Management

Group Bonuses & Team Awards

+ Encouraging teamwork - Might lead to unhealthy competition between groups (misdirected efforts) → Organizations should carefully set the performance goals for these incentives - Might encourage social-loafing --> some of the group members rely on the high performers to do the work

Compensation at Valve

American software development company No bosses Asking who each person has worked with since the last round of peer reviews and how the experience of working with each person was The feedback is then gathered, collated, anonymized, and delivered to each reviewee. Stack ranking: used as method of adjusting compensation Metrics for stack ranking: 1. Skill Level/Technical Ability 2. Productivity/Output 3. Group Contribution 4. Product Contribution

Criteria for Measuring the Effectiveness of Selection Tools and Methods

The method provides reliable information. The method provides valid information. The information can be generalized to apply to the candidates. The method offers high utility. The selection criteria are legal.

Criteria for Measuring the Effectiveness of Selection Tools and Methods

The method provides reliable information. The method provides valid information. The information can be generalized to apply to the candidates. (Bonus) The method offers high utility. The selection criteria are legal.

Human Resource Management (HRM)

The policies, practices, and systems that influence employees': - behaviour - attitudes - performance The concept implies that employees are resources of the employer

Group

Two or more people who interact with each other to accomplish certain goals or meet certain needs

Skill Deficiencies of the Workforce

Today, employers are looking for: - mathematical skills - verbal skills - interpersonal skills - computer skills The gap between skills needed and skills available has decreased companies' abilities to compete. They sometimes lack the capacity to upgrade technology, reorganize work, and empower employees.

Strategic Business Issues Affecting HRM

Total Quality Management Mergers and Acquisitions Reeingineering International Expansion Downsizing Outsourcing

Issues in Developing a Pay Structure

Legal Requirements -Equal pay for equal work -Minimum Wage -Overtime pay -Restrictions on child labor Market Forces -Product markets -Labor markets Organization´s Goals -High quality workforce -Cost Control -Equity and fairness -Legal compliance Pay Level Decision Job Structure Decision Pay Structure Decisions -Pay rates -Pay grades -Pay ranges -Pay differentials

Leadership and Power

Power: The capacity or potential to influence Ability to affect others' beliefs, attitudes & actions Power is a relational concern for both leaders and followers Five Bases of Social Power 1. Referent Power: Based on followers' identification and liking for the leader 2. Expert Power: Based on followers' perceptions of the leader's competence 3. Legitimate Power: Associated with having status or formal job authority 4. Reward Power: Derived from having the capacity to provide rewards to others 5. Coercive Power: Derived from having the capacity to penalize or punish others Personal Power Power is derived from being seen as likable and knowledgeable ( 1. & 2.) Position Power Power derived from office or rank in an organization (3. 4. & 5.)

Pay for Individual Performance

Piecework rates -A wage based on the amount workers produce - Straight piecework plan • Incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces - Differential piece rates • Incentive pay in which the piece rate is higher when a greater amount is produced. Standard hour plans -Standard Hour Plan An incentive plan that pays workers extra for work done in less than a preset "standard time." These plans are much like piecework plans. They encourage employees to work as fast as they can, but not necessarily to care about quality or service. -Merit Pay A system of linking pay increases to ratings on a performance scale. They make use of a merit increase grid. The system gives the lowest paid best performers the biggest pay increases. Merit pay- A system of linking pay increases to ratings on a performance scale. Makes use of a merit increase grid. The system gives the lowest paid best performers the biggest pay increases Individual bonuses Sales commissions

The Choice of Rewards (enlarging on point 4)

Point 4. Employees value the rewards given. Are the employees interested in the potential reward? Non-monetary rewards can sometimes outperform monetary rewards in terms of utility: • Additional holidays • A larger office • Developmental opportunities (trainings, certificates, experience abroad) • Recognition (great manager award) • Trust - additional freedom on the job - Additional flexibility on the job - more responsibilities • Influence

Output Control ‐OrganizationalGoals

Preconditions: •S.M.A.R.T.goals S pecific M easurable A ttainable R elevant T ime‐bound Goal congruence Ex: GAP Inc. shift from process‐driven to outcome‐driven culture Evaluation of performance, not presence -value, not effort Employees have complete autonomy over how they approach their work and focus on being accountable for results Pilot implementation of „Results only work environment" (ROWE) in Outlet Division corporate headquarters

Microsoft

originally divisional organization - independent product/solution divisions -each with separate leadership Restructuring and consolidation efforts between 2000 and 2011 July 2013 under CEO Steve Ballmer moved to a functional organization structure

Changes in the Employment Relationship

"psychological contract" describes what employees and employers expect from the employment relationship. Trend: From relational to transactional - A NEW PSYCHOLOGICAL CONTRACT alternatives to the traditional employment relationship: outsourcing, temporary, and contract workers - FLEXIBLE STAFFING LEVELS shortened work weeks etc. allowing employees to adjust work hours to meet personal and family needs - FLEXIBLE WORK SCHEDULES

Profit-sharing

+ Encourages employees to think like "owners" and to take a broad view + Costs less during times of financial difficulties - Perceived unfairness due to lack of control over profits → in this case profit-sharing will have little impact on employees' behaviour

Piecework Rate & Standard Hour Plan

+ Production-oriented goals - No incentive to correct a quality control problem - No incentive for teamwork, learning skills or customer service - Not appropriate for complex jobs - Misdirected efforts possible (see requirements 6 and 1) - Misleading assumptions (Final outcome might depend on factors outside of the individual's control)

Merit Pay

+ Rewards based on multiple predefined performance criteria + Provides career framework - Might quickly become expensive for employer - Rigid and unflexible - Misleading assumptions: employees' performance and motivation may depend on forces outside of employees' control - Misdirected efforts possible (If PM system wasn't thoroughly developed) Keep six requirements in mind!

Performance Bonuses

+Provides organisations flexibility in deciding what kinds of behaviours to reward +Provides flexibility in terms of the height of bonuses ? Bonuses make up for a large part of financial packages in the financial industry → political and public debate about effectiveness - Misleading assumptions (Final outcome might depend on factors outside of the individual's control --> could be perceived as unfair) - Misdirected efforts possible (Bending or breaking rules to reach goal)

Measuring Job Performance

- A performer (individual or team) - Trait Approach Emphasizes individual traits and attributes of employees - In a given situation - Engages in certain behaviours - Behaviour Approach Emphasizes how employees do the job - That produce various results - Results Approach emphasizes what employees produce

Ethics

- the fundamental principles of right and wrong. - Ethical behavior is behavior that is consistent with those principles. - Many ethical issues in the workplace involve human resource management. Right of free consent Right of privacy Right of freedom of conscience Right of freedom of speech Right to due process

Supervisors' Involvement in HRM

-Help define jobs - Motivate with support from pay, benefits and other rewards - Communicate policies - Recommend pay increases and promotions - Appraise performance - Interview (and select) candidates - Provide training - Forecast HR needs

Employment Tests and Work Samples

-Stable traits Physical Ability Tests Cognitive Ability Tests Job Performance Tests -Skills abilities Work Samples Personality Inventories Honesty Tests -Health Drug Tests Medical Examinations

Steps in the organizational change process

1.ASSESS THE NEED FOR CHANGE Recognize that there is a problem Identify the source of the problem 2.DECIDE ON THE CHANGE TO MAKE Decide what the organization's ideal future state would be Identify obstacles to change 3.IMPLEMENT THE CHANGE Decide whether the change will occur from the top down or from the bottom up Introduce and manage change 4.EVALUATE THE CHANGE Compare pre‐change performance with postchange performance Use benchmarking Example: Siemens 1.Shaken morale and public image after the bribery scandal. •Aggressive target oriented culture due to leadership style of previous CEO. •Highly segmented structure with a lack of coordination between the operating groups and regional units. 2.Create a new management board he could trust and that understands the need for change and get rid of non‐cooperative executives. •Completely revamp company structure. •Empower and motivate employees 3.New board member responsible for legal and compliance to establish transparency and clear Siemens' name. •Culture of the company changed along with a simplification of the corporate structure. •Executive board members, heads of operating groups and divisions who did not fit the new culture were replaced. •Aggregation of segments to exploit synergies and to better serve customers. 4.Significant increase in income from operations and slight increase in gross profit. •Creation of a better and more motivating work environment. •New customer‐centricbusiness orientation --> Siemens became a valuable business partner to customers.

Hierarchy of needs

1.Self‐actualization (growth, self‐fulfillment) 2.Esteem (respect,appreciation,recognition ) 3.Belongingness (social interaction, friendship, love) 4.Safety (security, stability, safe environment ) 5.Physiological (food, water, sleep) 1- Need for Growth 2-4 - Deficiency needs Needs on the higher steps become only relevant for the behavior if needs on the lower steps have been satisfied No clear delimitation in the terminology. Situational factors not taken into account Depends on social stratum and culture. Not confirmed empirically.

Sources of Performance Information

360-Degree Performance Appraisal: performance measurement that combines information from the employees': - Managers - Peers - Subordinates - Self - Customers

Ability to Generalize

A generalizable selection method applies not only to the conditions in which the method was originally developed - job, organization, people, time period, etc. It also applies to other organizations, jobs, applicants, etc. Thus, is a selection method that was valid in one context also valid in other contexts?

Team

A group whose members work intensely with each other to achieve a specific, common goal or objective All teams are groups but not all groups are teams

Application Forms

A low-cost way to gather basic data from many applicants. It ensures that the organization has certain standard categories of information: - Contact information - Work experience - Educational background - Technical experience - Memberships in professional or trade groups

Fixed Standards vs Comparisons

Absolute Measures Predefined Standards • Compares each employee to predefined standards • Performance of colleagues does not affect individual scores Relative Measures Simple Ranking • Requires managers to rank employees in their group from the highest performer to the poorest performer. Forced Distribution • Assigns a certain percentage of employees to each category in a set of categories. Paired Comparison • Compares each employee with each other employee to establish rankings.

