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ADVANCED HUMAN RESOURCE MANAGEMENT

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Title: ADVANCED HUMAN RESOURCE MANAGEMENT


1
ADVANCED HUMAN RESOURCE MANAGEMENT
  • Prof. Dr. Armin Trost

2
English Version for International Business
Management
3
Overview
  • Retention
  • Job Motivation and Satisfaction
  • Employee Survey
  • Change Management
  • Knowledge Management
  • Social Media
  • HR Organization and Information Technology
  • HR Controlling

4
Retention
  • Prof. Dr. Armin Trost

5
Retention Overview
  • Key terms
  • Turnover costs
  • Turnover diagnosis
  • Turnover prediction
  • Retention measures
  • Turnover strategies

6
Turnover Definition of Key Terms
  • Turnover
  • The process in which employees leave the
    organization and have to be replaced
  • Turnover Rate
  • Involuntary turnover
  • Turnover initiated by the organisation (often
    among people who would prefer to stay).
  • Voluntary turnover
  • Turnover initiated by employees

Number of Employees leaving the Company in a Year
? 100
Number of Employees at Midyear
7
Performance Turnover Relation
High mobility, opportunities due to high labor
market value
Poor Evaluation small pay raises poor
satisfaction
Average turnover underestimates critical leaves
20
Turnover
Average
10
Low
Middle
High
Performance
According to William and Livingstone (1994).
Another look at the relationship between
performacne and voluntary turnover. Academy of
Management Journal, 37, 269-298.
8
Turnover Costs
Training
Onboarding
Hiring
Visible (Direct) Costs
Selection
Marketing
Vacancy
Lost Productivity of Other Employees
Separation
Learning Curve of New Hire
Hidden (Indirect) Costs
Lost Productivity of Other Employees
Lost Productivity of Vacant Position
Lost Productivity of Other Employees
Lost Productivity of Incumbant
Pre-Departure
Vacancy
Introduction
Employee Leaves
New EmployeeFully Effective
New EmployeeHired
Source Corporate Leadership Council (1998).
Employee Retention
9
The Psychological Contract
Employer Provides
Employee provides
  • Regular Pay
  • Benefits
  • Social networks
  • Challenging tasks
  • Training
  • Image
  • Security
  • Values
  • Idendity
  • Networks
  • Customers
  • Performance
  • Creativity
  • Capabilities
  • Knowledge
  • Talent
  • Energy
  • Time
  • Health

10
Retention Factors
Which of the following factors are most likely to
hinder your companys ability to retain talented
employees over the next three years? Select up to
three (Answers in )
The Economist Intelligence Unit 2008 (Responses
of 1.000 executives around the globe)
11
Major Retention Factors for High Potentials
Challenging and strategic Projects
Board Awareness
Freedom to Act
Retention
Professional Networks Within
Competitive Salary
Executive Trust Support
12
New Generations require new Ways of Life
10
20
30
40
50
60
70
80














Learn
Work
Private
13
Flexible Working Structures
Location
fixed
mobile
Time
fixed
flexible
Structure
fixed
flexible
Employees go to Work
Employees take their Work with them
14
The common Approach Turnover Diagnosis
  • Usage of scientific methods to systematically
    answer the question Who leaves why?
  • 88 of all companies survey by Mercer in 1998
    conduct exit surveys and/or exit interviews to
    capture reasons to leave
  • While results are always of general interest they
    hardly provide relevant insights for the business
    line (e.g. female employees leave the company for
    different reasons than male employees)
  • Results taken from turnover diagnosis help
    companies to undertake strategic measures with
    regards to employer branding
  • Turnover diagnosis can be seen as a reactive
    rather than as a proactive measure

15
Exit Interview (Example Intel)
  • What was the main reason that you decided to
    leave?
  • Is your new position in a different line of work
    than the one you where in while at Intel?
  • How would you characterize your new employer?
  • Would you say your new employer is better than
    Intel, about the same as Intel, or not as good as
    Intel in terms of
  • How would you descibe your relationship with your
    manager while you where at Intel?
  • How would you describe your experience with
    Intel?
  • If a friend approached you and told you he/she
    was looking for a similar position at Intel, how
    likely would you be recommend Intel?
  • Any other comments about Intel or you new
    position?
  • Pay
  • Benefits
  • Location
  • Working Conditions
  • Job Security
  • Advancement Opportunities
  • Product Quality
  • Coworkers
  • Company Leadership
  • Company Image

16
A simple Framework to predict Turnover
1
EmployeeCommitment
4
2
Capabilities to do a good Job
Intention to leave/stay
Supervisor Quality
Turnover
Social embedded ness
3
Four strong questions to be asked regularly
  • 1 Would you recommend a friend to work at X1?
  • 2 Do you have everything you need to do your job
    well?
  • 3 Do you enjoy working with your peers and
    supervisor?
  • 4 Do you seriousely consider leaving X1 within
    the next 6 months?

