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
- Assessing the need for Training and Development (T&D).
- Selecting how to shape behavior through T&D.
- 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
- Job Analysis (based on organizational mission and objectives).
- Develop standards and measurement methods.
- Informal Performance Appraisal (PA), coaching, and discipline.
- 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
- Refer to past feedback.
- Ask why the undesired behavior was used.
- Give the discipline.
- Get a commitment to change and develop a plan.
- 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
- 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.
- Transactional Leadership: Based on rewards and punishment.
Level 5 Leadership (Collins, 2005)
- Highly Capable Individual
- Contributing Team Member
- Competent Manager
- Effective Leader
- 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.