
2009; Ladyshewsky, 2010; Liu & Batt, 2010).

 Mentoring & Coaching Functions

There are various functions that mentors provide for prote ́ge ́s. Kram (1985)
classified them into two broad types:
1. Career-related:
 Career-related mentoring functions help the prote ́ge ́s advance their career
in the organization, increase their sense of competence, and demonstrate
the mentor’s commitment (Kram, 1985). They involve coaching (sharing ideas,
providing feedback, and suggesting strategies for accomplishing work
objectives), supplying protection (reducing unnecessary risks that might
threaten the prote ́ge ́’s reputation), providing challenging assignments,
increasing employee exposure and visibility (providing the prote ́ge ́ with
assignments that are seen by organizational decision makers and exposing
them to future opportunities), and direct forms of sponsorship (nominating
the prote ́ge ́ for desirable projects, lateral moves, and promotions).
 For example, career-related mentoring functions will assist the prote ́ge ́ to
develop their career within the organization and their sense of competence.
This may lead prote ́ge ́s to develop feelings that the organization is
supporting their career development and that the organization is willing to
develop a long-term relationship with them (Hu et al., 2014).
2. Psychosocial:
 Psychosocial mentoring functions include serving as a role model (conveying
appropriate attitudes, values, and behavior), friendship (interacting
informally with the prote ǵ e ́ at work), and counseling (providing positive
regard and acceptance) (Scandura, 1992; Scandura & Viator, 1994). The
mentor may utilize their position, experience, and organizational influence to

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 help the junior employee learn the intricacies of organizational life, gain
exposure, and obtain promotion (Allen, Eby, Poteet, Lentz, & Lima, 2004).
 Social exchange theory maintains that individuals develop and maintain
relationships based on their perceived costs and benefits (Blau, 1964). Social
exchange relationships involve the exchange of resources between both
parties in the relationship, which may include extrinsic benefits, psychosocial
support, advice, and information. When an individual benefits from a
relationship with an exchange partner, the norm of reciprocity (Gouldner,
1960) will lead the recipient to feel obliged to reciprocate the positive
treatment to maintain balance in the social exchange relationship.

 Evidence-based Mentoring & Coaching

The Evidence-based Mentoring & Coaching needs critical thinking to apprise
interventions in its content and to ensure the right choices are made; should
use best available scientific evidence to look at potential benefits of wether
coaching or mentoring, and help to adopt it in the organization to produce
potential benefits, should use best available business metrics especially when
we making evaluations about how effectiveness the approaches are, so if we
want look at individual performance before after coaching is used, we need to
use valuable metrics to measure that performance; should engage in critical
reflection thinking about how the approach is working, and considering use of
various stakeholders, taking into account of what is cost-benefit analysis, are
the key problems are criticism, and how approaches can be improved. Typical
examples of Mentoring & Coaching Metrics are psychometrics, 360-degree
feedback and other performance appraisal records, individual diagnostics,
team diagnostics and performance data and HR systems data on absence,
retention, talent management, learning attainments etc. A few of
Recommendations for mentoring are given by CIPD (2012), for example,
mentors should Become familiar with the academic evidence for coaching and
related areas, and Understand how coaching contributes towards line
manager effectiveness.

1. critical thinking – appraising intervention in context ensuring the right

choices are made.
2. using the best available scientific evidence –we should be drawing on
research evidence, especially on top quality journal.
3. using the best available business metrics – use measurable and reliable
metrics to measure performance. Objectives to align with business strategy
4. engaging in critical reflection –considering stakeholders taking into account
things like what is cost and benefit alliance, are they criticism, how could
heny approach to be improved then address these problems.

 Mentoring & Coaching Metrics (CIPD 2012)

1. psychometrics
2. 360-degree feedback and other performance appraisal records
3. individual diagnostics
4. team diagnostics and performance data
5. employee surveys and polls

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 6. HR systems data on absence, retention, talent management, learning
attainments
7. business process, quality and productivity data
8. target, audit and compliance data
9. financial data (for example revenue, profit and earnings data)
 Potential metrics can be used. We could use to measure performance and
measurer in a different levels. We could use a combination of those metrics,
should be based on most going to be reliable and effective,

 Recommendations for Mentoring & Coaching (CIPD 2012)

 Approach coaching critically in your organisation. How has coaching arisen?
Has the question been asked about its value and effectiveness? Is coaching
the best intervention available?
 Become familiar with the academic evidence for coaching and related areas.
 Understand how coaching contributes towards line manager effectiveness.
 Support the coaching and mentoring skills and behaviours of line managers
and emphasise the consequence and impact of different approaches.
 Contribute to the evidence-informed approach- by collecting data and
analysing data

