Human Resource Management
Upcoming SlideShare
Loading in...5
×
 

Human Resource Management

on

  • 10,452 Views

A complete presentation about my lecture on modern human resource management at furtwangen university / germany. Please find the entire lecture on YouTube: ...

A complete presentation about my lecture on modern human resource management at furtwangen university / germany. Please find the entire lecture on YouTube: http://www.youtube.com/channel/UC2KCuNpaUCfFid0UBddFk6Q

Statistiken

Views

Gesamtviews
10,452
Views auf SlideShare
8,771
Views einbetten
1,681

Actions

Gefällt mir
14
Downloads
657
Kommentare
1

2 Einbettungen 1,681

http://www.armintrost.de 1680
http://www.linkedin.com 1

Zugänglichkeit

Kategorien

Details hochladen

Uploaded via as Microsoft PowerPoint

Benutzerrechte

© Alle Rechte vorbehalten

Report content

Als unangemessen gemeldet Als unangemessen melden
Als unangemessen melden

Wählen Sie Ihren Grund, warum Sie diese Präsentation als unangemessen melden.

Löschen
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Ihre Nachricht erscheint hier
    Processing...
  • Helpful. Thanks!
    I wanted to know about certifications in Human Resources or Project Management etc.
    I found an online certification course. Here’s the link:
    http://www.wiziq.com/course/24064-certified-human-resource-management-professional-chrmp
    I’d like to know more about this field.
    Are you sure you want to
    Ihre Nachricht erscheint hier
    Processing...
Kommentar posten
Kommentar bearbeiten