1 X Name of the company in question
17
Commitment Capability Matrix clearly indicate
Supervisor Quality
5
High
Chris Christensen
Garth McGrath
Keneth Keith Carlson
4
Mark Myer
John Shark
Mike McGuire
Kelley Clark
Tom Scott
3
Commitment
Rock Stewart
Paul Paulson
Susan Power
Linda Anderson
Russ Rothen
Ed Flaw
2
Pete Peters
Paul Cummings
John Smith
1
Low
3
4
5
1
2
Low
High
Capability
18
Retention Target Groups
LetGo
Re-Recruit
High
Risk of Departure
TurnoverIntention
DontCare
TakeCare
Low
Low
High
EmployeeValue
Impact of Departure
19
Impact of Cost of Changing Career
Benefits of working at other employer
Cost of Changing Career
Cost of Doing Nothing
Cost of Doing Nothing
Cost of Change
Benefits of staying with current employer
?
20
Turnover Decision Styles
  • High Involvement Decision Making
  • Systematically and carefully taking into
    consideration current employment, alternative
    employement opportunities, own strength and
    weaknesses, long-term expectations and private
    situation
  • Opportunity Driven Decision Making
  • Underestimation of appealing elements of current
    employment and consistent overestimation of other
    employment offers even in times of limited
    pressure
  • Fleeing from current Situation
  • Feeling that everything is better compared to
    the status quo. Negatively perceived elements of
    actual job are main drivers for changing career
  • Externally Driven Decision Making
  • Employment alternatives including the current
    one are evaluated according to friends and
    familys attitudes and expectations

21
Job Motivation and Satisfaction
  • Prof. Dr. Armin Trost

22
Types of Theorie
  • Content Theory
  • These theories attempt to explain those specific
    things which actually motivate the individual at
    work
  • Maslows Hierarchy of Needs
  • Job Characterstics Model of Hackman Oldham
  • Herzbergs Theorie
  • Process Theory
  • These theories attempt to identify the
    relationship among the dynamic variables which
    make up motivation
  • Maslows Hierarchy of Needs

23
Job Characterstics Model by Hackman Oldham
Job Characteristics
PsychologicalStates
Desired Outcomes
Skill Variety
ExperiencedMeaningfulness
Task Identity
Task Significance
Motivation Performance Satisfaction
ExperiencedResponsibility
Autonomy
Knowledgeof Results
Feedback
The relationship is moderated by thestrength of
an employees need for growth
24
Two Factor-Model by Herzberg
Relative Frequencies of reported events
In bad Situations
in good Situations
Achievement Recognition The work
itself Responsibility Advancement/Growth Self
Actualization Compensation Subordinate Status Supe
rvisor Colleagues Leadership Company
Policies Working Condition Private Security
Motivation FactorSatisfaction/No Satisfaction
Hygiene FactorDissatisfaction/No Dissatisfaction
25
Expectancy Theory by Vroom
  • Force the motivation or the force to show a
    specific action
  • Expectancy the possibility of achieving a
    certain outcome through certain actions
  • Valency the preference an individual has for a
    particular outcome, the worth placed on a
    particular result

F ? (E ? V)
26
Types of Job SatisfactioinBy Bruggemann
Vergleich Soll - Ist
StabilisierendeZufriedenheit
DiffuseUnzufriedenheit
Senkung des Anspruchs-niveaus
Beibehaltung des Anspruchs-niveaus
Erhöhung des Anspruchs-niveaus
Beibehaltung des Anspruchs-niveaus
Verfälschung der Situations-wahrnehmung
Ohne neue Problem-lösungs-versuche
Neue Problem-lösungs-versuche
ProgessiveZufriedenheit
StabilisierteZufriedenheit
ResignativeZufriedenheit
Pseudo-Zufriedenheit
FixierteUnzufriedenheit
KonstruktiveUnzufriedenheit
27
McGregors Theory X and Y
  • Theory X
  • The average person is lazy and has an inherent
    dislike of work
  • Most people must be coerced, controlled, directed
    and threatened with punishment if the
    organization is to achieve its objectives
  • The average person avoids responsibility, prefers
    to be directed, lacks ambition and values
    security most of all
  • Theory Y
  • For most people work is as natural as play or
    rest
  • People will exercise self-direction and
    self-control in the service of objectives to
    which they are committed
  • Commitment to objectives is a function of rewards
    associated with their achievement
  • Given the right conditions the average worker can
    learn to accept and to seek responsibility

28
Employee Survey
  • Prof. Dr. Armin Trost

29
Employee Survey Overview
  • Purpose and approaches
  • Employee survey operation
  • Commonly used content
  • Result interpretation
  • Limitations of traditional employee surveys
  • Strategic employee survey

30
Employee Survey Objectives
  • II
  • Identification fo strengths and weaknesses
  • Evaluation of former actions
  • Induction of discussion and initiatives
  • I
  • Insights into naturally hidden subjects
  • Employee Satisfaction
  • Corporate climate, culture, values
  • Commitment and capabilities related to strategic
    challenges
  • III
  • Improvements
  • Working conditions
  • Productivity
  • Employee retention
  • Culture
  • Meeting strategic goals

31
Employee Surveys can adress the Needs of
different Clients
  • Top-Management
  • Middle Management
  • Employees
  • Internal Service Provider

32
Survey-Feedback
Improvement Activitiy
Survey
Problem Identification and Action Setup
Analysis and Reporting
Feedback Results to all Employees
33
Employee Survey Project Steps
Survey
Follow-Up
Preparation
Feedback/Communication
Project Planning Setup
Report Generation
Action Planning
Prestudy
Survey Administration
Implementation
Survey Development
Evaluation
Prior Communication
34
Survey Development
Topics
Indicator
Questions
Adjustment
Pretest
Operation Evaluation
35
During the past year, have you been bothered by
pain in your abdomen?
36
Q12 (Gallup)
  1. I know what is expected of me at work
  2. I have the materials and equipment I need to do
    my work right
  3. At work, I have the opportunity to do what I do
    best every day
  4. In the last seven days, I have received
    recognition and praise for doing good work
  5. My supervisor, or someone at work, seems to care
    about me as a person
  6. There is someone at work who encourages my
    development
  1. At work, my opinions seem to count
  2. The mission/purpose of my company makes me feel
    my job is important
  3. My associates (fellow employees) are committed
    to doing quality work
  4. I have a best friend at work
  5. In the last six months, someone at work has
    talked to me about my progress
  6. This last year, I have had opportunities at work
    to learn and grow

