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1、Human resource planning and work designDr Ashish Malik.2Session outline Group Presentations Overview Break Case study: Infosys: Powered by Intellect, Driven by values Lecture.3Lecture Overview Strategic context Global trends and the big picture Key issues and implications Strategic approaches to wor
2、k design Strategic approaches to HR PlanningStrategic ContextInstitutional pressures Strength of labour markets (internal/external; local/global) Legislation Industry and professional practices Market influenceOrganisational influences How critical are labour costs as a % of production cost Firms co
3、mpetitive strategy and stage of evolution Management culture, values and sub-cultures Labour orientationEmployee influences career aspirations nature of work self and organisational imageGlobal employment and workforce trendsWhy bother? Issue of global interconnectedness Systemic impact Increased gl
4、obalisation of business and operations Global financial crisis and global job destruction Global production value chain Commoditisation of HR “Urgent action is required now to boost economic recovery and job creation” - Juan Somavia, Director General ILO (Global Employment Trends, ILO, January, 2010
5、).6Big picture trends Total global employment is close to 3 billion (or 61% LFPR(labour force participation rate) of which 22% are considered to be working poor (earning US$1.25/day) and 39.7% of total global workforce is earning US$2/day. Increase in global unemployment numbers to 221 million in 20
6、09 up by 34 million from 2007- most of which was in 2009. Differences in economic and labour market recovery are profound. Therefore, 183 member states (countries) are working on the Recovering from the crisis: A global jobs pact. LFPRs may change due to “discouragement effect” and “added worker eff
7、ect”. Mainly in the youth unemployment, prime-age and older workers LFPR. Only Australia and Poland reported positive economic growth in 2009. Source: (Global Employment Trends, ILO, 2010)Key Australian HRM issues (Ranked in the order of importance) Managing Talent Leadership development Managing de
8、mographics Managing change and cultural transformation Transforming HR into a strategic business partnerSource: Strack et al. 2008- Creating People Advantage: How to address HR challenges worldwide through 2015. The Boston Consulting Group and World Federation of Personnel Management AssociationImpl
9、ications for HR Planning and work design Industry characteristics and trends Nature of internal and external labour markets Job content and scope Employee skills and aspirations Changing demographics Focus on the gap- employee and organisational perspectives.9RecapA strategic framework for managing
10、human resourcesLABOUR ORIE NTATION STRATEGIC DIRECTIONFREE AGENTLOYAL SOLDIERCOMMITMENT EXPERTBARGAIN HUNTEREfficiency focus Pattern of buying talentDistinctiveness focusPattern of buying talentEfficiency focus Pattern of making talentDistinctiveness focus Pattern of making talentEXTERNALINTERNALCOS
11、T LEADERSHIP DIFFERENTIATION.10INFOSYSA brief media profile:http:/ .11Case studyINFOSYS: Powered by intellect, driven by valuesQuestions: What metrics would you use to evaluate the performance of Infosys? Based on these metrics, has Infosys been successful?What is/are the dominant competitive strate
12、gy /ies employed by Infosys? How has its competitive strategy shaped its HR strategy in particular its:Recruitment and selection strategyT& D strategyCompensation strategyHow do Infosys values relate to its strategy? Are these values sustainable in future? Can Infosys use the same values for fut
13、ure?.12WORK DESIGN ANDHR PLANNINGHourly compensation costs for production workers in manufacturingCountryUS $per hour (2004)GermanyNetherlandsUnited StatesUnited KingdomAustraliaJapanCanadaNew ZealandKoreaTaiwanHong Kong Mexico32.5330.7624.7123.1723.0921.9021.4212.8911.525.975.512.50Labour cost: a k
14、ey consideration? Average hourly compensation costs in the manufacturing sector(Boxall and Purcell, 2008).14Work design Manufacturing Services Public sectorWork design Many of our ideas about work design originated in manufacturing where a model of operating work which was low-discretion, low-scope
15、and low-skill emerged under the factory system and was refined through Taylorism and Fordism.2. In response to the Japanese challenge (lean production) and to globalisation, some Western manufacturers now compete through HIWSs while others use production offshoring to low-cost developing countries,
16、and some blend these models.3. Models of work organisation in services range from low-skill, mass services through to high-skill, professional services. Services which involve higher quality or professional judgement provide a setting for HIWSs but command a price premium. 4. In the public sector, w