Human Resource Management Human Resource Management Presentation Transcript

  • HUMAN RESOURCE MANAGEMENT Prof. Dr. Armin Trost
  • Main Questions  What is Human Resource Management (HRM)?  Which Megatrends determine future challenges in HRM?  What are key fields of action in HRM?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 2
  • Innovation ?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 3
  • From manual work to knowledge work 0% 20% 40% 60% 80% 100% 1900 17 83 1930 30 70 1970 49 51 2000 62 38 2020 75 25 knowledge work manual work Source: Zukunftsinstitut (2008)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 4
  • Demographic Changes in Germany 50% 40% 25-34 35-49 50-64 65+ 30% 20% 10% 0% 2010 2015 2020 2025 2030 2035 -10% -20% -30%Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 5
  • GlobalizationGerman global TradeSource: Statistisches Bundesamt: www.destatis.deProf. Dr. Armin Trost Human Resource Management www.armintrost.de 6
  • Web 2.0 – User-generated Content Web 1.0 Web 2.0Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 7
  • Value ChangeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 8
  • Megatrends determine future Challenges in HRM  Acquire the right talents Innovation  Give the right rewards  Support lifelong learning Demography  Leverage employee potential  Support diversity Competitive Globalization  Build successors Advantage  Retain and share knowledge  Shape attractive working conditions Web 2.0  Manage strategic changes  Use latest technologies Value Change  Retain the best talentsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 9
  • Human Resource Management (HRM) All planned and controlled activities of an organization to build and maintain the relation between employees and the organization in order to meet both business objectives and employee expectationsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 10
  • Key Terms Human Resource Management - Innovation - Demographic Changes - Knowledge Work - Value Change - Web 2.0 - GlobalizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 11
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 12
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 13
  • Main Questions  How are company strategy and HR strategy related?  As part of an HR strategy which company functions should be of the highest priority?  How to plan quantitative workforce demand on both strategic and operational level?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 14
  • Strategic Priorities Innovation Brand Price Design QualityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 15
  • Company Strategy – HR Strategy Company Strategy Employees HR Strategy Strategic Challenges Competencies Key Functions Strategic Priorities Motivation Recruiting Business Objectives Commitment Development Competitive Values Communication Advantages Availabilty Layoffs Company VisionProf. Dr. Armin Trost Human Resource Management www.armintrost.de 16
  • Which function is of the highest Importance? Management Core Functions Sales/ Product Prod.- Production/ Key Service/ Mgmt R&D Design Planning Engineering Marketing Account Support Mgmt Supportive Functions Human Public Quality Controlling/ Facility/ Mgmt IT Accounting Resource Security Relations/ Purchase Logistics Mgmt Comm.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 17
  • Key- and Bottleneck-Functions Low Talent Availability High Low Strategic High Relevance Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 18
  • Added Value in Key Functions and otherFunctions Added Value Key Functions  In key functions there is an exponential relationship between performance and added value Mean  Added value in key Others functions is higher compared to other functions PerformanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 19
  • Age Structure Analysis 600 500 Manager Employees 400 Number 300 200 100 0 20 25 30 35 40 45 50 55 60 65 70 AgeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 20
  • Factors determining Workforce Demand Senior Promotion Hiring out Losses From outside Retirement, Promotion Turnover Professional in Junior GrowthProf. Dr. Armin Trost Human Resource Management www.armintrost.de 21
  • Strategic Workforce Planning 2013 2014 2015 2016 Employees 120 128 132 140 Demand 18 23 28 29 Internal Availability 15 12 8 7 External Demand 3 11 20 22 RiskProf. Dr. Armin Trost Human Resource Management www.armintrost.de 22
  • Quantitative Workforce Planning Methods  Leading Indicators Determine the ratio between Performance and required numbers of employees based on programmatic assumptions (e.g. professors/students, nurses/patients).  Trend Analysis Applying statistical models that predict labour demand for the future, given objective statistics from the previous years  Task Analysis Tasks are identified and quantified in terms of appearance and workload  Conclusion by Analogy Determine workforce requirements according to those of similar organizational units or companiesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 23
  • Operational Workforce Planning Revenue # Sales Revenue/ # Other Total # Year # Mgr (T€) Reps FTE* (T€) FTE of FTE 2004 6.000 30 200 9 39 6 2005 6.480 35 185 11 46 7 2006 6.998 37 189 12 49 7 2007 7.558 37 204 12 49 7 2008 8.163 36 227 13 49 7 2009 8.816 43 205 14 57 8 2010 9.521 46 207 13 59 8 2011 10.283 55 187 15 70 10 2012 11.106 58 191 17 75 11 2013 11.994 60 200 18 78 11 2014 12.954 65 20 85 12 Demand 5 2 1 Average annual Revenue Growth 8% Average Revenue/Sales Rep (T€) 200 Average Relation Other Ees/Sales Reps 0,31 Span of Control 7 * FTE: Full Time EquivalentProf. Dr. Armin Trost Human Resource Management www.armintrost.de 24
  • Workforce Planning using Task AnalysisExample Italian Restaurant Duration/ Assumptions # Tasks # Duration (h) Task (Min) Core Tasks 28 Guests/Day 200 Prepare Table 1/Table 67 2 2 Guests/Table 3 Take order 1/Table 67 3 3 Tables/Day 67 Prepare Pizza 1/Guest 200 4 13 Hours/Day 15 Billing 1/Table 67 3 3 Chat 1/Table 67 2 2 Drinks/Guest 2 Prepare Drinks 400 0,5 3 Additional Tasks 10 Breaks 5% 1 Administration 10% 3 Misc. 20% 6 Total 38 Working 8 Workforce Demand (FTE) 4,7 Hours/DayProf. Dr. Armin Trost Human Resource Management www.armintrost.de 25
  • Key Terms Strategic Priority - Strategy - Business-HR-Strategy Linkage - HR Strategy - Value Chain - Key Function - Bottleneck Function - Age Structure Analysis - Workforce Demand - Strategic Workforce Planning - Operational Workforce Planning - Planning with leading Indicators - Task AnalysisProf. Dr. Armin Trost Human Resource Management www.armintrost.de 26
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisitio n Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 27
  • Main Questions  What does the traditional approach in recruiting look like?  How is a company able to position and present itself as an attractive place to work through building an employer brand?  Which active search strategies help companies to find and approach passive candidates?  How can companies retain promising and talented candidates?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 28
  • Internal versus external Hiring Internal Hiring External Hiring  Lower risk  New perspectives/ideas  Short Time-to-Fill  Lower training efforts  Lower costs  Competitor insights +  Internal competition  More options  Faster integration  Development opportunities  Less options  Higher costs  Higher training costs  More integration efforts −  Disappointed colleagues  Higher recruiting risks  Conflicts among managers  Higher turnoverProf. Dr. Armin Trost Human Resource Management www.armintrost.de 29
  • Job Ads  Employee Value Proposition  Job  Job-ID  Location  Social Media  Tasks and Responsibilities  Requirements, Education, Competencies  Attractive aspects  Application  Send-to-friendProf. Dr. Armin Trost Human Resource Management www.armintrost.de 30
  • Contingent Workforce Contract Employment Worker Performance Contract Salary Direction Agreement Supplier Client FeeAccording: Holtbrügge, D. (2004). Personalmanagement. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 31
  • Career Fairs  Direct and immediate contact to potential candiates  Immediate pre- selection and job offering  Direct Competition with other employers  Limited focus on specific target groups  Limited contact to passive seekers  Lower quality candidates  Additional information servicesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 32
  • Executive Search  Usually executive positions will be filled through the (secret) help of executive search consultants  Leading executive search agencies are Egon Zehnder International, Heiddrick & Struggle, Russel Reynolds, Korn/Ferry, Kienbaum  The overall fee is 33% of the candidate‗s future total target annual salary which is billed independently of the success of the search (retained search)  There is a difference between active search based on research and ad-based searchProf. Dr. Armin Trost Human Resource Management www.armintrost.de 33
  • Executive Search Process Determine Requirements related to Position to be Interview Candidates filled Identify Target Check References of Companies most suitable (Consider off-limits) Candidates Negotiate job-related Candidate Search and Conditions (e.g. Salary, direct Approach Sign-on Bonus) Present profiles of three Coach new Executive possibly suitable during first 100 Days of Candidates EmploymentProf. Dr. Armin Trost Human Resource Management www.armintrost.de 34
  • Talent Relationship Management EmployeeTarget Group Active Candidate Value Definition Sourcing Retention Proposition Positive Selection & Candidate Recruiting Experience Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 35
  • Employer Image as a competitive Advantage - X% - X% - X% - X% - X% Awareness Company Employer Job Application Retention Image Image Appeal Branding Personnel Marketing/ Relationship ManagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 36
  • Which Promise?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 37
  • Product Brand versus Employer Attributes Product Employer Function Prize Company Tasks Prestige Quality Products Offers Inno- Values People Design vationAccording: Corporate Leadership Council (1999). TheEmployment Brand. Washington: The Corporate ExecutiveBoard.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 38
  • Building an Employer Brand Target Group Definition Operation Analysis Creative Formats, Rules Employer Image, & Processes, Validation, Target Group Preferences, Campagnes Employer Stengths, Labour Competition Strategy Employee Value Proposition (EVP), Media strategy Source: Trost, A. (Hrsg.) (2009). Employer Branding. Arbeitgeber positionieren und präsentieren. Köln: Luchterhand.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 39
  • Potential Employee Value Propositions Offers Tasks Company People Values PurposeCompensation Attractive tasks Products/ People‘s Company Environment & & projects Services Personality culture Climate Benefits International Technology Qualification Leadership Social Career work leader level of quality responsibility opportunities workforce Innovation Market leader Famous leader Health of Work-Life- Collaboration others Balance Impact Success Trust & Diversity Respect Quality of live Location Work flexibility Public reputation Security Customers Source: Trost, A. (Hrsg.) (2009). Employer Branding. Arbeitgeber positionieren und präsentieren. Köln: Luchterhand.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 40
  • An historical ExampleProf. Dr. Armin Trost Human Resource Management www.armintrost.de 41
  • To the pointProf. Dr. Armin Trost Human Resource Management www.armintrost.de 42
  • Defining the Employee Value Proposition Employer Target Group Competitors‗ EVP Employee Value Strengths Preferences Strengths Proposition A A A B B B C C C D D E E E authentic relevant different Source: Trost, A. (Hrsg.) (2009). Employer Branding. Arbeitgeber positionieren und präsentieren. Köln: Luchterhand.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 43
  • Focus on Opportunies, Chances, Perspectives * * Grades are not everything. Your talent also matters!Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 44
  • From EVP to specific Messages EVP Strengths Evidence & Stories Target group specific messages Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 45
  • Media Channels N:N Facebook Internet-Forums, Communities Twitter Blogs YouTube Career fairs Workshop Personal Company- Career- Conversation presentation Website 1.0 Print 1:1 1:N Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 46