Legal Standards for Selection

Adherence(being faithful to) to applicants' legally guaranteed rights and interests - Captures only characteristics relevant for the job - E.g., principle of equal chances according to the AGG (Allgemeines Gleichbehandlungsgesetz) Examples of (usually) impermissible questions for applications and interviews: - How would you feel about working for someone younger than you? - What is your religion? - Are you pregnant?

Matrix Structure

An organizational structure that simultaneously groups people and resources by function and product Results in a complex network of superior-subordinate reporting relationships The structure is very flexible and can respond rapidly to the need for change Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both. Ex: Apple

Behavior Model of Leadership: The Ohio State Studies

Analyzing how leaders act instead of assessing leadership traits Two distinct and independent types of leader behaviors: 1. Consideration -Building relationships -Respect and trust -Liking between leaders and followers 2. Initiating structure -Organising work -Giving structure to the work context -Defining role responsabilities -Scheduling work activities

Leader Substitutes Model

Assumption: Leadership is sometimes unnecessary because substitutes for leadership are present Type of contingency model (contingent on situation) Substitutes can be individual or situational characteristics Examples - employee's motivation, expertise, and enjoyment of his/her work can make forms of leadership redundant (e.g., no leaders at Valve) - Self-managed work teams

Practical Value and Utility

Being valid, reliable, and generalizable adds value to a selection method. Another consideration is the cost of using the selection method. Selection methods should cost significantly less than the benefits of hiring new employees. Methods that provide economic value greater than the cost of using them are said to have utility.

Balanced Scorecard

Combination of performance measures directed toward the company's long and short-term goals and used as the basis for awarding incentive pay. The four categories of a balanced scorecard include: - financial - customer - internal - learning and growth It combines the advantages of different incentive pay plans. It helps employees understand the organization's goals. By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish.

HRM Practices That Support Diversity Management

Communication: Communicate with employees from a variety of backgrounds Development: Provide career development for employees with different backgrounds and abilities. Performance Appraisal: Provide feedback based on objective outcomes. Employee Relations: Create a work environment that is comfortable for all and fosters creativity.

Content and Construct Validity

Content Validity - Consistency between the test items or problems and the kinds of situations or problems that occur on the job. Construct Validity - Degree to which a test measures what it intends to measure • Convergent validity: Is the construct related to other constructs that should be related? • Discriminant validity: Is the construct unrelated to other constructs that should be unrelated?

Rating Behaviors 1/2

Critical-Incident Method • Based on managers' records of specific examples of the employee acting in ways that are either effective or ineffective. • Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals. Behaviorally Anchored Rating Scale (BARS) • Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance. Behavioral Observation Scale (BOS) • A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. • A BOS also asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period.

Centralization and Decentralization

Decentralization puts more authority at lower levels and leads to flatter organizations. -Works best in dynamic, highly competitive environment -Stable environment favors centralization of authority Advantage: •Another way to keep an organizational hierarchy flat. •Communication and motivation problems can be kept at a minimum Disadvantage: too much decentralization of authority ... •... divisions, functions or teams may start to pursue their own goals at the expense of the organization's goals. •... can cause lack of communication among functions or divisions; this prevents the synergies of cooperation and performance suffers.

Alternatives to Job-Based Pay

Delayering Reducing the number of levels in the organization's job structure. More assignments are combined into a single layer. These broader groupings are called broad bands. More emphasis on acquiring experience, rather than promotions. Skill-Based Pay Systems Pay structures that set pay according to the employees' levels of skill or knowledge and what they are capable of doing. This is appropriate in organizations where changing technology requires employees to continually widen and deepen their knowledge.

BehaviorControl -DirectSupervision

Direct Supervision: Managers who directly manage can teach, reward, lead by example and take corrective action as needed Problems with Direct Supervision : Can be very expensive since only a few workers can be personally managed by one manager and many managers are needed. Close supervision demotivates workers who desire less scrutiny and more autonomy, causing them to avoid responsibility. Direct supervision is difficult to do effectively in complex job settings. British Airways paid £1m to hush up the details of a spying operation in which the phones and emails of its own cabin staff were allegedly improperly accessed during a bitter dispute with Britain's largest union Hewlett-Packard American computer company Hewlett‐Packard has admitted using legally questionable methods to spy on one of its own directors, in a scandal that has prompted investigations by law enforcement authorities These companies overdid it

IBM's New Job Evaluation Approach

Each cell in the table contains descriptive language about key job characteristics Position descriptions are compared to the chart and assigned to bands on a "best-fit" basis

Roles in Communication Networks: Gatekeepers

EmpiricalEvidence: •Gatekeepers occur 'spontaneously' and their emergence is not amenable(open and responsive to suggestion; easily persuaded or controlled.) to organizational intervention. •Effective gatekeeper roles cannot be filled by simply identifying and assigning a member of staff to this "position". Suitable individuals -who already act informally in such a role -must be identified and supported in their role --> "natural gatekeepers"

At Companies with Effective HRM:

Employees and customers tend to be more satisfied. The companies tend to: -be more innovative -have greater productivity -develop a more favorable reputation in the community Example: At Southwest Airlines, the company's focus is on keeping employees loyal, motivated, trained, and compensated. In turn, there is a low turnover rate and a high rate of customer satisfaction.

Legal Requirements for Pay

Equal employment opportunity - Two employees who do the same job cannot be paid different wages because of gender, race, or age. Minimum wages - the lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour - In Germany: Wages often a result of collective bargaining processes Pay for overtime - Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than (usually) 40 hours. • Exempt (e.g., managers) and nonexempt employees

Criteria for Effective Performance Management

Fit with strategy-Help the organization achieve its business objectives Validity - Measure what should be measured Reliability - Offer consistent and reliable information Acceptability - Sustain and increase employee motivation and satisfaction Specific feedback - Enable performance improvement --> Relevance of individual criteria depends on situation

Pay for Group Performance

Gainsharing - group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each to employees. - Gainsharing frees employees to determine how to improve their own and their group's performance. Bonuses - Bonuses for group performance tend to be for smaller work groups. - These bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output. Team Awards - Similar to group bonuses, but are more likely to use a broad range of performance measures: • Cost savings • Successful completion of a project • Meeting deadlines

Gender and Leadership

Glass ceiling: "invisible" barrier that prevents women (and minorities) from entering higher hierarchical positions Possible reasons for the leadership gap (i.e. few women in leadership positions): - Human capital - Gender differences - Prejudice Research suggests that there are very small differences between leadership styles of men and women Male and female managers tend to be equally effective as leaders

Traits / Attributes

Graphic Rating Scale • Lists traits and provides a rating scale for each trait. • The employer uses the scale to indicate the extent to which an employee displays each trait. Mixed-Standard Scale • Uses several statements describing each trait to produce a final score for that trait.

High-Performance Work Practices

HPWPs - HR practices that SHRM(Society for human resource Management) theorists consider performance enhancing - Impact on Employee skills and organizational structures ( training hours, employee selection) - Impact on Employee motivation (incentive pay, formal performance appraisals ) Positive impact of HPWPs on: - Intermediate employee outcomes (turnover and productivity) - Short- and long-term measures of corporate financial performance Turnover rate refers to the percentage of employees leaving a company within a certain period of time.

Impact of Human Resource Management

HRM : - Type of Human Capital 1.Training 2.Experience 3.Judgment 4.Intelligence 5.Relationships 6.Insight Problem with this definition: • Human capital is an intangible and subjective asset Assigning a value on a balance sheet is challenging Difficult to create a complete definition - Behaviour of Human Capital Motivation Effort - Organizational Performance Quality Profitability Customer satisfaction

Indirect Impact of Human Resource Management

Human Resource Management Type of Human Capital Training Experience Judgment Intelligence Relationships Insight Behaviour of Human Capital Motivation Effort Organizational Performance Quality Profitability Customer satisfaction

Intelligence Tests: Sample Items

I-S-T 2000R - Deductive thinking 1. Verbal intelligence The opposite of hope is...? 2. Numeric intelligence 3. Figural-spatial intelligence - Memory - Knowledge (overall)

Indirect Impact of Trainings

IT Training • Ability to work with the new system • Skills that could help with further digitization • Willingness to use system • Willingness to learn • Efficiency + • Output + • Organizational Attractiveness + • Human Capital +

Communication and Management

Importance of good communication: -Increased efficiency by updating technologies and skills. -Improved quality of products and services. -Increased responsiveness to customers. -More innovation through communication

Collective Bargaining

In collective bargaining a union negotiates on behalf of its members with management representatives to arrive at a contract defining: -Recognition -Management rights -Compensation and benefits -Grievance(an official statement of a complaint over something believed to be wrong or unfair.) procedure -Employee security

