HRM Human Resource Management

Lecture 4: Employee Relations

**Second half** HRM implications: - power shift (HR managers now have more power than they used to) - flexibility and freedom to determine the rules than was previously the case (due to trade union decline) - upward communication (trade union communicating with managers to tell them what people are really thinking) - downward communication (when you have a strong trade union, you can communicate to your workforce, consensus of what they are trying to do) - negotiations that stick (make an agreement and that's it. When you don't have a trade union, potentially having to voice your opinion to many individuals) Trade unions are very good at telling managers what people are thinking (whether that is discontent, decline in motivation - honest feedback and collective voice). Not truth to say that decline in trade unions are beneficial for HR managers. Especially important because we move into a more knowledge based work. Employee involvement: - Managers don't always know best - Suggestions and ideas (employees can make suggestions that are commercially beneficial to organisation that can't be heard from face to face conversation) - Employee commitment and engagement (people like to be involved and listened to, to have a voice for a way the organisation is managed) Takes place via: - Information sharing (decisions explained, basis for decision is set out, TRANSPARENCY - everyone engaged in decision) - Consultation (danger is that senior managers go to pseudo-consultations, but what they are really doing is selling their views and people can become very cynical) - Co-determination The idea of psychological contract - Chris Argyris - Denis Rousseau

Lecture 2: Employee Resourcing

Employee resourcing - first objective of human resourcing, staffing, foundation of HR - Recruitment - Selection - Induction - Retention (keeping the employee there after investing in them) - Dismissal - Retirement HRP - human resource planning Strategic view of HM, future plans, skills needed for future and how to get it etc. making sure we have the right people at right jobs and right time Staffing - mobilising a workforce Challenging area of HR Notes on ELE Recruitment and selection - two closely tied activities almost as if one process, but the are distinct processes Recruitment is about attracting applications, a sales aspect to it, getting people to put themselves forward for employment Pool -> shortlist Recruitment and selection involves meeting them, making a relationship with them, continue process after the application At different times of economic cycle, one becomes more important than the other More research on selection than recruitment nowadays Best practice thinking - some argue that there is a best way of recruiting/selecting Best practice vs. good practice (terms used interchangeable but not the same) Good practice model 1. Job analysis - identify what the key requirements of the job are, generate a list and attributes 2. Recruitment advertising - widest possible pool of appointable candidates, enhancing likelihood of best performer, ethically right because it opens process to widest number of people 3. Objective selection - personal judgement out of the system, technical sense who is best qualified 4. Induction - socialising when your employee arrives in the organisation, happy and comfortable at earliest possible stage Is it always best? Can make a strong ethical case for this model, not sufficient for modern environment? Job Analysis - Formal process, involves systematically defining key elements of job - Job description/accountability profiles (what will be achieved, jobholder will meet these goals) - Person specifications (essential + desirable attributes) Competency-frameworks - Boyzatis (1982) Generic list of attributes across organisation For competency-frameworks: - Less narrowly defined - Less bureaucratic, less time spent - Require less frequent updating - 'Select for attitude, train for skill' Against: - Cloning - Cultural differences, not effective in an international organisation - Past orientation (what we need for future may be very different from what we need now) Different approaches may be different for different people. Recruitment choices - best practice model assumes that the job is advertised widely (society - equal opportunities) - Printed media - Other media (media is most wide) - External agenices - Education liaison (quite narrow) - Professional contacts/poaching Internal recruitment goes againt best practice model but Informal recruitment - look to recruit collegues, friends, networks through that Cast against: - narrow pool of potential candidates to those you already know - diversity (limiting to existing staff and existing network) - the legal case (legal risk is tiny, but just theoretic argument) Cast for: - cost (no need to spend so much money on advertising) - self-selection (chances are the individual knows a lot about the job and working environment from their friend) - RJPs realistic job preview, more realistic understanding of the job for that person - social support (they know people who work there) - low early turnover - impact on existing employees (existing employees like to have the opportunity to work with people they are friendly with, work well with) - international practice Employer branding - what makes you as an employer distinct from the others? A longer term strategic activity about reputation. We want to be an EMPLOYER OF CHOICE. Employee value proposition (EVP) - Beyond best practice model Organisations seeking to improve long term reputation as employers, especially matters because of social media - how you portray yourself to the labour market Has to be based on lived reality of working experience. Not good to tell future canditates that it is amazing to work there because they may get expectations which turn out to be bad. Long term, must invest time and money if you want to do it properly. Interview, surveys, focus groups - develop a statement of employee value proposition. Recruitment agencies have expertise and can help you save money, especially abroad. Headhunters is an unregulated industry - can make inflated claims, hard sell type techniques, push it in CV Employee selection A lot of research on this - Occupational psychology - Validity studies (attempt to undertake scientific research into employee research) - Meta analyses (all research putting it all together to get more generalised outcome - dominant approach in recent years) - High and low validity methods Traditional interviews - very widely used but they are imperfect - Unstructured, 'chatty' approaches (different candidates asked different question, personal bias easily comes in, personal preference) - Low validity - Bias effects - Not 'good practice' - Very widely used For traditional interview: - Cheap method of selecting people - Candidates expect it (empowers the candidate, they have more control in the process, you have the opportunity to sell yourself and influence) - Agreeableness and personal integrity - Informality and its a good thing because its not just about selecting the person but also developing a relationship Structured interviews Traditional interviews -> structured interviews A panel of interviewers making a decision, not just one person - a discussion has to happen - Questions based on personal specification - Hypothetical and behavioural questions - All candidates asked same questions - Scoring of answers - Higher validity Good practice is about ethics, best practice is about effectiveness - often mean the same thing but times when they don't Best fit/contingency thinking should play a bigger role in our thinking about this