17、ork models are either semi-autonomous or professional. The latter model is often characterised by conflict with managerialism.Work systems in manufacturing: the factory systemThe industrial revolution led to the demise of the putting out system by bringing workers out of cottage-based industry and u
18、nder one factory roof in which mechanisation could be escalated.The factory system created higher productivity by linking machinery to a major power source (initially, water, then steam, and, finally, electricity) and also by allowing for greater job specialisation than is possible in cottage indust
19、ry.In this way, work often became simplified or de-skilled and workers became subject to control by overseers in exchange for wage forms of payment. (Boxall and Purcell, 2008)Manufacturing : the factory system A factory model of work involving operating jobs low in discretion, low in scope and low i
20、n skill was born.Working for a wage is generally more reliable, and better paid, than relying on the seasons in farming but working conditions in the early factories were often unhealthy, work pressures were often excessive, and workers initially lacked channels for their voice.From the late ninetee
21、nth century onwards, governments in Western countries, disturbed by threats to social order, began to enact progressive labour legislation supportive of worker rights. This responded to, and was accompanied by, the growth of trade unions. However, while the accommodations to organised labour that ca
22、me through this process significantly improved levels of wages and reduced work pressures, they rarely challenged the design of work itself.Competitive challenges to Fordism/Scientific ManagementSerious management concern with work reform in todays environment really stems from the economic pain inf
23、licted by the rise of Japanese high-quality production systems in the 1970s and 80s. Faced with competitors who were simultaneously raising product quality, reducing production costs, and improving rates of innovation, some elements of Western manufacturing disappeared while others learnt to change
24、their production systems. In the struggling auto industry, Western firms made major efforts to adopt lean production principles. This meant moving away from Taylorist/Fordist operations management towards greater employee involvement in problem solving and decision making. Work systems in services a
25、nd the public sectorWhile manufacturing has heavily shaped ideas on work design, services vary in key ways from manufacturing (Batt 2005, 2007): services are nearly always labour-intensive; services generally have a higher level of intangibles and thus a greater range of quality levels, which affect
26、 customer satisfaction; services are typically produced and consumed as and when customers demand them; peaks and troughs in customer demand mean that service firms often need flexible staffing systems There is growing self-service in routine services (you cant make your own car but you can put the
27、petrol into it; self-service is limited in higher quality and knowledge-intensive services, however).Work systems:T i g h t l y constrainedUnrationalized labour intensiveSemiautonomousHigh-skillautonomousExamplesT e l e p h o n e operators, fast-food workers, cheque proofersSome nurses aides, hotel
28、maids, domestics, long-distance truck drivers, child care workers, clerical home workersClerical and administrative jobs with relatively broad responsibilities, low-level managers, some sales workers, UPS truck driversPhysicians, high-level managers, laboratory technicians, electricians, engineersM
29、a r k e t s servedHigh volume, low cost; standardised qualityLow cost, low volume; often low or uneven qualityVolume and quality varyLow volume (each job may differ); quality often in the eye of the beholderTask supervisionTightLooseModerateLittleF o r m a l education of workersLow to moderateLow to
30、 moderate (skill often unrecognised)ModerateHighOn-the-job trainingLimitedSome informal, unrecognised learning from other workers Limited to moderateSubstantialHerzenberg et al. (1998) developed a typology of work systems in services, which helps underestand the range of work types in servicesServic
31、e market typeCompetitive dynamics Knowledge content of serviceTypicalwork designType One:Mass service markets (e.g. gas stations, fast food, supermarkets)Cost-based competition except to the extent limited by unions and state regulation; substitution of labour for technology and self-serviceLow: key
32、 managers or franchisees have critical knowledge but general labour uses limited, mostly generic know-howLow discretion; may be highly Taylorised in international franchises or major chains; otherwise unrationalized, low-skill workType Two: A mix of mass markets and higher value-added segments (e.g.