37
A Typical Way to Present Results
38
Survey Results (Example)
Tasks and Duties Work Environment Empowerment Coll
eagues Direct Supervisor Communication Work
Flexibility Work-Life-Balance Compensation Benefit
s Commitment Career Development
  • Region South-West (32 Employees) is part of
    Germany (186 Employees)
  • 1 Best possible result 5 worst possible
    result

39
Ways to interpret results
  • Absolute
  • Means and frequencies of answers related to
    different items are absolutely compared. The more
    negative the results by absolut means the bigger
    the issue
  • Relative
  • Results are compared to internal and/or external
    standards or benchmarks. In most cases results of
    superior unit are used
  • Longitudinal
  • Current results are compared to results of
    previous surveys
  • Objectives
  • Results are compared with predefined
    expectations (objectives)

40
Rules in Follow-up Processes
  • All employees get all results of the survey
  • Feedback of results follows a top-downn approach
    from to top-management to every single team
  • All teams get their own results compared to the
    results of the superior organisational units
  • Issue, which lay beyond an organizational units
    respnsibility will be escalated to the unit on
    the next level

41
Shortcomings of Traditional Employee Survey
Approaches
  • Surveys are isolated events not integrated into
    regular leadership processes
  • Not every topic is relevant for everybody on
    every hierarchy level
  • Objectives are defined after the survey has been
    conducted based on survey results. But, surveys
    cant change priorities
  • Required budgets for improvement activities are
    not defined. Therefore planned actions lead to
    minimal impact
  • Focus on satisfaction missing linkage to
    business drivers and results
  • Tremendous efforts through intense reporting and
    follow-up processes
  • Comparison with benchmarks means taking the
    mediocre as standard

42
Satisfaction versus Strategy
Pulse Survey
Traditional Approach
  • Factors driving competititiveness
  • Business Indicators
  • Factors driving employees satisfaction and
    performance based on a scientific model

Topics
  • Top-Management
  • Employees, Managers, Internal Service Units

Stakeholder (Customer)
  • Results are natural part of top-management agenda
    and decision making
  • Objectives are set in advance to the survey
  • Units on all levels are encouraged to work with
    results and draw conclusions
  • Objectives are set after the survey

Follow-up
  • Up to every month
  • Every 1 to 5 years

Cycle
  • Random samples, panels, high-potentials
  • Every employee

Participants
43
Commitment Capabilities related to Strategy X
44
Commitment Capability Grid Example
Garth McGrath
Innovation
high
high
Mark Myer
John Shark
Cost Reduction
Russ Rothen
Schulze-Pübbelkamp
Capability
Capability
SAP Implementation
Ed Flaw
Kelley Clark
Service Quality
Innovation
Garth McGrath
Pete Peters
low
low
low
low
high
high
Commitment
Commitment
45
Change Management
  • Prof. Dr. Armin Trost

46
Overview
  • Large-Scale transformations and related
    humanreactions and challenges
  • Change Management definition and framework
  • Sponsorship and commitment
  • Program organization
  • Employee communication and involvement

47
Types of large-scale Transformations
  • Reengineering
  • Changing the way people work
  • Restructuring
  • Changing roles and responsibilities of people
  • Mergers acquisitions
  • Changing entire groups of people
  • Strategic change
  • Changing the direction of peoples work
  • Cultural change
  • Changing peoples attitutes, values and beliefs

48
Response to Disruptive Changes
Emotional Response
Anger
Acceptance
Active
Bargaining
Stability
Denial
Testing
Immobilization
Depression
Passive
Time
According to Kübler-Ross On Death and Dying
(1967)
49
Resistance to Change
  • Resistance is a natural human reaction
    ondisruptive events (fear of loosing control)
  • Change is seen by different people
    differentlyaccording to their individual frames
    of reference
  • Resistant employees are often seen as
    notrationally thinking troublemakers
  • Resistance of informal thought leaders are
    ofgreater power than those of formal leaders
  • There is always a mixture of overt and hidden
    resistance. Overt resistance should be a
    valuable aspect of any change process
  • Active involvement is propably the best way
    todeal with resistance

50
Response to Positive Change
Pessimism (Perceived Complexity)
Level of Tolerance
Informed Pessimism
Checking Out (?)
Hopeful Realism
Informed Optimism
Uninformed Optimism (Naivité)
Completion
Time
According to Conner Managing at the Speed of
Change
51
Why Transformation fail(Kotter, 1995)
  • Not establishing a great enough sense of urgency
  • Not creating a powerful enough guiding coalition
  • Lacking a vision
  • Undercommunicating the vision
  • Not removing obstacles to the new vision
  • Not systematically planning for and creating
    short-term wins
  • Declaring victory too soon
  • Not anchoring changes in the corporate culture

52
Sources of Complacency
Too much happy talk from senior management
Human nature, with its capacity for denial,
especially if people are already busy or stressed
A kill-the-messenger-of-bad-news,
low-confrontation culture
Complacency
Too many visible resources
The absence of a major and visible crisis
Organizational structures that focus employees on
narrow functional goals
Low overall performance standards
Infernal measurement systems that focus on the
wrong performance indexes
A lack of sufficient performance feedback from
external sources
Source John Kotter (1996) Leading Change
53
People-related Challenges a any Transformation
  • Do the people
  • understand what the change is about?
  • agree, that the change is necessary?
  • see the impact on their daily work?
  • have required capabilities for the new situation?
  • get support to make the change happen?
  • benefit from newly expected behaviours?

