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MGTS3603-无代写
时间：2024-07-31
MGTS3603:
Strategic Human Resource Management
Human Resource Management:
What and Why?
Week 2
Dr Yiqiong Li
• Who hasn’t joined or been assigned a group?
• Allocation of workshop topics- see BB
Groups
If you did not attend seminar 1, please make sure you have a thorough reading of
• ECP
• Week 1 seminar notes
• relevant blackboard materials.
Familiarize with assessments
3
• Week 2 seminar: HRM goals and tensions in HRM
• Week 3 workshop presentation: HRM goals and tensions in HRM (slides submitted at the latest by
10am on the seminar day) Check this ☺
• Topic evaluation worksheet #1 (submit in Week 3, by 5pm on the day following seminar)
How it flows
4
Goal:
To establish fundamental definitions associated with HRM, examine what managers are trying to achieve
in HRM, and understand why HRM is challenging
Content:
• How do we define human resources and HRM?
• What are the goals of HRM?
• What strategic tensions and problems do these goals imply?
Seminar Outline
Part 1: Define HR and HRM
6
Human resources are the characteristics that are intrinsic to human beings:
• Most obviously: our knowledge, skills and energies
• Underpinning these: our physical and emotional health, intellectual capabilities, personalities and
motivations
Defining Human Resources & HRM
Defining Human Resources & HRM
• Who owns human resources?
• What can employers do with human resources?
Question – Who owns HR?
Question – Who owns HR?
HRM is an inevitable process in organisations:
• Managers need access to human capital and build social capital to create organisational
performances
• HRM involves policies and practices for organising work and managing people, including both
individual and collective dimensions
• HRM involves line managers and (in larger organisations) HR specialists
Defining HRM
Defining HRM
Part 2: Strategic goals in HRM
(workshop presentation group #1)
10
1.Cost-effective Labour
2.Organizational flexibility
3.Human resource advantage
4.Social legitimacy
5.Management power
What are the goals of HRM?
What are the goals of HRM?
1. Cost-effective labour
• Why? Labour cost matters a lot (e.g, restaurants: one third of sales revenue)
• Some astute choices in HRM are needed to make a business economically
viable, which means it is making a level of profit that investors and lenders
consider acceptable
HRM goal - Cost-effective labour
HRM goal - Cost-effective labour
Why Australian car manufacturing died?
• Holden, Toyota and Ford have closed or will close their factories in OZ
• Australia is surrounded by developing countries with much cheaper labour costs.
• The minimum wage in Thailand equates to less than $2 an hour. Car assembly line workers
are paid more generously — about $6 an hour, or close to $12,500 a year.
• But it’s nowhere near the average Australian car manufacturing worker wage of $69,000.
HRM goal- Cost-effective labour
Example:
HRM goal- Cost-effective labour Example:
http://www.heraldsun.com.au/technology/why-australian-car-manufacturing-died-and-what-it-means-for-our-motoring-future/news-story/0428dc235d1b44639459959f5a3bbf9b
1. Cost-Effective Labour
• Discuss: Is cost-effective labour equal to cost minimization?
• Cost-effective labour = The value of labour output in relation to the cost of labour input
• This means the approach managers take in HRM needs to be cost-effective: the firm needs people
who are both effective and affordable
HRM goal- Cost-Effective Labour
HRM goal- Cost-Effective Labour
Recall: CHRM decision-making framework
Recall: CHRM decision-making framework 15
2. Organisational flexibility
• Nothing lasts forever. Some element of flexibility is important in an organisation’s HRM if it is to cope
with change
• Change is a inevitable and so an element of flexibility is an issue for managers.
HRM goal- Organisational flexibility
HRM goal- Organisational flexibility
2. Organisational Flexibility
Think and Discuss:
• Does anyone work as casual?
• Why does your org hire you as casual instead of full-time employees?
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility
Seasonal work in hospitality or retailing
• Organisation like hotels might need to hire casual or contractors to adapt and remain flexible to peaks
and troughs in seasonal periods.
HRM goal- Organisational flexibility
Example
HRM goal- Organisational Flexibility
Example
2. Organisational Flexibility
= short-run responsiveness + long-run agility
What are they and which one is harder to achieve?
HRM goal- Organisational flexibility
HRM goal- Organisational flexibility
Short-run responsiveness: e.g.
o offer overtime and bring in temporary or seasonal staff (numerical)
o pay employees a mix of wages and profit-related bonuses (financial)
o hire workers who are cross trained or multi skilled (functional)
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility 20
Long-run agility: whether a firm can show the ability to survive in an environment that can change
radically.
oDoes the firm have the capacity to create, or at least cope, with, long-run changes in
products, costs and technologies?
oCan it adapt to change as fast as, or faster, than rivals?