 Research Evidence
1. Park et al. (2016)
a. Studied the process by which mentoring reduces turnover intentions in
Chinese banks
b. Mentoring
c. Perceived organisational support (POS)- (Shanock & Eisenberger, 2006):
o The organization values my contribution to its well-being. The
organization strongly considers my goals and values.
o The organization really cares about my well-being.
o The organization is willing to help me when I need a special favour.
o The organization shows very little concern for me (Reverse coding
item). The organization takes pride in my accomplishments at work.
d. Turnover intentions has negative on performance, if they have turn over
intentions, the performance usually declining. Under organisational
control. We can control turn over, and may be through mentoring
organisational support and reducing cost and at the same time increase
performance
o They looked at mentoring and how potential the idea the mentoring
reduces turnover intention and the role perceived in organization
o Is the ees believe that the org value their contributions and cares
about their wellbeing. And turnover intention can be chose as a
measure, it’s good for organization to reduce actual cost and turn
over
e. Mentoring has a negative effect on turnover intentions; mentoring is
positively related to POS; and POS is negatively related to turnover
intentions

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 f. POS mediates the relationship between mentoring and turnover
intentions
Park et al. (2016) Studied the process by which mentoring reduces turnover
intentions in Chinese banks, finding that Mentoring is often associates with
reduce turnover intentions. Perceived organisational support (POS) is the
employees’ belief that the organization value their contributions and cares
they well-being. POS may play mediating link between mentoring and
turnover intentions. For Turnover intentions, was chosen as a measure
because its stronger predictor of actual turnover. And givens high costs
turnover, it beneficial for organization to able to reduce those necessary costs,
so if we focus on turnover intentions, we potentially overcome problems and
reduce actual turnover costs associated with. As a result, Mentoring has a
negative effect on turnover intentions; mentoring is positively related to POS;
and POS is negatively related to turnover intentions, POS mediates the
relationship between mentoring and turnover intentions. Furthermore,
Development of effective mentoring programs would benefit individuals and
organizations; Employees may be more supported by the organization and
they reciprocate with designed workplace attitudes and behaviors. Within
POS, we can lever up through performance management system by using
coaching and mentoring, however, Attention must be devoted to the selection
and training/development of mentors finding who have the right
representatives and organizational values) and carefully matching mentor with
proteges.

 Research Evidence
1. Ye et al. (2016)
a. Studied the relationship between coaching, gender and societal
culture across 51 countries
b. Focus on managerial coaching: They looked in particular in
managerial coaching, they did find coaching related with gender.
Coaching more common in holistic country, will have higher
expectation in coaching, if we encourage more women in, can great
facilitate coaching, we need to train male managers better, they not
naturally to use coaching frequently. It is very important if we have
expatriates especially male mangers from the country like the UK to
Asian countries. We need to increase the training before moving into
those countries.
c. Coaching was correlated with gender
d. Coaching was correlated with collectivism
o Hofstede (1980) defines Collectivism as a preference for a tightly knit
framework in society in which individuals can expect their relatives or
members of a particular in- group to look after them in exchange for
unquestioning loyalty. Similarly, the GLOBE project defines
Collectivism as ‘the degree to which individuals express pride, loyalty
and cohesiveness in their organizations or families (House, Hanges,
Javidan, Dorfman, & Gupta, 2004, p. 12)’.
o Collectivistic cultures emphasize interdependence among
organizational members. People in these cultures tend to have closer

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 interpersonal relationships with each other and tend to be more
sympathetic towards others’ feelings and concerns (Markus &
Kitayama, 1991). As a result, managers in collectivistic cultures may
pay closer atten- tion to their subordinates’ job-related issues and
use coaching to help them resolve any concerns. Meanwhile,
collectivistic subordinates are more likely to appreciate their
manager’s care and support, because they tend to seek advice and
guid- ance from their supervisor (Oyserman, Coon, & Kemmelmeier,
2002; Pellegrini & Scandura, 2008).
o In contrast, people in individualistic cultures are more likely to view
self as inde- pendent of others (Triandis, 1995). Individual initiative
and autonomy are respected and valued in individualistic cultures
(Singelis, 1994). Individualists may be less dependent on their
managers when pursuing their per- sonal development, because they
are expected to take care of themselves (Oyserman et al., 2002).
Thus, it is reasonable to argue that managerial coaching may be more
easily facilitated in collectivistic cultures.
e. Encouraging more women in management would facilitate coaching
f. Expatriate managers may need to adapt their managerial coaching
behaviour to meet the expectations of their subordinates

WEEK 12 Reward MANAGEMENT

 Reward: monetary, non-monetary and psychological payments an organization

provides for its employees in exchange for the work they perform.
o Rewarding employees is a key component of organisations’ human resource
management (Dulebohn and Werling, 2007)
o According to Vroom's Expectancy Theory (1964), Adams’s Equity Theory (1965),
and Lawler’s Discrepancy Theory (1971), It has been demonstrated that rewards
and in particular satisfaction with these rewards - stimulate desirable employee
bhaviours and attitudes ((e.g. performance, commitment) and discourage
unfavorable ones (e.g. turnover, absenteeism; Williams et al., 2006).