Managing for Creativity at SAS

In your opinion, which theory of motivation serves best to explain the high motivation and creativity of SAS employees? Please choose one of the theories you learned about in the lecture, provide reasons for your choice and discuss the limitations of the theory in explaining SAS's high performance "Creative people work for the love of challenge." To manage for maximum creativity, SAS follows three guiding principles: 1. Stimulate their minds and reduce hassles to leverage intrinsic motivation, e.g. • SAS encourages participation in conferences, scientific contributions, training • Provision of facilities on campus, perks/benefits, flexible workday guidelines 2. Make managers responsible for sparking creativity and ensure that your managers are also creatives (egalitarian work culture), e.g. • Role of managers is to make life easier for employees and to create opportunities for interaction and "productive accidents". • Experimentation: a trial-and-error culture is crucial for innovation 3. Engage the creative talents of your customers, e.g. • Customer complaints and suggestions are gathered and acted upon • Close interaction between staff and customers -Need Theories (Hierarchy of Needs (Maslow); Motivation-Hygiene Theory (Herzberg) ) - Hierarchy of needs Need to grow -Self-actualization e.g.growth, self-fulfillment Deficiency needs -Esteem e.g.respect,appreciation,recognition -Belongingness e.g. social interaction, friendship, love -Safety e.g. security, stability, safe environment -Physiological e.g. food, water, sleep Herzberg's Motivation-Hygiene Theory(1960s) Focuses on outcomes that lead to higher motivation and job satisfaction, and those outcomes that can prevent dissatisfaction - Motivator needs relate to the nature of the work itself—autonomy, responsibility, interesting work. - Hygiene needs are related to the physical and psychological context of the work—comfortable work environment, pay, job security. Unsatisfied hygiene needs create dissatisfaction; satisfaction of hygiene needs does not lead to motivation or job satisfaction. - Interpretation: Satisfaction and dissatisfaction with work are two independent dimensions. - Also hardly confirmed by subsequent empirical studies. Limitations in explaining SAS´s performance • Herzberg concentrates on the employees´motivation • It does not refer to the question why customers are willing to buy SAS´s products • Without the high customer allegiance/loyalty SAS would not be as successful as it is • Great customer-service • Customers are closely engaged in the production process (they are a great source of creativity) • Good customer-employee relationship Implementation of Herzberg's Theory at SAS by using intrinsic and hygiene factors Intrinsic Motivators • Individual intrinsic motivators for each group of employees -> In general: fitting thanks for a well done job is a an even more challenging one • employees' autonomy to choose what software to work with • recognition/appreciation of everyone´s work Hygiene Factors • Eliminate distractions: -> medical facilities, day care, referral services, gym, ... on-site -> reduction of administrative hassles for employees • Open-door policy of managers (egalitarian work culture) • Good employee-customer relationship Benefit for SAS • More concentrated, motivated and satisfied workers -> higher productivity/creativity -> more innovation • Highly collaborative work culture • Retain workers -> reducing recruitment expenses • Relatively stable revenue flow Herzberg´s Theory can explain employees' high motivation, but this isn't the only reason for a high business performance.

Incentive Pay

Incentive pay - forms of pay linked to an employee's performance as an individual, group member, or organization member. Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed.

The Labor Force

Internal Labor Force -An organization's workers Its employees The people who have contracts to work at the organization - The internal labor force has been drawn from the external labor market. External Labor Market - Individuals who are actively seeking employment. -The number and kinds of people in the external labor market determine the kinds of human resources available to an organization. Change in Labor Force -An aging Workforce -A diverse Workforce -Skill Deficiencies of the Workforce

Pay Structure Decision: Putting It All Together

Job Evaluation Job Structure Define Key Jobs Pay Rates Pay Policy Line Pay Survey Pay Grades Pay Ranges Pay Structure

Contamination and Deficiency of a Job Performance Measure

Job Performance measure - Contamination - All gathered aspects of job performance - Irrelevant aspects that are being used Actual,or "true" job performance - Deficiency - All relevant aspects of job performance - Relevant aspects that are being ignored In common : Validity

Job Structure Decision

Job structure: The relative pay for different jobs within the organization. Job evaluation: An administrative procedure for measuring the relative internal worth of the organization's jobs. Compensable Factors: The characteristics of a job that the organization values and chooses to pay for, e.g.: - Experience - Education - Complexity - Working conditions - Responsibility

Key Jobs

Key Jobs - jobs that have relatively stable content and are common among many organizations. Organizations can make the process of creating the job structure and the pay structure more practical by defining key jobs. Research for creating the pay structure is limited to the key jobs that play a significant role in the organization.

Improving Performance

Low Ability - High Motivation Missdirected effort Coaching Frequent performance feedback Goal Setting Training or temporary assignment for skill Restructured job assignment High Ability - High Motivation Solid Performers Reward good performance Identify development opportunities Provide honest, direct feedback Low Ability - Low Motivation Deadwood Withholding pay increases Demotion Outplacement Firing Specific, direct feedback on performance problems High Ability - Low Motivation Underutilizers Give honest, direct feedback Provide counseling Use team building and conflict resolution Link rewards to performance outcomes Offer training for needed knowledge or skills Manage stress levels

Measuring Results

Management by Objectives (MBO): people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization's overall goals. These goals become the standards for evaluating each employee's performance.

Problems with Output Control

Managers must create output standards that motivate at all levels. They must be careful not to create short‐term goals that motivate managers to ignore the future. If standards are set too high, workers may engage in unethical behaviors to attain them 2008:shift from process‐driven to outcome‐driven culture -Evaluation of performance, not presence -value, not effort -Employees have complete autonomy over how they approach their work and focus on being accountable for results

Assignment 5 - Big Data in the Recruiting Process

Many companies use Big Data and algorithms in the recruiting process - Google Opportunities • Greater consistency • People can make mistakes in their decisions by being distracted by irrelevant details • Computers can more accurately determine the characteristics of applicants • Saving of time and costs • Computers can very quickly find the right candidate for the job from a pool of data • Fill positions quickly without digging through mounds of unqualified candidates • Finding the best candidate • Of the large number of applicants, Google can find the perfect candidate thanks to its wealth of data • The company is also looking for suitable candidates who have not even applied for the job. • Google has a large number of interested applicants and can make a simple and quick preselection Challenges Safety concern • Computer programs often run the risk of being manipulated or even used for criminal activities Ethical issues • May data from applicants be collected without their knowledge or their consent from e.g. social media channels and where are the limits? Recruiters are still in the application process • Google has also recognized that in the end people also have to decide about the candidates to check the algorithm --> Using big data and algorithms is good to make a preselection, but in the end, a recruiter should still make the decision Better decision making <--> Don´t be able to see the wood for the trees Opportunities Signaling & Screening: Reduce information asymmetries More efficient/ unbiased decision making (objective assessment) Overcome selection bias by proactive research Cost & time savings Challenges Credibility/quality of data: Detection of hidden characteristics Self learning algorithms are pathdependent Confidential data can be hacked, algorithms can be manipulated

Cognitive Performance Tests: Intelligence Tests/ Tests of General Mental Abilities

Measurement of general mental abilities (GMA) Intelligence tests are performance tests - Further performance tests (only partly appropriate for personnel selection): concentration test, memory test, learning test, language test - Assumption: Differences in cognitive abilities have an influence on work performance Direct effect -People with higher cognitive abilities perform better (even if the extent of task-relevant knowledge is identical) Indirect effect -People with higher cognitive abilities... • ... acquire task-relevant skills faster • ... acquire more task-relevant skills

Validity of Selection Instruments

Meta analysis by Schmidt and Hunter (1998) Question: which selection tools are best suited for personnel selection? Assumption: predictive validity is most important criterion to determine most suitable selection instruments Approach: - Summary of numerous studies on the validity of single selection tools - Determination of average predictive validity of selection instruments by a meta analysis

Unions and Labor Relations

Most workers act as individuals to select jobs that are acceptable to them and to negotiate pay, benefits, flexible hours, and other work conditions. At times, workers have believed their needs and interests do not receive enough consideration from management. One response by workers is to act collectively by forming and joining labor unions. Unions - organizations formed for the purpose of representing their members' interests in dealing with employers. Labor relations - field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.

Personality Tests: Big Five

Neuroticism (sensitive/nervous vs. secure/confident) - A tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, or vulnerability Extraversion (outgoing/energetic vs. solitary/reserved) -Energy, positive emotions, and the tendency to seek stimulation in the company of others Openness for experiences (inventive/curious vs. consistent/cautious) -Appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience Conscientiousness (efficient/organized vs. easy-going/careless) -A tendency to show self-discipline, act dutifully, and aim for achievement; planned rather than spontaneous behavior Agreeableness (friendly/compassionate vs. cold/unkind) -A tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others

Team Diversity

Read one of the articles on team diversity. Please choose one specific type of diversity (e.g. culture, task-related experience) and provide arguments for its effect (+ and/or -) on the relationship between teamwork and organizational performance. Illustrate your arguments with a company example. Definition: Team diversity is an arrangement in which a team possesses different types of endowments and characteristics (Harrison and Klein, 2007; Jackson, Stone, and Alvarez, 1992); e.g. - Task-related experience - Educational background - Inherent characteristics: Gender, age, nationality Positive effects Breadth of knowledge --> higher recombination possibilities Overcome groupthink Valuable, multifaceted feedback Better understanding of the market needs in different countries Negative effects Rising communication and coordination costs Culture clash Trust issues Can cultural diversity drive innovation and lead to an outstanding organizational performance? Yes, it can + • knowledge about customer preferences in different countries → easier to enter new markets • different perspectives on one topic → can lead to unexpected opportunities for innovation • enhanced establishment of international relationships → e.g. partnerships - a team with a member who shares the partner's ethnicity is likelier to understand that partner • improves cultural awareness of the team members Drawbacks • bimodal distribution of outcomes (high rate of big success but also a high rate of failure) • stagnation of work due to cultural misunderstandings • cultural conflicts within the team • communication problems → occur when not all team members speak the same language fluently → organizations can reduce the drawbacks, for instance, by providing intercultural training Successful example of multicultural teams - L´oreal • has transformed itself from a French beauty products business to a global leader • has placed executives from mixed cultural backgrounds in its most critical activity: new-product development → know the customer preferences in different markets • about 40 product development teams, consisting of 3-4 people each • multicultural managers tend to recognize new product opportunities (e.g. by comparing the trends in their home countries) and bridge the gap between headquarters and subsidiaries in different countries --> Culturally diverse teams can help organizations to be competitive and innovative in the globalized world. However, the team has to be aware of cultural differences to be able to work together effectively. Daimler Diversity Management Daimler Senior Experts Daimler rehires experienced pensioners with outstanding knowledge to solve special problems. Advantages: • Employees learn and benefit from intense knowledge and experience • Pensioners feel appreciated and they avoid the hard cut of retirement • Company does not loose the knowledge which they developed and paid for over several years • Company benefits from complex problem solving in teams that might increase sales and revenues Disadvantages : • Company keeps reliable on retired experts • Pensioner is always available, so there is no necessity to transferhis knowledge before he finally retires • Teams tend to ask Senior Expert instead of developing an own innovative approach • Managers lack in integrating the special needs of Senior Experts (e.g part-time) --> If the Senior Experts are integrated properly, this special kind of teamwork provides opportunities that affect organizational performance because Senior Experts are only rehired for complex projects hence the ones which create competitive advantage.