Lecture 5: Employment Law

Employment law specific to each country - UK labour market 20-30 years subject to very limited regulation - Employment tribunal is where disputes are settled (labour law courts) Access issues Discrimination law, a lot of it is European law - sex/race/disability/orientation/religion/age Equality Act 2010 does not mean equality law introduced in 2010, just harmonised terminology and brought it all together Sex discrimination has been in the country for many years Discrimnation law - Direct Financial detriment, feelings, disadvantage in the workplace largely because of your sex If employer is found to have directly sex discriminated, no defence Based on EVIDENCE - Indirect Generally applied - Victimisation - Harassment LECTURE NOTES FROM ELE: 1) Historical evolution * Prior to the 1970s there was virtually no employment legislation in the UK with the exception of basic health & safety regulations and restrictions on the employment of children. * Terms and conditions were deemed to be 'freely' negotiated by employers with individuals (via employment contracts) and with trade unions (via collective agreements). The former are / were legally enforceable, the latter not. * This contrasted sharply with the situation in most other industrialised countries where the contract had been largely superseded by state regulation and where collective agreements are legally enforceable. * Gradually, since the 1970s the situation has changed almost totally, so that we now have a situation in which both the individual and collective employment relationships are subject to much regulation. * Specialist labour law courts called Industrial Tribunals (subsequently re-named Employment Tribunals) were established at this time. And over time the scope of their activites has steadily grown. * In the past twenty-five years the amount of new legislation has grown very considerably, while pre-existing law has been reformed. There are now over 90 different types of cases that can be heard by Employment Tribunals and many others that are heard in other types of court. * Some of this has a UK origin (eg: the National Minimum Wage and much recent family-friendly legislation). However, most of the major recent changes have a European origin. * The government have made it clear that no substantial reform or repeal of employment rights with a European origin is planned following the UK's departure from the European Union. 2) Access to employment law * Contrary to popular perception, employment law by no means offers few universal rights to all people in employment. In fact, many are excluded from important employment rights. The various rights which apply to different groups can be summarised as follows: i) Those which to all employed and self employed persons * discrimination on grounds of sex, race, and disability * discrimination on grounds of sexual orientation * discrimination on grounds of religion or belief * discrimination on grounds of age ii) Those which apply to workers but not to other independent contractors * equal pay for equal work * limitations on unauthorised deductions from pay * basic health and safety rights * the national minimum wage * working time rights * data protection rights * time off for family emergencies * some transfer of undertakings (TUPE) rights iii) Those which accrue to employees from the start of their employment * right to a Section 1 statement (ie: a statement setting out main terms and conditions) * right to itemised pay statements * Statutory Sick Pay (SSP) * time off for public duties * 52 weeks' maternity leave * main trade union rights * minimum notice periods * right to request flexible working * rights for fixed-term employees iv) Those which accrue to employees over time * Statutory Maternity Pay (after 6 months) * paternity leave (after 6 months) * unfair dismissal rights (after 2 years) * parental leave (after 1 year) * full fixed term employment rights (after 4 years) * This means that there are two very obvious hurdles that someone must jump before they can bring many kinds of cases to a tribunal: i) they may have to prove their employment status ii) they may have to prove that they have completed a sufficiently long period of continuous service with their employer. * The key distinction the courts make in determining someone's employment status between 'a contract of service' and 'a contract for services'. This is known as the binary divide, and is one of the most widely criticised features of UK employment law. * The 'worker category' includes all employees and some people working under contracts for services, but excludes many. * While there is not much doubt about which applies in most circumstances (someone with a written employment contract or a plumber hired to undertake a one-off job), there are an increasing number of grey areas. The main categories are as follows: - sub-contractors employed on a long-term or regular basis - casual workers - homeworkers - agency temps - apprentices - office holders - domestic workers * Recent cases involving Uber, Deliveroo and Pimlico Plumbers have been about the distinction between workers and self-employed persons. In each case people working in the so-called 'gig economy' have been found to be workers. They have failed to show entitlement to full employee status. * The distinction between a 'worker' and an 'employee' has been more problematic. A variety of legal tests have been used over the years as the world of work has evolved. The current situation is that courts apply 'the multiple test' looking at a wide range of factors on a case by case basis, to determine whether or not there is a contract of employment. * Recent cases involving casual staff have given increased significance to the notion of 'mutuality of obligation' when deciding whether someone is or is not an employee. * This means that an employer must, in practice, be obliged to provide work and that the employee must be obliged to perform it when offered. Without mutuality of obligation there is no employment relationship, and hence far fewer employment rights. 3) Introduction to discrimination law * Some anti-discrimination law has a UK origin, some an EU origin while some started out as UK-law but has become an area of European competence. * The EU's Equal Treatment Framework Directive has now been introduced across all member states. This extended European competence to five 'new' areas, applying the same broad principles that already existed in the field of sex discrimination: - race, ethnicity and national origin (July 2003) - disability (December 2006) - sexual orientation (December 2003) - religion or belief (December 2003) - age (December 2006) * The UK already had on its statute books extensive legislation covering discrimination on grounds of sex, race and disability. Relatively minor amendments have had to be made in these areas to ensure full compliance with the Directive. * Discrimination on grounds of sexual orientation, belief and age were completely new prospects for the UK and are now on the statute books. * The Equality Act 2010 harmonised some terminology across the 'protected characteristics' and enhanced some rights. It did not, however. substantially increase rights in any significant areas of principle. * The characteristics listed as being the subject of protection in the Equality Act 2010 are as follows: - sex - sexual orientation - trans-gender - marital status / civil partnerships - pregnancy / maternity - race - ethnicity - national origin - religion - belief - age - disability * In addition other existing UK and EU laws provide a measure of protection