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility 21
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
Film camera
Think and discuss:
When companies in lower-cost countries find ways of making products at the same quality and delivery
benchmarks but do so at much lower prices, how should established firms operating in high-cost countries
respond?
Offshore? Short-run responsiveness
Innovation? Long-term agility
HRM goal- Organisational Flexibility
HRM goal- Organisational Flexibility
• In 2002 Dyson moved its production from the U.K. to Malaysia, costing 800 jobs in the U.K.
However it delivered lower unit costs and ensured proximity to suppliers of key parts, thus
improving the firm’s location in its supply chain.
• This has created an HR strategy in managing a dual workforce across two continents,
making Dyson a more agile firm, enabling them to be more focused on research and
development to maintain being a competitive market leader.
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
‘Zero-hours’ contracts
• Employers do not guarantee the workers any set number of regular working, but employees have an obligation to
accept the employment assignments offered.
For example: In the UK there is a growth toward zero hour contracts post GFC.
Benefits for employers?
• It provides a high level of flexibility for employers by transferring the risk of fluctuations in the level of work
demand onto the employee.
Ethical issues are raised around the use of this style of contact. Eg.
• Can employers penalize workers if they turn down shifts?
• Can employers restrict employees from undertaking work with another employer?
• Should employers give warning that there is no work?
• How can employees survive on such contracts??
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
3. Human Resource Advantage
• Firms that survive are engaged in an ongoing process of trying to build and defend
competitive advantages
• Some of these are temporary and some are more sustained ( more details in W4)
• human capital advantage vs. social capital advantage
- have star employees--- HCA
- star employees provide mentoring and support ---- SCA
HRM goal- Human Resource Advantage
HRM goal- Human Resource Advantage
3. Human Resource Advantage
Think and discuss:
Who performs better, work alone or work collaboratively?
Example: Studies using sociometric data indicate engineering, research, and consulting, individuals with
larger “internal collaboration networks” outperform those who operate and work independently.
Implications?
HRM goal- Human Resource Advantage
HRM goal- Human Resource Advantage
Learn from Google, how to cultivate social capital?
HRM goal- Human Resource Advantage
Learn from Google, how to cultivate social capital?
HRM goal- Human Resource Advantage
4. Social Legitimacy
Firms are economic actors operating in societies: this means they are affected by legal requirements and
by social customs relating to how people should be treated at work.
But employer responses to labour laws and social norms are very variable
HRM goal- Social Legitimacy
HRM goal- Social Legitimacy
Group of top CEOs says maximizing shareholder profits no longer can be the primary goal of
corporations
• A group representing the nation’s most powerful chief executives on Monday abandoned the idea that companies
must maximize profits for shareholders above all else, a long-held belief that advocates said boosted the returns of
capitalism but detractors blamed for rising inequality and other social ills.
• In a new statement about the purpose of the corporation, the Business Roundtable, which represents the chief
executives of 192 large companies, said business leaders should commit to balancing the needs of shareholders
with customers, employees, suppliers and local communities.
• “Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a
life of meaning and dignity,” said the statement from the organization, which is chaired by JPMorgan Chase CEO
Jamie Dimon. “We commit to deliver value to all of them, for the future success of our companies, our communities
and our country.”
https://www.washingtonpost.com/business/2019/08/19/lobbying-group-powerful-ceos-is-rethinking-how-it-defines-corporations-purpose/?noredirect=on
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
31
In US: Labour contracts are more easily terminated, often requiring no advanced notice or compensation,
which is not the case in France.
Minimum wage:
- In US: As of July 2016, the federal government mandates a nationwide minimum wage of $7.25 per
hour.
- In OZ: As of July 2017, $18.29.
Equal employment opportunity:
- Japan: allowed to specify age
- Australia: can’t limit age as long as it is not relevant to work
Social norm-Diversity:
- in most EU nations, tolerant with lesbian, gay, bisexual and transgender (LGBT) employees;
- Saudi Arabia: the social attitudes towards LGBT people are hostile
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
Based on Hofstede’s five
dimensions of culture, you can
see the extent to which
countries could vary in cultures.