  • Active- passive- and non-seeking Candidates  Read job ads, visit career fairs, apply actively Active Seeker  Have a job, are open for new Passive opportunities, observe the Candidates market but don‗t visit career fairs  Are not interested in a new job Non-Seeker opportunity by any means, are happy with their situation, new in their current position, close to retirement, ...Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 47
  • Active and passive Ways of Talent Sourcing High Guerilla Recruiting Competitive Poach the Intelligence Recruiter Tribal Talent Recruiting Scouting SocialCompetitiveness Community Recruiting Employee Referrals Executive Campus Search Recruiting Career Fairs Networks Job Ad Low Low Line Engagement High Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer. Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 48
  • Campus Recruiting Target Universities Relationship Building Marketing Activities Criteria definition, Building social Measures to get in touch, prioritization of relationships to students, evaluate and retain universities/faculties and professors, with faculties students with high level selection and student of talent and motivation organizations Partnering between employer and target universityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 49
  • Campus Recruiting Roles Student Ambassador Top-Manager HR Students Manager/ Employees Professors Career CenterProf. Dr. Armin Trost Human Resource Management www.armintrost.de 50
  • Campus Recruiting Measures High Internships Theses Presentations/ Scholar- lectures ships Benefit* Case-Study- Workshops Company Inhouse Sponsorship Days University Days Theses Award Posters Low Low Effort High * Based on numbers of applicationsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 51
  • Social Networks  „A-Player know A-Player―  „The Strength of weak ties―  Growing usage of employee referral programs  Referrals are seen as highly credible  Growing social media usageProf. Dr. Armin Trost Human Resource Management www.armintrost.de 52
  • Employee Referral Programs Employees refer to potential candidates (friends, former colleagues etc.) Recommended Company gets in Person touch with recommended person Hiring Referral Once the recommended person gets hired the Company Employee employee who referred to him/her gains a bonus BonusProf. Dr. Armin Trost Human Resource Management www.armintrost.de 53
  • Social Community RecruitingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 54
  • Guerilla RecruitingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 55
  • Candidate Segmentation Very High A Candidate B Potential C Medium/ High Low Relevance to High Key-/Bottleneck Function Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 56
  • Candidate Retention Measures C B (C) A (B, C) 1:1 Regular Conversation with line representatives Invitation to Breakfast company events with the CEO Intensity Greeting Weekend- Job-Offers cards workshops Social Holiday Theses Media Jobs Access to Company Personal Intranet magazine gifts Information about vacant positions 1:N Newsletter Priority Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 57
  • Internship Program Employee Company keeps Talent relationship to former Formal Assessment Pool intern Responsibility for a small project of relevance for Project Work the company/business function Transactional work on a daily basis in one or more Regular Internship business functionsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 58
  • Candidate Retention Cycle Talent-Pool Nomination Operation Planning Documentation Job-Offer Recruiting Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in Zeiten des Fachkräftemangels. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 59
  • Positive Candidate Experience Speed Transparency Appreciation The company‘s reaction The candidate is always The candidate is treated on incoming applications clear about current with full respect. The and throughout the entire status. He/she company consequently recruiting process is understands why certain demonstrates its interest faster than thoses of the selection instruments are in those candidates it competitors used and gets wants to hire. appropriate feedbackProf. Dr. Armin Trost Human Resource Management www.armintrost.de 60
  • Key Terms Internal versus external Hiring - Job Posting/Add - Career Website - Contingent Workforce - Career Fair - Public Jobboard - Executive Search - Off-Limit - Talent Shortage - Talent Relationship Management (TRM) - Employer Image - Brand - Product versus Employer Brand - Employee Value Proposition - Employer Positioning - Employers Strengths - Labor Competition - Target Group Preferences - Active Seeker - Passive Seeker - Active Sourcing - Social Community Recruiting - Referral Program - Guerilla Recruiting - Campus Recruiting - Internship Program - Talent Pool - Candidate Retention - Candidate ExperienceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 61
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidat e Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 62
  • Main Questions  During a company‗s recruiting process how are the most suitable candidates selected and which risks need to be controlled?  How can a company determine a candidate‗s future performance? Which selection criteria are typically used?  What are the most commonly used selection methods?  How can you determine the quality of a selection method in terms of objectivity, reliability and validity?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 63
  • Recruiting Risks High False Right Negative Positive Actual Performance Right False Negative Positive Low Low Predicted High PerformanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 64
  • Job – Position – Employee Position Job Employee Responsibilities e.g. teacher, butcher, manager, sales representative Job FamilyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 65
  • Job Architecture Joblevel Chief Marketing Officer Executive Head of Accounting Upper Management Research Manager Department Head Team Lead Sales Representative Senior Research Assistant Junior Marketing R&D Production Sales Admin HR Job FamilyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 66
  • Content and Purpose of Job Analysis Critical Selection Requirements Incidents Criteria Job Description Employee Magic Attractive Value Moments Aspects Proposition Job AnalysisProf. Dr. Armin Trost Human Resource Management www.armintrost.de 67
  • Critical Incident TechniqueExample: Waiter in a Restaurant Critical Incidents Requirements  Restaurant is crowded and  Friendliness guests become impatient  Speed  Guests complain about inedible dishes  Resilience  A drunken group of guests with  Knowledge no money in their pockets  Direction  A guest wants to learn more  Coolness about minor details of a specific wine  Diplomacy  The cook is sick and his deputy  Empathy is out of his depthProf. Dr. Armin Trost Human Resource Management www.armintrost.de 68
  • Limitations of Job Analysis  Job-related aspects change over time  Jobs need to be identified and classified (job architecture)  It might be the employee who defines his/her job (dejobbing)  Job descriptions may increase bureaucracy  Job descriptions support the „this-is-not-my-job― mindsetProf. Dr. Armin Trost Human Resource Management www.armintrost.de 69
  • Relevant Candidate Dimensions Knowledge Personality Interests Motivation Expectations Competence Attitudes Talents Contacts Age, Gender, Look?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 70
  • ... and how they might be judged Education Appearance Interview Motivation Letter Reason to CV Apply Private Former Engagement Development References Photo, AppearanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 71
  • Candidate 1  Engineer  Intelligent  Teamplayer  Confident  Result-oriented  Ambitious  CreativeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 72
  • Candidate 2  Engineer  Intelligent  Teamplayer  Confident  Result-oriented  Ambitious  CreativeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 73
  • Social Judgement Biases  First Impression  Stereotyping The tendency for a The tendency to perceiver to rely on early generalize about people cues or first impressions. in a social category  Recency Effect  Contrast-Effect The tendency for a The tendency to judge perceiver to rely on upward or downward recent cues or last because of a comparison impressions. with another candidate who was recently judged  Projection The tendency for  Halo-Effect perceivers to attribute The tendency to provide their own thoughts, similar ratings across priorities and feelings to different dimensions others based on an overall judgementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 74
  • Recruiting-Funnel Application 10:1 2:1 5:1 2:1 3:2 Hiring Pre-Selection Personal Accepted Interview Job-offer Telephone- Assessment Interview/ Center TestProf. Dr. Armin Trost Human Resource Management www.armintrost.de 75
  • Selection-Process Results Criteria definition consolidation Appropriate tools Decision and methods Communicating the Usage decisionProf. Dr. Armin Trost Human Resource Management www.armintrost.de 76
  • Selection Methods – Overview Method Spread Effort Objectivity Validity Resume Cognitive Ability Test Physical Ability Test Personality Test Biographical Questionnaire Personal Interview Assessment CenterProf. Dr. Armin Trost Human Resource Management www.armintrost.de 77
  • Selection Method – Overview Method Spread Effort Objectivity Validity Reference Check Background Investigation „Google― Heuristics Physiological Tests Graphology Games/Simulation sProf. Dr. Armin Trost Human Resource Management www.armintrost.de 78
  • Myers-Briggs Type Indicator (MBTI) Favorite World Extraversion Introversion Information Sensing INtuition Decision Thinking Feeling Structure Judging PerceivingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 79
  • D2Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 80
  • Intelligence Select the option that best fits the pattern of For each question determine the number the previous images that best fits the pattern of the previous numbers 1. 1, 3, 6, ? 2. 3, 5, 8, 13, 21, ? 3. 3, 6, 18, 108, ? 4. 4, 1, -3, -4, ? 5. 95, 36, 15, ? 6. 6, 13, 29, 63, ? 7. 1, 1, 2, 6, ? 8. 12, 33, 55, ? 9. 99, 86, 73, ? 10. 2, 5, 8, 35, ? 11. 4, 16, 49, ? 12. 73, 61, 56, 62, ? 13. 1588, 1820, 2148, 2204, 2284, ? 14. 923, 937, 963, ?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 81
  • Intelligence There is scientific evidence, that people who earn more money are often not as happy than those who earn less money. Please create as much theses supporting this finding as possible.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 82
  • Intellingence Score Distribution Frequency Mean: 100 Standard-Deviation: 15 ⅔ 85 100 115 Test-Score (IQ)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 83
  • Projective Tests Thematic Apperception Test Rorschach-TestProf. Dr. Armin Trost Human Resource Management www.armintrost.de 84
  • Online-Tests Advantages – Global access/availability – Low operating costs – Opportunity for adaptive item presentation – Automatic/immediate analysis and reporting – Opportunity to track response time Disadvantages – Limited control over test situation and subject behaviour – Limited opportunities to professionally support interpretation of resultsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 85
  • Advantages of Psychometric Test Methods  High objectivity due to limited impact of test operator  High comparability across candidates due to standardized test conditions  Limited costs per test usage  Test can be used as modules complementing other selection measures  Tests require minimal infrastructures and can be used in almost every situation  Tests can be exposed even online at any time and at many locations  Analysis is very simple (e.g. score is equal to the amount of correctly-answered items)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 86
  • Interview Structure Tension Informal Talk Questions about the applicant Open Questions Next Steps Company/Jo b Presentation TimeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 87
  • What both sides want to know in an Interview Applicant Employer  Why am I invited?  Why are you here?  What can your company  What can you do for us? offer me?  What kind of person are  What kind of employer are you? you?  What distinguishes you from  What distinguishes your others who have the same company from others? skills?  Can I afford to work at your  Can we afford you? company?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 88
