Strategic HRM: Training, Performance, and Leadership

Training and Development

Training and Development are crucial for achieving both individual and organizational goals. They stimulate improvement, innovation, consistency, and help to make the best out of a diverse workforce. Effective training leads to the retention and improvement of human capital.

The Training Process

  1. Assessing the need for Training and Development (T&D).
  2. Selecting how to shape behavior through T&D.
  3. Designing, delivering, and assessing the T&D.

Types of Training

  • Informal Approaches: On-the-job training, explaining to a colleague, discussions, self-learning.
  • Formal Training: Practical skills, online learning, requested or forced training.
  • Integration of Informal and Formal Management: Coaching, mentoring, role modeling.

Performance Management

Performance Management (vs. Performance Appraisal):

  • Management: Identifying, measuring, managing, and developing HR performance; measures personnel.
  • Appraisal: Evaluating individual performance; a component of the performance management process.

Performance Management Process

  1. Job Analysis (based on organizational mission and objectives).
  2. Develop standards and measurement methods.
  3. Informal Performance Appraisal (PA), coaching, and discipline.
  4. Prepare for and conduct the formal PA.

Disciplining

Disciplining: Corrective actions to get employees to meet standards and the code of conduct.

  • Hot Stove Rule: If employees infract a rule, they are subject to disciplinary action.
  • Progressive Discipline: Provides employees with opportunities to correct poor behavior before termination.

Discipline Model

  1. Refer to past feedback.
  2. Ask why the undesired behavior was used.
  3. Give the discipline.
  4. Get a commitment to change and develop a plan.
  5. Summarize and state the follow-up.

Management

Management: Responsible for the performance and productivity of their subordinates.

Fayol’s Functions of Management

  • Planning: Deciding what needs to be achieved and developing a plan of action.
  • Organizing: Providing the material and human resources to carry out the activities.
  • Commanding: Getting results from all employees.
  • Coordinating: Unifying all activities.
  • Controlling: Verifying in accordance with plans.

Managerial Roles (Mintzberg)

Based on formal authority and status:

  • Interpersonal: Figurehead, leader, liaison.
  • Informational: Monitor, disseminator, spokesperson.
  • Decisional: Entrepreneur, resource allocator, negotiator.

Successful vs. Effective Managers

  • Similarities: Communication, networking, traditional & HR management.
  • Differences:
    • Successful managers engage in more networking and less HR management.
    • Effective managers focus mostly on HR management and less on networking.

Leadership

Leadership: Influencing employees to work toward the achievement of organizational objectives.

Contingency Factors

Leader’s personality, follower ability, complexity of the situation, macro-environmental external factors, organizational culture.

Situational Leadership (Employee-Manager)

  • Low Ability/Low Motivation: Autocratic (High Direction/Low Support)
  • Low Ability/High Motivation: Consultative (High Direction/High Support)
  • High Ability/Low Motivation: Participative (Low Direction/High Support)
  • High Ability/High Motivation: Empowerment (Low Direction/Low Support)

Leadership Theories

  1. Transformational Leadership: Leaders go out of their way to achieve common goals.
    • Idealized Influence: Charisma.
    • Inspirational Motivation: Vision.
    • Intellectual Stimulation: Creativity and innovation.
    • Individualized Consideration: People concerns.
  2. Transactional Leadership: Based on rewards and punishment.

Level 5 Leadership (Collins, 2005)

  1. Highly Capable Individual
  2. Contributing Team Member
  3. Competent Manager
  4. Effective Leader
  5. Level 5 Executive: Builds enduring greatness through a paradoxical blend of personal humility and professional will.

Key Concepts of Level 5 Leadership

  • Born or bred.
  • Mirror and window model.
  • Understanding luck (good and bad).
  • “First Who” principle.
  • Stockdale Paradox: Maintain unwavering faith that you can and will prevail in the end, regardless of the difficulties.
  • Pushing a giant flywheel (consistent effort over time).
  • The Hedgehog Concept: Understanding what you can be the best at, what drives your economic engine, and what you are deeply passionate about (versus the fox, who knows many things).
  • Culture of Discipline: Disciplined people, thought, and action. Eliminate the need for hierarchy.

Compensation

Merit pay, or performance-related pay, is given as a percentage or lump sum. It sometimes covers the cost of living increases and links expectancy and equity theory to compensation.

Trends and Issues in HRM

  • Designation of Independent Contractors: Companies are using more independent contractors to maintain maximum organizational flexibility.
  • Gender Wage Gap: Women still earn, on average, 79% of what men earn across all industries in the US.


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