Thus, implications of HRM
http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-affects-management-around-the-world
the cause of and solutions to, work‐life/family conflicts in the collectivist Asian context differ significantly
from that in the western context, primarily due to the different work‐life/family values pertaining in western
and oriental societies (e.g., Cooke, 2015). The western notion of WLB creates a physical and
psychological boundary between work and nonwork life and the remedy of work‐life conflict rests primarily
outside the work domain. By contrast, the traditional Asian culture believes that work is one's obligation,
that work may be fun, and that the workplace may be a source of happiness, spiritual support, and good
social life where employees' families may be involved in its activities as an extended part of the company
(e.g., Abu Bakar, Cooke, & Muenjohn, 2016; Cooke, 2015).
HRM intervention prescribed in western organisations, again with simplification, to increase WLB is to
make work and working hours more employee friendly and allow them more time for themselves and their
family.
https://onlinelibrary.wiley.com/doi/pdf/10.1111/1748-8583.12163
HRM goal- Social Legitimacy
example
Uber drivers are workers not self-employed, Supreme Court rules
https://www.bbc.com/news/business-56123668
The decision could mean thousands of Uber drivers are entitled to minimum wage and holiday pay.
The ruling could leave the ride-hailing app facing a hefty compensation bill, and have wider consequences for the
gig economy.
Uber's share price dipped as US trading began on Friday as investors grappled with what impact the London ruling
could have on the firm's business model.
HRM goal- Social Legitimacy
example
Canon gets go-ahead to track employees by phone (July 2018)
• The Fair Work Commission has cleared the way for Canon to track its employees' whereabouts on their
mobile phones, dismissing union objections the surveillance intruded on workers' private lives and
exposed them to "new avenues for discipline".
• Commissioner David Gregory held the photocopier company's requirement for field technicians to keep
GPS tracking on during work hours did not breach its enterprise agreement, which committed it to
"minimising" the adverse impact of business decisions on employees' personal and working lives.
https://www.afr.com/news/policy/industrial-relations/canon-gets-goahead-to-track-employees-by-phone-20180716-h12qek
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
5. Managerial Power
Management tries to enhance its power as a stakeholder in organisations
Much of this is a natural and positive impulse because organisations need leadership and coordination but
power-seeking behaviour can also be perverse
HRM goal- Managerial Power
HRM goal- Managerial Power
Example
Arch Coal, the second largest coal mining company in the United States, has filed for bankruptcy. Arch
Coal’s CEO made $7.3 million in 2014, a full $3 million more than he made in 2013 — during that same
time, the value of his company dropped precipitously. What possible explanation could there be for such a
dramatic pay raise for the CEO of a company doing so poorly?
Another example:
Pay structure of banking executives → boost profits in the near term→
encouraged “short-termism” and excessive risk-taking →
Care about short-term performance while sacrificing long-term financial health→
Financial crisis 2008-2009
HRM goal- Managerial Power
Example
HRM goal- Managerial Power
Example
Another example:
Sex ban introduced for PhD students and their mentors
Universities Australia has introduced new guidelines that would ban sexual and romantic relationships between PhD
students and their mentors.
"We understand when you're a post-grad student doing a thesis there is a genuine power imbalance with your
supervisor," Universities Australia chief executive Catriona Jackson said.
"It's just not appropriate to have a romantic or sexual relationship."
The guidelines warn the unequal power dynamic can make students vulnerable to exploitation and calls on
universities to take immediate action to investigate complaints.
https://www.sbs.com.au/news/sex-ban-introduced-for-phd-students-and-their-mentors
HRM goal- Managerial Power
Example
HRM goal- Managerial Power
Example
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
Part 3: Tensions in HRM
(workshop presentation group #2)
41
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
1. The Problem of Labour Scarcity
Firms compete not simply in product markets but in labour markets. In the extreme, labour scarcity can
cause a ‘capability crisis’ for the firm
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. The Problem of Labour Scarcity Example:
In 2013, the Global Health Organisation (GHO) reported a global shortage of 7.2 million health workers
and predicted this will rise to 12.9 million by 2035.
‘Poorer countries’ are finding it more difficult to hold onto skilled workers as ‘richer countries’ can poach
them with a higher wage offering.
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. The Problem of Labour Scarcity Example:
Global pilot shortage hits Australia, with cancelled regional routes just the beginning (abc news,
22 July, 2018)
Airlines are having to cancel flights, and even entire routes, because there literally isn't anyone
available to fly the plane.
A shortage of 640,000 pilots is expected in the next 20 years
Qantas, Virgin accused of poaching talent from regional airlines
Flights in rural areas are being cancelled, and metropolitan flights could be next
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
2. The Problem of Labour Motivation
Control is limited in the employment contract, which depends on ongoing bargaining between management
and employees over effort and rewards
Example 1: A manager requires excessive progress reports to make sure employees are on the right track
with desirable performance.
