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Human Resource Management (HRM)

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Title: Human Resource Management (HRM)


1
Human Resource Management (HRM)
  • What?
  • the functional area of an organization that is
    responsible for all aspects of hiring and
    supporting employees (e.g., providing and
    administering employee benefits).
  • all the activities related to the recruitment,
    hiring, training, promotion, retention,
    separation, and support of employees.
  • functions within a company that relate to people.
  • Why?
  • is the effective use of human resources in order
    to enhance organisational performance.
  • the process of evaluating human resource needs,
    finding people to fill those needs, and getting
    the best work from each employee by providing the
    right incentives and job environment, all with
    the goal of meeting the needs of the firm.
  • applying human resources within complex systems
    such that people succeed, performance improves,
    and human error decreases.

(Source web definitions for HRM)
2
Effects of HRM
  • HRM-practices (especially job design and
    selection/ appraisal/training) better predict
    company performance than RD, QM, strategy and
    technology (West, 2001)
  • Empowerment better predicts company performance
    than technology-based management practices
    (Patterson et al., 2004)
  • HRM-practices as cause and effect of company
    performance (Guest et al., 2003)

3
Road map for both HRM classes (Work process
design, Leading teams)
4
HRM Work process designOverview
5
Organization of course
  • 3 ETCS points (approx. 75-90 work hours).
  • Besides the lecture, the prerequisite for credits
    points and exam participation is the completion
    of a semester project in groups of 4 students.
  • Topic of semester project Analysis and
    assessment of job and organizational design in a
    company including a written report and feedback
    to the company.
  • The exam is written (1.5 hours open book) and
    takes place the 2./3. Week of January. Overall
    grade 50 project 50 exam.
  • Material for the lecture at www.oat.ethz.ch.

6
Semester project
  • Assessment of job and organizational design in a
    company based on two instruments
  • work system analysis (focus on work processes and
    handling of disturbances in the processes)
  • job analysis (focus on criteria for humane work)
  • Analyses involve 2-3 interviews with managers and
    employees and .5 - 1 day observation of work
    tasks and processes
  • To be carried out in groups of four either in a
    company of your choice or in a company provided
  • Please send an e-mail to Jacqueline Hohermuth by
    Sept. 30 (jhohermuth_at_ethz.ch) with the names and
    e-mail addresses of the four people in your
    group, indicating also if you want us to provide
    a company and whether you can conduct the
    analyses in English and/or German

7
Required reading
Copies of the texts will be availabe during the
lecture on Oct. 9 (CHF 10)
8
Psychology
  • Describing, explaining, predicting and changing
    of human experience and behavior

9
Work and organizational psychology
  • Psychologically founded theories, methods and
    solutions for the effective and humane
    interaction between people, techologies and
    organization in order to reach individual and
    organizational goals

10
Methods Psychology as natural and social science
  • Methods in natural sciences
  • Experiment as core paradigm controlled
    variation of conditions in order to test their
    effects
  • Characteristics of social science research
  • Control of complexity
  • Constraints on manipulation of study conditions
  • Studying "hypothetical constructs"
  • Limited possibilities for reduction of complexity
  • Studies with humans
  • Effects through researcher / researched
    individual and social embeddedness
  • Ethical principles
  • Action research
  • Researchers and researchees as subjects in a
    shared process of social change

11
HRM from a work and organizational psychology
perspective
  • Scientific foundation for HRM tools
  • HRM as a function penetrating the whole
    organization
  • Focus on working conditions as influences on
    human competence and motivation
  • Systematic linking of "fit human to task" and
    "fit task to human"

12
HRM Work process designOverview
13
Road map for HRM Work Process Design
14
Fundamentals of organizational design (Kieser
Kubicek, 1983)
  • Specialization Distribution of labor, resulting
    in different kinds of work tasks
  • Coordination management of dependencies among
    subtasks, resources, and people
  • Configuration Structure of line of command
  • Delegation of decision authority Distribution
    of decision authority regarding actions and
    decision rules
  • Formalization Determination of rules and
    procedures, e.g. structures, flow of information,
    performance measurement/assessment

15
Socio-technical systems approach
  • The beginning - Studies by the Tavistock
    Institute in English coal mines One-sided
    adaptation of the work organization in accordance
    with the demands of a new technology lead to a
    suboptimal work system
  • Three core assumptions
  • Every work system comprises a social and a
    technical sub-system.
  • The social and technical sub-system have to be
    jointly optimized.
  • The main criterion for the joint optimization is
    the control of disturbances at their source.