The nature of reward management:

 Extrinsic Rewards – Employee’s basic needs for survival, security and
recognition-derived from job context, working conditions, financial payments,
pay, incentives, Benefits, etc. )
 Intrinsic Rewards –Psychological ‘enjoyment’ and satisfaction of ‘challenge’ or
‘psychic income’,-challenge at work, derived from factors inherited in job
contents, including the interest and challenge it provides, the task variety and
autonomy, the degree of feedback, etc. Hence it follows that one of the most
important determinants of the level of Intrinsic Reward is how work is organised
– Job Design.
The term of extrinsic rewards and intrinsic rewards are consistency with
monetary and non-monetary reward. Extrinsic rewards can provide
Employee’s basic needs for survival, security and recognition. It will include

87
financial payments , working conditions and managerial behavior . Intrinsic
Rewards are the Psychological ‘enjoyment’ and satisfaction of ‘challenge’ or
‘psychic income’. It divides from the inherent of job content, the way of the job
designed, such as task variety, autonomy in the job, therefore influence the
challenge of a job. If intrinsic reward is heightened, it will be coast effectively.
So, the The mix of extrinsic and intrinsic rewards provided by the employer is
termed its reward system. And Combined pay like salary and non-pay
benefits like health insurance constitute the payment system.

We can change the aspects of work to certain extent, we can redesign, increase the
task variety, increase the intrinsic rewards. RELATIVELY - cost effective way, they
don't need to incase the wages.
 Reward system: The mix of extrinsic and intrinsic rewards provided by the
employer
 payment system: Combined pay and non-pay benefits. (E.g. Non-pay things like
health insurance, additional leave entitlements)
 Two contradictory elements:
 Cooperation between employee and employer/manager, fostered through
the logic of financial gain for the worker- You do the right thing you get
rewarded
 Conflict is engendered through the logic that makes the ‘buying’ of labour
the reward for one group and the cost for the other - there is any incentive
for employers to push you work harder. Potentially feel conflict because the
two parts have two objectives. Employees seeking higher pay and more
rewards, employer seeking minimize their payment and rewards, that is part
of bargain. Balance is constantly shifting.

A model of reward management

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 In addition
o Reward management is the process of designing and implementing
strategies to reward employees fairly with the goal to attract, motivate and
retain those employees that are believed to help facilitate the realisation of
organisational goals (Dulebohn and Werling, 2007).
o A holistic approach to Reward Management means choosing Financial
Rewards that will be compatible with the Non Financial Rewards that an
organisation may offer its employees – Concept of Total Reward Strategy
(Feuhrer, 1994).
o Nankervis, et al, 2014
A Reward is anything Tangible (e.g. Financial rewards such as
remuneration, cash or company shares) or Intangible (e.g.. Psychological
rewards such as self esteem or work satisfaction) that an organisation
offers to its employees in exchange for their potential or actual work
contribution.”
“The importance of rewards lies not just in what is offered...but also in how
employees respond to what is offered. For any reward to be meaningful
...and hence to be able to influence how employees think, feel and behave
– the reward must be one to which employees, as individuals, attach a
positive value as a satisfier of certain self defined needs”. (c.f Maslow and
Hertzberg !!)

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 “A “reward” that is viewed...as meaningless and unsatisfying will not
produce favourable psychological and behavioral responses...and will
therefore fail to support the organisation’s objectives and strategies”.

 Reward Options
1. Job-based: wage assigned to the jobs that employees perform.
2. Person-based: based on knowledge, formal qualifications, skills or
competencies of individual employee.
3. Performance-based: ties pay to employees’ ‘effort’ or outputs (individual,
team/group, organizational)- it could be tied to team or organisational
performance, profit sharing.
In terms of incentive size, research shows that performance-based pay raises
must be large enough (about 7 per cent) to have meaningful effects (Mitra et
al., 1997, 2015). Often, pay raises do not meet this threshold and are thus
unlikely to have the desired effects. (Shaw, J.D. and Gupta, N., 2015)
Disadvantage: Sometimes organisations use more than one incentive system,
and these incentives work at cross purposes. Beer and Cannon (2004), for
example, reported on the problems encountered in the implantation of pay-
for-performance plans in multiple sites at Hewlett-Packard in the 1990s. At
the San Diego site, the system was designed to have a team pay-for-
performance component and an individual skill-based pay component that
encouraged learning new skills. The incentives systems were dropped after 1
year in one division, the plan failed not due to the use of team incentives
(they work, in general; see, Garbers and Konradt, 2014) or because of the use
of skill-based pay plans (they are shown to work in other settings; see, Shaw
et al., 2005), but because the two were used simultaneously, and the two
promoted conflicting behaviours.

 Reward Techniques
Internal labour market equity: pay relationships between jobs within a
single organization.
1. Job analysis: collecting and evaluating information about tasks, context of
specific job.
2. Job evaluation: comparing relative contributions of jobs
3. Performance appraisal: evaluate employees’ performance.