Example 2: Krome studios (a game developer) found that its process controls (telling artists exactly how
they were to create 3d assets) was resulting in poor quality work.
What could they do?
• Set clear outcomes and agree on timeframes to allow the staff to choose how they do their work.
• Invest in skilling leaders to supervise more effectively
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Canon gets go-ahead to track employees by phone (July 2018)
The Fair Work Commission has cleared the way for Canon to track its employees' whereabouts on their
mobile phones, dismissing union objections the surveillance intruded on workers' private lives and exposed
them to "new avenues for discipline".
Commissioner David Gregory held the photocopier company's requirement for field technicians to keep
GPS tracking on during work hours did not breach its enterprise agreement, which committed it to
"minimising" the adverse impact of business decisions on employees' personal and working lives.
https://www.afr.com/news/policy/industrial-relations/canon-gets-goahead-to-track-employees-by-phone-20180716-h12qek
Strategic Tensions & Problems in HRM
Example
Example: control vs motivation
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
3. Change Tensions in Labour Management
The reality of change creates strategic tensions. The need to establish a stable production system whilst
also pursuing a degree of organisation flexibility, poses a major dilemma within management strategy.
For example, facing economic downturn, what can managers do?
• shedding labour/downsizing vs. maintaining well paid permanent contracts for a loyal and well-trained
workforce
Another example, a company had a short term need for more programmers, what can it do?
• outsource the work, but when the project ended and the contractor left, the remaining staff were unable
to troubleshoot the work or re-use the code.
Short term responsiveness versus long term agility and human resource advantage
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
3. Change Tensions in Labour Management
The reality of change creates strategic tensions. The need to establish a stable production system whilst
also pursuing a degree of organisation flexibility, poses a major dilemma within management strategy.
For example, facing economic downturn, what can managers do?
• shedding labour/downsizing vs. maintaining well paid permanent contracts for a loyal and well-trained
workforce
Another example, a company had a short term need for more programmers, what can it do?
• outsource the work, but when the project ended and the contractor left, the remaining staff were unable
to troubleshoot the work or re-use the code.
Short term responsiveness versus long term agility and human resource advantage
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
4. Tension Between Management Power & Social Legitimacy
Developing an appropriate ‘social order’ in a firm depends on management accepting some
constraints on its power
Example:
Recall the Rena Plaza case, In April 2013, the Rana Plaza garment factory collapsed upon its workforce,
killing approximately 1,200 workers and injuring about another 2,000. The incident served to highlight the
plight of low-paid Bangladeshi workers forced to work in dangerous conditions for the profit of big
multinationals and shoppers in first world countries who want $2 shirts.
Question: How have ethical issues in global supply chains in the clothing industry affected company
reputations and management behaviour?
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
4. Tension Between Management Power & Social Legitimacy
Developing an appropriate ‘social order’ in a firm depends on management accepting some
constraints on its power
Another Example:
According to a Four Corners report, the convenience chain 7-Eleven exploits and underpays workers in
many of its franchises.
7-Eleven: The Price of Convenience
http://www.abc.net.au/news/2015-08-30/7-eleven-promo/6729716
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
5. Complexity and Politics in Management
A lot of HR issues involve complexity and political compromises
For example:
Increasing minimum wage? Good for employees and bad for firm competitiveness?
http://www.abc.net.au/news/2018-06-01/australian-minimum-wage-increased-by-3.5-per-cent/9824282
Another example: senior management propose self-managing teams v.s. supervisors and
middle mangers resist
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
6. Variations in Institutional Supports and Societal Resources
Managers in firms are not the sole masters of HRM. They are always working in
industry and societal contexts, which both enable and constrain them
Example: A manager aiming to foster equal opportunity, however being constrained by the
resources available at that point. ----- Wage subsidies in Australia
https://www.employment.gov.au/wage-subsidies
Another example: job keeper
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. HRM is an inevitable process in organisations because managers need access to the human resources
that people possess and need to build social capital to create organisational performances
2. HRM involves both economic and socio-political goals. Firms are economic entities embedded in
societies, and managers are never fully in control of HRM
3. Pursuing these goals inevitably involves grappling with strategic problems and tensions. How these are
handled affects the firm’s chances of survival and its relative performance.
4. A firm’s HR strategy is the critical set of economic and socio-political choices that its managers make in
trying to build and manage a workforce
Lecture Conclusions
Lecture Conclusions
Strategic Human Resource Management
Human Resource Management:
What and Why?
Week 2
Dr Yiqiong Li
• Who hasn’t joined or been assigned a group?