  • Interview Questions to assess Competencies  Strategic Thinking How does the work you are currently doing affect your organization‘s ability to meet its mission and goals? Do you think your work is important? If yes, why? If no, why not?  Planning Describe a time when things didn’t turn out as you had planned. What did you do to analyze the situation and how did you address the issue?  Interpersonal Relations Give an example of a situation where the group of people you worked with on a regular basis had a serious conflict. What was the conflict about? How were you involved in the conflict? What was the outcome?  Communication Tell me about a time when you really had to pay attention to what someone else was saying, actively seeking to understand their message? How did this challenge affect the manner in which you portray important messages to others? Source: Corporate Leadership Council (2004): Interview Questions to Assess CompetenciesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 89
  • Combined Interviews Interview 1 Interview 2 Interview 3 Panel- Criteria HR Manager Techn. Exp. interview Teamability Technical Skills Motivation Leadership MobilityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 90
  • Assessment Center Candidates × Assessors × Criteria × Methods × Situations 6-15 Well-trained Intelligence, Tests, In-tray, candidates psychologists social group- presentation, and competence, exercises, Role play, managers mobility Interviews, ... ... ...Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 91
  • Assessment Center Setting Participants Assessor FacilitatorProf. Dr. Armin Trost Human Resource Management www.armintrost.de 92
  • Assessment Center Exercises Dynamic Role play Meet Introduction (role not Employees defined) Role play In-Tray Case Studies (role defined) Group Psychometric Business problem Tests Simulation solving Standard Individual GroupProf. Dr. Armin Trost Human Resource Management www.armintrost.de 93
  • Assessment Center Architecture Group Intelligence Criteria Introduction Exercise In-Tray test Interview Leadership Communication Intelligence Mobility Intercultural Sensitivity OrganizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 94
  • Judgement SchemeExample Introduction Nr. Criteria Points Commends 1 Speaks loud and clear 3 mumbles 2 Keeps eye contact 6 sometimes 3 To the point 1 4 Body expression 3 overdone 5 Structure 7 Uses flipchart 6 Stays in time 5 3 Minuts 7 Uses Time 2 Speeds up Total 27Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 95
  • Advantages of Assessment Centers  High objectivity, reliability and validity through multiple methods, exercises, criteria, assessors  Comparability of candidates within and across assessment Centre cycles  Reflection of future duties and responsibilities  Limited risk of social desirable behaviour  High transparency of requirements in the eyes of the participantsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 96
  • Correlation  Correlation reflects r = 0,5 r=0 linear relationship Y Y between two variables (X and Y)  It can vary between -1 and +1 X X  Is used to determine r = 0,9 r = -0,5 validity, reliability Y Y and objectivity X XProf. Dr. Armin Trost Human Resource Management www.armintrost.de 97
  • Validity  Validity describes the extent to which results of an assessment method relate to what it is supposed to measure Person Test Criterion 1 78 72 (e.E. Performance) 2 67 68 Criterion 3 44 51 … n 89 83 r Prediction (e.E. Test-Score) Criterion-ValidtyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 98
  • Reliability and Objectivity  Reliability  Objectivity The extent to which a predictor Multiple rater independently repeatedly produces the same produce the same results in results over time terms of execution, analysis and interpretation Person 1. Test 2. Test Person Assessor 1 Assessor 2 1 78 72 1 78 72 2 67 68 2 67 68 3 44 51 3 44 51 … … n 89 83 n 89 83 r r Test Retest Reliability Interrater-ReliabilityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 99
  • Key Terms Candidate Selection - Hiring Risk - Job versus Position - Job Architecture - Job Family - Job Analysis - Critical Incident Technique - Job Description - Dejobbing - This-is- not-my-Job-Mindest - Applicant - Stereotyping - Primacy Effect - Halo-Effect - Recruiting Funnel - Pre-Selection - Biografic Questionnaire - Reference Check - Background Investigation - Graphology - Heuristics - Resumé - Personality - Personality Test - Social Desirability - Myers- Briggs Type Indicator - Ability Test - Intelligence Test - Standard Deviation - Projective Tests - Online Testing - Adaptive Item Presentation - Job Interview - Assessment Center - In-Tray Test - Role Play - Correlation - Validity - Reliability - ObjectivityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 100
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensatio Selection n & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 101
  • Main Questions  What is equity?  Which components make up total reward and based on which factors are these components determined?  Under which conditions does money impact motivation for performance?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 102
  • Equity Reward  Distributive Equity A One‘s performance reward relation compared to others Equity  Procedural Equity Do procedures to determine compensation B lead to fair results? Performance/ Contribution to company successProf. Dr. Armin Trost Human Resource Management www.armintrost.de 103
  • Factors determining Compensation Strategic Responsibility Performance Relevance Company Qualification Market Success Civil Cost of Living Tenure StatusProf. Dr. Armin Trost Human Resource Management www.armintrost.de 104
  • Total Reward Total Reward Total Compensation Non-financial Reward Base Pay Variable Pay Benefits Individual/ Organisation Group Salary Piece Rate Profit Insurances Appreciation Sharing One-time Contacts Wages Bonus Stock Ownership Pension Target Bonus Privileges Stock Commission Options Services TitleAccording: Holtbrügge, D. (2004). Personalmanagement. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 105
  • Development of a Base Pay System Job Analysis Job Evaluation Pay Survey Pay Policies Pay Structures Job Individual Pay Appointment Implementation, Communication, MonitoringAccording: Mathis & Jackson: Human Resource Management. South-Western.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 106
  • Compensable Factors – Hay System Functional Expertise 8 Knowledge Managerial Skills 7 Human Relation 3 Environment 8 Problem Solving Challenge 5 Freedom to act 8 Accountability Impact on end results 4 Magnitude Dyn. ΣProf. Dr. Armin Trost Human Resource Management www.armintrost.de 107
  • Job EvaluationExample Consulting CompanyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 108
  • Market Line Market Pay Average Salaries in the Market  Benchmark jobs are Jobs at other companies with Benchmark-Jobs Market similar duties, Line requirements etc.  Market line represents relationship between job value and market pay  Computing market line by using statistical regression analysis Job ValueProf. Dr. Armin Trost Human Resource Management www.armintrost.de 109
  • Base Pay Structure Job Grade Based on Job Value Market Line 8 7 6 5 A 4 B 3 2 1 Pay Rate (€)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 110
  • Opportunities and Threats of Job Evaluation andBase Pay Structures Opportunities Threats  Common foundation for  Significant bureaucracy compensation-related during implementation decisions  Acceptance of all  Job-related distributive and stakeholders involved procedural equity  Requires clear job definitions  Transparency of compensation-related  Reduces flexibility of decisions compensation-related decisions  Active elaboration of job values and contribution to  May reduce innovation and company‗s success employee engagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 111
  • Compensation of Business Graduatesin Germany Entry-Level (Graduates) Professional Experience Median 50% Source: Personalmarkt, 2006Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 112
  • One-Time Bonuses  A one-time bonus is a one-time payment that does not become part of the employee‗s base pay  Can be used to reward employees for contributing new ideas, coping with critical challenges, acquiring new skills  Bonuses usually recognize performance of both the employer and the company  Bonuses provide great flexibility in rewarding valued behaviours at particular situationsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 113
  • Employee Recognition System  Every employee can acknowledge special performance of his/her colleagues with a gift  Based on his/her own budget (% of base pay)  To operate the system there is an internal kind of gift-plattform in the intranet  The value of gifts totally received by an employee can serve as a basis for performance appraisal  It‗s a rarely used approach but its popularity increasesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 114
  • Piece-Rate System and Commission Piece-Rate System Commission Daily Wage Salary variable variable fix fix Daily Performance RevenueProf. Dr. Armin Trost Human Resource Management www.armintrost.de 115
  • Target Bonus  Employee and supervisor Target Bonus (%) agree on both individual targets and relation between target achievement and target 140 B bonus 120  Employees can choose from A different options reflecting 100 different risk preferences  Primarily used for managers 80 and senior employees 60 60 80 100 120 140 Target Achievement (%)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 116
  • Objective Setting Scheme Point Achieve- Point Value × Objective Value ment Achievement Organize CEBIT Fair attendance. Generate 100 leads + follow-up 10 130% 13 Successfully integrate 3 new hired colleagues by end of the year 10 90% 9 New corporate website relaunch. 400 clicks per day by end of the year 25 105% 26 Σ 45 48 Σ 100% 107.2% Target Bonus in € 5.000 5.361Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 117
  • Does Money motivate? The Candle-Problem 1 2 3 Dan Pink: The puzzle of motivation http://www.ted.com/talks/dan_pink_on_motivation.htmlProf. Dr. Armin Trost Human Resource Management www.armintrost.de 118
  • Pay for Organizational Performance  Profit Sharing Proportions of organizational profits are distributed among employees according to their base pay  Employee Stock Ownership Giving employees stock ownership of the organization or the right to acquire stocks at a price below market. Employees must keep stocks for a specific period of time  Employee Stock Options The right to buy (exercise) a certain number of stocks at a specific priceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 119
  • Employee Stock OptionsExample Stock price 13€ 10€ Option 6€ 4€ 0 Time tProf. Dr. Armin Trost Human Resource Management www.armintrost.de 120
  • Types of Benefits  Security  Financial – Unemployment – Interest-free building loan compensation – Company credits – Life insurance – Financial counselling – Disability insurance – Early retirement options  Offerings – Disability retirement benefits – Company car – Pension Plans – Private cell phone, laptop usage  Health – Free lunch – Health Care Insurance – Cafeteria and food services – Sabbatical – Child Care; Company – Free tennis courts, fitness Kindergarten centre usage – Cost advantages for – Medical care company products – Psychiatric counselling – Company accommodationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 121
  • Deferred CompensationTax-deductible Pension Cash Pension Employer Employee Employer EmployeeCompensation 1.000.000 € 1.000.000 € 1.000.000 € 1.000.000 €Social Security + 200.000 € - 210.000 €Pay Tax - 290.000 €Result 1.200.000 € 500.000 € 1.000.000 € 1.000.000 €Benefit 200.000 € 500.000 €Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 122
  • Reasons why Companies offer Benefits  Benefits protect employees and their dependents from financial risks associated with illness, disability, and unemployment  Most benefits are not taxed. For this reason, they might represent a more valuable reward to employees than an equivalent cash payment  Benefits may contribute to attracting, motivating and retaining human resources  Some benefits add value to the employee without additional costs for the employer. As such, benefits might serve as substitutes for financial compensation  Some benefits are required by lawProf. Dr. Armin Trost Human Resource Management www.armintrost.de 123