from discrimination for most employees on the following grounds: - trade union membership - whistleblowers - fixed-term employment - part-time employment - agency employment - former convicted offenders * There is no clearly justifiable rationale underlying what 'protected characteristics' are incorporated into our law and which are not. The 'choice' is entirely pragmatic and has evolved over time in response to pressure group campaigns. * In 2007 Personnel Today surveyed HR professionals about what were the personal characteristics in respect of which it is still considered socially acceptable to tease people. * The results suggest that there are still plenty of situations in which people are commonly harassed at work, a good number of which could give rise to legal action. However, because it is socially accepted that teasing on these grounds continues, victims are reluctant to make formal complaints of any kind at all. * The survey results were as follows: Ginger hair 81% Blonde hair 75% Regional accent 74% Baldness 72% Eccentric dress sense 70% Shortness 70% Overweight 65% Unusual name 65% Tallness 63% Large breasts 63% Large ears 61% * For the most part the same principles apply as far as discrimination law is concerned across all these protected characteristics. There are, however, some exceptions to this general position. * It is easiest to become familiar with the common principles while remembering that some differences apply in one or two cases. * As far as the protected characteristics covered in the Equality Act 2010 are concerned, there are four headings under which claims can be brought in each category of discrimination (disability being treated rather differently than the others): - direct discrimination - indirect discrimination - victimisation - harassment 4) Sex discrimination * Sex discrimination measures were among the first pieces of employment law to be introduced in the UK. The current framework was established by two major Acts of Parliament. i) The Equal Pay Act 1970 ii) The Sex Discrimination Act 1975 * These were both been substantially amended over the years, and have now been consolidated into the Equality Act 2010, but the basic legal principles that they established remain in place. * The two operate in very different ways from one another and are best considered as separate topic areas. Today we only have time to consider sex discrimination law. * Sex discrimination law is concerned with non-contractual issues, namely the prevention of adverse treatment of various kinds that occurs in the workplace. The major examples are the following: - recruitment decisions - promotion decisions - access to training and development opportunities - redundancy selection - dismissals * Sex discrimination law applies to all workers. Its not restricted in any way to employees, nor is it necessary to serve any qualifying periods. Everyone in paid work is covered as well as job applicants and former staff. * Indeed, sex discrimination law extends well beyond the world of employment, which means that precedents decided in cases that have nothing to do with the workplace have to be taken into account. * Technically it is for the claimant to prove his / her case on the balance of probabilities. However, the claimant only needs to establish facts 'from which it may be presumed' that unlawful discrimination has occurred. At this point the burden of proof effectively shifts to the respondent to provide a credible explanation. * In sex discrimination law, unlike equal pay law, it is not necessary for the claimant to cite a real life comparator of the opposite sex. It is sufficient to base a case on a comparison of one's treatment with that of a hypothetical man or woman. * It is not unlawful for an employer simply to treat men and women differently. A detriment must be suffered because of different treatment for a case to succeed. * Direct sex discrimination occurs when a man or a woman is 'treated less favourably' on account of his / her sex. * It is thus a detrimental act which is aimed at, and causes direct suffering to, an individual worker, ex-worker or job applicant wholly or mainly because of their sex. * The key question that tribunals ask when faced with a claim for direct sex discrimination involves applying the 'but for test'. This was established by the House of Lords in James v Eastleigh Borough Council in 1990: Would the applicant have received the same treatment but for his or her sex? * If the answer is 'no' then an act of direct sex discrimination has occurred. * Employers can not generally defend themselves if they are found to have directly discriminated on grounds of sex. The only exception now is where there is an 'occupational requirement (formerly known as 'a genuine occupational qualification') which means that only men or women are suited to a particular role. * Indirect discrimination is a very different concept from direct discrimination, not least because it often occurs entirely unintentionally. * It occurs when a 'provision, criterion or practice' which is apparently gender-neutral adversely affects considerably more men than women or vice versa. In practice this means the following: i) An employer operates a policy or practice of some kind which favours the members of one sex over those of the other. ii) The practice is generally applied (eg: on all workers or all job applicants) iii) A considerable proportion of either men or women are adversely affected by the practice - ie: a detriment is suffered. * In cases of indirect discrimination the employer is able to deploy a defence of objective justification. * In other words it is possible to win a case by showing that the 'provision, criterion or practice' is (or was) genuinely necessary. * It is not sufficient for the employer to show that the practice was convenient or administratively desirable - that does not amount to objective justification - to form the basis of an acceptable defence it must be shown to be genuinely necessary for the achievement of a legitimate business objective. * The defence of objective justification is now specifically phrased as follows: 'a proportionate means of achieving a legitimate aim'. * The term 'victimisation' has a much more specific meaning in employment law than it does in day to day conversation. Victimisation provisions appear in most employment statutes, the Sex Discrimination Act being no exception. * It occurs when workers suffer a detriment wholly or partly because they have taken action under an employment statute such as one relating to sex discrimination, or have assisted others in doing so. * Sexual harassment is defined in terms of how far the person concerned was offended. It thus allows for the fact that what some people take as harmless banter (or even a complement) others may find hugely offensive. * An employer can either defend itself by showing that no sexual harassment occurred while the parties concerned were 'at work' or can show that in the particular case it should not be considered vicariously liable. * The latter involves satisfying the tribunal that all reasonable steps were taken to prevent unlawful harassment from occurring in the first place, and that the employer responded adequately when a complaint was received. * Positive discrimination occurs when an employer takes action which actively favours members of minority or under-represented groups - in the field of sex discrimination it involves positively discriminating in favour of women and against men. * In most situations this is unlawful. However, the Equality Act contains clauses which allow employers faced with two