• Allocation of workshop topics- see BB
Groups
If you did not attend seminar 1, please make sure you have a thorough reading of
• ECP
• Week 1 seminar notes
• relevant blackboard materials.
Familiarize with assessments
3
• Week 2 seminar: HRM goals and tensions in HRM
• Week 3 workshop presentation: HRM goals and tensions in HRM (slides submitted at the latest by
10am on the seminar day) Check this ☺
• Topic evaluation worksheet #1 (submit in Week 3, by 5pm on the day following seminar)
How it flows
4
Goal:
To establish fundamental definitions associated with HRM, examine what managers are trying to achieve
in HRM, and understand why HRM is challenging
Content:
• How do we define human resources and HRM?
• What are the goals of HRM?
• What strategic tensions and problems do these goals imply?
Seminar Outline
Part 1: Define HR and HRM
6
Human resources are the characteristics that are intrinsic to human beings:
• Most obviously: our knowledge, skills and energies
• Underpinning these: our physical and emotional health, intellectual capabilities, personalities and
motivations
Defining Human Resources & HRM
Defining Human Resources & HRM
• Who owns human resources?
• What can employers do with human resources?
Question – Who owns HR?
Question – Who owns HR?
HRM is an inevitable process in organisations:
• Managers need access to human capital and build social capital to create organisational
performances
• HRM involves policies and practices for organising work and managing people, including both
individual and collective dimensions
• HRM involves line managers and (in larger organisations) HR specialists
Defining HRM
Defining HRM
Part 2: Strategic goals in HRM
(workshop presentation group #1)
10
1.Cost-effective Labour
2.Organizational flexibility
3.Human resource advantage
4.Social legitimacy
5.Management power
What are the goals of HRM?
What are the goals of HRM?
1. Cost-effective labour
• Why? Labour cost matters a lot (e.g, restaurants: one third of sales revenue)
• Some astute choices in HRM are needed to make a business economically
viable, which means it is making a level of profit that investors and lenders
consider acceptable
HRM goal - Cost-effective labour
HRM goal - Cost-effective labour
Why Australian car manufacturing died?
• Holden, Toyota and Ford have closed or will close their factories in OZ
• Australia is surrounded by developing countries with much cheaper labour costs.
• The minimum wage in Thailand equates to less than $2 an hour. Car assembly line workers
are paid more generously — about $6 an hour, or close to $12,500 a year.
• But it’s nowhere near the average Australian car manufacturing worker wage of $69,000.
HRM goal- Cost-effective labour
Example:
HRM goal- Cost-effective labour Example:
http://www.heraldsun.com.au/technology/why-australian-car-manufacturing-died-and-what-it-means-for-our-motoring-future/news-story/0428dc235d1b44639459959f5a3bbf9b
1. Cost-Effective Labour
• Discuss: Is cost-effective labour equal to cost minimization?
• Cost-effective labour = The value of labour output in relation to the cost of labour input
• This means the approach managers take in HRM needs to be cost-effective: the firm needs people
who are both effective and affordable
HRM goal- Cost-Effective Labour
HRM goal- Cost-Effective Labour
Recall: CHRM decision-making framework
Recall: CHRM decision-making framework 15
2. Organisational flexibility
• Nothing lasts forever. Some element of flexibility is important in an organisation’s HRM if it is to cope
with change
• Change is a inevitable and so an element of flexibility is an issue for managers.
HRM goal- Organisational flexibility
HRM goal- Organisational flexibility
2. Organisational Flexibility
Think and Discuss:
• Does anyone work as casual?
• Why does your org hire you as casual instead of full-time employees?
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility
Seasonal work in hospitality or retailing
• Organisation like hotels might need to hire casual or contractors to adapt and remain flexible to peaks
and troughs in seasonal periods.
HRM goal- Organisational flexibility
Example
HRM goal- Organisational Flexibility
Example
2. Organisational Flexibility
= short-run responsiveness + long-run agility
What are they and which one is harder to achieve?
HRM goal- Organisational flexibility
HRM goal- Organisational flexibility
Short-run responsiveness: e.g.
o offer overtime and bring in temporary or seasonal staff (numerical)
o pay employees a mix of wages and profit-related bonuses (financial)
o hire workers who are cross trained or multi skilled (functional)
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility 20
Long-run agility: whether a firm can show the ability to survive in an environment that can change
radically.
oDoes the firm have the capacity to create, or at least cope, with, long-run changes in
products, costs and technologies?
oCan it adapt to change as fast as, or faster, than rivals?