54
Change Management Framework
Initialization
SupportFunctions
ManagementFunctions
Sponsorship/Commitment
Communication
Scope Vision
Organization
Setup
Training Support
Controlling
Design
Change
HRM Integration
StakeholderInvolvement
Stabilization
55
Levels of Support
Sponsorship Longterm support
Investmentpersonally, financially, timely
Sponsorship/Commitment
Commitmentvisible, rationale und emotional
Change Support
Acceptance
Acceptance
Understanding
Preparation
Attention
Time
No Idea
According to Daryl Conner Managing at the Speed
of Change (1992)
56
Roles in a Change Program 1/2
  • Sponsors
  • Have the power to sanction and legitimize change
    andto make decisions about change
  • Create an environment that inables change to be
    madeon time and within budget
  • The sponsors make up the steering group
  • Change Agents
  • Responsible for making the change happen on
    anoperational local level
  • They directly deal with employees and
    managers,which are impacted by the change
    (targets)
  • Target
  • The group who must actually change attitudes
    andbehaviour

57
Roles in a Change Program 2/2
  • Project Team
  • Operationally drives the entire change program
  • The project team is led by the project lead, who
    isresponsible for the overall success of the
    program
  • The project team reports to the steering group
  • Sounding Board
  • Key-players with a good sense of the companys
    culture andthe actual mindset of the employees
  • Provide feedback to the project team about
    acceptance andresistance on side of the target
  • External Advisors
  • Give advice to the project team from a neutral
    standpoint

58
Typical Organizational Structure
Target
Sponsor
Steering Group
SB
Line Manager
LM
CA
MA
MA
Project Team
Project Lead
LM
CA
SB
ChangeAgent
CA
External Advisor
Project Lead (Consulting)
SB
SB
Partner
Sounding Board
59
Relationships between different Roles
Sponsor
Sponsor
Sponsor
Sponsor
Agent
Agent
Agent
Target
Target
Target
Linear Structure
Square Structure
Triangular Structure
Source Daryl Conner Managing at the Speed of
Change (1992)
60
PositioningWhat do you do for whom why?
  • Whats the problem (in terms of figures)?
  • Who has the problem?
  • What does the problem cost if not solved?
  • Whats the solution?
  • What will be the difference after the solution
    hasbeen implemented successfully?
  • What are the costs of the solution?

61
Communication Measures
efficient
Available Media
  • Employee Newspaper
  • E-Mail Newsletter(Meassage from the CEO)
  • Intranet (with FQs)
  • Town Hall Meeting
  • Intranet, Social Media(with forums and
    chatrooms)
  • Departmentmeetings
  • Individual employee meetings

One-direction
Interactive
  • Open Space Events
  • Ask-the-CEO-Meetings
  • Workshops, Conferences
  • Hotline
  • Broschures
  • Posters
  • Videos, webcasts
  • PPT-Presentations

New Media
effective
62
Communication Strategy
  • When?
  • Who informs CEO, HR ..?
  • How Media usage?
  • What is the message?
  • Why What to achieve with communication?
  • Whom?

63
The Communication Dilemma
?
EarlyCommunikation
LateCommunikation
High
Unsecurity/Need for Information
Clarity
Low
Time, Progress
64
Employee Involvement
  • Open Space
  • Involvement of many people in a one to two days
    event, where no content is predefined. The event
    is srongly facilitated
  • Focus Groups
  • Groups of selected employees (capable,
    ambitious, highlyaccepted) work on solutions
    regarding clearly definedissues
  • Sounding Boards
  • Members of the target group provide regular
    feedback toprogramm plans and directions and how
    people react
  • Employee Surveys
  • Employees are asked for their opinions
    individually or ingroups by using quantitative
    or qualitative data collectionsmethods
  • Nominating thought leaders into the
    programorganization

65
Open Space (Bar Camp)
  • Up to 1000 participants
  • Participants determine content to be discussed
  • Major objectives are
  • Involvement of many people in ashort period of
    time
  • Collective motivation andcommitment
  • Identification and prioritization ofissues
  • Intense and strong facilitationthough
    facilitator andtechniques
  • Work in groups with rotatingconstitutions
  • Public presentations of results
  • Duration is between 2 to 3days

66
Stakeholder Analysis
strong
Power
Resistance
Support
weak
Impact
low
high
67
Knowledge Management
  • Prof. Dr. Armin Trost

68
Knowledge Management Overview
  • Knowledge Economy
  • From Sign to Wisdom
  • Traditional Approaches in Knowledge Management
  • Implicit versus explicit Knowledge
  • Modern Approaches in Knowledge Management

69
The changing meaning of Knowledge
70
Challenges
  • Employees knowledge as key factor for
    competitiveness and corporate success (knowledge
    economy)
  • Complex tasks require combination of the
    knowledge of multiple players
  • New and relevant knowledge appears in
    increasingly shorter time periods
  • Knowledge is located in peoples mind and hard to
    be retained to the company (knowledge worker)
  • Growing need to collect and transfer knowledge
    across the globe

71
People versus Technology
  • People who own their knowledge
  • Subjectivity and creativity
  • Significant corporate value
  • Hard to be retained

Wisdom
Knowledge
  • Technology (e.g. data bases)
  • Objektivity through documentation
  • Limited corporate value
  • Information and data are owned by the company