33、 elder care, hotels, call centres)A mix of cost and quality-based competition; greater profit opportunities for firms that identify higher value-added segmentsLow to moderate knowledge levels; mix of skill levels needed in the workforceTraditionally low to moderate discretion but potential for HIWSs
34、Type Three: Highly differentiated markets (e.g. high-level professional services)Expertise and quality-based competition but with some anchors on relative pricing; some services may be routinised and migrate back to type two competitionHigh knowledge intensity except where some professional services
35、 become rountinisedGenerally high discretion; the natural home of HIWSsBuilding on Herzenberg et al (1998), Boxalls (2003) model describes three types of service markets and how competitive dynamics affect work design.Question: why do higher quality services and professional services command a price
36、 premium? Question: Why are there limited opportunities for HIWSs in mass services? Work design in the public sectorThe public sector, which is heavily unionised and has high levels of standardisation in employment contracts, has traditionally rivalled the largest manufacturers and the main banks in
37、 building internal labour markets. The public sector is characterised by semi-autonomous work (typical in clerical roles) and highly skilled professional work (e.g. in health and education).Work rules are more bureaucratic and work norms are typically more contested than in the private sector.23Work
38、 design Strategic work design focuses on two principles: differentiation - degree of specialisation integration- process of coordinating work Key elements: Autonomy- to what extent? interdependence- to what extent? A continuum of interdependencies?- sequential or reciprocal.24A strategic framework f
39、or managing human resources: Work design choicesLABOUR ORIE NTATION STRATEGIC DIRECTIONFREE AGENT(External/ Differentiation)LOYAL SOLDIER(Internal/Cost)COMMITMENT EXPERT(Internal/ Differentiation)BARGAIN HUNTER(External/Cost)Design objectives:EfficiencyStandardisationSpecialisationDesign features:Me
40、chanistic, perceptual & biologicalLow autonomySequential interdependence Design features:MotivationalHigh Autonomy Reciprocal interdependenceCOST LEADERSHIP DIFFERENTIATIONEXTERNALINTERNALDesign objectives:InnovationExperimentationBroad responsibilitiesCombined approaches? Trade-offs?.25HR PLANN
41、ING.26Strategy and HRM Activities RecruitingSelection&Other HRM Practices-Induction- Training & dev-Career planning-Performance mgmt-RemunerationHealth & safetyLabour relationsStrategicHRplanning Business and CompetitiveStrategyWork design.27Stock and Flows of a simple three grade hierar
42、chyGRADE III189GRADE II93GRADE I2015191934065.28HR Planning Focuses on gap between the demand for and supply of human resources Is about managing the stock and flow of human resources and their characteristics Can employ different approaches to get there: Analytical Consensual Evolutionary Should re
43、ly on feedback loops- internal and external.29Useful data points for demand forecasting Employee turnover rates Expansion or contraction/retrenchment plans Age-grade, grade/skills and age-skills mix Revenue contributions Retirements Nature of employment Completed length of service data Career progre
44、ssion analysis (Camel diagrams etc) Composition and ratios: core (earning); non-core (support and enabling functions)HR Planning and organisational flexibility Post-fordism, new forms of workforce flexibility are emerging (Charles Handy, 1989; Atkinson, 1984) Need for organisations to respond to cha
45、nging environment (e.g. economy; technology; labour market) by following 3 common forms of flexibility: Numerical Functional Financial Temporal The flexible firm Core group- main labour market and functional flexibility Peripheral group-secondary labour market- numerical flexibility- short-term cont
46、racts, job sharing, and other forms of non-standard employment External networks- outsourcing, temping, leasing, organisational entrepreneurs, self-employmentAtkinson, 1989, “Four stages of adjustment to demographic downturn”, Personnel Management, Aug, Vol 21, pp20-24 Greenlagh,L (1991) Organisatio
47、nal coping strategies, in Hartley,J, Jacobsen,D, Klandermans, B and van Vuuren, T (eds) Job Insecurity: coping with jobs at risk, London: Sage.Organisational responses to changes in its environment In times of labour surpluses: Reduce Redeploy Retrench Refocus In times of labour shortages status quo intensify recruitment efforts Create substituteAtkinson, 1989, “Four stages of adjustment to demographic downturn”, Personnel Management, Aug, Vol 21, pp20-24 Greenlagh,L (1991) Organisational coping strategies, in H
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