HRM goal- Organisational flexibility
HRM goal- Organisational Flexibility 21
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
Film camera
Think and discuss:
When companies in lower-cost countries find ways of making products at the same quality and delivery
benchmarks but do so at much lower prices, how should established firms operating in high-cost countries
respond?
Offshore? Short-run responsiveness
Innovation? Long-term agility
HRM goal- Organisational Flexibility
HRM goal- Organisational Flexibility
• In 2002 Dyson moved its production from the U.K. to Malaysia, costing 800 jobs in the U.K.
However it delivered lower unit costs and ensured proximity to suppliers of key parts, thus
improving the firm’s location in its supply chain.
• This has created an HR strategy in managing a dual workforce across two continents,
making Dyson a more agile firm, enabling them to be more focused on research and
development to maintain being a competitive market leader.
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
‘Zero-hours’ contracts
• Employers do not guarantee the workers any set number of regular working, but employees have an obligation to
accept the employment assignments offered.
For example: In the UK there is a growth toward zero hour contracts post GFC.
Benefits for employers?
• It provides a high level of flexibility for employers by transferring the risk of fluctuations in the level of work
demand onto the employee.
Ethical issues are raised around the use of this style of contact. Eg.
• Can employers penalize workers if they turn down shifts?
• Can employers restrict employees from undertaking work with another employer?
• Should employers give warning that there is no work?
• How can employees survive on such contracts??
HRM goal- Organisational Flexibility
Example
HRM goal- Organisational Flexibility
Example
3. Human Resource Advantage
• Firms that survive are engaged in an ongoing process of trying to build and defend
competitive advantages
• Some of these are temporary and some are more sustained ( more details in W4)
• human capital advantage vs. social capital advantage
- have star employees--- HCA
- star employees provide mentoring and support ---- SCA
HRM goal- Human Resource Advantage
HRM goal- Human Resource Advantage
3. Human Resource Advantage
Think and discuss:
Who performs better, work alone or work collaboratively?
Example: Studies using sociometric data indicate engineering, research, and consulting, individuals with
larger “internal collaboration networks” outperform those who operate and work independently.
Implications?
HRM goal- Human Resource Advantage
HRM goal- Human Resource Advantage
Learn from Google, how to cultivate social capital?
HRM goal- Human Resource Advantage
Learn from Google, how to cultivate social capital?
HRM goal- Human Resource Advantage
4. Social Legitimacy
Firms are economic actors operating in societies: this means they are affected by legal requirements and
by social customs relating to how people should be treated at work.
But employer responses to labour laws and social norms are very variable
HRM goal- Social Legitimacy
HRM goal- Social Legitimacy
Group of top CEOs says maximizing shareholder profits no longer can be the primary goal of
corporations
• A group representing the nation’s most powerful chief executives on Monday abandoned the idea that companies
must maximize profits for shareholders above all else, a long-held belief that advocates said boosted the returns of
capitalism but detractors blamed for rising inequality and other social ills.
• In a new statement about the purpose of the corporation, the Business Roundtable, which represents the chief
executives of 192 large companies, said business leaders should commit to balancing the needs of shareholders
with customers, employees, suppliers and local communities.
• “Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a
life of meaning and dignity,” said the statement from the organization, which is chaired by JPMorgan Chase CEO
Jamie Dimon. “We commit to deliver value to all of them, for the future success of our companies, our communities
and our country.”
https://www.washingtonpost.com/business/2019/08/19/lobbying-group-powerful-ceos-is-rethinking-how-it-defines-corporations-purpose/?noredirect=on
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
31
In US: Labour contracts are more easily terminated, often requiring no advanced notice or compensation,
which is not the case in France.
Minimum wage:
- In US: As of July 2016, the federal government mandates a nationwide minimum wage of $7.25 per
hour.
- In OZ: As of July 2017, $18.29.
Equal employment opportunity:
- Japan: allowed to specify age
- Australia: can’t limit age as long as it is not relevant to work
Social norm-Diversity:
- in most EU nations, tolerant with lesbian, gay, bisexual and transgender (LGBT) employees;
- Saudi Arabia: the social attitudes towards LGBT people are hostile
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
Based on Hofstede’s five
dimensions of culture, you can
see the extent to which
countries could vary in cultures.
Thus, implications of HRM
http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-affects-management-around-the-world
the cause of and solutions to, work‐life/family conflicts in the collectivist Asian context differ significantly
from that in the western context, primarily due to the different work‐life/family values pertaining in western
and oriental societies (e.g., Cooke, 2015). The western notion of WLB creates a physical and
psychological boundary between work and nonwork life and the remedy of work‐life conflict rests primarily
outside the work domain. By contrast, the traditional Asian culture believes that work is one's obligation,
that work may be fun, and that the workplace may be a source of happiness, spiritual support, and good
social life where employees' families may be involved in its activities as an extended part of the company
(e.g., Abu Bakar, Cooke, & Muenjohn, 2016; Cooke, 2015).