16
Organization as socio-technical system
17
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18
Managing uncertainty in organizations (Grote,
2004)
19
Mechanistic vs. organismic organisation (Burns
Stalker, 1960)
Contingencies Minimizing of uncertainty
possible with few uncertainties Coping
with uncertainty necessary with many uncertainties
20
HRM Work process designOverview
21
Methods for the psychological analysis of work
processes
  • Different goals
  • Determination of pay schemes
  • Determination of requirments/qualification
    profiles
  • Asessment of job and organizational design
    during/after technological/organizational change
  • Humane work design
  • Different levels of analysis
  • Human-technology interaction
  • Individual work tasks
  • Organization unit / work system
  • Firm
  • Interfirm processes
  • Different perspectives
  • "objective" situational demands - Assessment by
    external experts
  • "subjective" personal perception - Assessment by
    workers themselves

22
Need to combine "objective" and "subjective"
perspective
  • Expert for the assessment of a work situation
    external observer and/or workers themselves ?
  • Objective conditions and subjective
    re-interpretation of these conditions are
    relevant determinants of action
  • Compensation of different kinds of biases
    (stemming from norms, needs, social context,
    different uses for data etc.)

23
Empirical methods
  • Analysis of documents
  • Advantages non-reactive, "condensed
    organizational knowledge" Disadvantages not
    aligned with purpose of the investigation
  • Written survey
  • Advantages objective, applicable for large
    samples
  • Disadvantages no control over the actual data
    collection, response biases
  • Interview
  • Advantages control over data collection, complex
    issues possible
  • Disadvantages resource-intensive, interviewer
    influences
  • Observation
  • Advantages access to implicit knowledge, natural
    situation
  • Disadvantages subjective meaning of the observed
    unknown, no control over the occurrence of the
    events under study

24
Work system analysis
  • Description and evaluation of work processes in
    work systems based on analysis of variance
    handling and criteria such as independence of
    work system
  • Data collection method Interview and
    observation based on guidelines
  • Support for assessment through scales with anchor
    descriptions or with lists of relevant
    characteristics

25
Work system analysis Examples
26
Method for job analysis
  • Description and evaluation of work processes on
    the level of the individual task based on
    criteria such as learning opportunities and task
    completeness
  • Data collection method Observation with
    integrated interview
  • Support for assessment through scales with anchor
    descriptions

27
HRM Work process designOverview
28
Zwei Gesichter der Arbeit (Lewin, 1920)
  • Arbeit ist einmal Mühe, Last, Kraftauf-wand. Wer
    nicht durch Renten oder Herrschaft oder Liebe
    versorgt ist, muss notgedrungen arbeiten, um
    seinen Lebensunterhalt zu verdienen. Arbeit ist
    unentbehrliche Voraus-setzung zum Leben, aber sie
    ist selbst noch nicht wirkliches Leben. Darum
    Arbeit so kurz und so bequem wie möglich! Wenn
    die Arbeit dazu gleich-förmiger und einseitiger
    werden muss, so schadet dies nichts, solange es
    ihrer Produktivität keinen Abbruch tut. Denn
    aller positiver Wert kommt dieser Arbeit nur
    indirekt zu, nur durch die wirtschaftlichen
    Vorteile, die sie dem Arbeitenden bietet.
  • Die Arbeit ist dem Menschen unentbehr-lich in
    ganz anderem Sinn. Nicht weil die Notdurft des
    Lebens sie erzwingt, sondern weil das Leben ohne
    Arbeit hohl und halb ist. Dieses Bedürfnis nach
    Arbeit, die Flucht vor dauernden Müssiggang, die
    bei zu kurzer Arbeitszeit zur Arbeit ausserhalb
    des Berufs treibt, beruht nicht auf blosser
    Gewohnheit zu arbeiten, sondern gründet sich auf
    den 'Lebenswert' der Arbeit. Weil die Arbeit
    selbst Leben ist, darum will man auch alle Kräfte
    des Lebens an sie heran-bringen und in ihr
    auswirken können. Darum will man die Arbeit reich
    und weit, vielgestaltig und nicht krüppelhaft
    beengt. Der Fortschritt der Arbeitsweise gehe
    also nicht auf mögliche Verkürzung der
    Arbeits-zeit, sondern auf Steigerung des
    Lebens-werts der Arbeit, mache sie reicher und
    menschenwürdiger.