  • Flexible Benefits (Cafeteria System)  Flexible Benefit Plan A plan that allows employees to select the benefits they prefer from groups of benefits established by the employer  Reasons for using ―Flex Plans‖ – Perceived value of benefits depend on employees’ age, family status etc. – By tailoring the right benefit package employees gain maximum value without additional costs on employer’s side – Flex plan increases employees awareness of the costs and value of benefits offered  Problems with Flexible Plans – Inappropriate benefits package choices – Adverse use of specific benefits by higher-risk employees – Administrative and communication efforts – Benefit requests are hard to predictProf. Dr. Armin Trost Human Resource Management www.armintrost.de 124
  • Key Terms Equity - Factors Driving Individual Compensation - Total Reward - (Non-)Monetary Rewards - (Non-)Financial Rewards - Total Compensation - Job Evaluation - Compensable Factor - Point Method - Benchmark Study/Pay Survey - Benchmark Job - Market Line - Pay Structure - Pay Range - Pay Grade - Median - Piecework - Commission - Bonuses - Target Bonus - Intrinsic versus extrinsic Motivation - Profit Sharing - Employee Stock Ownership - Employee Stock Option - Benefits - Deferred Compensation - Flexible BenefitsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 125
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 126
  • Main Questions  What can be learned through training?  In which coporate fields are training courses typically used?  How can a training-event be designed and devloped in order to meet predefined learning objectives?  How to ensure employees transfer what they have learned during training into real life?  How do modern media and working conditions influence the way people learn in a company?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 127
  • What can be learned how? Training Knowledge Competence Talent Develop Experience IntelligenceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 128
  • Corporate Fields where Training Courses are used Unique Training Needs Training as part of a Customized training large-scale change addressing special initiative development needs for E.g. IT-implementation, teams and individuals cultural change E.g. sales training Planned,strategically Demanded decided Regular training for Training for employees specific target groups offered on demand at E.g. newly-appointed high volume managers, new hires E.g. group conflict training Standard Training NeedsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 129
  • Content of a typical Training Catalogue Office Business Languages Accounting Labor Law Packages Administration Leading Conflict Coping with Doing Communication People management Stress Interviews Project Working Facilitation/Pr Time Sales management techniques esentation management techniqueProf. Dr. Armin Trost Human Resource Management www.armintrost.de 130
  • Increasing Productivity through EmployeeOnboardingProductivity With Onboarding Benefit Without Onboarding First Weeks in a new JobProf. Dr. Armin Trost Human Resource Management www.armintrost.de 131
  • Training Course Development  Target Group Needs Analysis  Learning Needs  Relevant situations  Content and learning objectives Design  Methods and media  Costs und budgets  Trainer Operation  Duration, Schedule  Infrastructure  Evaluation Evaluation  OptimizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 132
  • You don‘t know what you don‘t know Knowing Explicit Conscious incompetence Capabilities Unconscious Unconscious Implicit Incompetence Competence Weak Strong Capabilities CapabilitiesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 133
  • Needs Assessment Methods  Structured interviews  Critical Incidents on individual or group Techniques level  Participated or non-  Self-administered participated observation assessment tools (e.g. tests)  Off-site needs assessment workshops  Ratings from peers, supervisors,  Professional auditing by subordinates (external) experts  Shadowing, diaries,  CoachingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 134
  • Training Approaches Along the Job Assistance Substitute Into the Job On the Job Out of the Job Education Job Rotation Outplacement, New Hire Integration Coaching; Mentoring Retirement Trainee Programs Project Work Near the Job Task Forces Work Groups Off the Job Congresses Outdoor-Training Off-side-TrainingAccording: Holtbrügge, D. (2004). Personalmanagement. Heidelberg: Springer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 135
  • Advantages of „On-the-job“ versus „Off-the-job“ -Training On-the-Job Off-the-Job  Natural and job-related  Expertise and experience of training conductor  Lower costs of development measure  Professional learning environment  Immediate application of newly acquired knowledge  Focus on training, limited job-related disruptions  Immediate Feedback  Networking among  Opportunity to monitor participants out of different development advances functions and countries  Motivation to learnProf. Dr. Armin Trost Human Resource Management www.armintrost.de 136
  • Training Methods Dynamic Group work Coaching with indiv. Role Play presentation Facilitated Exercises for Case Studies group Individuals in Groups discussion Business Literature Presentation Simulation Standard Blended Learning Individual GroupProf. Dr. Armin Trost Human Resource Management www.armintrost.de 137
  • Course ScheduleExample: Project Management Course Day # Time Topic Objective Method Material 1 1 9am Introduction Understand the Presentation Course Handout attributes of a project Slides 1-8 and the key challenges to manage projects 2 10am Critical Factors Understand which Group Flip-Chart factors drive success of Discussion & Pin Board projects in the participants business context 3 11am Break 4 11:30am Project Planning Participants become Presentation Course Handout familiar with gant-chart Slides 9-16 technique to schedule a project 7 1pm Lunch 6 1-2pm Project Planning Participants learn how to Group Work Case Study 1; Excercice apply gant-chart Pin Board techniqueProf. Dr. Armin Trost Human Resource Management www.armintrost.de 138
  • Levels of Training Evaluationaccording to Kirkpatrick What are the immediate Reaction reactions of the participants Questionnaire after the training? Have the participants Tests, Learning acquired knowledge as it was Examination intended? Did the training lead to Observation, Behaviour changing behavior at the Evaluation participant‗s daily work? Did the training impact Performance Results achievements of Indicators organizational goals?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 139
  • Learning Transfer Participants  Cognitive abilities  Learning-motivation  Readiness to learn Training  Training Quality Trainer, Media, Structure, Methods, Material, Environment Learning Transfer  Relevance of content Work Environment  Support by colleagues/manager  Opportunity to apply  Feedback According: Baldwin, T.T., & Ford, K.J. (1988). Transfer of training: A review and directions for future research. Personnel Psychology, 41, 63-105.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 140
  • Formal versus informal Learning  Formal Learning 20% Learning in an institutionalized context, dedicated to learn (e. g. courses, training-programs) 80%  Informal Learning 80% Learning happens self- organized and often as a positive side-effect of daily work 20% Budget Effect Source: Cross, J. (2006). Informal Learning: Rediscovering the Natural Pathways That Inspire Innovation and Performance. San Francisco/CA: John Wiley.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 141
  • Managers as TeachersProf. Dr. Armin Trost Human Resource Management www.armintrost.de 142
  • Learning on Demand Expert Forums Wiki, Blogs YouTube Tutorials Communities Peers of Practice Literature Off-the-Job iTunes U TrainingConferences Direct Manager Simulations Yellow Pages Yammer Social Expert Education Podcasts Communites Micro-Blogging Source: Trost, A. & Jenewein, T. (Hrsg., 2011). Personalentwicklung 2.0. Köln: Wolters Kluwer. Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 143
  • YouTube TutorialsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 144
  • Communities of Practice  Group of employees with similar professional interests, background or duties  Informally organized meetings during working- hours  Exchange of best practices and ideas to autonomously chosen topics  Exist independently of organization and hierarchies – results will not be reported to management  Engagement of external speakers and expertsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 145
  • 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 exchangeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 146
  • Knowledge Management Challenges Knowledge Knowledge Retention Knowledge Transfer Identification How can the employees‘ How can a company and How can the knowledge of knowledge be retained its employees know what one employee be inside the company even the (other) employees transferred to another when employees leave it? know? employee? ? ! ! ! ! A A A B C A BProf. Dr. Armin Trost Human Resource Management www.armintrost.de 147
  • Collect-Approach via Knowledge Database ! Search for Expertise ? Document Document Knowledge DatabaseProf. Dr. Armin Trost Human Resource Management www.armintrost.de 148
  • Connect-Approach via Yellow Pages, Wikis, ... ! Personal exchange ? Reference to expertice Search for experts Yellow Pages, Wikis, Forums ...Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 149
  • Key Terms Training & Development - Knowledge versus Competence - Strandard Training Catalogue - New Hire Onboarding - Training Needs Analysis - Off-the-Job Training - On-the- Job-Training - Blended Learning - Training Evaluation - Learning Transfer - Formal versus informal Learning - Learning on Demand - YouTube Tutorial - Communities of Practice - Wiki - Podcast - Mobile Learning - Knowledge Management - Collect- versus Connect-Approach - Knowledge Database - Yellow PagesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 150
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 151
  • Main Questions  How can companies ensure that they have successors ready for key positions at any time?  Which methods and criteria are typically used to identify talent inside a companies?  What are required conditions for employees to leverage their talent as part of their long-term career?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 152
  • Leadership-Development at McDonaldsGerman Perspective Global Leadership Global Development Program GLDP Senior Executives European Leadership Europe ELDP Development Program Top-Executives Operations West ODP Development Program Senior Superiors Young Leaders Germany YLDP Development Program Junior Management Talents Restaurant Manager- RMDC Development Center Restaurant ManagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 153
  • Classic Approach of Talent Development Succession Performance Planning Management Stretch Role Talent Review Assignment Competency Model Training Potential Off-the-Job AssessmentSource: Trost, A. & Jenewein, T.(Hrsg., 2011). Personalentwicklung2.0. Köln: Wolters Kluwer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 154
  • Competence Learned ability to successfully solve Competence problems or cope with given challenges Action-related knowledge acquired Experience through repeated solution of practical problems Cognitive understanding of aspects Knowledge and how they relate to each other Cognitive and physical abilities Predisposition determined through genetiv predispositions (DNA) Stable predisposition to demonstrate Personality similar behavioral patterns in similar situationsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 155
  • ABB Leadership Competency ModelProf. Dr. Armin Trost Human Resource Management www.armintrost.de 156
  • Development Needs Identification Job Position Employee Senior Specialist Senior Specialist CRM Garth McGrath 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Creativity Creativity Creativity Teamwork Teamwork Teamwork Presentation Presentation Presentation Project Mgmt Project Mgmt Project Mgmt Mobility Mobility Mobility SAP R/3 SAP R/3 English English Development NeedsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 157