Information
Data
72
From Signs to Competitiveness
Knowledge Leadership
Knowledge Organization
Competitive-ness
Unique/Different
Competence
Solutions
Doing the right things
Action
Commitment
Capability
IT
Task related
Knowledge
Combination
Information
Meaning
Data
Syntax
Signs
Source Klaus North Wissensorientierte
Unternehmensführung, Gabler Verlag (own
translation)
73
What people know
Peers/organization
Culture
Products
Customers
Processes
Tools/Technology
Competition
(Informal) Networks
Projects
Solutions
Partners
Mistakes
(Hidden)Rules
74
Classic 1 Central Knowledge Database
  • Employees are encouraged to document their
    knowledge on a central database
  • A facilitator takes care for quality of all
    documents
  • There are general standards for creating
    knowledge material
  • Downside
  • Employees neither are motivated enough to
    document their knowledge nor find enough time to
    do so
  • Within a short period of time masses of never
    used documents emerge

75
Classic 2 Yellow Pages
  • Employee maintain and commend their major fields
    of expertise in a few words
  • All employees find peers with certain expertise
    using simple search options
  • Expertise is documented on databases with
    web-access or on printed booklets
  • Overall goal is to bring people with certain
    expertise and demand for expertise together
  • Downside
  • Detailed meaning of expertise remains unclear
  • Limited opportunity to immediately learn from
    what is documented

76
Knowledge Generation Modelby Nonaka
Tacit ? Tacit Socialisation
Tacit ? Explicit Externalisation
Explicit ? Tacit Internalisation
Explicit ? Explicit Combination
Source Nonaka Takeuchi (1995), The
Knowledge-Creating Company
77
Implicit Knowledge Example
Source Gerd Gigerenzer (2007).
Bauchentscheidungen
78
McKinsey Approach
  • Employees publish specific knowledge through
    webbased documents not longer than three pages
  • Knowledge must have been proven in practise
  • Access to documents is tracked and reported.
    Reader evaluate the value of documents
  • Employees are encouraged to commend on documents
    and to get in direct touch with experts (authors)
  • Rankings are published and constantly updated
    about the success of all documents

79
Knowledge Transfer Process
3. Contacting
1. Knowledge Documentation
2. Search for Expertise
Project Lead/Manager
Knowledge
Employee
4. Cooperation/Support
Project
5. Knowledge development/Enhanced Network
80
T-Concept
General Knowledge
  • Focus on one field of expertise
  • Personal commitment to enhance knowledge within
    that field and to proactively support colleagues
    where required
  • Commitment to publish new insights
  • Doing presentations on internal knowledge
    transfer conferences and training events
  • Experts are communicated internally

Expert-Knowledge
81
HR Organization Information Systems
  • Prof. Dr. Armin Trost

82
HR Organization and Information Systems Overview
  • Global Human Resource Management
  • HR as Strategic Business Partner
  • Roles in a global HR Organization
  • Shared Service Center
  • HR Outsourcing
  • HR Information Systems
  • Focus e-Recruiting

83
Global Organizational Landscape
Global Headquarter Corporate HR managing HR
globally Regional HR managing regional HR Local
HR serving Headquarter Staff
Regional Headquarter Regional HR managing
regional HR Local HR serving Subsidiary Staff
Subsidiary Local HR serving Subsidiary Staff
84
Types of Organizations
Global Views the world as a single market
operations are controlled centrally from the
corporate office.
Transnational Specialized facilities permit local
responsiveness complex coordination mechanisms
provide global integration.
High
Global Efficiency
Multinational Several subsidiaries operating as
stand-alone business units in multiple countries.
International Uses existing capabilities to
expand into foreign markets.
Low
Low
High
Local Responsiveness
85
Perceived Strength and Interests from two
Perspectives
Locally operating HR employee
Globally acting HR employee
  • We are more familiar with operational
    requirements and practices
  • We know our customers better
  • We need our freedom to decide whats good for
    our local customers
  • We expect responsibilities to design our own
    processes and tools
  • Its all different in our country
  • We are closer to senior management
  • We know better whats good for the company as a
    whole
  • We are more familiar with the differences across
    countries
  • We have the power to decide about strategic
    directions

86
Trends in Human Resource Management
Responsibilities
?
Strategy
Consulting
Support
Administration
87
HR Roles by Dave Ulrich
Strategy
Strategic Partner Defining and executing strategy
Change Agent Creating a renewed organization
Processes
People
Administrative Expert Building an efficient
infrastructure
Employee Champion Increasing employee commitment
and capability
Operation
Source Dave Ulrich Human Resource Champions 1997
88
Filtering Queries
Internet
Service Center / Call Center
SERVER
Self Service WEB
100 Queries
HR Generalist
HR Manager
75
20
5
Database
Intranet
Source Accenture
89
Screenshot Abwesenheitsmitteilung
90
Virtual Advisor (Lingubot)
http//www.daad.de/deutschland/en/index.html
91
Shared Service Center
internal
external
Board
Corporate Functions
HR
HR
HR
HR
HR
HR
External Partner
HR-Shared- Service
HR
HR
HR
Divisional Units
92
Economies of Scale and Scope through Shared
Service Organization
Economies of Scale
Economies of Scope
decentral
consolidated
t0
t0
S1
C2
t1
t1
Utilization
S2
t0
C1
Costs/Unit
Costs/nit
Shared
t1
Volume
Q2
Q1
Shared
Time
Volume
Combination of similar Processes
Joint Usage of Resources
  • Economies of Scale through
  • Decreasing redundancies
  • Standardization of IT/HR processes
  • Learning
  • Economies of Scope through
  • Combination of resources and infrastructures
  • Leveling utilization and capacities

93
Decentralized Recruiting Organization
Applicationmanagement
HRMarketing
BranchA
Definition of Target Profile
ApplicationData Base
Preselection
Introduction
Assessment


Job OfferPreparation
Job OfferNegotiation
Applicant
Applicationmanagement
HRMarketing
BranchB
Definition of Target Profile
ApplicationData Base
Preselection
Assessment
Introduction