candidates of equal merit to 'positively discriminate' in favour of a woman or a person from an ethnic minority background. * Taking 'positive action' (falling short of active discrimination) to assist members of under-represented groups has always been lawful. * Two types of compensation are awarded when sex discrimination claims are successful i) compensation for financial losses caused as a result of the discrimination ii) an award for injury to feelings 5) Discrimination on grounds of race, sexual orientation and belief * The principles of the law in these areas of discrimination are essentially identical to those which apply in the case of sex discrimination. The relatively few differences have no real practical significance. Remedies are also calculated in the same way * Importantly, precedents established in relation to one field of discrimination also apply to the others. * However, the kinds of issues that are thrown up by the law are different (eg: How do you define a distinct ethnic group? What 'beliefs' are included and not included in the law? What genuine occupational qualifications might possibly justify refusing to employ gay or lesbian person?) * The Equality Act 2010 makes clear, has had already been decided by the case law, that discrimination by association as well as perceived discrimination are covered and can give rise to claims of all four types of unlawful discrimination (ie: direct, indirect, harassment and victimisation). 6) Discrimination on grounds of disability and age * Here too the same basic principles apply as in sex discrimination law, but there are some significant differences. * By far the most significant is the existence of a defence for employers to deploy in cases of direct discrimination. This operates in the same way as the defence for indirect discrimination - ie: the court must be satisfied that the employer was pursuing: 'a proportionate means of achieving a legitimate aim' * In practice this means that direct age discrimination (eg: mandatory retirement) as well as direct disability discrimination remain lawful across Europe provided an employer has a genuine and good business reason which explains their actions. 7) Unfair dismissal law * There are three types of dismissal about which ex-employees can complain to the courts: i) wrongful dismissal ii) constructive dismissal iii) unfair dismissal * The law of unfair dismissal was created along with the Industrial Tribunal system in 1971 as part of a parcel of the reforms introduced in the Industrial Relations Act. * The law has been somewhat re-shaped by case law and statute since 1971, but retains the same basic approach and framework. * The basic approach taken by the law is to categorise the different reasons for dismissal under three headings: i) automatically unfair ii) automatically fair iii) potentially fair * Where it has been established that the reason was 'potentially fair' the court assesses whether or not the employer acted reasonably in dismissing the employee on those grounds. * At present the law only extends to employees. People working under other forms of contract are thus not included. * Except for automatically unfair dismissals, cases cannot be brought by people who have completed less than two years' service. * Another qualifying requirement is that someone has actually been dismissed. It is not always clear whether someone has been fired or has resigned. The burden of proof here is on the ex-employee. Automatically unfair and automatically fair reasons * Over the past twenty years the list of automatically unfair reasons has grown steadily. The current list is as follows: - Dismissal for a reason relating to pregnancy or maternity - Dismissal for a health and safety reason (eg: refusing to work in unsafe conditions) - Dismissal because of a spent conviction - Dismissal for refusing to work on a Sunday (retail and betting workers only) - Dismissal for a trade union reason - Dismissal for taking official industrial action (during the first 12 weeks of the action) - Dismissal in contravention of the part-time workers or fixed-term employees' regulations. - Dismissal for undertaking duties as an occupational pension fund trustee, employee representative, member of a European Works Council or in connection with jury service. - Dismissal for asserting a statutory right (including rights exercised under the Employment Rights Act, as well as those connected with the Working Time Regulations, the National Minimum Wage Regulations, the Public Interest Disclosure Act and the Information and Consultation of Employees Regulations; the right to request flexible working, the right to time off for dependents, the right to adoptive, parental or paternity leave, the right to be accompanied at disciplinary and grievance hearings and the claiming of working tax credits). * In these situations there is no two-year qualifying period. If they are found to be the reason for the dismissal, the claimant wins his / her case. There is no further consideration of reasonableness. * There remain one or two situations in which a dismissal is automatically fair. Where one of these is found to be the reason, the applicant loses his / her case. Again there is no consideration of reasonableness. i) unofficial strikers ii) reasons of national security Potentially fair reasons * The potentially fair reasons are as follows: i) capability (performance) ii) capability (ill-health) iii) misconduct iv) redundancy v) statutory bar vi) some other substantial reason vii) people engaged in industrial action - after twelve weeks have passed viii) TUPE dismissals where there is an economic, technological or organisational reason * Once the employer has satisfied the tribunal that the reason was 'potentially fair', it goes on to consider reasonableness. At this point the burden of proof becomes neutral. * In establishing 'reasonableness' tribunals look at the following: - the procedure used - how consistent the employer was in treating the reason as sufficient reason for dismissal - any mitigating factors. * The two key issues in misconduct cases are as follows: i) Was the employee guilty of 'gross' or 'ordinary' misconduct ? ii) Was an acceptable procedure used ? * Acts of ordinary misconduct require formal warnings to be given prior to dismissal with notice. Acts of gross misconduct can lawfully result in summary dismissal without notice. * In the case of ill health employers are expected to have warned employees at least once (and in most cases twice) that they will be dismissed after a certain period if they do not return to work. They are also expected to take account of any medical evidence which suggests that a return to work in the foreseeable future is likely. * It is important to remember that it is quite lawful in principle to dismiss someone on grounds of poor attendance when there is no single underlying condition that explains a poor absence record. * Care must always be taken in carrying out ill health dismissals to ensure that disability discrimination law is not being breached. * There are three options for successful claimants as far as remedy is concerned: i) re-instatement ii) re-engagement iii) compensation * In practice, over 95% of cases end with the paying of compensation. The sum is currently subject to maximum limits. The components are as follows: i) the basic award (based on age, length of service and salary) ii) the compensatory award (up to a years' salary capped at £83,862) iii) the additional award (up to 12 months pay capped at £508 per week) * The caps on these figures rise broadly in line with inflation in April each year.