29
Psychosocial functions of work (Jahoda, 1984)
  • material means of existence
  • activity / competence
  • structuring of time
  • cooperation / social contact
  • social approval
  • sense of personal identity

30
Job design as crucial measure for personnel
development
  • Design of humane work tasks in order to further
  • health
  • competencies
  • personality
  • based on the psychosocial functions of work

31
Criteria for humane work tasks (from Ulich, 1998)
32
Core characteristics of humane work Complete
tasks
  • sequential completeness
  • Cycle of goal setting, planning, execution,
    control and correction
  • hierarchical completeness
  • demands on action regulation at different levels
    of complexity (skill-, rule- und knowledge-based
    actions)
  • Reversal of tayloristic principles

33
The five principles of Taylorism
  • Separation of planning and doing
  • Responsibility for planning at management level
    implementation as sole shopfloor responsibility
  • "one best way" of task execution
  • Definition of the more efficient way of task
    execution based on scientific methods every
    worker executes only one step in the overall task
  • Selection of the best person
  • Definition of qualification profile for each task
    step, selection of the appropriate person
  • Reduction of training
  • Training for the more efficient way of executing
    each task step, workers are easily replaced
  • Control
  • Surveillance of adherence to the prescribed work
    methods and of achievement of required results

34
Objectives of job design
  • AutonomySelf-determination regarding goals and
    rules for goal achievement.
  • ControlInfluence on situations in order to
    achieve goals which can be self-determined or
    determined by others.
  • Prerequisite for effective use of control
    Transparency and predictability of work situation.

35
Design rules regarding autonomy and control
  • Control should be at a maximum.
  • But Management and staff positions can only
    provide indirect control via line employees.
  • Control without autonomy is possible if strong
    identification with goals determined by others
    can be achieved.
  • Autonomy without control contains high potential
    for frustration (e.g. staff functions without
    direct influence on the line of command)

36
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37
Effects of humane job design Stress reduction
  • Stress a situation with demands that cannot be
    met by personal resources
  • Important resources are
  • control (means of influence) given (objective)
    and perceived (subjective)
  • qualification
  • social support

38
Stress at work EU 2002
  • 28 of employees in 15 EU member countries answer
    that they suffer work-related stress
  • Causes
  • Lack of control, e.g. regarding planning (35),
    work duration (55), time pressure (29)
  • Monotony
  • Mobbing
  • Job insecurity
  • Effects
  • Heart diseases (Men16, women 22)
  • Absenteeism (50-60)
  • Estimated costs 20 billion Euro

39
Stress at work Switzerland 2002 (BfS, 2004)
  • 44 of working people state that they suffer from
    severe work load.
  • Of these 27 indicate that they suffer physical
    symptoms.
  • 11 of working people fear that they might lose
    their job.
  • Of these 37 indicate that they suffer physical
    symptoms.

40
Effects of humane job design Furthering
development of competencies and personality
  • Results of longitudinal studies on the effects of
    job design changes
  • E.g. Baitsch (1985) Increase in technical
    competencies, intellectual flexibility, social
    competence, and moral awareness
  • Results of longitudinal studies in the general
    public
  • E.g. Kohn Schooler (1982) Reciprocal
    interaction between intellectual demands of work
    andd intellectual development through processes
    of selection and socialization

41
Considering individual differences in job design
  • Participative und differential-dynamic job
    design
  • Involvement in organizational change decisions
    and offer of choices regarding job design options
    allows for consideration of indiviual needs and
    competencies
  • Job crafting
  • Opportunities for self-determined adaption of
    work tasks according to changing individual needs
    and competencies
  • Management by Objectives (MbO)
  • Systematic furthering of individual motivation
    through tailored goals and ways for goal
    achievement
  • General objective no fixation of individual
    differences, but individually tailored support