Job OfferPreparation
Job OfferNegotiation
94
Identifying Duties to be Transferred into a
Shared Recruiting Center
close
Conducting Interviews
Feeding back to Candidate
Negotiating Work Contract
Arranging Interviews
Relationshipto Candidate
Writing Job Offers
Pre-Selecting Cand.
Searching in the Talent Pool
Publishing Job-Postings online
Maintaining Candidate Information
distant
Recording unsolicited Applications in the
System
high
low
Ability to Standardize
95
Integrated Recruiting Organization with
centralized e-Recruiting Technology
BranchA
Definition of Target Profile
Introduction
Assessment

Job Offer Negotiation
Applicationmanagement
HRmarketing
Shared Recruiting Center
Pre-Selection
e-Recruiting
Applicant

Job OfferPreparation
BranchB
Definition of Target Profile
Assessment
Introduction

Job Offer Negotiation
96
Modernd HR-Organization
97
Outsourcing Purposes
Quality
Focus
Flexibility
Cost
98
Scope of Serices outsourced in the United States
Relative Frequency (in )
Health Care Pension Benefits Admin Payroll Recruit
ment (/wo Mgr) Relocation HR Development Managemen
t Development Compensation Admin HR
Technology Mobility/Expatriates Performance
Management
partially
completely
Source SHRM 2004 Human Resource Outsourcing
Survey Report
99
Top Factors in Considering HR Outsourcing Vendors
A proven track record Cost of vendor
services Guaranteed service levels Flexible
contract options Recommendations from other
comp. A compatible corporate culture Niche in a
specific area
(n168 HR Professionals in Companies that
currently outsource)
Source SHRM 2004 Human Resource Outsourcing
Survey Report
100
Internal versus external Recruiting-Expertise
depend on Positions to be filled
Internal
External
Internal
External
Expertise
External
Internal
Executives
Key Functions
Non-critical Functions
101
HR Information SystemExample SAP HCM
102
User and Expert Systems
103
Expert System User Interface
104
Services can be classified according to the Type
of Users and Tasks
Administration Standardized processing Automatizat
ion Reliable results
Value Creation Creative usage Personal
judgements Fuzzy output
Task
User
Master data management Leave request Online-Appli
cation Training booking
Employee-/Self-Assessment Knowledge
Management Performance Management
Employees Rare usage Event-triggered No training
efforts
Payroll Accounting Application screening Training
administration
Talent Relationship Management Succession
planning HR Controlling
Experts Frequent usage Limited to intense
training efforts
Inclusing applicants, managers etc.
105
User and Expert Systems Usage
HR
ExpertSystems
User
UserSystems
Employees
Decentral
Central
CentralizationDecentralization
106
e-Recruiting Innovation Waves
Online-Application
Backend/Integration
Website
Laggards
Late Majority
Early Majority
Early Adaptors
Innovators
2005
2000
1995
2010
2015
107
Typical e-Recruiting functionalities
  • Search request creation, approval and maintenance
  • Job-posting on copmany career website and on
    public job boards
  • Applicant portal supporting job search,
    registration and online-application
  • Application screening and filtering based on
    selection criteria
  • Automatic communication with candidates via
    e-mail
  • Creation and approval of short-lists through line
    managers
  • Interview administration and invitation

108
Learning Management System (e-Learning)
Lerner
ExternalContent
Portalpersonalized intranet-based
LMSLearning Management System
CMSContent Management System
Qualifications
Training Administration
Learning Content Generation
Literature Databases
Role
Learning Strategies
Relevant Websites
Embedding external Content
Personalized Training Offers
Profile-Matching
Communities of Practice
Formal Standards
Tests Certificates
Learning History
Authorization
Analytics
Collaboration
Authorization Accounting
Company Information
Tests
109
Social Media
  • Prof. Dr. Armin Trost

110
Social Media Overview
  • Social Media User and Usage
  • Recruiting und Employer Branding
  • Learning and Development
  • Social Media Platforms
  • Internal Social Media Policies

111
Forrester Ladders
  • Creators
  • Write blogs, upload videos, generate content
    used by others
  • Critics
  • React on others content, edit wikis, engage in
    forums
  • Collectors
  • Collect and sort internet content actively, use
    tags and RSS, evaluate content
  • Joiners
  • Maintain relations to others
  • Spectators
  • Pasively use web content
  • Inactives
  • Dont use content generated by others

112
Social Media Activity
Source http//www.forrester.com/empowered/tool_co
nsumer.html (01.12.2010) US Forrester Research's
North American Technographics Online Benchmark
Survey, Q2 2010 (US), 26,913 respondents Europe
Forrester Research's European Technographics
Benchmark Survey, Q2 2010, 25,535
113
Social Media User Types in Employer Branding
Networker
Brand Builder
Communicator
Actively build networks into relevant target
groups Reach target group
Me too
Transfer a clear employee value
proposition Clear employer profile
Intensively share career-related information in
any situation Be present
Spontaneousely share career-related information
and content Be there
Maturity
114
Social Media/Web 2.0 Platform Usage
Employer Branding
Repu-tation
Carreer-info
Job-Posting
Inter-action
Talent Search
TRM
Blogs
Forums
115
Social Media RoadmapWay to a Social Media
Strategy for Recruiting and Employer Branding
Objectives
Listen
Do it
Check and Develop
Definition of Key and Bottleneck
Functions Target Group Identification Setting
Social Media Objectives
Involve and understand target group Consider
internal conditions
Definition action on Social Media
Activities Employer Branding Sourcing Talent
Relationship Management Clarify rules and
responsibilities
Constantly check effects of Social Media
Activities Set priorities and develop selected
Social Media Activities
116
Twitter
Medium
Journalist
Incident
Editor
Reader
Witness
Interview
Article
Text
Time
Incident
Follower
Witness
Tweet
Follower
Time
117
Elements of a Twitter Strategy
  • How will the twitter account be positioned and
    what will be the relevant content
  • Who are the target groups?
  • Who are relevant multiplicators (Follower)?
  • How will the twitter account be marketed/sold?
  • What are measurable objectives?
  • Who/which person will represent the twitter
    account?
  • Who decide upon the shared content?