INTERNATIONAL HUMAN RESOURCE MANAGMENT

HRM around the world influenced by institutional (business systems and legal frameworks) and cultural differences. Must consider: - freedom to manage - how wages are determined - whether training activity seen as a cost or investment - common model of HRM or national varieties of HRM? - Geerte Hofstede clusters of countries that share cultural attributes Collectivist-individualist dimension and small to big power distance dimension e.g. Asian countries like Singapore and India are collectivist and have large power distance e.g New Zealand, Canada, US, UK have small powder distance but are individualist HR strategy and policy frameworks work better when there informed decisions where culture is considered Differing national business systems and economies are due to the history, politics and thus counties have taken a different development path - different way of "doing business" therefore has implications for structuring and positioning of the HR function SOURCE TO REMEMBER: Countries have a 'path dependency' caused by histories and the 'varieties of capitalism' - Wilkinson and Wood 2017 USA - HR was created due to the increasingly competitive business environment, declining trade union membership, changers in broader labour market brought about the rise of white collar occupations - Weak system of employment protection (employer can terminate relationship for any reason at any time) - "HARD" principles where organisations see people as a factor of production, to be fully exploited than disposed of when no longer needed. Pressure for "SOFTER" principles from competing countries UK - HR shaped by national and EU legislation (Brexit remains a question as to what will happen). Protected employment rights however we may see a divergence between UK and EU systems - Large 'services' sector - UK business landscape dominated by model of private enterprise - A large focus on performance related pay less so on training and learning programmes Japan - Established many of employment practices in 40's and 50's following war - Foundation based on lifetime employment, wage increase by seniority, and presence of trade unions - Lifetime employment: careful selection of staff, numerous criteria, no dismissal of employees unless absolutely necessary - Atkinson's (1984) flexible firm philosophy: "Core staff" which have lifetime employment and full security supplemented by flexible "peripheral workers" (part time, fixed term contracts or consultants, etc). - After slowdown of Asian economies in late 1990's, a look towards more western forms of HRM (western pay and promotion practices, although western firms have used many Japanese practices such as quality circles and just-in-time production) China - Similar to Japanese system, will distinct Chinese HRM appear in the future? - Significant welfare support known as "Iron Rice Bowl" - In past, Chinese gov instilled strict controls over industries (state owned, children inheriting jobs from parents - very difficult for employee to leave job or for unwanted staff to be fired) - HRM policies set centrally and applied across industries, not much space for management - Employees provided with significant benefits such as healthcare, housing and funded holiday trips - Nowadays after an increasing private sector (both local and foreign owned), employment relationships with China are changing, managers offered higher levels of discretion, more open competition among employees, performance appraisal and PRP now more common - Trade unions are different from west: they are used to mediate disputes and provide access to welfare support for staff HR practices in multi-national companies - Many ways a company can organise global operations although there is no "one best approach" - Must consider variances in institutional frameworks and cultural diversity Strategic approaches adopted by the MNC: ETHNOCENTRISM is assumption that processes and procedures in origin country can be exported abroad. Managers in the home country retain powder and control over global operations and "knowledge based" activities are likely to be retained within the home country. Advantages: - managerial control Disadvantage: - failure to adapt to local conditions POLYCENTRISM Assumption that local managers will be best placed to formulate policies, procedures and systems that work in their own contexts. Different operational sites therefore have greater levels of autonomy and discretion. Arguments on how fully 'control' can be shared in practice. GEOCENTRISM Based on a global view of the firm, seeking to combine strengths of local operations. Flexible approach with a devolution of responsibility and sharing knowledge throughout the multinational company. -- Have to consider the region and policy of openness towards foreign businesses. Differing institutional and cultural contexts may not support the imposition of certain HRM pratices therefore a spread of "best practices" is questionable. Edwards and Rees (2016): HRM practices transform as they spread around the globe. The substance of practice may be spread but the local application of that practice will inevitably differ from country to country. Expat Defined by Hollinshead (2009) to be a national from original country working abroad in MNC for 2-5 years • Expatriation is an often discussed topic within the field of IHRM and organisations may choose to utilise expatriates for a number of differing reasons. Organisations may decide to use expatriates to staff key positions in their foreign subsidiaries due to a lack of indigenous knowledge or skills, they may send managers overseas to assist that manager's professional development, or they may decide to use expatriates to strengthen lines of international communication between the various parts of the international organisation. • Expatriation as a process consists of three linked steps; o Pre-assignment preparation o Assignment o Post-assignment (repatriation) • Repatriation as a stage in the expatriation process is often overlooked. Often, however this is the stage at which problems can occur, due to difficulties associated with reintegrating into the home country. • The recruitment and selection of international managers broadly follows the same process as domestic recruitment and selection although recruiting managers need to bear in mind issues of cultural adaptability as well as technical/skill based requirements. • It is important to recognise that while technical skills are important, expatriate assignments often fail because individuals lack cultural sensitivity and the ability to operate in a different context. • MNCs may recruit expatriate staff from within their existing workforce (internal recruitment), or they may decide to advertise for new applicants (external recruitment). • At the pre-assignment stage, MNCs must provide expatriates with learning and development interventions to ensure that they are properly equipped to operate effectively in their overseas role. Adjustment to overseas cultures and working routines can be significant, if we do not provide adequate learning provision, it is highly likely that the expatriate assignment will not be successful. • In determining appropriate learning methods, the MNC needs to consider such issues as the novelty of the job, the novelty of the culture and the degree to which the expatriate must interact with others in their role. It is important to have a range of learning options/interventions ready as different scenarios call for different levels of input. • Depending on the length of an expatriate's assignment, the MNC may also need to consider making provision for sending a spouse and/or dependent children to accompany the expatriate. If this is the case, the MNC must also provide learning events for the affected spouse and/or children, as well as giving consideration to schooling, housing, job opportunities for the spouse and so on. • MNCs may also need to provide training and learning interventions to help the expatriate deal with their return at the end of their assignment. It is often said that culture shock is like the common cold; there is no cure for it, and you can catch it over and over again. • Rewarding international managers can be highly complex. We must consider equity issues, both in relation to external job markets and internally within the firm -compared to the home and host countries. We must ensure that our reward packages are legally compliant, and MNCs may choose to use "balance sheet" or "going rate" approaches. • When designing reward packages for international managers we must consider individual circumstances such as housing needs, schooling for dependent children, any inducements or sweeteners we may want to use to encourage the expatriate to accept and complete the assignment, as well as how our reward packages align with our corporate goals and strategy. • There are a number of reasons why repatriation can be difficult, although its importance is often dismissed by MNCs. What MNCs can fail to realise is that while the expatriate is away from their home country, their home country undergoes changes whilst, at the same time, the mental "maps" that the expatriate holds also change. What this can therefore mean is that it can be as difficult to return home as it is to begin an overseas assignment. • Having said this, expatriation can hold significant benefits for managers and organisations alike. Expatriation can bring significant career development for managers, organisations can benefit from new knowledge flows, and there can also be better coordination between teams as a result of strengthened relationships and stronger personal bonds within the organisation. Expatriate failure • The rates at which expatriate assignments fail is significant. Studies conducted by different academics arrive at different results, largely because they differ in terms of their definition of "failure" (Hollinshead, 2009) • Failure in expatriation can mean a number of things, including early return, the individual concerned leaving the organisation, or indeed underperformance in one's role. • Rates of expatriate failure can be as high as 50% of all assignments, depending upon how failure is defined. The locations seeing the highest incidents of expatriate failure are the UK, USA, China and Japan. • Expatriate failure is a significant issue considering the costs involved, not only remuneration, but also in terms of the investment in training etc. Individuals (and organisations) can also suffer reputational damage. • Most reasons for expatriate failure are connected, in some way, with cultural issues. For example, a lack of adjustment or sensitivity to the new culture, a lack of acceptance from locals, and language difficulties. Expatriate failure is therefore likely, at least in part, to occur because organisations fail to adequately prepare individuals for overseas assignments. It is often said that it is not necessarily the most able individual that will make the best expatriate, but the person who is most adaptable and culturally sensitive. • Anne-Wil Harzing has written extensively regarding the subject of expatriate failure. You can find articles written by her on the e-library by searching for her surname and the term "expatriate failure". • Interestingly, newer research in the field argues that we need to move beyond "maladjustment" (i.e. employees not adjusting to their overseas assignment), with work from Perera, Chew and Nielsen, 2017) viewing expatriate failure from a psychological contract perspective. Briefly, they suggest that the dual focus of employees (i.e. between company and host company) influences the likelihood of perceived breaches in the psychological contract, with the added complexity of the employment relationship impacting upon rates of expatriate failure. • As a result of the risks of expatriate failure, MNCs must therefore carefully consider how they recruit, select, and prepare individuals for expatriate assignments. Organisations must consider adaptability and cultural sensitivity alongside technical ability, recognising the complexities of the employment relationship with individuals who are posted overseas.