 Reward Competitiveness
1. External equity: how should organization position its pay relative to what
others are paying?
Three options:
(i) Pay leader
(ii) Match the market rate

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 (iii) Lag behind what competitive organizations are paying
Three options:
(i) Pay leader
(ii) Match the market rate
(iii) Lag behind what competitive organizations are paying
Three contingencies:
(i) Labour market
(ii) Product market
(iii) Organisational

o ‘total reward management’: considering a reward as any valued outcome an

employee receives from the employer in exchange for his/her performance.
Hence, total reward management acknowledges that it is important to provide
the appropriate financial rewards, but stresses the necessity of complementing
these with other reward types (Chiang and Birtch, 2011).
o The key premise of reward management is that rewards drive employee
behaviours and attitudes, this relationship is not a direct one. Instead, it is the
value that employees attach to those rewards (e.g. Vroom, 1964), or even more,
the satisfaction with these rewards (Lawler, 1971) that influences their
behaviours and attitudes.
o Pay satisfaction’ is defined as the degree to which an employee is satisfied with
his/her pay (Williams et al., 2006) – similar definitions apply to satisfaction with
material and psychological rewards – and this is typically measured by using a
bipolar scale ranging from ‘totally dissatisfied’ to ‘totally satisfied’.
o Elements of Total Reward Management

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Collective bargaining and government in determining pay
 Collective bargaining: framework for negotiations over pay and working time
and conditions, at workplace, corporate or industry level.
1. Collective bargaining is the raison d’être of trade unions
2. Creates a wage ‘floor’
3. Minimises pay dispersion and inequality - If you are at the same
classification will at the same pay level.
4. Promotes gender pay equity - Centralisation of collective bargaining
promotes it
These are frameworks of pay, the bargain is the agreement between employer
union and workforce. Trade unions will represent workers right to push wages
up, their success to do that depends on the power of unions. Collective bargain
cause wage flow.

 Equal pay legislation

The concept of pay equity conflicts with view that employees’ pay should be
dictated by supply and demand of labour.
Gender:
Despite equal pay legislation, we see continued income disparity between
men and women.
1. ‘Masculine logic’-undervalue job for women.
2. Gender bias in job evaluation-organisations engaging job evaluations, job
more frequently by man.
3. Industrial & Occupational sex segregation-there are particular industry like
communicate service. Child workers… they are lower pays cause they are
women dominants
Current Issues Gender Pay Gap in Australia
1. Pay Equity Principles:
i. Elimination of all gender bias from pay determination processes.
ii. Men and Women undertaking work of the same, or comparable
value, to the Organisation and Society, should receive the same
pay, benefits and conditions.
2. Between 2004 and 2012 the Gender Pay Gap increased in Australia !!
i. 14.9% to 17.4% (Reversing a previous “closing” trend from 1996)
3. Key Reasons:
i. Industry Segregation = Women not as numerous in high paying
industries (e.g.
Mining and Construction)
ii. Disincentives for Women to work more hours than Men in
“equivalent roles”

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 Regulation of low pay (Gautie & Schmitt 2010)
1. Low wage workers earn a gross hourly wage of less than 2/3 of the country’s
median gross hourly wage
2. Across six countries studied, US (25%) had highest share of low wage
employment; France (11.1%) & Denmark (8.5%) had smallest shares
3. The most significant explanatory factor is the ‘inclusiveness’ of the country’s
labour market institutions
4. Other factors include: immigration, income support & ‘exit options’
5. Government policies can directly affect reward management by introducing
pay control programmes
6. In Australia, the Fair Work Commission sets the minimum wage (i.e. $17.70
per hour, currently)
7. Lower rates apply to trainees, youth employees
8. Minimum wages primarily impact award-reliant and low paid workers
9. Wages are higher in other collective and individual agreements

 Emerging Trends
1. The balance of power has shifted - Power shifting to employer side. Wage
growth has been very small for many years. Employers can push wages down.
In combination, there are numbers of reasons: reduce representation of
unions decline; Globalization continuing, competition intense service.
2. Inadequate knowledge and representation
3. ‘exit options’ / avoidance of Regulation-Expanding, use temporary forms of
labour. Some options are legal some are illegal. Offshoring.
4. Underpayment and exploitation
5. Expansion of ‘low road’ strategies?
6. Alternative, ‘high road’ strategies (Lloyd & Payne 2016, Knox & Warhurst
forthcoming)
 Reorganising work process
 Introducing new technology
 Implementing innovative products/services
 Providing more and better training
7. Offsetting higher wages by increasing productivity/profits and/or reducing
turnover
8. Facilitated by blocking off ‘low road’ via regulation; union voice; and
encouraging/supporting ‘high road’ firms

 How we can promote high road strategies.

1. Offsetting higher wages by increasing productivity/profits and/or reducing
turnover
2. Facilitated by blocking off ‘low road’ via regulation; union voice; and
encouraging/supporting ‘high road’ firms

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 We also can block of low road and shift to high road by including union voice and
institution and policy can also support. We need provide better training,
technologies and work system.

 Sham Contracting as an ‘exit option’ -e.g Uber

Key Employment (based on Disadvantages Self Employment Disadvantages
Party an Employment Contract) (based on a Service
Advantages Contract)
Advantages
Worker National Dependence on employer Independence & Registration of business
Employment flexibility & Goods and Service Tax
Standards (NES) (incl. Exclusivity applies (GST) applies
working hours, Potential tax benefits
annual leave, long Record keeping
service leave & sick Free to work for
leave) & minimum multiple hirers Responsible for own
wage provisions insurance against work-
apply Free to subcontract related injury
work or delegate to
Superannuation others Supply & maintenance of
contributions made tools/equipment
by employer
Risk of losses
Workers
compensation Potential ‘sham’
entitlements apply contracting