118
Key Terms of Social Network Analysis
Nodes, Relations, Density, Centrality,
Cliques, Clusters, Stars
119
Career Cluster versus Professional Cluster
Career Cluster
Professional Cluster
Purpose is to share career-related content
Purpose is to share professional content
High Centrality
Little Centrality
Active Candidates
Active und passive Candidates
Access through HR
Access through the line
Passive approach
Active approach
120
Learning on Demand
121
Formal versus informal Learning
20
80
80
Formel Learning
Informal Learning
20
Cross, J. (2006). Informal Learning
Rediscovering the Natural Pathways That Inspire
Innovation and Performance. San Francisco/CA
John Wiley.
Budget
Effect
122
YouTube Tutorials
123
Audio and Video Podcasts
  • Easy to produce and share with others
  • Flexible usage anywhere at any time
  • Short duration
  • Direct access through mobile Internet
  • Usage of gadgets (Smartphones)

124
Principals of informal Learning
  • Learning content is easily produced, shared and
    found via Web 2.0 (e.g. YouTube)
  • Flexible and problem-related usage of content
    (Learning-on-Demand instead of Learning-
    just-in-case)
  • Learning from others (peers) through Social Media
    und Communities of Practice
  • Room and infrastructures allow self-directed
    learning and knowledge exchange

125
Internal Talent Markets
Talents
Jobs Projekte
Rules
Experiences Projects Expectations Preferences Refe
rences
Requirements Challenges Objectives Working
Conditions References
Internal notice periods Roles and
views Compensation rules
HR Consultant
According to Bryan, L., Joyce, C., Weiss, L.
(2006). Making a Market in Talent. McKinsey
Quarterly.
126
Social Media Policy at Yahoo!Personal Blog
Guidelines
  • Legal Parameters
  • Legal Liability. When you choose to go public
    with your opinions via a blog, you are legally
    responsible for your commentary. (..)
  • Company Privileged Information. Any confidential,
    proprietary, or trade secret information is
    obviously off-limits for your blog per the
    Proprietary Information Agreement you have signed
    with Yahoo!.
  • Press Inquiries. (..) If a member of the media
    contacts you about a Yahoo!-related blog posting
    or requests Yahoo! information of any kind,
    contact PR.
  • Best Practice Guideline
  • Be Respectful of Your Colleagues
  • Get Your Facts Straight
  • Povide Context to Your Argument.
  • Engage in Private Feedback.

127
HR Controlling
  • Prof. Dr. Armin Trost

128
HR Controlling Overview
  • Purpose of HR Controlling
  • Important indicators in HR
  • Performance indicator positioning and
    implementation
  • ROI of HR investments

129
Purposes of HR Controlling
Diagnosis
Prognosis
Evaluation
Current Situation
FutureSituation
Past investment
130
Indicators in HRM
  • Employer Branding
  • Awareness
  • Applications
  • Reasons to apply
  • Employer image
  • Recruiting
  • Time-to-fill
  • Cost per Hire
  • Offer-Acceptance-Rate
  • Interviews per Hire
  • New Hire Satisfaction
  • Hiring Manager Satisfaction
  • No-show-Rate
  • Workforce Structure
  • Age
  • Gender
  • Span of controll
  • Tenure
  • Freelancers
  • Female Leaders
  • Expatriation
  • Expatriates
  • Return-Rate

131
Indicators in HRM
  • Training
  • Training days/employee
  • Training costs/employee
  • Training quality
  • Development
  • High Potentials
  • HiPos ready for promotion
  • Duration on one level
  • HR-related costs
  • Salary/Total costs
  • Salary/employee
  • Compensation structure
  • Productivity
  • Revenue/employee
  • Human Capital Value Added
  • Verbesserungs-vorschläge/Mitarbeiter
  • Employee satisfaction
  • Commitment
  • Retention/Safety
  • Turnover Rate
  • HiPo Turnover
  • Boomerang-Rate
  • Bradford Factor (SxSxD)
  • Accidents/1000 Employees

132
Classic 1 Cost-per-Hire
Which components make up cost-per-hire and how is
cost per hire divided through organizational
units involved and new employees?
  • Advertising costs
  • Candidates travel costs
  • Executive search retainer and contingency fee
  • Selection tools and measures
  • Salary of employees involved in recruiting (HR,
    Line)
  • Costs for facilities of the recruiting
    organization
  • Market Research
  • Opportunity costs related to involved line
    employees
  • Costs of recruiting infrastructure (e.g.
    e-Recruiting)
  • Referral bonuses
  • HR Marketing events
  • Sign-on-bonuses
  • Relocation costs
  • Onboarding costs