Lecture 3: Reward Management

Reward management linked to recruiting (part of resourcing side of things) 2 major debates - How to decide how much to pay each person we employ - Rights and wrongs of performance related pay Central to HRM, employment relationship People work for money and the reward of it Major cost to organisations (60-80% made up of employee salaries - fundamental to success and survival of business) Reward package (all of these are difficult to achieve at the same time): - Attracting and retaining employees - Motivate to produce highest level of performance (if people dissatisfied with pay, they will lack motivation, commitment and engagement) - Directing people's behaviours in particular directions (prioritise the things management organisations want as priority) - Underpin and facillitate change (embrace change, have the view that change is in their personal interest) - Minimise costs Reward consists of many things (long term incentives, etc.) but pay is main factor Questions on pay - How much should we pay? - How should the pay package be made up? (how to pay, what form to pay - how much base salary and how much benefits, incentives, bonuses) Labour markets are competitive! Rival employers and high demand employees HOW MUCH SHOULD WE PAY? - Pay at going rate or not? Going rate - finding out what the external market is paying people of those skills at that level (labour market intelligence) Move with the market in terms of pay rises over the years Information is found out through: - Published data - Commercial and bespoke salary surveys - Web-based sources - Informal knowledge For paying at the market rate: - If you recruit best people, you need to pay well - Retain the good people (strong performers know their market worth) - Fill vacancies quickly - Project a positive labour market image - Enhance job satisfaction - Enhance motivation - Relativelty cheap and easy to construct a market rate system Against: - Internal differentials - Internal labour markets - Collective bargaining (trade unions - in decline in most of the world in recent years) - Job evaluation - Legal requirements (national living wage restricts how long - Need (employers will respond to requests because they want to keep the worker) - Ability to pay - Informal approaches 1. Labour markets are imperfect (different levels of knowledge in the market, people do not know their own market value, sometimes do not have the knowledge of what the going rate is) 2. Equal value (can lead to court case when someone is not being the same as other, businesses can say that they have good reason like better qualifications, more experience, different location. The law prefers internal fairness. Cannot use past vs present market rate as a defense) 3. Affordability/following the market (you can pay below going rate and still attract and attain good people, because pay is not the only reason that people come to work. Satisfied with role, quality of working life, pleasant working environment where they feel appreciated. Emotionally intelligent management is worth a lot to people. Can stay for the experience) Conclusion on going rate - In any organisation, both matter - Can treat different labour markets differently (teachers less likely to be more financiallyt driven than those working in sales for example) - Can treat different employees differently - Can mix and match Not black and white. Depends on how competitive the labour market is. PRP (Performance Related Pay) - Any payment system that links performance to pay but there i - Highly controversial - In recent years, has been trending (started with senior managers in private sectors gradually moving down the hierarchy spreading to public sector) - Public and private sectors - Merit of PRP depends on type of system using Different type of schemes: 1. Bonus-based (annual bonus on individual performance, if you perform well we will give you a bonus at end of year) or increment-based (annual pay rise linked to assessment of performance in previous year)? 2. Merit-based (operates like a school report, managers perception but has a lot of personal preference, subjectivity, potentially unfair) or objective based (most organisations take this - sit down with manager at beginning of year and agree on objectives for year that MUST be measureable)? 3. Major or minor element of total pay (if performance related element of total pay is 30% that is very different to when it is 3%) Should not think of PRP as one single system. Arguments depend on type of system (schemes above). For PRP (usually argued by managers): - Key way to efficiently attract and retain GOOD performers ("sorting effect" people who are strong performers will be attracted to perform for organisations where they will be recognised) - Raising individual and corporate performance (if people think they will earn more money if they earn more effort, they will) - Linking effor to organisation priorities (agree objectives, make sure the objectives are corporate priorities, direct effort that the organisation wants) - Reinforcing management control (helps ensure managers achieve what they need to achieve through their teams most likely without close supervision because the people want the pay) - Helps reduce union influence (less about 'us', more about 'me') - Inherently fair (based on effort, those who make most contributions should get the most back) - Avoids the need to promote (outstanding at their job but not ready yet to move up the hierarchy, this is a way to reward them without moving them to a job they would be bad at) Against PRP: - Fundamentally flawed (psychologists: usually focus on motivation and say that PRP is not good for a long term especially if people are not interested in the job + less team orientated, sociologists: usually look at work in terms of society/equality, PRP is a tool of management control, takes power away from employees therefore negative, bad for society, feminists: gender inequality arises, male traits of managers, TQM: very fashionable management philosophy in the past, PRP is philosophically opposite to TQM, believes in empowering individuals and responsibility via 'management mantra' = replace supervision with leadership, no detailed monitoring) - Problematic practice (demotivates average performers as people tend to think that they are better than organisations value them to be, undermines team because PRP instils competition and individualism, not suitable for some groups e.g. those not in the job for just money like teachers) - great in theory, not in practice Conclusion on PRP Why are PRP schemes so common if they are so flawed? - The management control argument There is no perfect way of doing, PRP has problems does have problems but it does have advantages. - The fringe initiative argument No need for PRP to be . Research tends to isolate PRP of a wider payment package, ignores compensating factors. It may be case that PRP demotivates but could motivate people through other mechanisms. It plays a role, not the only way which it is not in practice. - The least-worst system argument Reason PRP is used, no matter how many criticisms of PRP, it will always maintain this key attraction from manager. PRP is a great tool of management control, helps make sure people's priorities are your priorities as a manager Shouldn't be 'its bad or good', no black or white opinion, use it where it is appropriate. Not to be used for ideological reasons. Use an objective based system rather than merit based to take subjectivity out of the question. Meet SMART objectives = get money, takes out perceived unfairness. Can be 2-3% of total salary to be effective, doesn't need to be big portion of pay.