Span Control-Coordinating Functions and Divisions

Span of Control refers to the number of workers a manager manages. Dependent on the complexity and interrelatedness of the subordinates' tasks -Small span of control: complex and dissimilar tasks -Large span of control: routine and similar tasks

SLS

Span of Control, Organization Layers, Job Grade Spread Span of Control -The number of direct reports to a manager or supervisor -Directly connected to the number of management layers Organization Layers -Number of reporting layers from the front line to the leader (of the company or unit) Job Grade Spread -Distance between the job grade of the supervisor and direct report -Narrow Spans of Control -More Layers of Management -More Managers Advantages: - Allows "hands-on" management -Reduces required skill levels -Reduces risk to organization from vacancies or poor performance -Ready pool of promotable replacements Disadvantages: - Low decisionmaking authority and perceived autonomy -Multi-level communications; message can become distorted -More risk to organization of employee disengagement -Slower response, decision-making -Cost -Broad Spans of Control -Fewer Layers of Management -Fewer Managers Advantages: - Fast, clear communication -Empowers direct reports to do more "complete" jobs -Higher employee engagement -Fast response -More innovation Disadvantages: -Requires higher skill and experience at all levels -Requires substantial time to deal with high number of direct reports -Development of promotable replacements is a challenge

Stages of the Performance Management Process

Step 1 : Define performance outcomes for company division and department Step 2 : Develop employee goals, behaviour and actions to achieve outcomes Step 3 : Provide support and ongoing performance discussions Step 4 : Evaluate performance Step 5 : Identify improvements needed Step 6 : Provide consequences for performance results

HRM Practices

Strategic HRM: 1. Analysis and design of work 2. HR planning 3. Recruiting 4. Selection 5. Training and development 6. Compensation 7. Performance management 8. Employee relations => Company Performance

Wolf of Wall Street

Supportive Achievement Oriented(Also a little bit directed)

Group Dynamics

The characteristics and processes that affect how a group or team functions 1. Size Normally, small groups interact better and tend to be more motivated than larger groups.As team size increases, coordination and communication costs increase, as well. Small teams make it easier to communicate more effectively rather than more.Larger groups can be used when more resources are needed and division of labor is possible. Example: Amazon (Largest internet‐based retailer in the United States .conglomerate of various start‐ups. This is what makes it so successful. 2 Pizza-Teams. As group size increases, the links start to get unwieldy n(n-1)/2 ) 2. Group leadership A leader should have a vision, commitment and drive to achieve the goal of the group must motivate and inspire the members must be flexible,adaptable and able to face all types of situations including challenges and failures. Important qualities: -Effective communication -Motivation -Proper planning -Experience and knowledge -Integrity 3. Group development Stages: - Forming : Members get to know each other and reach common goals - Storming: Group members disagree on direction and leadership. Managers need to be sure the conflict stays focused. - Norming : Close ties and consensus begin to develop between group members - Performing : The group begins to do its real work. - Adjourning : Only for task forces that are temporary. Important that teams go through these stages although sometimes because of the lack of the time they get together without going through all the stages. some of them have to be skipped.

The Nature of Motivation

Understand the motivation of employees and create the right incentives. Motivation determines: - the direction of a person's behavior -the effort, i.e. how hard the individual will work - the persistence, i.e. whether the individual will keep trying or give up Explains why people behave the way they do (in organizations).

Organisational Structure

Work specialization Departmentalization Span of control Chain of command Centralization and decentralization Formalization

Human Capital

an organization's employees described in terms of their -training - experience - judgment - intelligence - relationships - insight Problem with this definition: • Human capital is an intangible and subjective asset Assigning a value on a balance sheet is challenging Difficult to create a complete definition No universal definition exists that comprises all aspects of human capital Common denominators amongst definitions: • Human capital is always assessed from a certain perspective (e.g. the perspective of the organization) • Human capital can be increased through investments in you that can be linked to productivity (Olaniyan & Okemakinde, 2008; Nafukho et al., 2004) or can be linked to strategic advantages for organizations (Lepak & Snell, 1999) • Human capital can be decreased through your costs (fixed and variable) • Your human capital is dependent on the potential to contribute to the organization (Lepak & Snell, 1999) • The potential is affected by the time that you will spend with this organization • The potential is affected by what you can theoretically accomplish during this time for this specific organization • It is affected by how much you can theoretically grow in terms of your skills, relationships, insights, etc. in this specific organization.

Contributions of Groups & Teams

help gain competitive advantage make use of synergy from employees to produce more or better output than when employees work alone -bounce ideas off one another -correct each other's errors -bring more new ideas to bear on problems --> Accomplish projects beyond the scope of individuals Members of groups, and particularly teams, are often better motivated and satisfied than individuals Teams provide needed social interaction and help employees cope with work‐related stressors BUT a team in itself does not ensure success. Example: Berlin Bradenburg Airport.

Organisational Design

process by which managers make specific choices that result in a particular kind of organizational structure and culture

Big Data

term for data sets so large or complex that traditional data processing applications are inadequate. Opportunity: -Accuracy in big data may lead to more confident decision making -increase in performance Challenges: -Need for speed -Data quality -Understanding the data -Displaying meaningful results -Dealing with outliers Example : IBM IBM's Smarter Workforce Institute offers products to help organizations locate the talent hidden within their own networks HR manager inputs the desired knowledge, abilities and skills Software searches current and potential employees using various structured and unstructured sources such as videos, blogs or social networks Facebook By mining a person's Facebook "likes," a computer was able to predict a person's personality more accurately than most of their friends and family. Only a person's spouse came close to matching the computer's results.

Performance management

the process through which managers ensure that employees' activities and outputs contribute to the organization's goals. This process requires: - Knowing what activities and outputs are desired - Observing whether they occur - Providing feedback to help employees meet expectations An employee's performance measurement differs from job to job. For example, a car dealer's performance is measured by the dollar amount of sales, the number of new customers, and customer satisfaction surveys.

Herzberg's Motivation‐Hygiene Theory

what outcomes lead to higher motivation and which ones prevent dissatisfaction. -Motivator needs relate to the nature of the work itself—autonomy, - Hygiene needs are related to the physical and psychological context of the work - Satisfaction and dissatisfaction with work are two independent dimensions

John Deere

world leader in providing advanced products and services and is committed to the success of those linked to the land. Agriculture& Turf BLUE RIVER TECHNOLOGY Their first productSee & Spray™, allows growers to identify and spray only where weeds are present, reducing inputs, combatting herbicide tolerance and protecting the environment Producers can move from making and implementing decisions at a crop level to each individual plant real time in the field THE WIRTGEN GROUP five premium brands market-leading positions mobile machine solutions mining and processing minerals or recycling material sold in more than 100 countries A&T GeographicFootprint - Tractor, Turf& Utility, Crop Harvesting, Hay& Forage, Crop Care Region 1 - China,India,East Asia, Sub-Saharan Africa Region 2- EU 28, CIS, North Africa, Near & Middle East Region 3- South America, Central America, Mexico Region 4 - USA, Canada, Australia, New Zealand Trough management scenario Need for cost and headcount management Provide support for managers

HRM and Sustainable Competitive Advantage

- An organization can succeed if it has sustainable competitive advantage. - Human resources have the necessary qualities to help give organizations this advantage - Human resources are valuable with needed skills and knowledge are sometimes rare cannot be imitated have no good substitutes - But : „Like human assets, an oil field may be a strategic asset. However, once acquired, an oil field 1. Cannot quit and move to a competing firm. 2. Cannot demand higher or more equitable wages. 3. Cannot reject the firm's authority or be unmotivated. 4. Need not be satisfied with supervision, coworkers, or advancement opportunities."

Gainsharing

- Challenge of identifying appropriate performance measures for complex jobs + Frees employees to determine how to improve their own and groups' performance + Broadens employees' focus beyond individual interest

Stock Options/Ownership

- Might trigger unethical behaviour, as shown by past scandals → focus on stock price might lead to losing sight of other goals + Employees participate in "corporate level decision making" + Encourages employees to think like "owners" and to take a broad view - Financial risk for employees

HRM Implications of the Aging Workforce

- Organizations will have to find ways to attract, retain, and prepare the youth labor force. - HR professionals will spend much of their time on concerns related to retirement planning, retraining older workers, and motivating workers whose careers have reached a plateau - Organizations will struggle with ways to control the rising costs of health care and other benefits. - Many of tomorrow's managers will supervise employees much older than themselves.

Pay

- a powerful tool for meeting the organization's goals -has a large impact on employee attitudes and behaviors. -influences the kinds of people who are attracted to (or remain with) the organization. - Employees attach great importance to pay decisions when they evaluate their relationship with their employer. Risk averse people will choose a stable payment job People who take risk would prefer a job where they get comissions based on the work they do because they also think they can reach a great performance

HR Hero

- finding the real reasons and factors for happy employees - help companies to create a greater workplace - a software tool that measures and improves employee engagement - Every month, 5 questions sent to all employees, collects and evaluates the data, and provides every manager a report with actionable tips in real-time - focuses on continuous measurement to identify positive or negative development in real-time - Collect as much data as possible to get the important insights to make datadriven decisions - Employee Engagement is key to company success. - Status quo- Implement action- Measurement- Higher engagement - Monthly Employee Feedbacks can improve Employee Engagement - Salary contingent on performance can be an instrument to increase Employee Engagement - There is no „one-size-fits-all" approach to motivate employees because every organisation is different - Subjective opinions about the state of employee engagement within a company can vary a lot to reality

Organizational Culture - Schein's three levels of organizational culture:

-Surface manifestations of organizational culture-e.g. artefacts, ceremonials, behaviors -Values -Basic assumptions-e.g. relationship to the environment, to the nature of reality and truth, to human activity and to relationships Example: Apple-Cook said that Apple's culture of innovation isn't something that can be formulaically copied by rivals.