Time-based payment

Hirer Exclusivity applies NES and minimum wage Eliminates Lack of exclusivity
provisions apply; imposes disadvantages
Right to exercise minimum entitlements associated with Lack of detailed control
detailed control over incl. pay rates, penalty employment over how work is
the way work is rates, allowances, leave contracts as industrial performed
performed and other relations laws do not
benefits/contributions apply (instead
(incl. workers commercial contract
compensation, long laws apply)
service leave,
superannuation), Results-based
minimum engagement payment
periods

Liable for deduction of tax

Liable for unfair dismissal

Liable for wrongdoing of

employees

Record keeping

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 Job evaluation and internal equity
1. Job evaluation: Process designed to determine relative worth of jobs within a
single work organization.
Reward should not be job- but person based. Position of employees in pay
structure is determined less by the formal job description and more by skills and
performance.
4. Job Evaluation Characteristics:
a. Systematic technique rather than scientific
b. Worth of the job rather than on the worth of the employee
c. Suspect validity of job evaluation process and accuracy of assessment
method.
5. Job Evaluation Process:
a. Gathering data
b. Selecting compensable factors
c. Evaluating the job
i. Ranking
ii. Job-grading
iii. Factor comparison
iv. The point method.
d. Assigning pay to the job.

 Establishing pay structure and levels

1. Pay dispersion: Range in pay structures from flat ‘egalitarian’ to ‘hierarchical.
2. Pay basis: under traditional job-based pay systems, the pay level for any job
reflects its relative and absolute worth.
Depends on the country and bargaining system. Pay structure another is pay
basis, the relative worth is determining by job evaluation what the worth to the
organization absolutely the job is worth in the labor market, what is the external
job market to pay for the similar. Combining the job evaluation and pay basis
information especially market pay data.

2. Establishing pay structure and levels

It is based on job evaluation. The jobs are more have high value to the
organization they will have higher pay.

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 Research Evidence
Shaw & Gupta (2015)
1. Studied the evidence related to financial incentives and performance via
meta analysis
a. Quantity (how much is produced)
b. Quantity (how much is produced)
2. Financial incentives relate positively to performance
a. Quantitatively and qualitatively
 Indeed, in workplace settings, evidence suggests that people feel
more autonomy when they are paid for performance (Fang and
Gerhart, 2012).
 Jenkins (1986) compared financial incentive studies conducted in the
laboratory,he concluded that the evidence indicated that financial
incentives had positive effects on performance quantity and that
effect sizes were generally similar across research designs.
3. Financial incentives enhance extrinsic and intrinsic motivation
4. Extrinsic rewards (i.e. financial incentives) are effective motivators
a. The Cameron and Pierce (1994) study provided the first direct
cumulative evidence that extrinsic rewards were effective and did not
diminish intrinsic motivation.
b. Extrinsic: autonomy, challenges, we can train managers to draw on,
providing and allowing more autonomy encouraging agreement and
engagement. Identify those workers who especially important to we
should provide this point of rewards. We need to combine extrinsic
and intrinsic rewards.
5. Intrinsic rewards, associated with challenge, engagement and
autonomy, are also important motivators
6. Combining extrinsic and intrinsic rewards is necessary

De Gieter & Hofmans (2015)

1. Studied the relationship between satisfaction with reward types and
employee outcomes in a Belgian financial institution

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2. Reward types there are several categorisations of rewards available (e.g.
De Gieter et al., 2008; Chiang and Birtch, 2011), applying similar
categorisation principles.
a. Financial ：First, financial rewards (e.g. base pay, bonuses) derive
their motivating potential from their instrumental value: money can
be exchanged for desired goods and services.
b. Material- Second, material rewards or benefits (e.g. training
opportunity, health insurance, non-monetary) are considered as
tangible rewards without necessarily benefiting the employees in a
monetary way, although having a monetary value.
c. Psychological-Third, psychological rewards (e.g. recognition from
supervisor, compliment from a colleague) do not imply a monetary
cost for the organisation; instead, they are positively evaluated
outcomes of the exchange relationship between an employee and
his/her supervisor, colleagues or clients (De Gieter et al., 2008).
3. Employee outcomes
a. Turnover intentions
b. Task performance

o Nevertheless, research on reward outcomes has two major

shortcomings.
 First, the focus has traditionally been on financial rewards,
whereas recently both scholars and practitioners have highlighted
the added value of focusing on non-financial rewards (e.g. Chiang
and Birtch, 2011; Hofmans et al., 2013)
 Second, scholars have traditionally attempted to unravel the
relationship between rewards, reward satisfaction and employee
outcomes for the ‘average’ employee, thereby disregarding
potential individual or between-employee differences in this
relationship.
 Individual difference in the relationship between satisfaction
with different reward types and two important employee
outcomes: turnover intentions and supervisor-rated task
performance.

o It is important for organisations to gain a better understanding of

individual differences in the way in which different rewards affect
employees’ turnover intentions and performance; especially in light of
the increasing economic pressure for efficiency and the war for
talented employees (McDonnell, 2011).

4. Only 9% of employees’ turnover intentions were influenced by the entire

reward package. - A significant negative relationship existed between
satisfaction with financial rewards, material rewards and psychological
rewards and turnover intention.