HRM intervention prescribed in western organisations, again with simplification, to increase WLB is to
make work and working hours more employee friendly and allow them more time for themselves and their
family.
https://onlinelibrary.wiley.com/doi/pdf/10.1111/1748-8583.12163
HRM goal- Social Legitimacy
example
Uber drivers are workers not self-employed, Supreme Court rules
https://www.bbc.com/news/business-56123668
The decision could mean thousands of Uber drivers are entitled to minimum wage and holiday pay.
The ruling could leave the ride-hailing app facing a hefty compensation bill, and have wider consequences for the
gig economy.
Uber's share price dipped as US trading began on Friday as investors grappled with what impact the London ruling
could have on the firm's business model.
HRM goal- Social Legitimacy
example
Canon gets go-ahead to track employees by phone (July 2018)
• The Fair Work Commission has cleared the way for Canon to track its employees' whereabouts on their
mobile phones, dismissing union objections the surveillance intruded on workers' private lives and
exposed them to "new avenues for discipline".
• Commissioner David Gregory held the photocopier company's requirement for field technicians to keep
GPS tracking on during work hours did not breach its enterprise agreement, which committed it to
"minimising" the adverse impact of business decisions on employees' personal and working lives.
https://www.afr.com/news/policy/industrial-relations/canon-gets-goahead-to-track-employees-by-phone-20180716-h12qek
HRM goal- Social Legitimacy
example
HRM goal- Social Legitimacy
example
5. Managerial Power
Management tries to enhance its power as a stakeholder in organisations
Much of this is a natural and positive impulse because organisations need leadership and coordination but
power-seeking behaviour can also be perverse
HRM goal- Managerial Power
HRM goal- Managerial Power
Example
Arch Coal, the second largest coal mining company in the United States, has filed for bankruptcy. Arch
Coal’s CEO made $7.3 million in 2014, a full $3 million more than he made in 2013 — during that same
time, the value of his company dropped precipitously. What possible explanation could there be for such a
dramatic pay raise for the CEO of a company doing so poorly?
Another example:
Pay structure of banking executives → boost profits in the near term→
encouraged “short-termism” and excessive risk-taking →
Care about short-term performance while sacrificing long-term financial health→
Financial crisis 2008-2009
HRM goal- Managerial Power
Example
HRM goal- Managerial Power
Example
Another example:
Sex ban introduced for PhD students and their mentors
Universities Australia has introduced new guidelines that would ban sexual and romantic relationships between PhD
students and their mentors.
"We understand when you're a post-grad student doing a thesis there is a genuine power imbalance with your
supervisor," Universities Australia chief executive Catriona Jackson said.
"It's just not appropriate to have a romantic or sexual relationship."
The guidelines warn the unequal power dynamic can make students vulnerable to exploitation and calls on
universities to take immediate action to investigate complaints.
https://www.sbs.com.au/news/sex-ban-introduced-for-phd-students-and-their-mentors
HRM goal- Managerial Power
Example
HRM goal- Managerial Power
Example
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
Part 3: Tensions in HRM
(workshop presentation group #2)
41
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
1. The Problem of Labour Scarcity
Firms compete not simply in product markets but in labour markets. In the extreme, labour scarcity can
cause a ‘capability crisis’ for the firm
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. The Problem of Labour Scarcity Example:
In 2013, the Global Health Organisation (GHO) reported a global shortage of 7.2 million health workers
and predicted this will rise to 12.9 million by 2035.
‘Poorer countries’ are finding it more difficult to hold onto skilled workers as ‘richer countries’ can poach
them with a higher wage offering.
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. The Problem of Labour Scarcity Example:
Global pilot shortage hits Australia, with cancelled regional routes just the beginning (abc news,
22 July, 2018)
Airlines are having to cancel flights, and even entire routes, because there literally isn't anyone
available to fly the plane.
A shortage of 640,000 pilots is expected in the next 20 years
Qantas, Virgin accused of poaching talent from regional airlines
Flights in rural areas are being cancelled, and metropolitan flights could be next
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
2. The Problem of Labour Motivation
Control is limited in the employment contract, which depends on ongoing bargaining between management
and employees over effort and rewards
Example 1: A manager requires excessive progress reports to make sure employees are on the right track
with desirable performance.