  • Limitations of Competency Model Usage  Depending on a given situation a competence might be a strength or a weakness – what matters is the right balance  Having a certain competence does not necessarily mean that the person in question actually uses it  Similar challenges can be met through different sets of competencies (internal compensation)  It matters how competencies are given in an entire team. Not everybody must have same competencies (external Compensation)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 158
  • Performance Management Cycle Superior Objectives  In an annual cycle employee and their immediate supervisor agree on objectives both in terms of performance and Performance Objective development Appraisal Setting  Individual objectives derive from superior objectives  In a backwards perspective achievements/performance of the employee will be reviewed  The annual meeting between employee and supervisor is called „appraisal interview― Mid-Year ReviewProf. Dr. Armin Trost Human Resource Management www.armintrost.de 159
  • Purpose of Performance Management  Cascading strategic objectives from upper hierarchical level to the bottom line  Alignment and focus of individual and team performance with overall target  Clarity about mutual expectations within an employee- manager relationship  Continuous learning and constant improvement of performance through feedback and target-oriented people development  Foundation for numerous key processes in human resource management such as compensation, people development, succession planning (horizontal integration)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 160
  • Performance Management FormProf. Dr. Armin Trost Human Resource Management www.armintrost.de 161
  • Behaviorally anchored Rating Scale (BARS)Example Teamwork Level 1 Level 2 Level 3 Level 4 Contributes willingly towards Takes responsibility for Builds support and Builds highly productive the accomplishment of team activities that stretch enthusiasm for the teams from highly diverse goals of one’s own team, beyond own functional accomplishment of team disciplines, cultures or doing his or her share of the area. goals. organizations. work. Solicits the input of team Uses the agendas and Creates commitment to and Demonstrates respect for members and encourages perspectives of others to enthusiasm for the the opinions and ideas of their participation. establish mutually accomplishment of others. beneficial objectives. challenging objectives across Ensures participation of diverse teams. Does not remain silent or others who are affected Takes responsibility for the withhold differing opinions in by plans or actions. accomplishment of team Masterfully integrates people team settings. goals. and resources to achieve Puts team’s agenda and high levels of synergy. Is willing to accept the good of the whole Removes obstacles that compromises to progress ahead of personal needs. get in the way of team Resolves dysfunctional toward the achievement of success. conflict within or among group goals. Finds areas of agreement teams to ensure business when working with Gives recognition and success. Follows through on conflicting individuals or credit to people who have commitments made to other groups. contributed to team team members. success. Helps others to solve Keeps people informed and work problems and Takes specific steps to up to date. achieve team objectives. keep morale and levels of performance high during times of intense work pressure.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 162
  • Overall Performance Ranking Scale Rating Definition Exceptional performance rarely achieved. Marked by precedent-setting results beyond the scope of the 5.0 position. Demonstrates the highest standards of performance excellence relative to individuals with comparable levels of responsibility Consistently exceeds all position requirements and expectations. Accomplishements are highly valued 4.5 and may be well beyond the scope of the position. Demonstrates higher standards of performance excellence relative to individuals with comparable levels of responsibility. Consistently exceeds most position requirements and expectations. Accomplishements are often 4.0 noteworthy. Overall performance is consistently above levels of quality and quantity relative to individuals with comparable levels of responsibility. Exceeds some position requirements and expectations. Successfully accomplishes all objectives. 3.5 Overall performance matches levels of quality and quantity relative to individuals with comparable levels of responsibility. Meets position requirements and expectations. Accomplishes most or all objectives. Some aspects of 3.0 overall performance may require additional development or improvement to match levels of quality and quantity relative to individuals with comparable levels of responsibility. Falls below performance standards and expectations of the job. Demonstrates one or more performance 2.5 deficiencies that hinder acceptable performance relative to individuals with comparable levels of responsibility Does not meet minimum requirements in critical aspects of the job and has numerous performance 1.0-2.0 deficiencies that prevent success at Microsoft. Source: Bartlett, C. A. (2001). Microsoft. Competing on Talent (A). Harvard Business School.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 163
  • What if ...  employee and manager talk  there is already a natural about relevant aspects on a relationship between manager daily basis anyhow? and employee built on trust and respect?  employee and manager don‗t usually to talk to each other  at daily work the manager has throughout the year? limited insights into employee‗s performance  problems should have been adressed once they occurred?  The manager has limited understanding of the  the suppervisor struggles with employee‗s professional giving honest feedback? work?  superior objectives are not as  objectives dynamically clear as they should be? change in the course of a  the benefits of the appraisal yearly period? interview are nor seen by  the employee doesn‗t fully either the employee or the trust his/her manager? manager?  the manager primarily acts Recommended: Trost, A. (2011). Wozu noch Mitarbeitergespräche? like a coach and not like a http://www.harvardbusinessmanager.de/blogs/artikel judge? /a-809396.htmlProf. Dr. Armin Trost Human Resource Management www.armintrost.de 164
  • Performance – simplified Freedom allow × Capability can × Motivation want  Time, Budget  Knowledge  Added Value  Tools  Experience  Challenge  Material  Predisposition  Appreciation  Colleagues  Health  Self-Actualization  Organization  Resilience  Purpose  AutonomyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 165
  • Learning-Curve Performance Level Maximum Potential AgeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 166
  • Potential Criteria Performance In the past did the employee demonstrate an extraordinary growth in his/her ability to meet challenges? Motivation Personality Is the employee eager and hungry to take over Based on his/her more responsibility character will the relevant to the entire employee have a chance organization? to be seen as a role model by others?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 167
  • Performance Potential Grid A1 A2 High Plan next move Apply multiple Provide extra development and C1 coaching retention measures Performance Improvement Measures A3Potential Identify next development opportunity B Keep in Place Low C2 Manage Out Low Performance High Source: Michaels. E, Handfield-Jones, H., & Axelrod, B. (2001). The War for Talent. Boston/Mass.: Harvard Business School Press. Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 168
  • Talent Review Structure L1 Leadership Team L2 HR Business Partner L3 L4 High PotentialProf. Dr. Armin Trost Human Resource Management www.armintrost.de 169
  • 360-Degree-Feedback  A focus person is evaluated from different perspectives Direct (outside perception) Supervisor  A focus person evaluates him/herself (self perception)  Evaluation happens anonymously, in written by Peers Focus- Customers using standardized and person structured methods (e.g. questionnaire)  The focus person gets a personal report to be discussed with his/her direct Subordinate supervisor or a coach  Purpose is to determine a focus person‗s development needsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 170
  • Careers as Managers versus Expert  More responsibility for people and budgets  Career moves up the hierarchical ladder  More task complexity  Deepen professional knowledge within a narrowly- defined field  No responsibility for people  Internal consultant for top-level executivesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 171
  • Dual Career Path/Ladders Management Expert Executive Fellow  Comparable salary based Senior Division Head Consultant on a corresponding base pay structure  Comparable value of Department Head Consultant privileges (e.g. company car)  Active involvement in Teamlead Junior Expert decision processes on comparable level  Comparable social Employee without leadership responsibilies acknowledgement (e.g. title)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 172
  • A Study about what matters in long-termDevelopment Job Assignments 1 Promote high performers quickly 2 Build skills to boost career prospects 3 Fast rotation and advancement 4 Roles with P&L responsibility 5 Special project opportunities 6 On-the-job training Coaching Feedback 7 Told my strengths and weaknesses 8 360°feedback 9 Candid, insightful feedback 10 Informal coaching from boss Mentoring 11 Great mentor 12 Great senior role models 13 Mentoring advice on development Training 14 Traditional classroom training Source: Michaels, E; Handfield-Jones, H; Axelrod, B. 2001, The war for talent, Boston, Harvard Business School Press.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 173
  • People who develop their Talent ...  trully love what they do  got the opportunity to do what they can do best  know their real potential  trust in a strong mentor  have a vision about their future position  are lucky  jump into cold water  prefer to work with thoses who compensate their  actively build strong weaknesses networks  get trained  sell themselves  showed early successes  are disciplined – most of the time  are well known  prefer to work with A- playerProf. Dr. Armin Trost Human Resource Management www.armintrost.de 174
  • Talent Development Measures Through Experience From Others Through Training  Challenging  Mentoring  Off-the-Job- tasks/projects Training (Stretch Jobs)  Career Coaching  Being a Trainer  Job Rotation  360-Degree- Feedback  Literature  Internal Talent Markets  Learn Forums  Action Learning  Action Learning 70% 20% 10%Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 175
  • Mentoring Benefits for the Mentor  Building future supporter  Learning from the bottom-line  Professional insights across borders  Appreciation Benefits for the Mentee  Access to networks and roles  Professional feedback  Confidence Trust Commitment  Role ModelProf. Dr. Armin Trost Human Resource Management www.armintrost.de 176
  • Career Coaching „ What are your talents? „ „ What are your biggest Who could support your future strengths and career development? „ weaknesses?„ „ What do you really like to do? What could be you Which working next, realistic career- conditions are move? important to you? „ To achieve your goals, „ which additional What is your ultimate experience could help? career goal?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 177
  • Stretch Jobs Stretch Jobs HiPo Which job is What can be Who fits appropriate? learned? the job?  Acceptable  Professionally  Mobility turnover risk (Finance, HR, Marketing, Sales,…)  Career  Visibility preferences  Intercultural  Social and Sensitivity  Development professional needs  Leadership, variety Management  Private Situation  Responsibility  Strategy  Mentor  Pressure  LanguagesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 178
  • Action Learning Definition of strategic ... On top management level. Projects work for learning projects & sponsors diverse teams and as good learning opportunities Schedule, logistics, information about the Identification and program and its structure, professional preparation of participant preparation Combination of training, workshops, project work Program operation and mentoring ... by experts, active involvement of responsible Project evaluation line representatives and external consultants ... once project ideas are seen as promising and Follow-up/ doable. Relevant functions take over project implementation responsibilityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 179