GetSafe

-fastest growing Neo-Insurance Company for Millennials The insurance industry has failed to adapt and an entire new generation of customers is slipping through the cracks. - Get covered in 3 minutes - One-touch access to additional coverage - Meet all customers insurance needs - Manage your policy whenever needed, just as quickly - File claims digitally -Customer Growth - Already taking substantial market share from incumbents - Customers love Getsafe - Performance Culture links what we do to how we do it - The OKR(Objective and Key Result) framework is the basic tool to align everybody in the organization on the company vision. Everybody should know exactly in what way he helps to achieve on our mission -We use the OKR framework as a tool for structured goal setting - Vision: We help people identify, organize and protect what they care most about in life. -Strategy 2018 Grow Customers ; Strategy 2019 Grow Premium; Strategy 2020 Expand: Life Insurance & Markets - Vision : 2018: Grow Customers 2019: Grow Premium 2020: Expand - Organizastion: Everybody knows exactly, in which role he operates and how he helps to achieve Getsafe's mission Everybody knows clearly, who his manager is and can ask for any support that he requires to perform best Squad structures do not represent any form of formal hierarchy - we want to build a no-ego company where everyone contributes where he serves the company best -A Squad = self-organized team with all relevant (x-functional) skills working for a defined timeline (min. 1 quarter) on solving a business challenges ("change") . -Leader's job: Communicate what problem needs to be solved. And, why. -Squad's job: Collaborate with team members to find the best solution. - Squads define their own team OKRs for the next quarter - all goals need to be in line with company objectives.Every member commits to the goals of the squad -Chapter: Group formed based on competency areas such as quality assurance, engineering, data or design.Chapter leads (eg. VP data) ensure consistency and know how transfer across the squads. They also have role for developing people in their chapter and recruiting.Chapter leads are often the line manager of chapter members. -Constant (central) units are called "TEAMS".A team is a constant formation of people mainly working and improving within their function.Teams usually don't have Tech / UX / Data resources at their discretion- if they require resources they need to contact the responsible chapter leader - The squads / teams work fully autonomously - in order to align and ensure consistency, we implement very result-focused meetings. -Steering committees for squads and teams ensure, that we are on track and manage resource conflicts -We do not want to limit know how about what's going on to the "leadership" but want to create transparency for the whole team. -Steering Meetings. - Performance Management. Company OKRs are discussed and revised quarterly and guide the way Clear quarterly business goals should be set autonomously by the squads / team in line with our company OKRs We want to measure and reward good performance of each individual also in our compensation (more than we do at the moment) Besides business goals, living by the Getsafe values to be considered when evaluating performance. - Company >Team > Individual Goals -Individual goals based on Team OKRs and values - Squad / Team focus on the business results -Line Manager focus on personal development

Survey Circle

-platform for online research -helps people find survey participants -larger sample size -better research results - Target groups: • students, PhD students, founders, startups , all other people who are interested in research and want to support research - The largest community for mutual support in online research - small team, flat hierarchy - Being a single founder: Advantages: fast decisions ; very efficient ; no compromises ; no fights about general direction Disadvantages : less manpower ; have to dig deep into every topic ; need support from external partners ; "lonely" decisions - We are a team: working intensely with each other for a common goal no shared office ; working in different cities ; working at different times of the day - Advantages of working in a team : Measurable - more resources → more work getting done ; more diverse set of skills → more complex projects possible ; more eyes → higher chance to identify mistakes (and bad ideas) Soft - more social interaction ; more motivation (motivation can be viral) => Better platform, stronger market position, faster growth - Small team size good for fast decisions, in-depth discussions getting things done (instead of creating PPT presentations, asking for permission, etc.) BUT: Not every decision should be discussed with everyone (inefficient) - more proactive communication needed through regular core team meetings ; planning in advance ; clear responsibilities - Collaboration tools to make the collaboration effective, efficient, and pleasant : Whatsapp for discussions and updates ; Trello to ccordinate processes & monitor projects ; Calls and TeamViewer to discuss complex issues ; other tools may be necessary if there is grow - social interaction is important ( improve through random topic group ; real life meetings and calls ; everyone is part of other social environmens - Founder works full-time, team members work part-time (accept the situation and do better planning) - Motivation through leadership: trust, empowerment instead of micromanagement, honest appreciation , openness for ideas and critisicm , work hard as the founder , explain why some things are more important than others , be successful as a team - Team development is ongoing process - Perfectionism can kill motivation - Putting yourself in the shoes of others is important - Streamlining(make (an organization or system) more efficient and effective by employing faster or simpler working methods.) things is important, but don't let it guide all your actions - Digital communication tools are great, but choose channels wisely - Remote teams will become an integral part of our work lives

Motivation Theories

1. Expectancy Theory High motivation when believed that high levels of effort will lead to high performance high performance will lead to the attainment of desired outcomes Effort - Expectancy - Performance-Instrumentality- Outcomes- Valence - Personal Goals Expectancy - A person´s perception about the extent to which his or her effort will result in a certain level of performance. When high people perceive that if they try hard, they can perform at a high level Instrumentality- A person´s perception about the extent to which performance at a certain level will result in the attainment of outcomes. When high People perceive that high performance leads to the receipt of certain outcomes Valence- How desirable each of the outcomes available from a job or organization is to a person. When People desire the outcomes that result from high performance Example: NUS Bell Curve Story 2. Need Theory Need: A requirement for survival and well‐being Basic premise is that people are motivated to obtain outcomes at work to satisfy their needs Managers must determine what needs a worker wants satisfied and ensure that a person receives the outcomes when performing well They do not explain why specific actions are chosen in specific situations to obtain specific outcomes They do not easily account for individual differences

Executive Payment -What Works Best?

1. Fixed salary 2. Salary contigent on performance 3. Fixed + contigent part a) Bonus payments b) Shares of company stock

Defining and Describing Key HRM Functions

1. Job Analysis - The process of getting detailed information about jobs. 2. Job Design - The process of defining the way work will be performed and the tasks that a given job requires. 3. Recruitment - The process through which the organization seeks applicants for potential employment 4. Selection - The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. 5.Training - A planned effort to enable employees to learn job-related knowledge, skills, and behavior. 6. Development - The acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in customer demands. 7. Performance Management - The process of ensuring that employees' activities and outputs match the organization's goals. - The human resource department may be responsible for developing or obtaining questionnaires and other devices for measuring performance. 8. Planning Pay & Benefits - How much to offer in salary and wages. - How much to offer in bonuses, commissions, and other performance related pay. - Which benefits to offer and how much of the cost will be shared by employees. 9. Administering Pay & Benefits - Systems for keeping track of employees' earnings and benefits are needed. - Employees need information about their benefits plan. - Extensive record keeping and reporting is needed. 10. Maintaining Positive Employee Relations - Preparing and distributing employee handbooks and policies - Dealing with and responding to communications from employees - Collective bargaining and contract administration. 11. Establishing and Administering Personnel Policies - Organizations depend on their HR department to help establish and communicate policies - All aspects of HRM require careful and discreet record keeping. 12. Ensuring Compliance with Labor Laws - Government requirements include filing reports, displaying posters, avoiding unlawful behavior 13. Supporting the Organization's Strategy: - Human resource planning • identifying the numbers and types of employees the organization will require to meet its objectives. 14. Change management - Evidence-based HR • Collecting and using data to show that human resource practices have a positive influence on the company's bottom line or key stakeholders.

Effective Incentive Pay Plans Meet the Following Requirements:

1. Performance measures are linked to the organization's goals.(Does what we expect of them fit to what we actually want them to achieve?) 2. Employees believe they can meet performance standards.(Are the goals that we set actually realistic from the employee's point of view (subjective)?) 3. The organization gives employees the resources they need to meet their goals.(Do we objectively offer the right support in terms of time, money, software, hardware, experience, human capital ... to make goal achievement a realistic scenario? ) 4. Employees value the rewards given.(Are the employees interested in the potential reward? ) 5. Employees believe the reward system is fair. (Do the employees trust and accept the system and its raters? ) 6. The pay plan takes into account that employees may ignore any goals that are not rewarded.(Have possible counterproductive behaviors that could occur been taken into account?)

Assessment Center (AC)

An Assessment Center (AC) is (usually) A seminar over 1-3 days With 8-12 applicants or employees • Who are observed and evaluated • By executives and HR-professionals • In role-plays and case studies Objective: Evaluation of strengths and weaknesses in terms of certain job requirements Application for personnel selection and personnel development Origin: -Selection of officer cadets after World War II in Germany -Management Progress Study at AT&T in the 1950s and 1960s AC exercises: - Presentations - Role-plays - In-basket exercise - Group discussions Frequently, ACs are supplemented by further practices, e.g. - Interview method - Personality test and ability test - Performance test (e.g., intelligence test) - Case studies

Departmentalization - Functional Structure

An organizational structure composed of all the departments that an organization requires to produce its goods or services. Advantages Encourages learning from others doing similar jobs.Easy for managers to monitor and evaluate workers Disadvantages Difficult for departments to communicate with others. Preoccupation with own department and losing sight of organizational goals. Useful for: Startup Areas that are not fast moving Routine Jobs Companies with small no. of homogenious products Ex: Fraport

Divisional Structure

An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer. Advantages Quick response to important changes in external environment. Minimal problems of sharing resources across functional departments. Disadvantages Can be dysfunctional competition among divisions. Can be very expensive. Can focus on short‐term performance. Duplication Ex: Haniel & Cie. GmbH