133
Cost Elements Case
Advertising
Events
Exlusively Recruiting(special accounts)
Job ads (e.g. in newspapers) Postings in job
boards Website/Homepage modifications Marketing
material Image campaigns
Job fairs College recruiting Direct mailings
Open days at SAP Company visits Inhouse
events Image Reports Labor Market Research etc.
Travel
Assessment
Travel costs of recruiters and/or candidates
Assessment centers reference/background
investigation Assessment tools tests
Related to Recruiting(e.g. cost centers)
Search Agencies
Operating Costs
Executive search Retained search Contingency
search Direct source providers Contractors
Relocation
Recruiters payroll and trainings Applicant
tracking systems Infrastructure costs IT
support Office costs Communication costs
Estate agents Removal firms Visa / Work Permit
Application Relocation services Tax service
Temporary housing Rental car Language training
Referral Bonuses
Employee Referrals Candidate Referrals
Sign on Bonuses
134
Classic 2 Time-to-Fill
When does it start? When does it end?
Start HRMarketing/Search
Signed JobOffer
End ofOnboarding
WorkforceDemand
Vacancy
Selection
First Day at Work
End of ProbationPeriod
?
?
135
Performance Indicator Positioning
What?Which Indicator?
For whom?Who benefits from the indicator?
Why?To which objectivesis the indicator related?
How?Which sources and methods are used to
collect the data when?
136
BalancedScorecard
Financials
Objective
KPI
Customer
Processes
Objective
KPI
Objective
KPI
Vision Strategy
People
Objective
KPI
Source Robert Kaplan and David Norton,
Strategic Learning and the Balanced Scorecard,
1996
137
Performance Indicator Framework
Positioning
Operation
Usage
  • ClientCEO, HR Head, Manager
  • Objectives
  • ObjectEmployee, Org. Unit, HR Function
  • Topic
  • FunctionDiagnosis, Prognosis, Evaluation
  • MethodSurvey, Statistics
  • SourcePeople, Systems
  • OwnerDecentral/central, HR Controlling
  • Timing
  • ReportingOnline/ Paper, Views, Roles
  • TrainingInterpretation, Presentation, Usage
  • UsageAction planning, tracking, monitoring

138
Implementing an HR Controlling SystemExample
Turnover Early Warning
Definition of Scope/Objectives
Analysis
Method Definition
Definition of client, objectives and
function Setting budgests, timeline and project
structure Approach definition
Systematic analysis of turnover reasons and
possible early indicators Develpment of a model
to explain and predict turnover behavior
Definition of methods and tools to track/measure
turnover drivers and predictors Defining ways to
analyse and report data and results
Meeting with client/steering group and project
lead
Interviews with managers, former employees,
experts
Workshop with experts, clients and HR managers
Implementation
Operation
Evaluation
Development and installation of controlling
system and related technical infrastructure Identi
fication and training of employees (clients)
impacted
Determination of validity and acceptance Defining
fields for improvements
Tracking data and report to clients Data usage
and related actions
Validation study interviews with client, user
tracking
139
Traditional ways to evaluate Investments in HRM
Investment Costs Objectives Success Indicators
Management development program (200 participants) 1.000 k Improvement of customer and market orientation Higher customer satisfaction Responses to the training by the participants Customer satisfaction
Employee survey (20.000 employees) 1.000 k Improvements of employee satisfaction, working conditions and processes Response rate Amount of defined actions as result to the survey
Implementation of a performance management system (5.000 employees) 1.000 k Performance improvements Better linkage between operational work and strategic directions Relative amount of performance management meetings Responses of managers and employees
140
Return on Investment (ROI)
Benefit - Costs
ROI ? 100
Costs
Cummulated Benefits
Profit
Cummulated Costs
Operating Costs
Investment
Time
Start Operation
Break-Even
Project start
ROI
141
From Problem to ROI
Problem
Cost of doing nothing
Solution
Cost of solution
Impact of solution
ROI
142
Value Added and ROI of Human Capital
Döner Shop
Design Office
FTE 1
FTE 1
PB 180
PB 40
PB Pay Benefits
OE Other Expenses(Total expenses minus Pay Benefits)
R Revenue
FTE Full-Time Equivalent
R 220
R 220
OE 160
OE 20
Human Capital Value Added (HCVA)
220 160
220 20
R OE
60
200

1
1
FTE
Human Capital Return on Investment (HCROI)
220 160
220 20
R OE
1,50
1,11

40
180
PB
Source Jac Fitz-Enz The ROI of Human Capital.
143
Measuring Employee Performance
Company Example
Indicators
Revenue
200.000 k
Revenue/FTE
100 k
Employees
2.000 FTE
Profit/FTE
10.000
Total Expenses
180.000 k
HCVA
160.000 k
Personnel Exp.
140.000 k
HCVA/FTE
80 k
Workdays/Year
220
HCROI
114
Human Capital Value Added

Revenue (Total Exp. Personnel Exp.)

Human Capital Value Added

Human Capital ROI

100
Personnel Expenses
/ Source Jac Fitz-Enz (2000). The ROI of
Human Capital. Amacon.
144
How much does a Top-Perfomer add more Value than
an average Employee?
Reponse by HR Directors
Source Corporate Leadership Council (2003)
145
Added Value in Key Functions compared to Other
Functions
Added Value
B
A
C
2
3
1
1
1,5
0,5
Performance
146
Differenciated Added Value Estimation
C
B
A
10
70
20
Key Function
FTE
20
FTE
140
FTE
40
Factor
1
Factor
2
Factor
3
Per FTE (k)
Per FTE (k)
Per FTE (k)
10
HCVA
69
HCVA
139
HCVA
208
P-Exp.
80
P-Exp.
100
P-Exp.
120
Benefit
- 11
Benefit
39
Benefit
88
Others
FTE
180
FTE
1.260
FTE
360
Factor
0,5
Factor
1
Factor
1,5
Per FTE (k)
90
Per FTE (k)
Per FTE (k)
HCVA
35
HCVA
69
HCVA
104
P-Exp.
60
P-Exp.
70
P-Exp.
90
Benefit
-25
Benefit
-1
Benefit
14
147
Training ROI CalculationExample
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