42
Fundamental objective of job design
Create conditions that support people in being
capable (competence) and also wanting
(motivation) to do their job well
43
HRM Work process designOverview
44
Road map for HRM Work Process Design
45
Extrinsic versus intrinsic motivation
46
Individual differences in motivation
Different needs Motivation f (satisfaction /
frustration of needs) ____________________________
______________________ e.g. Physiological
needs Security needs Affiliation and affection
needs Appreciation needs Self-actualization
needs
Different goals and expectations Motivation
Valence x Instrumentality x Expectancy
_________________________________________________
_ Decision to (not) undertake a certain action
depends on the answers to three questions Which
goal do I want to achieve? Does this action lead
to this goal? How likely is the success of the
action?
47
How satisfied are you with your job?
48
Development of job (dis)satisfaction (Bruggemann,
1974)
49
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50
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51
Discussion in small groups
  • What is good performance in your studies/your
    job/voluntary work?
  • How is it measured?
  • How satisfied are you with how it is measured?

52
"Good" performance indicators
  • Adequate for task
  • Sufficient influence -gt Based on behavior and
    results, not personal traits
  • Reliability, validity, objectivity
  • Constructive feedback
  • Participatory development
  • Fit with organizational culture

53
Motivation, satisfaction and performance an
imperfect relationship
r .3
54
HRM Work process designOverview
55
HRM Work process designOverview
56
Design of complete tasks
  • individual tasks
  • horizontal (job enlargement), i.e. adding tasks
    with the same qualification profile Usually
    neither improvement of sequential ( complete
    cycles of goal setting - planning - executing -
    controlling - correcting) nor hierarchical
    completeness ( different levels of task
    complexity)
  • vertical (job enrichment), i.e. adding tasks with
    more complex qualification profiles
    Opportunity for improving both sequential and
    hierarchical completeness
  • job rotation, i.e. changes between tasks with
    same or different qualification
    profilesOpportunity for improving sequential and
    hierarchical completeness depending on tasks
  • collective tasks
  • self-regulating teams, i.e. assignment of a
    complete task to a group Opportunity for
    improving both sequential and hierarchical
    completeness

57
Work in self-regulating ("semi-autonomous") teams
  • Team
  • several people,
  • working together for some time,
  • in order to reach common goals,
  • having a group identity.
  • "semi-autonomous"The team can decide or
    participate in decision-making on several of the
    following issues
  • production goals (amount and quality)
  • task spectrum
  • production methods
  • work schedule
  • representation of group in the organization
  • internal management of the group
  • group membership
  • internal distribution of tasks
  • individual work methods

58
Example Reorganizating production of medicinal
instruments
59
Advantages of teams
  • developing ideas
  • discovering and compensating individual errors
  • furthering systems view
  • supporting shared task orientation
  • offering reciprocal support
  • alleviating individual work load

60
Disadvantages of teams
  • friction
  • conformity
  • levelling of individual performance
  • diffusion of responsibility
  • devaluation of other groups

61
Prerequsites for good team work
  • Adequate common task
  • Complexity higher than individual competencies
  • Clear performance criteria
  • Collective decision competence
  • Shared goal orientation
  • Positive goal coupling
  • Goal transparency and feedback
  • Adequate group composition
  • Different perspectives on the task
  • Shared language
  • Development of group rules
  • Adequate group size
  • Support for team development (form, storm, norm,
    perform)
  • Explicit handling of conflicts between individual
    and collective autonomy

62
And dont forget individual job design ...
  • Empowerment better predicts company performance
    than technology-based management practices
    (Patterson et al., 2004)

63
Fundamentals of organizational design (Kieser
Kubicek, 1983)
  • Specialization Distribution of labor, resulting
    in different kinds of work tasks
  • Coordination Management of dependencies among
    subtasks, resources, and people
  • Configuration Structure of line of command
  • Delegation of decision authority Distribution
    of decision authority regarding actions and
    decision rules
  • Formalization Determination of rules and
    procedures for work processes

64
Changes in organizational design Examples
  • Functional specialization vs. integration
  • Line vs. group production
  • Centralization vs. decentralization
  • Increase in formalization (e.g. management
    systems)
  • ...