Clan Control

Clan Control: The control through the development of an internal system of values and norms. Both culture and clan control accept the norms and values as their own and then work within them. Examples: Work dress styles, normal working hours, pride taken in work. These methods provide control where output and behavioral control does not work. Strong culture and clan control help workers to focus on the organization and enhance its performance. Amazon: On the one hand: strong culture... Mission "to be Earth's most customer-centric company" • Fastest company ever to reach $100 billion in annual sales • #1 retailer by market value (surpassed Wal-Mart in 2015), #11 most innovative company & #16 most valuable brand (Forbes 2016) • According to employees, co-workers at Amazon are the sharpest, most committed; they say the genius of Amazon is the way it drives them to drive themselves - Leadership Principles (DICID) Customer Obsession Invent and Simplify Insist on the highest Standards Dive deep Deliver results On the other hand... Data-driven management (Amazon runs a continual performance improvement algorithm on its staff) • Competition-and-elimination system ("purposeful Darwinism") • Organization Level Reviews, where managers debate subordinates' rankings ("rank and yank") • 80 hours workweeks, hours spent working at home on nights or weekends • High employee turnover ("burn and churn") and significant gender gap Surface manifestations Passion and commitment of Amazonians • Award "I'm Peculiar" for quiz performance • Harsh language and open criticism • Competition among coworkers Values Mission: Earth's most customer-centric company • Leadership principles Basic assumptions • Novelty / pioneerism, customer orientation • Power of metrics • Conflict brings about innovation • "No pressure, no diamonds"

Fiedler's Contingency Model

Contingency theory in leadership: create a fit between leader and environment Situations can be described by three factors: 1. Leader-member relations • Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers towards the leader • Good group atmosphere: high degree of subordinate trust, liking, positive relationships 2. Task structure • Concerns the degree to which requirements of a task are clear and spelled out • High Structure: requirements/rules are clearly stated/known; limited number of correct solutions; few alternatives in task completion 3. Position power • Designates the amount of authority a leader has to reward or punish followers • Strong power: authority to hire and fire; give raises in rank or pay - Together, these situational factors capture the favorableness of various situations

Contract Administration and Grievance Procedures

Contract Administration - Includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement. Grievance Procedure - The process for resolving union-management conflicts over interpretation or violation of a collective bargaining agreement.

Types of Performance Measurement Rating Errors

Contrast errors: the rater compares an individual, not against an objective standard, but against other employees. Distributional errors: the rater tends to use only one part of a rating scale. - Leniency: the reviewer rates everyone near the top - Strictness: the rater favors lower rankings - Central tendency: the rater puts everyone near the middle of the scale Rater bias: raters often let their opinion of one quality color their opinion of others. - Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they don't need to improve in any area

Criterion-Related Validity

Criterion-related validity: a measure of validity based on showing a substantial correlation between test scores and job performance scores. Two kinds of research are possible for arriving at criterion-related validity: 1. Predictive Validation • Research that uses the test scores of all applicants and looks for a relationship between the scores and future performance of the applicants who were hired. 2. Concurrent Validation • Research that consists of administering a test to people who currently hold a job, and then comparing their scores to existing measures of job performance. 3. Incremental validity Type of validity that is used to determine whether an additional test will increase the total validity beyond that provided by an other selection tool Why is it relevant? • Combining multiple selection tools with each other will not linearly increase validity • Some combinations don't even lead to an increase at all • Costs and strain on participants DO increase • Keep utility in mind!

Value Proposition for Optimal Span of Control

Faster Communication and decision making -Employee Experience increased empowerment higher engagement -Stakeholder Experience Increased responsiveness more innovation The bottom line : Increase efficiency & effectiveness and lower costs Organizational set up should support strategy. -Organizational set up influences among others employee engagement, speed of decision making -Whatever organization is selected the clarity for employees about decision rights within the processes is crucial -but never forget the informal rules! -Matrix Organization requires higher amount of cooperation among matrix partners. This is a competence that can be learned and trained. -Organizational analysis tools and metrics are helpful and required -senior leadership support is key

Trait Approach

Fit with Strategy - Usually low; requires manager to make a clear link Validity - Usually low; (often high contamination and deficiency) Reliability - Usually Low ; can be improved by specific definitions of attributes Acceptability - Usually low; easy to develop and use but neither helpful nor motivating Specificity - Usually low Too Subjective • Most appropriate when: - Emphasis on individual • Evaluate stable traits (i.e., cognitive abilities, personality) - Strong positive relationship between abilities, personality traits, and desirable work-related behaviors - No real chance to regularly measure behavior or performance - No real need to regularly measure behavior or performance • Disadvantages - Improvement not under individual's control (stability of traits) - Improvements in behavior and performance are not noticed - Trait may not lead to desired behaviors or results --> Intelligence does not automatically lead to performance

Results Approach

Fit with strategy - Usually high Validity - Usually high; but can be both contaminated and deficient Reliabilty - Usually high ;Risk --> Distortion through other factors Acceptability - Usually High ;usually developed with input from those who are evaluated Specificity - High regarding results, but low regarding behaviours necessary to achieve them • Advantages: - Less time - Lower cost - Clearest link to the strategy (in many cases) - Data appear objective • Most appropriate when: - Workers skilled in necessary behaviors - Consistent improvement in results over time - Many ways to do the job right - Results can strongly be affected by employees - Clearly defined productivity goals regarding: • Qualitative goals • Quantitative goals • Combinations of both

Behavioral Approach

Fit with strategy - Usually high Validity - Usually high; can minimize contaminati on and deficiency Reliabilty - Usually high Acceptability - Moderate; difficult to develop, but often highly accepted by employee Specificity - Usually high (needs to be well-developed) • Appropriate if... - Employees take a long time to achieve desired outcomes - or Link between behaviors and results is not obvious - or Poor results are due to causes beyond the performer's control - or Right behavior is the key for success - or Right behavior can clearly be specified • Not appropriate if... - Only the results count - Measurement of the behavior is difficult - Definition of the right behavior is difficult

Chain of Command- Tall and Flat Organizations

Flat structures have fewer levels and wide spans of control. Structure results in quick communications but can lead to overworked managers Tall structures have many levels of authority and narrow spans of control. -As hierarchy levels increase, communication gets difficult creating delays in the time being taken to implement decisions. -Communications can also become garbled as it is repeated through the firm -More levels of hierarchy increases the number of managers --> less responsibility of the workers reduces motivation -Increased bureaucratic costs

House's Path-Goal Theory: Basic Assumptions

Focus on what leaders can do to motivate their subordinates Ways how leaders can increase followers' motivation: 1. Increase number and kinds of payoffs that subordinates receive from their work 2. Making the path to the goal clear and easy to travel, which makes the work itself more satisfying: Subordinates - Path- Obstacles - Path- Goal Productivity Path-Goal Leadership -Define goals -Clarifies path -Removes obstacles -Provides support

Trait Model of Leadership

Focuses on identifying the personal characteristics that cause effective leadership "Great man theories" Examples for traits and personal characteristics related to effective leadership: - Intelligence - Knowledge and expertise - Dominance - Self-confidence - High energy - Tolerance of stress - Integrity and honesty - Maturity Several traits have been found to be related to leadership, but no definitive list exists

IT - Opportunities/Risks

IT = a set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information (STOMA) Opportunities • Better decision making, better control • Overcome regional/national boundaries • Flexible use of resources • New work concepts: telecommuting, virtual teams, mobile offices • Transfer of big data amounts Risks • Technology is necessary, but not sufficient • Information overload • Barriers to the adoption of IT • Data manipulation, security risks • Legal issues Global virtual teams can be defined as • temporary • culturally diverse • geographically dispersed • electronically communicating (via ICT = Information and Communication Technology) work groups. Motivation: • Globalization and multicultural workforce • Procure talents with diverse qualifications • Value shift in the work environment Challenges Temporary Nature • Short-term --> undergo stages of group development quickly • Lack of past experience and trust no "common language" Cultural Diversity • Intercultural communication --> language barriers, different social values and work ethics etc. Geographical Distance • Lack of collocation --> problems of group cohesiveness • Organizational challenges, e.g. different time zones ICT • Technological uncertainty • Asynchronous communication • Lack of non-verbal communication and social cues --> Additional complexities lead to communication challenges

Collective bargaining process in Germany

Intraorganizational discussion of trade union on course of action--->Cancelling current collective agreement (Tarifvertrag)--> Negotiations between employer representatives and trade unions --> - agreement => new labor agreement - negotiations fail a)Mediation - agreement=> new labor agreement or failure => Strike vote of union members b)Strike vote of union members -rejection => next round of negotiations => suggested collective agreement => acceptance - new labor agreement -approval => strike and/ or lock out ... the rest like rejection ( it can go from suggested collective agreement (if it is rejected) back to strike and or lock out and make the cycle till acceptance is reached

Intrinsic and Extrinsic Motivation

Intrinsically Motivated Behavior - Behavior that is performed for its own sake - The source of the motivation is performing the behavior - Interesting and challenging jobs are likely to lead to intrinsic motivation Extrinsically Motivated Behavior - Behavior that is performed to acquire material or social rewards or to avoid punishment - The source of the motivation is the consequences of the behavior and not the behavior itself Prosocially Motivated Behavior - Behavior that is performed to benefit or help others (CSR)

Components of the Path-Goal Theory

Leader Beaviours -Directive -Supportive -Participative -Achievement oriented Subordinate Characteristics Task Characteristics Motivation => Goals Producitvity

Path-goal theory matrix

Leader Behaviour(Directive Leadership) - Group Members(Dogmatic,Authoritarian) - Task Characteristics(Ambiguous, Unclear rules, Complex) Leader Behaviour(Supportive Leadership) - Group Members (Unsatisfied,Need affiliation, Need for clarity) - Task Characteristics (Repetitive, Unchallenging, Mundane & mechanical) Leader Behaviour( Participative) - Group Members (Autonomous, Need for control, Need for clarity) - Task Characteristics ( Ambiguous, Unclear , Unstructured) Leader Behaviour(Achievement oriented) - Group Members (High expectations, Need to excel) - Task Characteristics (Ambiguous, Challenging , Complex)