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 a.In particular, people belonging to the turnover by financial rewards
group were significantly younger (mean age = 33.40 years) and had
less tenure (mean tenure = 8.81 years)
5. Approx. half (49%) of employees’ turnover intentions were influenced
exclusively by satisfaction with psychological rewards.- only satisfaction
with psychological rewards was significantly related to turnover intention,
whereas satisfaction with financial rewards and material rewards were
unrelated to turnover intention.
6. The remaining (42%) employees’ turnover intentions were influenced
exclusively by satisfaction with financial rewards-related negatively to
satisfaction with financial rewards only
b. It can be seen that people with a secondary school degree belonged
primarily to the turnover by psychological rewards group, in which
satisfaction with psychological rewards related significantly to
turnover intention. People with a bachelor’s degree were spread out
across the three subgroups, and people with a master’s degree were
mostly found in the turnover by financial rewards group.
c. Needs to take account of individual different, building more flexible
reward packages, (Generation Y- financial, baby boomer more
psychological), taking advantage of that.
7. Satisfaction with financial rewards does not enhance performance
o This analysis revealed that only satisfaction with financial rewards
turned out to be a significant and surprisingly negative predictor of
task performance (β = −0.71, p < 0.001, see Table 4). In particular, the
more satisfied employees are with their financial rewards, the higher
the probability of getting a poor performance evaluation.
o In general, task performance was negatively influenced by satisfaction
with financial rewards, whereas satisfaction with material rewards
and psychological rewards did not significantly influence task
performance.

 Practical Implications - De Gieter & Hofmans (2015)

1. Individual differences need to be taken into account
2. Firms should invest in offering a well-balanced reward package
3. Value in raising supervisors awareness of the importance of psychological
rewards
The most determines is psychological rewards. Needs to take account of
individual different, building more flexible reward packages, (Generation Y-
financial, baby boomer more psychological), taking advantage of that.
o Altogether, our results suggest that organisations need to pay attention to
individual differences in reward preferences among employees, and keep this in
mind when (re)designing their reward policies in order to reduce the level of
voluntary employee turnover. Evidently, one reward type cannot compensate for
another reward type, but for some employees, satisfaction with a certain reward
type influences their intention to leave, whereas for others, satisfaction with the
same reward does not.

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o According to needs theories, individuals differ in their levels of certain needs
(Maslow, 1943; Luthans and Kreitner, 1975), which suggests that the need for a
particular reward type or the corresponding value attached to this reward type
may vary (Mitchell and Mickel, 1999). Consequently, satisfaction with a particular
reward type may have a different effect on the behaviours and attitudes of
different employee.some studies have found differences between groups of
employees in their preferences for certain rewards, depending on employment
level (Kovach, 1995; Dubinsky et al., 2000) and personal characteristics such as
age (Von Bonsdorff, 2011).
o From the practical point of view, our findings suggest that organisations need to
make sure that employees are not dissatisfied with their financial rewards, as this
state may lead to increased turnover intentions.

 Solution
To counter this, employers could consider leaving the reward system based on
tenure behind – which typically pays the lowest salaries to the youngest
employees – and consider a reward system in which employees receive a higher
salary at the beginning of their career – the life phase in which they need to
invest a lot in all life domains (e.g. buying a house, paying child care). As for
educational background, the turnover intentions of the lower educated
participants – having a secondary school degree – were not influenced by
satisfaction with financial and material rewards (68.3%), presumably because
they know their financial and material reward options are limited anyway.

therefore, investing too much effort and budget in assembling a comprehensive

material reward package may not be the most effective approach. As such,
organisations may want to invest in offering a well-balanced financial reward
package, and raising their supervisors’ awareness of the importance of
psychologically rewarding employees by offering them opportunities to train
their interpersonal management skills.

The result of this strategy may be an environment that stimulates intrinsic

motivation and, subsequently, performance. As mentioned before, organisations
may benefit from training their supervisors to design challenging and need-
fulfilling working conditions and to provide their employees with a diverse
package of rewards, without putting the emphasis on financial rewards.

However, we would not advice organisations to overly focus on financial

rewards, as satisfaction with this type of rewards does not enhance performance.
Instead, we suggest that organisations may provide job resources that allow
employees to feel competent – such as increasing the level of autonomy or task
variety – and therefore enhance employees’ chances of satisfying their basic
psychological needs.

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 In addition:
Many studies have shown that the more employees feel dissatisfied with their
financial rewards, the higher the risk they leave the organisation (e.g. DeConinck
and Stilwell, 2004; Currall et al., 2005; Williams et al., 2006). This negative
relationship has been found for a variety of employees. Despite the dominant
focus on financial rewards, there is limited evidence that satisfaction with the
other reward types is also related to turnover intentions (DeConinck and Stilwell,
2004; Williams et al., 2008; De Gieter et al., 2012). For these alternative reward
types, the same logic holds: the more dissatisfied employees are with their
material and psychological rewards, the more likely they will leave the
organisation.

The relationship between reward satisfaction and performance is more

ambiguous as performance is a multidimensional concept, including both task
performance, and extra role performance (Williams and Anderson, 1991).
Furthermore, the different performance types can be operationalised in different
ways: self-rated, other-rated or objective performance (e.g. sales figures).