65
Phases of organizational change Unfreeze - Move
- Freeze
New level of equilibrium
Restraining forces
Current level of equilibrium
Driving forces
66
Organizational change through the lens of the
learning organization
67
Change strategies
Personal versus structural approach
Expert versus process consulting
  • Planned change (e.g. BPR) versus organization
    development

68
Kotter (1996) to manage change to tell people
what to do to lead change to show people how
to be
69
Resistance against change
  • Causes Uncertainty regarding novel things
  • Sense of loss of control
  • Sticking to old norms/privileges
  • One-sided perception of old/new situation
  • Strategies dealing with resistance
  • rational Informing about advantages of new
    situation
  • normative/ Developing new compatible values and
    norms ("speaking re-educative differently
    rather than arguing well as chief instrument for
    cultural change")
  • coercion sanctioning change through exercising
    power
  • Requirements for constructive handling of
    resistance
  • Participation
  • Trust/openness
  • Qualification for change
  • Avoiding strain/threat

70
Participation
"Opportunities for individuals and groups to
follow their interests by influencing the choice
of alternatives in a given situation" Degree of
influence Information no influence Consultat
ion opportunity for expressing opinions
versus due consideration
of all opinions Veto Common decision Effects of
participation Control, motivation,
competence development Common decision as link
between change motivation and changed
behavior Attention! Fit between chosen form of
participation and general principles of operation
in the organization is crucial
71
Degree of participation in decision-makingThe
decision tree by Vroom Yetton (1973)
  • Is there a quality requirement Is one solution
    better than another?
  • Do you yourself have enough information to make a
    good decision?
  • Is the problem well-defined? Has it been reduced
    already to choosing among a set of alternatives?
  • Is it important for implementation that the
    decision and its effects are accepted by your
    team?
  • Would your team accept the decision if you made
    it alone?
  • Does your team share the organizational goals
    which are to be reached through the decision?
  • Will the chosen solution lead to conflicts among
    your team?

72
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73
HRM Work process designOverview
74
A process approach to work process design
Organization development
  • Change of the entire organizational system with
    active participation of all people involved in
    order to increase organizational performance and
    individual development
  • ? Participation and openness of the change
    process as core characteristic
  • ? Taking into consideration the linkages
    between subsystems in the organization
  • ? Linking organizational and individual goals
  • ? Change through the process of changing (i.e.
    participatory diagnosis and implementation)

75
Basis for organizational diagnosis
Socio-technical systems analysis
  • 1. - 4. Analysis of work system and its
    organizational integration
  • Description of most important elements of work
    system and its environment (Layout,
    organizational structure and processes,
    relationship to other parts of the organization,
    etc.)
  • Detailed description of the production processes
  • Identification of main variances and disturbances
    and their sources
  • Detailed description of the social system
    (distribution of labor, work role assignments,
    reulation requirements and possibilities, etc.)
  • 5. Perception of task requirements and their
    fulfilment by members of the work system
  • 6. - 8. Analysis of external influences on the
    work system
  • 6. Maintenance system
  • 7. Supplier/costumer relationships
  • 8. Context (market, societal factors etc.)
  • 9. Design propositions

76
Introducing an intranet at Admin (Grote, 1993)
  • Introduction of an intranet in part of a large
    administration for supporting professionals in
    carrying out long-term cross-departmental
    projects with high cooperation demands
  • Company objective in phase 1 Increasing
    efficiency of communication in existing
    structures
  • Revised company objective in phase 2 Increasing
    efficieny and effectiveness of work processes
    through participatory use of organizational
    options

77
Design decisions phase 1 (top-down)
  • All heads of groups/departments and some
    professional staff are included in intranet.
  • Distribution of tasks and work processes are to
    remain unchanged.

78
Task profiles for different occupational groups
in Admin based on task diaries
79
Profile of intranet usage in year 1
once per day
several times per week
once per week
never
80
Communication network in year 1
81
Technology use as reflection of organizational
culture (Grote Baitsch, 1993)
82
Technology use as reflection of organizational
culture (2)(Grote Baitsch, 1993)
83
Technology use as reflection of organizational
culture (3)(Grote Baitsch, 1993)
84
Design meetings after phase 1
  • Meetings per department/group with
    representatives of all occupational groups
  • Information on results of phase 1
  • Analysis of own current work situation
  • Analysis of typical work processes with strengths
    and weaknesses
  • Discussion on potential of intranet to improve
    individual work situation and work processes

85
Design decisions phase 2 (bottom-up)
  • All administrative assistants are included in
    intranet.
  • Redistribution of tasks between admini-strative
    assistants and professional staff (more
    adminstrative tasks for professio-nals, more
    professional tasks for assistants)
  • In some groups delegation of decision authority
    to professional staff.