Lecture 1: Introduction

- Staffing side of HRM has to be looking into future Staffing + performance objectives is the basics Change management objectives - cannot plan for future that will be similar to present because things change all the time, role of HR function to take lead of whole process (need, reasons for change and to involve people in decision making) Reputation objectives - social media can make you lose reputation (higher up agenda than used to), can take years to build up reputation and damage it Wellbeing objectives - recent has become important to look at mental health, people are open about mental health issues in a way that was not in the past, role of work and stress has become a much greater priority (mental and physical health are closely related) IHRM - HRM plus complexity - Cultural and institutional (government policy, pension, welfare, employment law in countries) diversity - Expat staff - Multicultural/multinational teams - Reporting lines and organisational structures Hard to establish shared purpose (shared organisational identity) Global leadership - harder to find understanding workers with global perspective Cross-border alliances and joint ventures IHRM is a growing area, more challenging than national Research of HR has been trying to look for and explain link between HRM practices and business performance Mark Huselid and Jeffery Pfeffer There is a correlation but we cannot be certain that great HR leads to better business performance Left wing and right wing critique LEFT (tends to be from academics not people who work HR) - Handmaiden of capitalism - Rhetoric and reality - Intensification of work RIGHT (tends to come from managers) - On the side of the workers - Bureacratic - Frustrates management action Best practice and best fit: tensions and different perspectives that exist in HR field Best practice thinking vs. contingency thinking - assumption of there being a best way of doing something (recruiting, selecting, training, change management, admin activities) vs. there is no best way, finding a best way for your organisation Affordability Division between disciplines Taylorism vs Humanism Efficiency before people's feelings (like cogs in a machine), limited human dimension you get high levels of absence, staff turnover, hard to attract and retain people Further debates Bureacratic vs pragmatic Centralised vs decentralised Internally vs externally focused (labour markets - some will internally promote, train and invest in people meanwhile some looking for best talent to recruit) Stakeholder vs stockholder perspectives

Seminar 6

1) What is the essence of Luke Johnson's case against HR departments and common HR practices? - For all types of organisations, HR is only a cost on the business - Routine administrative job would be cheaper - Companies should cut back on non essential functions 2) What arguments could you deploy to conteract his major points? - HR is most important department, heart of the motivation and resources of employees - Giving importance to employees will result in them treating customers better - Key hiring process, HR is how they narrow down employees - Important to find the talent and focus on requirements (best quality practices in recruitment terms) very likely to have higher productivity and narrow down applications - If its external you are unlikely to have strong social media channels (can reach as much people as possible through social media, reputation) - Johnson presents a narrow view and old fashioned view, he is talking about personnel but that is not how modern businesses work The move towards HRM started in 50's it is about aligning practices, people and performance to satisfy stakeholders and make profits, MANAGING CULTURE to make sure it is inclusive - Good HR practices result in good performance (Virgin Air for example) - Performance management schemes by HR, HR is about employee development (succession planning, where competence levels are, opportunities to invest in employees) 3) What steps should HR departments take in order to better justify their continued role in organisations?

The Exam

- Sample and past papers (LOOK AT Section B - an idea of type of questions, how they are phrased) - 8 questions, choose 3 - ARGUE A CASE, must be persuasive - Read around the studies - Avoid summing up lectures AREAS TO FOCUS ON: - First 2 lectures + 1st seminar (esp. recruitment and retention) - PRP and its debates - Trade union decline - Principles of sex discrimination law and unfair dismissal law - Technology and learning - Expatriate failure - Performance appraisal (continued relevance of it) - Link between HR and organisational performance How to revise: - Do not repeat lecture notes, develop your own stance and read around it - Clarity and presentations - 40 mins per essay - Revise like 4-5 topics

Tutorial 1

1) Aside from the absence of new graduates for two years, what other factors would employers in the above industries need to have taken into account when estimating the likely size of the staff shortages they might face? - not meeting new requirements of the job (extra year of study?) - less people studying for the job and those who study are in bigger debt - current employees leaving (because of likelihood of longer work hours to make up for staff shortage or working in the same location) 2) Had you been asked to give advice to affected organisations before the restructuring of the degree programme took effect, what options would you have explored as a means of ensuring that they would have sufficient staff to deliver their services? - Commitment of current employees - On the job training or multitasking employees - Positivity of job environment - Outsourcing, poaching, talent spotting - Online pharmacies - Targeted marketing - Good employee ratings - Women returners 3) Given the constraints outlined in the case study brief, what courses of action would you have suggested were most appropriate for human resource managers to take in: a) a large chain of high-street chemists (opening hours, opening doors out of town) - afford to pay better because they are pay better b) a large NHS hospital (cost constraint and inability to respond by increasing the salary packages, problem: if there aren't enough people to fill the job, wages/packages go up but they do not have it in their capacity to increase wages to seem more attractive) - increase prestige of being a NHS employee, better working environment - retention: intrinsic motivation, recognition/appraisal of employees, clearer prospects Workforce planning - Look at workforce first! - Retirement - Multitasking employees - Consideration of the foreign market Problems to consider: Stressful job A lot of unqualified people Because of overbooked/undersupplied GPs (a lot of unnecessary GP visits), a nudge that makes people go to the pharmacy instead makes the situation of staffing pharmacies more difficult People exploiting welfare system too much ('free to go to the doctors') Culture of industries is too broad, every organisation is different

Seminar 3

1) What legal risks might XYZ be taking in following the course of action outlined in this case? - Julie sex discrimination (direct) - Age discrimination for Julie (company claims she's too young) and Derek (almost likely to retire - but company can justify that they need someone for long-term) - Derek's disabled wife discrimination by association (indirect discrimination) - Aldo could potentially have a case for indirect race discrimination - Unfair dismissal of lowest performing people (you have to point out where they are failing, set agreed objectives, give every opportunity to improve then get rid of them if they don't do it) - Moving to commission-only pay goes against terms of the contract without consultation (anyways poor practice to do that) - Constructive dismissal, resign from job because conditions in workplace or company system has become untenable - Breach of personal rights to go through medical or requiring to lose weight or stop smoking (nothing unlawful but it would result in a breach of trust) - better to give people advice not make them 2) What defences are available for XYZ to deploy should an aggrieved employee or would-be employee decide to bring a tribunal case? How strong a case could be mounted? - Julie for sex discrimination (no justifiable argument against this except for circumstances) - The woman doesn't have much experience (company would need to prove showing list of employees, why they chose who they chose for the job) - The Italian man does not have enough English proficiency for the job depends how good or bad his English really is, prove below the standard - Derek - better off investing in someone else who is there for longer term, better use of resources 3) What advice would you give the senior management team when running an exercise of this kind in the future? Justify your answer. - Add a HR rep - Competency framework - Performance management system (appraisal) - On a more formal arrangement (head-hunters), less bias - Carry out a more formal interview - Looking externally instead of limiting it to internally searching - Aware of law requirements and abide by them (tribunals are costly, stressful and can damage reputation)