  • Action Learning – Program Operation Mentoring Project Project Project Training & Workshop Training & Workshop Training & Workshop Training & Workshop Final Presentation Kickoff Project Project Project Project Project ProjectProf. Dr. Armin Trost Human Resource Management www.armintrost.de 180
  • Internal Talent-Market Talents Jobs & Projects Rules Experiences Requirements Notice Period Projects Challenges Roles and views Expectations Objectives Compensation Preferences Conditions References HR ConsultantSource: Trost, A. & Frosch, M. (2011). Interne Talentmärkte. In A. Trost & T.Jenewein (Hrsg.) Personalentwicklung 2.0, S. 283-301. Köln: Wolters Kluwer.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 181
  • Key Terms Leadership Development - Talentmanagement - Competence - Competency Model - Job Profile - Performance Management - Cascading - Objective Setting - Performance Appraisal - Behaviorally Anchored Rating Scale - Talent Review - Learning Curve - Potential - Talent - Performance Potential Grid - 360-Degree-Feedback - Dual Career Ladder - Career Path - Mentoring - Coaching - Career Counselling - Stretch Job - Action Learning - Internal Talent MarketProf. Dr. Armin Trost Human Resource Management www.armintrost.de 182
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 183
  • Main Questions  What characterizes modern work and what will be the future of work?  In this particular context how do work-life- balance and working hours matter?  Can employee surveys help to improve working conditions?  How can a company strategically strengthen its employer attractiveness?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 184
  • Traditional Worktime RecordingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 185
  • 76% of all good Ideas are generated outside theoriginal Workspace Vacation, Travel Spare time, 13% Sport 9% Misc. 1% At Workplace 4% In interesting Nature, Meetings 6% hiking 28% In boring Meetings 10% Breaks 3% At home, watching TV, Using creativity Hobby, etc. 14% techniques 1% Business travel/ Way to office 11% Source: Füglistaller, KMU-Magazin Nr.7/2005Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 186
  • Flexible Working Structures Flexible Working Hours Flexible Locations Flexible OrganizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 187
  • Dimensions of a Working Hours Model Distribution Time 08-09 Volume 09-10 10-11 11-12 12-01 Duration/ Position 02-03 03-04 04-05 Flexibility 05-06 06-07 Mo Tu We Th FrProf. Dr. Armin Trost Human Resource Management www.armintrost.de 188
  • Relevant Factors determine Working Hours Model Industry/ Country Labour Law Job Requirements Working Individual Employees, Hours Preferences Values Model Leadership CultureProf. Dr. Armin Trost Human Resource Management www.armintrost.de 189
  • Working Hours Approaches high Trust-based Working Hours Flexible Annual Working Time Flextime Job-Sharing Working Time Autonomy Flexible weekly Early Working Hours Retirement Part-Time German Long-Term Work Kurzarbeit Accounts Fixed Working Hours low Day .. Week.. Month .. Year .. Life Timely ReferenceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 190
  • „Work-Life-Balance Imagine life as a game in which you are juggling five balls in the air. They are Work, Family, Health, Friends and Spirit and you‘re keeping all of these in the air. You will soon understand that Work is a rubber ball. If you drop it, it will bounce back. But the other four balls — Family, Health, Friends and Spirit – are made of glass. If you drop one of these; they will be irrevocably scuffed, marked, nicked, damaged or even shattered. They will never be the same. You must understand that and strive for it. Work efficiently during office hours and leave on time. Give the required time to your family, friends and have proper rest. Value has a value only if its value is valued. Brian G. Dyson Former CEO of Coca ColaProf. Dr. Armin Trost Human Resource Management www.armintrost.de 191
  • Individual Life Plans 10 20 30 40 50 60 70 80 Age Learning Work PrivateProf. Dr. Armin Trost Human Resource Management www.armintrost.de 192
  • Phases of Life Learn Grow Decide Lead Share First Growing Management Leading Coaching, professionalWork responsibility, responsibility, organizations, Mentoring, experiences, career, talent autonomy, new experience, close to occupational development orientation networks retirements orientation Family, divorce, Prosperity, Autonomy,Private Marriage, Single, relation, own home, grown-up health, familiy planning, autonomy, party purchasing children, aging prosperity, kids power parents „Handicap“ Succession Coaching, Onboarding, Talent Flexible working planning, mentoring,HRM trainee development, hours, change health programs, ... ... management, management, .. ... ...Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 193
  • Home Office (Telework) Pros Cons  Reduced cost to the  Limited separation of company private life and work  Tax advantages for the  Limited social, informal employee* connection to colleagues  Worktime flexibility  Risk of private  Work-Life-Balance disruptions  Higher productivity at  Availability might not be individual tasks transparent * Depending on local tax lawProf. Dr. Armin Trost Human Resource Management www.armintrost.de 194
  • Distance and Communication Face-to-face Communication often never low Distance longProf. Dr. Armin Trost Human Resource Management www.armintrost.de 195
  • Spaces and Structures relate to each other Source: DEGWProf. Dr. Armin Trost Human Resource Management www.armintrost.de 196
  • Non-territorial Workspace, Hoteling,Rooms to concentrate or communicate Source: DEGWProf. Dr. Armin Trost Human Resource Management www.armintrost.de 197
  • Survey Feedback & Organization Development Planning Implementation Survey Action Planning Analysis FeedbackProf. Dr. Armin Trost Human Resource Management www.armintrost.de 198
  • Conduct of a traditional Employee Survey Project Planning & Feedback/Commun Setup ication Analysis & Prestudy Action Planning Reporting Survey Survey Implementation Development Administration Prior Evaluation Communication Preparation Survey Follow-UpProf. Dr. Armin Trost Human Resource Management www.armintrost.de 199
  • Survey Development Topics Indicator Questions Adjustment Pretest Operation & EvaluationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 200
  • Q12 (Gallup) 1. I know what is expected of 7. At work, my opinions seem me at work to count 2. I have the materials and 8. The mission/purpose of my equipment I need to do my company makes me feel my work right job is important 3. At work, I have the 9. My associates (fellow opportunity to do what I do employees) are committed to best every day doing quality work 4. In the last seven days, I have 10. I have a best friend at work received recognition and praise for doing good work 11. In the last six months, someone at work has talked 5. My supervisor, or someone to me about my progress at work, seems to care about me as a person 12. This last year, I have had opportunities at work to learn 6. There is someone at work and grow who encourages my developmentProf. Dr. Armin Trost Human Resource Management www.armintrost.de 201
  • A Typical Way to Present Results Frequencies (%) I have the materials and equipment I need to strongly partly- dis- strongly N Average agree do my work right agree partly agree disagree 1 2 3 4 5 Sales Germany 35 35 36 36 29 29 45 2,92 12 23 36 19 10 Global Sales 48 28 24 48 28 24 287 2,63 19 29 28 18 6 OrganizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 202
  • Survey Results (Example) 1 1,5 2 2,5 3 3,5 4 4,5 5 1,7 Tasks and Duties 1,6 2 Work Environment 1,5 Region South-West 2,3 Germany Empowerment 2,6 1,4 Colleagues 1,6 Direct Supervisor 2,3  Region South-West (32 2,1 Employees) is part of 2,8 Communication 2,8 Germany (186 Employees) Work Flexibility 2,5  1 = Best possible result 2,4 5 = worst possible result 2 Work-Life-Balance 1,8 3,1 Compensation 3,2 2,5 Benefits 2,6 1,7 Commitment 1,8 2,8 Career Development 2,2Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 203
  • Ways to interpret Survey Results Absolut Relative Longitudinal Target Comparing items Comparing results Comparing results Comparing results based on the with internal and with thoses of with targets set in absolute results external previous surveys advance to the Benchmarks surveyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 204
  • Follow-up Process  All employees get all results of the survey even when results are negative  Feedback of results follows a top-down approach from to top-management to every single team  All teams get their own results compared to the results of the superior organisational units  All units on all levels are encouraged to work with their results and come up with related action plans  Issues which lay beyond an organizational unit‗s responsibility will be passed on to the unit on the next levelProf. Dr. Armin Trost Human Resource Management www.armintrost.de 205
  • Shortcomings of traditional Employee SurveyApproaches  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 can‗t change priorities  Required budgets for improvement activities are not defined. Therefore planned actions lead to minimal impact  Comparison with benchmarks means taking the mediocre as standardProf. Dr. Armin Trost Human Resource Management www.armintrost.de 206
  • Relevance of Results depend on Targets Survey Potential Target Potential Target SurveyAccording: Trost, A. & Hagmeister, A. (2005). Mitarbeiterbefragung als Instrumentstrategischer Unternehmensführung. In W. Bungard & I. Jöns (Hrsg.),Feedbackinstrumente im Unternehmen (S. 197-208). Wiesbaden: Gabler.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 207
  • Positioning different Feedback Instruments Instrument Who What Why For whom Traditional Employees, Improvement, Employee Survey All Employees Job Satisfaction Manager, Involvement (Survey Feedback) Management Status Theme-oriented Selected Selected topics Monitoring, Management Employee Survey Employees Feedback Strategy Monitoring Random Pulse Survey commitment, strategy Management Sample capabilities execution Manager, 360-Degree- Employees, Development Management Management Feedback, Manager, behavior, Management Peers, competence Evaluation Customers Selection Management, HR Internal Customer Internal Service Internal Service Service quality Survey Customers improvement ProviderProf. Dr. Armin Trost Human Resource Management www.armintrost.de 208
  • Traditional Employee Survey versus Pulse Survey Traditional Pulse Survey Employee SurveyContent  Factors driving employees‗  Content is relevant to the satisfaction and company‗s competitive performance positionCustomer  Employees, Manager,  Management ManagementFollow-Up  Units on all levels are  Results are natural part of top- encouraged to work with management agenda and results and draw conclusions decision makingObjectives  Objectives are set after the  Objectives are set in advance survey of the surveyCycle  Every 1-5 years  1-12 times/yearParticipants  All employees  Random Sample High-Potentials Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 209
  • Employer A „ As a key component of our employer-of-choice strategy, we communicate to potential employees that this is a great place to work. We offer a positive work climate, rich career-opportunities and competitive benefit- packages. We are proud that we have won a number of awards and rank high in most of currently existing employer-rankings. As a result, our applications are up and turnover is down across the firm.―Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 210
  • Employer B „ The last thing we want to be is an „employer of choice―. All that does is dramatically increase the number of unqualified or marginal applicants, which increase both the probability of selection errors and cost-per-hire. Our strategy is to hire choice employees or to seek the market-place by having them self-selected even before they apply. We want all applicants to understand that this is a demanding, high-performing organization. To achieve this, we try to communicate in every possible interaction that this is a place that values talent and exceptional effort. For those employees, we provide exceptional rewards and career opportunities. We cannot be everything to everyone, and we do not want to be.―Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 211