In sum, the results of these studies clearly illustrate that the more important a
reward type is for an employee, the more we can expect that satisfaction with
this reward type will influence the employee’s behaviours and attitudes.

financial security’ represents the importance of having the resources to support a

certain standard of living now and in the foreseeable future. Second, employees
who value ‘recognition’ want to have the feeling that their work is appreciated by
others. Finally, ‘interpersonal contact’ illustrates the importance employees
attach to being able to develop and maintain valued relationships with others
through working.

 Financial Reward – Remuneration & Benefits

Fixed Remuneration
Salary (Base Pay)
Wages (Will look at this topic in IR Lecture)

Fixed Remuneration Methods

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2. Variable Remuneration
a. Incentives
b. Performance Based Reward (PBR)

Variable Remuneration Performance Based Reward (PBR) Options

3. Benefits
a. Compulsory Benefits (examples):
I. Superannuation / Pension Schemes (Employer funded)
II. Leave (Annual, Sick, Parental, Carer’s, Long Service)
III. Life, Health, Disability Insurance
IV. Severance (Redundancy) Pay
b. “Fringe”(Voluntary)Benefits(examples):
i. Company Cars
ii. Parking
iii. Subsidised Canteens
iv. Discounted Loans (Personal, Home, etc)
v. Discount Travel & Accommodation
vi. Product or Service Discounts
vii. Free Clothing
viii. Club / Gym Memberships
ix. Self Education Expenses
x. Laptop / Notebook Computers
xi. Mobile Phones.

 Linking Business Strategy with Total Reward Strategy

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 Not surprisingly, the cumulative evidence shows that financial incentives relate
positively to performance, do not reduce intrinsic motivation, and, in general, are
more effective than we previously thought. (Shaw, J.D. and Gupta, N., 2015)

 Problems with incentive system implementation: Even when an incentive

system is well-designed, problems can occur in implementation. Two issues are
particularly salient in this regard.
1. supervisors and managers take arbitrary, unjust, and unexplained actions that
underlie the negative effects observed in free-time or post-reward studies. Many
years ago, Lawler (1978) noted that the implementation of innovative financial
incentives requires the full commitment of middle as well as top management.

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2. system designers underestimate the power of the incentive system . They set
low performance standards that employees meet easily, resulting in higher
employee earnings than anticipated.

 Clearly, we are motivated by challenge, engagement, autonomy, mastery and

other factors.
 Much has been made about whether individuals in different cultural contexts,
across different occupations, and across different levels of the societal strata, are
interested in and will be motivated by the proper use of performance-based pay
(Shaw, 2014).

WEEK 12 Reward MANAGEMENT

Reward is monetary, non-monetary and psychological payments an organization

provides for its employees in exchange for the work they perform. Reward can be
influenced by political, ideological, economy and social factors. These will particularly
influence the design of reward system, the gender aspects of reward design.

The term of extrinsic rewards and intrinsic rewards are consistency with monetary
and non-monetary reward. Extrinsic rewards can provide Employee’s basic needs for
survival, security and recognition. It will include financial payments , working
conditions and managerial behavior . Intrinsic Rewards are the Psychological
‘enjoyment’ and satisfaction of ‘challenge’ or ‘psychic income’. It divides from the
inherent of job content, the way of the job designed, such as task variety, autonomy
in the job, therefore influence the challenge of a job. If intrinsic reward is heightened,
it will be coast effectively. So, the The mix of extrinsic and intrinsic rewards provided
by the employer is termed its reward system. And Combined pay like salary and
non-pay benefits like health insurance constitute the payment system.

All pay system contain two elements that are contradict to one there other. One is
Cooperation between employee and employer/manager, fostered through the logic of
financial gain for the worker. There is also conflict driven by employment relationship,
engendered through the logic that makes the ‘buying’ of labour the reward for one
group and the cost for the other. Employees are seeking higher pay while employers
are seeking to minimize reward, and that is part of effort bargain, and the balance is
constantly shifting.

Reward system sometimes are driven by large institutions rather than organization
level. In Australia, and some European Countries these institutions such as Union or
government have strong intervention, shaping what organizations can do on reward
management. Much of these intervention are driven by collective bargaining system
which is the framework for negotiations over pay and working time and conditions, at
workplace, corporate or industry level. It can work in different level, such as industry
level, corporate level, workplace level. In most of cases, trade union will be a party of
agreement, repressing employees’ rights, and endeavor to push wages up, bigger
bargaining power can get better wage outcomes. So this kind of collective bargaining
creates a called wage ‘floor’, that mean an employer cannot pay employee below
that agreements. It is a very effective way to Minimises pay dispersion and inequality,
and push a company to other things to gain competitive advantage rather than
undercut payments. It can also Promotes gender pay equity.
These institutions have responsibility to ensure and monitor the equal pay legislation.
It because The concept of pay equity conflicts with view that employees’ pay should

103
be dictated by supply and demand of labour. Despite equal pay legislation, we see
continued income disparity between men and women because of ‘Masculine logic’,
Gender bias in job evaluation and Industrial & Occupational sex segregation. In the
counties where have strong collective bargaining power, the gender pay gaps is
reduced.