House's Path-Goal Theory: Choosing Leadership Styles

Leaders must choose a leadership style that best meets subordinates' motivational needs: - choose behaviors that complement or supplement what is missing in the work setting - enhance goal attainment by providing information or rewards - provide subordinates with the elements they need to reach their goals It depends on subordinates' and task characteristics if a type of leader behavior is motivating Directive Leadership - Set clear standards of performance and clarify how a task is to be done, Make rules and regulations clear to subordinates, Set timelines for task completion. Good for dogmatic people(come to work late), people that want you to give orders and don´t to be forced in participating in decisions Supportive Leadership - Be friendly and approachable , Attend to well-being and human needs of subordinates .Use supportive behavior to make work environment pleasant . Treat subordinates as equals and give them respect for their statup. Participative Leadership - Invite subordinates to share in the decision-making , Consult with subordinates , Seek their ideas & opinions , Integrate their input into group/organizational decisions Achievement-oriented Leadership - Challenge subordinates to perform work at the highest level possible and seek continuous improvement. Establish a high standard of excellence for subordinates , Seek continuous improvement , Demonstrate a high degree of confidence in subordinates' ability to establish and achieve challenging goals Examples: Group members are autonomous and the task is unstructured--> participative leadership Group members are dogmatic and the task is complex --> directive leadership

The Nature of Leadership

Leadership: a process in which leader and follower interact in a way that enables the leader to influence the actions of the follower in a noncoercive way, towards the achievements of certain aims or objectives Leadership style: specific behaviors in which a manager chooses to influence other people Leader traits and skills --> Leader Behavior <=> Follower needs and beahvior (these two make the context) Start with what is missing. It is not enough to look only at the leader. There is not only one leadership style that is successful. We have to look at context. Example: Google. Employees have more autonomy. - Highly qualified motivated employees Walmart. Employees have less autonomy. -Not so highly skilled and motivated individuals. That is why they both chose these leadership approaches

Organizational Architecture

Organizations are ... (1)are social entities that (2)are goal‐directed, (3)are designed as deliberately structured and coordinated activity systems, and (4)are linked to the external environment Determines how efficiently and effectively org. resources are used The key element of an organization is NOT a building or a set of policies or procedures; organizations are made up of people and their relationships with one another. org. Structure = formal system of task and reporting relationships showing how workers use resources org. Culture Control Systems Human Resource Management Systems --> Determines how efficiently and effectively organizational resources are used. Organizational Design = process by which managers make specific choices that result in a particular kind of organizational structure and culture

Three Organizational Control Systems

Output Control - Financial measures of performance;Organizational goals Behavior control - Direct supervision Organizational culture- Values, norms, and socialization Most companies use a combination of output and behavior controls, while (overall) a trend towards more output-oriented control can be observed

Mercedes-AMG Petronas Formula One Team

Paddy Lowe, Executive Director: "If I had to pick one thing that was the difference that helped us achieve the success we've achieved, it would be teamwork - having a great group of people operating together for the total outcome instead of their individual achievements, everyone facing in the same direction and highly motivated to achieve one clear, common goal." Group tasks: Task interdependence; members must work closely together. --> Mercedes-AMG Petronas Motorsport: A multidisciplinary team of 1500 innovators. Aerodynamicists - Enginners - Operations - Business Team Group role: Control behavior in groups; group roles can change. 2016: Mechanics turnover from team Rosberg to team Hamilton. Toto Wolff, Head of Motorsport: "In terms of keeping the performance up in the team, you need to consider what your high-performers need; what kind of environment they need, [...] There is not just one position like the chief mechanic that is important for the performance of the team and the drivers, but we have to take decisions for many, many hundreds of people and develop them. Group Leadership What are the qualities of a leader in F1? - Effective communication - Motivation - Proper planning - Experience and knowledge - Integrity Mercedes F1 Three team leaders with different backgrounds (but sufficient experience overlap): Raise flexibility to face all types of situations including challenges & failures Group Development: Goal Conflict Constructors Championship vs. Drivers Championship Toto Wolff: "The opinion differed between all of us. What I take home is that it was an incident that could have been avoided from both sides. It's so difficult to attribute percentages of blame. [...] They are sitting in those cars, they are responsible for bringing those cars home, and they failed to do that.[...] It was definitely a lesson enough. It's painful for them to see we have lost what could have been a great result." Decision • No punishment. • No team orders: Autonomous driving to keep equality and foster competition. • Strict internal rules about face-to-face behavior, race collisions and communication.

Pay Rates and Pay Policy Lines

Pay Rates 1. Organization obtains pay survey data for its key jobs. 2. Pay policy line is established. 3. Pay rates for non-key jobs are then determined. Pay policy line - a graphed line showing the mathematical relationship between job evaluation points and pay rate.

The Importance of Pay in Employee Motivation - Empirical Evidence

Pay four times more effective than interventions designed to make work more interesting Introduction of individual pay incentives increased productivity by an average of 30% - job enrichment: 9-17% - employee participation programs: less than 1% Incentive systems yielded productivity 1.36 standard deviations higher in manufacturing firms and .42 in service firms - Similar effect sizes were found for feedback and social rewards Average correlation of .32 between incentives and quantity of production, but no consistent relationship between incentives and product quality

Sample Pay Grade Structure

Pay grades - sets of jobs having similar worth or content, grouped together to establish rates of pay. Pay ranges - set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.

Pay Level Decision

Pay level: The average amount the organization pays for a particular job. Pay at: - the rate set by the market - a rate above the market - a rate below the market Gathering information about market pay - Benchmarking - a procedure in which an organization compares its own practices against those of successful competitors - Pay surveys - Trade and industry groups - Professional groups

Pay Structure and Actual Pay

Pay structure - The pay policy resulting from job structure and pay-level decisions However, what the organization actually does may be different. The HR department should compare actual pay to the pay structure, making sure that policies and practices match. Compa-Ratio is the common way to do this. Compa-Ratio (CR) - the ratio of average pay to the midpoint of the pay range. - If the average equals the midpoint, CR is 1. - If CR is greater than 1, the average pay is above the midpoint. - IF CR is less than 1, the average pay is below the midpoint.

Pay for Individual Performance: Performance Bonuses and Sales Commissions

Performance bonuses - Not rolled into base pay. - The employee must re-earn them during each performance period. - Sometimes the bonus is a one-time reward. - Bonuses may also be linked to objective performance measures, rather than subjective ratings. Commissions - incentive pay calculated as a percentage of sales. - Some salespeople earn a commission in addition to a base salary. - Straight commission plan - some salespeople earn only commissions. - Some salespeople earn no commissions at all, but a straight salary.

Personnel Selection

Personnel Selection: the process through which organizations make decisions about who will or will not be allowed to join the organization. Selection begins with the candidates identified through recruitment. It attempts to reduce their number to the individuals best qualified to perform available jobs. It ends with the selected individuals placed in jobs with the organization. Steps in the selection process: 1.Screening Applications and Resumes 2.Testing and Reviewing Work Samples 3.Interviewing Candidates 4.Checking References and Background Making a Selection

Market Forces: Economic Influences on Pay

Product Markets • The organization's product market includes organizations that offer competing goods and services. • Organizations compete on quality, service, and price. • The cost of labor is a significant part of an organization's costs. Labor Markets • Organizations must compete to obtain human resources in labor markets. • Competing for labor establishes the minimum an organization must pay to hire an employee for a particular job.

Types of Divisional Structures

Product Structure Geographic Structure Market Structure

CEO

Production R&D Marketing Human Resources Finance Sales

Types of Pay for Organizational Performance

Profit Sharing- Incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. Stock Options - Rights to buy a certain number of shares of stock at a specified price Employee Stock Ownership Plans (ESOPs) - Arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust

Output Control ‐Financial Measures of Performance

Profit ratios: Measures of how efficiently managers convert resources into profits —return on investment (ROI). Liquidity ratios: Measures of how well managers protect resources to meet short term debt— current and quick ratios Leverage ratios: Measures of how much debt is used to finance operations—debt‐to‐asset and times‐covered ratios Activity ratios: Measures of how efficiently managers are creating value from assets— inventory turnover, days sales outstanding ratios

Reliability and Validity

Reliability: the extent to which a measurement is free from random error. A reliable measurement generates consistent results. Organizations use statistical tests to compare results over time. - Correlation coefficients - A higher correlation coefficient signifies a greater degree of reliability. Different types of reliability measures available Example: Test-Retest Reliability (Intelligence Test) The higher the correlation, the better Validity: the extent to which the performance on a measure (such as a test score) is related to what the measure is designed to assess (such as job performance). three ways of measuring validity: 1. Criterion-related 2. Content 3. Construct

How to motivate Teams?

Rewards: Members should benefitwhen the group performs well—rewards can be monetary or in other forms such as special recognition Consider individual motivations and goals and possible conflicts with group goals Individual compensation is a combination of both individual and group performance.

House's Path-Goal Theory: Summary

Set of assumptions about how different leadership styles will interact with subordinate characteristics and the work situation to affect employee motivation Leaders should choose a leadership style that best fits the needs of subordinates and their work - Leader's job is to help subordinates reach their goals by directing, guiding, and coaching them along the way - Theory suggests which style is most appropriate for specific characteristics Leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance (House, 1996)

Multimodal Interview by Schuler

Standardized interview process Applicant is rated on behaviorally anchored rating scale (BARS) Trimodal approach - Trait approach • Capturing traits (e.g., intelligence, conscientiousness) -Biographical approach • Capturing past behavior and experiences • Past behavior is a good predictor of future behavior -Behavioral approach • Captures applicant's behavior in hypothetical situations Components of the Multimodal Interview 1. Start of the conversation - Informal, small talk, clarify upcoming course of events 2. Applicant's self-introduction - Brief description of professional background, expectations 3. Free part - Open questions regarding self-introduction and application documents 4. Professional interests, vocational and organizational choice 5. Questions concerning biography - Related to the vacant position 6. Realistic job preview 7. Situational questions - Explanation of incidents critical for success; applicant describes own behavior in this situation 8. End of the conversation

General Principles

Take complaints about pay seriously Do not fall very far below market pay levels Realize that most of the best employees want strong pay-performance relationships Evaluate current pay systems with respect to the strength of pay-performance relationships Examine whether executive pay is moving in the same direction, and at roughly proportionate rates, as employee pay increases

Purposes of Performance Management

Strategic Purpose - means effective performance management helps the organization achieve its business objectives. Administrative Purpose - refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Developmental Purpose - means that it serves as a basis for developing employees' knowledge and skills.