Example 2: Krome studios (a game developer) found that its process controls (telling artists exactly how
they were to create 3d assets) was resulting in poor quality work.
What could they do?
• Set clear outcomes and agree on timeframes to allow the staff to choose how they do their work.
• Invest in skilling leaders to supervise more effectively
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Canon gets go-ahead to track employees by phone (July 2018)
The Fair Work Commission has cleared the way for Canon to track its employees' whereabouts on their
mobile phones, dismissing union objections the surveillance intruded on workers' private lives and exposed
them to "new avenues for discipline".
Commissioner David Gregory held the photocopier company's requirement for field technicians to keep
GPS tracking on during work hours did not breach its enterprise agreement, which committed it to
"minimising" the adverse impact of business decisions on employees' personal and working lives.
https://www.afr.com/news/policy/industrial-relations/canon-gets-goahead-to-track-employees-by-phone-20180716-h12qek
Strategic Tensions & Problems in HRM
Example
Example: control vs motivation
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
3. Change Tensions in Labour Management
The reality of change creates strategic tensions. The need to establish a stable production system whilst
also pursuing a degree of organisation flexibility, poses a major dilemma within management strategy.
For example, facing economic downturn, what can managers do?
• shedding labour/downsizing vs. maintaining well paid permanent contracts for a loyal and well-trained
workforce
Another example, a company had a short term need for more programmers, what can it do?
• outsource the work, but when the project ended and the contractor left, the remaining staff were unable
to troubleshoot the work or re-use the code.
Short term responsiveness versus long term agility and human resource advantage
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
3. Change Tensions in Labour Management
The reality of change creates strategic tensions. The need to establish a stable production system whilst
also pursuing a degree of organisation flexibility, poses a major dilemma within management strategy.
For example, facing economic downturn, what can managers do?
• shedding labour/downsizing vs. maintaining well paid permanent contracts for a loyal and well-trained
workforce
Another example, a company had a short term need for more programmers, what can it do?
• outsource the work, but when the project ended and the contractor left, the remaining staff were unable
to troubleshoot the work or re-use the code.
Short term responsiveness versus long term agility and human resource advantage
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
Economic Socio-political
Static
Dynamic
Cost-effective labour
Organisational flexibility;
Human resource advantage
Social legitimacy
Managerial power
Goals of HRM
4. Tension Between Management Power & Social Legitimacy
Developing an appropriate ‘social order’ in a firm depends on management accepting some
constraints on its power
Example:
Recall the Rena Plaza case, In April 2013, the Rana Plaza garment factory collapsed upon its workforce,
killing approximately 1,200 workers and injuring about another 2,000. The incident served to highlight the
plight of low-paid Bangladeshi workers forced to work in dangerous conditions for the profit of big
multinationals and shoppers in first world countries who want $2 shirts.
Question: How have ethical issues in global supply chains in the clothing industry affected company
reputations and management behaviour?
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
4. Tension Between Management Power & Social Legitimacy
Developing an appropriate ‘social order’ in a firm depends on management accepting some
constraints on its power
Another Example:
According to a Four Corners report, the convenience chain 7-Eleven exploits and underpays workers in
many of its franchises.
7-Eleven: The Price of Convenience
http://www.abc.net.au/news/2015-08-30/7-eleven-promo/6729716
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
5. Complexity and Politics in Management
A lot of HR issues involve complexity and political compromises
For example:
Increasing minimum wage? Good for employees and bad for firm competitiveness?
http://www.abc.net.au/news/2018-06-01/australian-minimum-wage-increased-by-3.5-per-cent/9824282
Another example: senior management propose self-managing teams v.s. supervisors and
middle mangers resist
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
6. Variations in Institutional Supports and Societal Resources
Managers in firms are not the sole masters of HRM. They are always working in
industry and societal contexts, which both enable and constrain them
Example: A manager aiming to foster equal opportunity, however being constrained by the
resources available at that point. ----- Wage subsidies in Australia
https://www.employment.gov.au/wage-subsidies
Another example: job keeper
Strategic Tensions & Problems in HRM
Strategic Tensions & Problems in HRM
1. HRM is an inevitable process in organisations because managers need access to the human resources
that people possess and need to build social capital to create organisational performances
2. HRM involves both economic and socio-political goals. Firms are economic entities embedded in
societies, and managers are never fully in control of HRM
3. Pursuing these goals inevitably involves grappling with strategic problems and tensions. How these are
handled affects the firm’s chances of survival and its relative performance.
4. A firm’s HR strategy is the critical set of economic and socio-political choices that its managers make in
trying to build and manage a workforce
Lecture Conclusions
Lecture Conclusions