Last lecture

Debates: - Best practice vs best fit - Taylorism vs Humanism (people have to fit in into the machine of the organisation vs. nurture each individual, less concerned with efficiency) - Practical organisational examples Employee resourcing - Good practice model - Competency frameworks - Employee RETENTION!!!!!!!!!! - Informal and internal recruitment (controversial - doesn't conform to good practice) - Employer branding - Agency recruitment (way that agencies play a role, sometimes rather controversial) - Interviews (may be biased based on who clicks with well but then again there is a good case for interviews particularly if they are structured) Reward management - Big debates 1.) How to determine base pay (basic core salary) - lots of methods to do this, mainly focused on external market, how to keep their engagement Less concerned about base pay but more about fairness (Tournament theory) 2.) Performance related pay (PRP) - strong views about one way or the other PRP systems can work for some organisations? Employee relations - Trade unions and the decline of them in last 30-40 years + transformation that has followed in the way HR Union and non-union organisations come with advantages and disadvantages for HR - Rise of employee involvement (caring about what employees think, losing this kind of communication can be bad for an organisation as management decisions can badly effect employees) - Types of employee involvement - Psychological contracts (set of expectations of employees and managers that is not written anywhere, exists in business culture and is created over time) - if psych contracts is breached, negative consequences: lower levels of engagement, effort, staff turnover etc. Employment law - An enormous subject Two MAJOR AREAS - Sex discrimination (principles, types, defences) - Dismissal law (types of tests, stages, questions) Remedies for both, how to lose tribunal claims Human resource development (HRD) Definitions: many different ways depending on perspective - Performance-improvement - Learning Can do potentially both at the same time - Behaviourism, cognitivism, constructivism, Kolb's learning cycle - Honey and Mumford (learning STYLES) Activist/theorist/reflector/pragmatist - criticisms of these learning styles (lots of models of these, how do we know which is right (conceptual confusion)) + learning styles can be excuse for employees to switch off (e.g. lecture didn't teach in the style I like so I won't listen + while there is considerable academic interest, people have not found clear link between learning styles and performance in practice?) - Designing learning events Assessing needs, objectives, planning and delivering, evaluate (Patrick's model) - Role of technology in learning Pros (much better agility, flexibility, can be user generated making a lot more motivation and engagement and become part of the culture) and cons (expensive, quite considerable in resource commitment as in outlay not returned in investment measures, investment in technology does not solve all of learning problems but can be rather a good support for learning) - ROLE OF TECHNOLOGY IN LEARNING!!!!!!!!!!!!!!! International HRM - Cultural diversity and institutional difference (different national forms of HRM) - Expatriation Selecting, developing individuals for international assignments, rewarding (pay - external/internal consistency + iHRM another layer of complexity involving HOME AND HOST COUNTRY PAYS) and repatriation (usually have problems at this point - difficult to come back because culture shock works both ways) Why do expat assignments fail? - Language/culture issues (adaptation) - Poor selection/training/legal issues - Looking beyond "maladjustment" Dual psychological contract - Solution: sophisticated recruitment techniques (making sure you select right people), effective learning provision - human resource development Performance Management - Strategic, central function of HRM - Not just done to people who underperform Business role -> planning and delivering performance -> monitoring and assessing performance Theories: goal setting, control theories, social cognitive theories - Performance appraisal (what about a fast paced organisation? It needs to be more frequent) - Continuous appraisal - Managing underperformance/poor performance Equality and Diversity - What inclusive workplaces look like (equal opportunities doesn't assure good outcome, it is a more legal approach) - Managing diversity as a positive feed into organisational performance Loads of issues: - Gender pay gap/equal pay - Equality act 2010 - Unconscious bias - Neurodiversity - Intersectional disadvantage Merit pay reduces disadvantage in such a way so slowly The HR contribution - What is of value in HR? Different roles - employee selecting, etc. - Research: Huselid, Pfeffer, Purcell - Strong evidence linking HR to organisation performance - Best practice vs best fit debate - Contingency type conclusions are enticing but simple

Performance management

We can link performance to reward (reward management) PM is cyclical rather than linear (on-going) Many organisations struggle to design and implement effective performance management systems 1.) Definition of business role - objectives of department/group 2.) Planning performance - individual objectives 3.) Delivery - individuals deliver upon required performance with help of line manager, HR and HRD professionals 4.) Reward - formal assessment of performance + link to pay Cycle starts again after this. Assumptions: - Objectives are clearly defined (measurable) Problem is, performance aspects like leadership, creative ideas cannot be measured - Performance objectives are SMART Latham and Locke (1979) argue when we set goals for ourselves, this motivates superior performance

Seminar 2: Performance-related pay at the Cavendish Hall Hotel

i.) Each member of staff receives +1% salary increase to take account of increased living cost (performance doesn't matter) ii.) Line manager can score staff individually: Excellent, good, satisfactory, unsatisfactory iii.) 'Excellent' staff receive 4% pay rise (3% + 1% for cost of living), 'good' 3% (2% + 1%), 'satisfactory' 2% (1% + 1%), 'unsatisfactory' 1% - No experience operating formal performance management - Every manager communicates with staff differently and to different extents (tips received is main indicator) - Announcement of staff awards delayed - Personal opinions taken into account, subjective and informal decisions of awards given to staffs (contradictory sometimes) - Disappointed staff (drop in morale -> reduced effort) 1.) What was wrong with the design of the payment system? - No criteria - Based on performance therefore staff may judge themselves better or worse than they really are (demotivates good staff) - Doesn't allow for financial planning - Takes personal opinion into account, not 'fair' (biased) - People overestimate their own competency - Managers did not communicate with each other 2.) What was wrong with the way it was introduced? - No prior system had been established - It seemed to be less about tips received in practice, more personal - Disruptive sudden change - No employee involvement at all - Said it would be introduced in staff meetings but got delayed (anticipation) - No cultural backing - Managers didn't like this system - Expectations leading up to it - Department differences in application 3.) What do you think of the new 'forced ranking system' that is planned for next year? - A budget can be set and it will be adhered to in practice (could go wrong irl) - No differential (if you have a high performing team, it's unfair to have to rank them) - The line managers could have differing opinions of the staff - Could create a hostile environment (decreases team morale) 4.) What alternative type of system would you argue should be introduced and why? - Not performance based - Objective based - Team scores - Ask about team motivation - Bonuses - Competency frameworks - People given specific targets/objectives - Tie it to customer reviews - Profit sharing (if people like they have a stake in the organisation, they are going to have a reward for the efforts that they put in)