When Bargaining Breaks Down

Strike - a collective decision by union members not to work until certain demands or conditions are met. Alternatives to strikes: Mediation - Conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution. Fact Finder - Third party to collective bargaining who reports the reasons for a dispute(Aussprache), the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline. Arbitration - Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement.

Economic Value of IT

Telecommuting: remote work Important question for organizations and teleworkers: -How does telecommuting of employees affect the quality of their communication with colleagues and supervisors? - How does it affect performance? PROS Employer: ‐Cost saving on offices, equipment, and travel costs ‐Retention(the continued use, existence, or possession of something or someone) of talented employees Employee: ‐Savings of time and money since they do not have to travel to work ‐Flexibility ‐Less pressure CONS Employer: ‐Lack of control ‐Security concerns ‐Loss of on‐site brainstorming Employee: ‐Isolation ‐Potential lack of discipline ‐Potential lack of direction from the boss What has a firm to do? Recognize that not all firms, jobs, or employees are well suited to having telecommuting options. Understand what your competitors are doing. Remember that it doesn't have to be "all or none." Draft specific guidelines and policies for telecommuting in the workplace and be sure there is a clear monitoring system. Train employees on how to document performance while working at home and train managers on how to oversee that performance Example of behaviour control : Yahoo

Transactional Leadership and Laissez-faire Leadership

Transactional Leadership: focus on exchange between leader and followers (e.g., rewards & punishments for performance) 1. Contingent reward: Linking goals to rewards, clarifying expectations & providing necessary resources Management by objectives 2. Active Management by Exception: Actively monitoring subordinates and actively watching for deviations from rules and standards - taking corrective actions to prevent mistakes. More time consuming. 3. Passive Management by Exception: Intervention only when standards are not met - taking actions to correct mistakes Laissez-faire: „hands-off" approach Allowing group members to make most decisions Avoidance of own decisions and responsibilities

Transformational Leadership

Transformational managers... - make subordinates aware of how important their jobs are for the organization - make their subordinates aware of the subordinates' own needs for personal growth, development, and accomplishment - motivate their subordinates to work for the good of the organization as a whole - are charismatic - intellectually stimulate subordinates CAN be used simultaneously with transactional leadership Transformational versus transactional leadership - Transactional: focus on exchange between leader and followers (e.g., promotions for performance) (Angela Merkel) - Transformational: connection between leader and followers that raises the level of motivation and morality in both parties (Barack Obama) • Example: Gandhi raised the hope of millions and, in the process, was changed himself

Types of Communication

Verbal vs. nonverbal communication Nonverbal communication can be used to back up or reinforce verbal communication. People tend to have less control over nonverbal communication. Sometimes nonverbal communication is used to send messages that cannot be sent through verbal channels. Intercultural communication -Usually involves problems in message transmission - Same culture: interpretation based on the same values, beliefs, and expectations - Different culture: receiver uses information from her culture to interpret the message. -->Could lead to missunderstandings or even conflicts.

Interview Panels

Very frequently used tool in personnel selection Different forms of implementation: - Structured/standardized interviews - Unstructured interviews - Semi-standardized interviews Goals of the interview - Allows for getting to know each other personally - Social validity (applicants think that the tool is suitable) - Allows for realistic job preview • Applicant obtains information on positive and negative aspects of the position - Possibly negotiation of job conditions (e.g., salary) Not all types of questions allowed (e.g., pregnancy, religion, political party)

ROWE - Blessing or curse?

What is the concept of "Results-Only Work Environment"? • Pay depends on delivery of results, not on number of hours worked • Outcome-driven work environment • Process of how to achieve goal is not relevant • Complete autonomy and responsibility, own work schedule • Evaluation of performance with regular surveys • Contrast to traditional working environment SpinWeb as one of the first companies to go ROWE - Factors and reasoning Strongly customer oriented product Focus on being a profitable and efficient company Enforcement of thinking out of the box to achieve greater results Need for innovative environment SpinWeb's culture and core values, e.g. family/self first, accountability ROWE enables innovation but implementers may also suffer from communication difficulties Advantages (+) • Designed to increase productivity • Great workplace flexibility (e.g. home office) • Major contribution to work-life balance of employees (e.g. by own time schedule) • Increase in employee satisfaction, decrease in employee turnover (e.g. leads to cost savings) Disadvantages (-) • Possible abuse of system (e.g. unethical behavior) • Working remote may trigger communication problems • Self-motivation and self-discipline as difficult prerequisites • May be infeasible for highly collaborative firm environment which requires face-to-face meetings --> Successfully implementing ROWE as an innovative model to create new working environments requires a strong fit with the respective company culture The results-only Work Environment - Pros and Cons - difficult to manage and communicate - could lead to les team spirit - possibilty for unethical behaviour - need for self-discipline, could be abused - does not work for every company and field + less physical place and energy needed, pleasant workplace and atmosphere + easier to align life with work --> less sick days and days off + less stress, more happiness + more power and autonomy increase motivation --> lower turn over rate --> increase in productivity Gap Outlet and Gap Inc. Headquarter implemented ROWE successfully in 2008 External factors: - expensive place : rent savings - bad rail connection: time profit, less stress - market competition which requires experience and creativity Internal factors: - demographics (76% women. average age 34): now lower turnover rate --> more experience - flat structure, quick communication - entrepreneural culture, much freedom - large scale jobs, high autonomy and much power of each employee --> ROWE is a radical strategy that has to be implemented thoughtfully. Gap successfully analyzed its preconditions, chose the right strategy and used it for a competitive advantage.

Employee Representatives in Germany

Work council ("Betriebsrat") - Must be tolerated in businesses with no less than 5 regular employees (with some exceptions) - Elected for four years by the staff - Tasks: • Ensure social protection for employees • Supervise compliance with collective labor agreement - Factual influence of work council varies between companies Co-determination at enterprise level ("Unternehmensmitbestimmung") - Institutionally anchored exertion(the application of a force, influence, or quality.) of influence by employee representatives - Form and degree of participation depends on form and size of the organization

Practical Application: Motivating Staff

You and your partners own a chain of 15 dry-cleaning stores in a medium-sized town. All of you are concerned about a problem in customer service that has surfaced recently. When any one of you spends the day, or even part of the day, in a particular store,clerks (shop assistants) seem to provide excellent customer service, spotters(controllers) are making sure that all stains are removed from garments and pressersare doing a good job of ironing difficult items such as silk blouses. Yet during those same visits customers complain to you about such things as stains not being removed and items being poorly pressed in some of their previous orders; indeed, several customers have brought garments in to be redone. Customers also sometimes comment on having to wait too long for services to be provided. You and your partners are meeting today to address this problem. -Expectancy Theory 1. Expectancy influences the level of effort Clerks, Spotters & Pressers need to know they can achieve high performance if they try hard. • Communicate and demonstrate direct correlation: high level of effort results in a high level of performance (i.e. excellent service, stainless and wrinkle-free textiles lead to high customer satisfaction) • Provide training so that people have all the expertise needed for high performance 2. Instrumentality influences performance levels Clerks, Spotters & Pressers need to know how their performance leads to desired outcomes. • Explain how you measure performance (e.g. quality checks, mystery shopping, sales, customer feedback, retention rates, new clients,...) • Establish a clear link between individual performance and desired outcomes • Provide rewards if performance expectation is met 3. Ensure valence of outcomes The outcomes need to be attractive for Clerks, Spotters & Pressers • Identify desired outcomes through communicating with employees • Examples of valued outcomes in the workplace include: pay increases and bonuses, promotions, time off, new assignments, recognition, etc.

PWC

being number one in revenues and being most attractive employer in Germany strong global network Deliver value in 3 business units: Assurance, Tax & Legal, Advisory Internship with a perspective Stairway -PwC's internship abroad program Next Digital Leader -Different opportunities in different areas of digitalization Digitization of information and processes is the basis for Digitalization and Digital Transformation." Digitalization can be seen as the journey to Digital Business Models and the achievement of new revenue streams. Digital information are at the core of Digitalization Digital Transformation can be interpreted as the change of the world through technology but technology often is just the trigger and digital transformation is a holisitc endeavour Digital Dinosaurs Digital Immigrants Digital Leaders Digital Natives Digital Vision & Strategy -Business Models & Products -Customer Engagement -Processes & Infrastructure -IT, Data & Security -Employees, Culture & Organization Key Capabilities for successful digital transformation -People&Skills - Support a change in culture and collaboration -Organization - Adjustment of organization and collaboration due to digital processes -Process - Definition of new processes, taking into account strategy, organization and technology -Technology - Understand the implementation of new systems as a company-wide transformation and not „system change".

Results-Only Work Environment (ROWE)

• Employees have complete autonomy over how they approach their work and focus on being accountable for results • Flexible work (flextime and flexspace) • Evaluation of performance, not presence - value, not effort • Outcome-driven culture • requires clear and exact goals for productivity GAP Outlet successfully implemented ROWE External Factors: • location of headquarters: high lease prices and fair transport connection make option to work from home attractive • experience and creativity necessary to stay competitive --> avoid employee turnover -->create work environment that enhances creativity Internal Factors: organizational culture favours a ROWE flat and lean structure, large-scale jobs, high degree of autonomy and empowerment • demographics: 76% female workforce, avg. age 34 years --> flexible work schedules contribute to work-life balance PROS • employees focus on results only and increase organizational performance, focus on value not effort • great workplace flexibility (e.g. telecommuting, home office), less office space required and therefore less costly • introduction of flex-hour scheduling improves employee's work-life balance • increases job satisfaction, decreases employee turnover and therefore leads to cost savings CONS • abuse of the system possible (e.g. unethical behavior) • communication problems may arise if employees are not in the office on a daily basis • high demands on employees: self-motivation and self-discipline • activities that are not directly related to the outcome might fall short (e.g. service) • not suitable for working environments that require a high degree of collaboration and actual face time