Internationally, the number of low wage worker are increasing. According to

Regulation of low pay, Low wage workers earn a gross hourly wage of less than 2/3
of the country’s median gross hourly wage. France (11.1%) & Denmark (8.5%) had
smallest shares of low wage workers, and it could be explained these two countries
have the highest ‘inclusiveness’ of the country’s labour market institutions. Other
factors that will influence pay levels including immigration which will increase
competition, incomes supports from other means, and the exit options for employers
such as offshoring. Government policies can directly affect reward management by
introducing pay control programmes, In Australia, the Fair Work Commission sets the
minimum wage. Lower rates apply to trainees, youth employees. Minimum wages
primarily impact award-reliant and low paid workers, and Wages are higher in other
collective and individual agreements.

The emerging trends for pay management in many countries, as the globalization
continue, the intensified competition, technology use increasing, pressure employers
to reduce hiring high costs labour; it also increases the supply of labour, while the
demand is reduced because of technology substitution, therefore the bargaining
power has shifted to employer. Another trend is that the union has Inadequate
knowledge and representation because the unions decline. Thirdly, the exit options
seem to increasing and expanding, leading employers have more available options
to reduce wages, and some illegal options are adopt to avoid regulation. Then we
see much more underpayment and exploitation, which is the ‘low road’ strategies.

Alternatively, Lloyd & Payne (2016) provide how we can promote ‘high road’, doing
things like Reorganising work process such as high performance work systems,
Introducing new technology, that can benefit innovation, Implementing innovative
products/services, and Providing more and better training, finally offset higher wages
by increasing productivity/profits and/or reducing turnover. We also can facilitate
better payment by blocking off ‘low road’ via regulation; integrating union voice;
acting policy to encouraging/supporting ‘high road’ firms.

Sham contracts are used by some employers to let employees do like a full-time
employees but provide an independent contractor rights, such as Foodro., but many
employees do not know have knowledge about sham contract.

The model of reward management links the reward management to the business
strategies, ensuring they will choose supportive goals. Then reward objectives have
to promote the desired employees’ attitude and behaviors. Then you have to focus
on reward options related to the design of reward system, which will depend on job
itself, person and performance; the reward options have Job-based that the wages
are assigned to the jobs that employees perform, which is most widely used because
of unbiased and objectivity, Person-based that is based on knowledge, formal
qualifications, skills or competencies of individual employee, and Performance-based
that ties pay to employees’ ‘effort’ or outputs (individual, team/group, organizational).
After that, the reward techniques determines pay relationships between jobs via job
analysis and valuation, so in job analysis, tasks, responsibilities and context of a job
and relations to other jobs are taken into account, and in Job evaluation, comparing
relative contributions of jobs is important, and the Performance appraisal is a process
to evaluate employees’ performance. Finally is reward competitiveness, paying

104
particular attention to external equity about how should organization position its pay
relative to what others are paying?

Some argue that Reward should not be job- based but person based. Position of
employees in pay structure is determined less by the formal job description and more
by skills and performance. However, job- based is a more widely used approach,
especially dominate in public sector which can achieve internal equity by determining
the hierarchy of jobs based on what these jobs can contribute to the organization.

This job evaluation and policies involve four steps, by gathering data via valid job
analysis with all of job content, by Selecting compensable factors on a differential
basis like responsibilities or knowledge, by evaluating all the jobs’ ranking, job
grading, factor comparison, and the points, finally by assigning pay to the job to
create an organizational pay structure.

The two aspects of pay structures that we should pay attention to are pay dispersion
and pay basis. Pay dispersion is the Range in pay structures from flat ‘egalitarian’ to
‘hierarchical. Pay basis is under traditional job-based pay systems, the pay level for
any job reflects its relative and absolute worth. The relative worth is determined via
job evaluation, and the absolute worth is what the worth in the labour market.
Determining Pay levels means combining the combination of job valuation and what
pay basis information, especially the pay data.

Shaw & Gupta (2015) Studied the evidence related to financial incentives and
performance via meta analysis, found that Financial incentives relate positively to
performance Quantitatively and qualitatively, and enhance both extrinsic and intrinsic
motivation. Shaw & Gupta (2015) states that Extrinsic rewards (i.e. financial
incentives) are effective motivators, but more importantly we should combine the
intrinsic and psychological motivators such as challenge, engagement and autonomy
to extrinsic rewards. De Gieter & Hofmans (2015) Studied the relationship between
satisfaction with reward types and employee outcomes in a Belgian financial
institution, found Only 9% of employees’ turnover intentions were influenced by the
entire reward package, Approx. half (49%) of employees’ turnover intentions were
influenced exclusively by satisfaction with psychological rewards, which is no cost for
the organization, the remaining (42%) employees’ turnover intentions were
influenced exclusively by satisfaction with financial rewards who most of are Gen Y,
and Satisfaction with financial rewards does not enhance performance. The result
indicates that Individual differences need to be taken into account, and firms should
invest in offering a well-balanced reward package, importantly, raising supervisors
awareness of the psychological rewards.

105