86
Profile of intranet usage in year 2
once per day
several times per week
once per week
never
87
Conclusions on introduction of intranet at Admin
  • Participatory reflection on technology use
    improves organization-technology fit.
  • Organizational culture shapes technology use.
  • Intranet technologies have the potential for
    furthering decentralization.
  • Organizational diagnosis and continuous
    description of changes are main instru-ments for
    supporting decisions on work process design.

88
HRM Work process designOverview
89
Road map for both HRM classes (Work process
design, Leading teams)
90
Two perspectives on the relationship person - work
  • static relationship person and job stay the
    same, fit has to be established once.
  • dynamic relationship person and/or job change
    continuously, continuous adaption needed.
  • ? Fit / adaptation can happen based on fit
    human to task and/or fit task to human.

91
Fit task to human (focus in HRM A)
  • Job design
  • Job crafting
  • supports dynamic relationship between person and
    work if tasks are created that include autonomy
    and learning requirements

92
The product of work is people (1)
  • Jemand, der tagtäglich nur wenige einfache
    Handgriffe ausführt, die zudem immer das gleiche
    oder ein ähnliches Ergebnis haben, hat keinerlei
    Gelegenheit, sich im Denken zu üben. Denn da
    Hindernisse nicht auftreten, braucht er sich auch
    über deren Beseitigung keine Gedanken zu machen.
    So ist es ganz natürlich, dass er verlernt,
    seinen Verstand zu gebrauchen, und so
    stumpfsinnig und einfältig wird, wie es ein
    menschliches Wesen nur eben werden kann. Solch
    geistige Trägheit macht ihn nicht nur unfähig,
    Gefallen an einer vernünftigen Unterhaltung zu
    finden oder sich daran zu beteiligen, sie stumpft
    ihn auch gegenüber differenzierten Empfindungen
    (...) ab, so dass er auch seine gesunde
    Urteilsfähigkeit vielen Dingen gegenüber, selbst
    jenen des täglichen Lebens, verliert. (Adam
    Smith, 1776)

93
The product of work is people (2)
  • Cross-sectional studies comparison between
    people at one point in time
  • e.g. relationship between work and leisure
    activities
  • no relationship - empirical finding only for
    subjective assessment by people themselves,
    especially for "identity threating work" (Hoff,
    1986)
  • work changes leisure - most frequent empirical
    finding (e.g. Meissner, 1971 Leitner, 1993)
  • leisure compensates for work - empirical finding
    especially regarding compensation of strain
    (e.g. Bamberg, 1986)

94
The product of work is people (3)
  • Longitudinal studies Observe the same people
    over a period of time
  • e.g. reciprocal relationship between
    intellectual job demands and development of
    intelligence (Schallberger, 1987)
  • selection effect (more intelligent people get
    more demanding jobs) and
  • socialization effect (demanding jobs further
    intelligence) result in
  • widening gap (for more intelligent people
    intelligence increases, for less intelligent
    people intelligence stays the same/decreases)

95
The product of work is people (4)
Career orientations and their change through job
experience (Rosenstiel et al., 1998)
96
Fit human to task (focus in HRM Leading teams)
  • Personnel selection
  • Training
  • supports dynamic relationship if people are
    chosen/trained for motivation and capability to
    learn

97
When to use which strategy with which objective ?
  • fit human to task versus fit task to human?
  • select the right people or train people to become
    right?
  • strive for stable fit versus continuous
    adaptation?

98
Integration of "fit human to task" and "fit task
to human"
  • Strive for dynamic relationship between people
    and work to keep people and organization moving
  • Select people that want to and can develop gt
    learning ability and willingness as important
    selection criterion
  • Personnel development via training and via work
    assignments that further learning
  • Support for lateral und vertical careers in
    syste-matic processes of selection and
    development
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