  • Improving Employer Attractiveness Target Group Competitors‘ Areas to Potential Preferences strengths improve A A B B B C C D D D E E E realistic relevant specialProf. Dr. Armin Trost Human Resource Management www.armintrost.de 212
  • Key Terms Worktime Recording - Flexible Working Structures - Working Hours Model - Working Time Autonomy - Trust- Based Working Hours - Flextime - Part-time Work - German Kurzarbeit - Long-term Accounts - Job-Sharing - Work-Life- Balance - Homeoffice (Telework) - Age-oriented Personnel Policy - Hoteling - Non-territorial Workspace - Employee Survey - Survey Feedback - Organizational Development - Gallups Q12 - Follow-up Processes - Pulse Survey - Employer AttractivenessProf. Dr. Armin Trost Human Resource Management www.armintrost.de 213
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 214
  • Main Questions  What is relevant and voluntary turnover and what are related turnover costs?  How can the risk of voluntary turnover be estimated?  How and why do employees leave voluntarily?  What are major components of a retention strategy?  Which measures help to effectively retain talent?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 215
  • Common Views  People who join for money leave for money  People join companies and leave bosses  You don‗t need to care about retention if you do well with all the rest  Employees are free, which is fine  At the end of the day retention is all about leadership  Losing an employee leads to costs 1-2 times of his/her annual salary  The strongest are the first to leave the company  Happy employees prefer to stay  To a certain extent turnover is goodProf. Dr. Armin Trost Human Resource Management www.armintrost.de 216
  • Turnover  Turnover  Involuntary Turnover The process in which Turnover initiated by the employees leave the organization (often among organization and have to be people who would prefer to replaced stay)  Voluntary Turnover  Early Turnover Turnover initiated by Voluntary Turnover during employees against the wish the first few weeks/months of the company of employment  Turnover Rate Number of Employees leaving the Company in a Year 100% Number of Employees at MidyearProf. Dr. Armin Trost Human Resource Management www.armintrost.de 217
  • Turnover-Performance-Relation Turnover Average Low Middle High PerformanceAccording to: William and Livingstone (1994). Another look at therelationship between performacne and voluntary turnover.Academy of Management Journal, 37, 269-298.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 218
  • Differentiated Turnover Rate High Performer/ High-Potentials ? Others Key Non-Key-Functions FunctionsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 219
  • Turnover Cost Training Onboarding HiringVisible („Direct―) Cost Selection Marketing Vacancy Lost Separation Productivity of Other Employees Learning Curve ofHidden („Indirect―) Cost Lost New Hire Productivity of Other Employees Lost Productivity of Lost Vacant Position Productivity of Other Employees Lost Productivity of Incumbant Pre-Departure Vacancy Introduction Employee Leaves New Employee New Employee Hired Fully Effective Source: Corporate Leadership Council (1998). Employee Retention. Washington: The Corporate Executive Board. Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 220
  • Fictitious Cost Estimation Annual Salary 60.000 € Assumptions of an employee Cost per Hire 6.000 € 10% of annual salary Onboarding (off-the-job) 12.000 € 20% of annual salary Loss of Motivation 50% less performance in the last 3 7.500 € (former employee) months of employment Productivity Losses 10% less performance of 5 colleagues 10.000 € (colleagues) (similar salary) during 4 months Performance deficit 50% less performance in the first 6 15.000 € (new employee) months of employment No value creation for 2 months due to Opportunity Costs 10.000 € vacant position Σ 60.500 €Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 221
  • Turnover Cost Tunover cost ranges as a percentage of annual salary 0 50 100 150 200 250 300 350 400 450 Entry Level Service/Production Workers Skilled Hourly Range Clerical/Administrative Professional Technical Engineers Specialists Supervisor/Team Leader Middle ManagersSource: Managing Talent Retention: An ROI Approachby Jack J. Phillips and Lisa Edwards (2008)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 222
  • Individual Risk Analysis major Keneth Keith Carlson Garth McGrath Mark Myer John Shark Kelley Clark Impact Tom Scott Rock Stewart Paul Paulson Susan Power Linda Anderson Russ Rothen Pete Peters Paul Cummings minimal possible Likelihood likely of TurnoverProf. Dr. Armin Trost Human Resource Management www.armintrost.de 223
  • Individual Indicator of Intention to Leave  Sudden performance drop  Frequent short-term absence  Reduced social interaction and isolation  Frequent complaints  Glorify other companies  Reduced willingness to take over responsibility  Pessimism about future perspectiveProf. Dr. Armin Trost Human Resource Management www.armintrost.de 224
  • Top-Management View on Retention Source: The Economist Intelligence Unit 2008 (Responses of 1.000 executives around the globe). Die Originalfrage lautete: Which of the following factors are most likely to hinder your company’s ability to retain talented employees over the next three years? Select up to three (Answers in %)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 225
  • Marienthal. The Sociography of an UnemployedCommunity. Jahoda (1933)Source: Archiv für die Geschichte der Soziologie in ÖsterreichSource: Jahoda, M., Lazarsfeld, P. F, Zeisel, H. (1933). Die Arbeitslosen von Marienthal. Einsoziographischer Versuch über die Wirkungen langandauernder Arbeitslosigkeit. Hirzel.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 226
  • The Psychological Contract Employer provides Employee provides  Salary  Performance  Benefits  Creativity  Social contacts  Capabilities  Tasks  Knowledge  Training  Talent  Image  Energy  Identity  Time  Security  Health  Values  Social Networks  Perspective  CustomersProf. Dr. Armin Trost Human Resource Management www.armintrost.de 227
  • Relative Job Evaluation better Relevance Copmany Image Perspective high Location W-L-B middle Difference alternative Job Tasks compared to current Job Salary low Boss Peers Security similar/ worse low Certainty high of Value of alternative JobsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 228
  • Rational Decison Making Value (V) Vchange Vact Valt Intention to Leave = Valt – Vact - Vchange Current Alternative Cost of Intention Job Job Change to LeaveProf. Dr. Armin Trost Human Resource Management www.armintrost.de 229
  • Turnover Decision Style high Solution Strategy Elaboration low Escape Job-Hopping current future Situation Situation DriverProf. Dr. Armin Trost Human Resource Management www.armintrost.de 230
  • Exit-InterviewExample: Intel  What was the main reason that you decided  Pay to leave?  Benefits  Is your new position in a different line of work  Location than the one you where in while at Intel?  Working Conditions  How would you characterize your new  Job Security employer?  Would you say your new employer is better  Career Opportunities than Intel, about the same as Intel, or not as  Product Quality good as Intel in terms of:  Co-workers  How would you descibe your relationship with  Company Leadership your manager while you where at Intel?  Company Image  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?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 231
  • Multiple Regression Analysis Salary X1 W/L-Balance X2 Perspective X3 Intention Peers X4 Y to Leave Training X5 Tasks X6 Security X7 Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + εProf. Dr. Armin Trost Human Resource Management www.armintrost.de 232
  • Components of a Retention Strategy  What is the relevant internal target group? Target Group E.g. particular Units, Jobs, Countries, (Key) Functions, High-Potentials, Managers  What are related turnover costs? Problem General and differentiated? Which kinds of costs are generated?  Why do employees leave the company? Causes What are the internal and external factors and reasons for leaving?  Anticipating turnover and related impact Risks How big is the likelihood of employees leaving the company and what are related consequences?  How can employees be retained? Measures Which options are there to effectively retain employees?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 233
  • Where is the Problem? Employees with a strong intention to leave Employees without intention to leaveProf. Dr. Armin Trost Human Resource Management www.armintrost.de 234
  • Levels of a Retention Strategy Causes Risks Measures Employee Survey Improving Employer Differentiated AttractivenessOrganization Exit-Interview Turnover Rate E.g. Internal Talent Market, Regression Analysis Flexible Working Hours Development, Management Current and previous Selection, Coaching, Manager Evaluation Turnover Rate Replacement, Objective Setting Performance Individual Risk New projects, new Management, Analysis, Performance tasks and colleagues, Employee Turnover Decision Management salary adjustmenet, Styles Intention to Leave more flexibilityProf. Dr. Armin Trost Human Resource Management www.armintrost.de 235
  • Key Terms Turnover Rate (differentiated) - Voluntary versus involuntary Turnover - Visible/hidden Turnover Costs - Opportunity Costs - Individual Turnover Risk - Turnover Risk Analysis - Intention to leave - Relative Job Evaluation - Marienthal-Study - Psychological Contract - Turnover Decision Styles - Job-Hobbing - Exit Interview - Multiple Regression Analysis - Employee Commitment - Retention ManagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 236
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 237
  • Main Questions  What is meant by a change and what are major types of changes in organizations?  Why and how do changes often lead to dysfunctional human reactions?  How can employees be led throgh changes by applying change management measures?  Which conditions are required to effectively manage change?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 238
  • Types of Changes in Organizationen Re- Re- Mergers & Strategy Cultural structuring engineering Acquisition Change Change Changing Changing Changing the Changing Changing organizational processes, the identities of priorities, values, structures and way work is organizations ultimate attitudes and reporting lines done direction and behavior purposes + =Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 239
  • Organizational Structurebased on Functions of Products Executive Executive Board Board Marketing Production Sales PC Printer PC Printer PC Printer PC Printer M P S M P S Functions ProductsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 240
  • Two Leadership Cultures We want our people to behave People need structure and like adults. That‘s why we treat guidance. That‘s why our leaders them that way. Each employee is will never stop telling our responsible for what he/she employees as clearly as possible decides. We believe in our what‘s expected from them. people‘s own initiative to Control is better than trust. contribute to our company‘s Organizations need rules. And success -- everybody at his/her rules always need somebody place. We do everything to avoid who takes care for them. Nobody static structures, order or control. wants to suffer from corporate We simply don‘t need it. chaos.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 241
  • Human Response to disruptive Changes Emotional Response Anger Acceptance active Bargaining Stability Denial Testing Immobilization Depression passive TimeAccording to: Kübler-Ross: On Death and Dying (1967) Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 242
  • Resistance  Resistance is a natural human reaction to disruptive events (fear of losing control)  Change is seen by different people differently according to their individual frames of reference  Resistant employees are often seen as non- rationally thinking troublemakers  Resistance of informal opinion leaders are of greater 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 to deal with resistanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 243
  • Reactions to positive Changes, for which theindividual is responsible Pessimism Level of Tolerance Informed Pessimism Hopeful Realism Checking Out (?) Informed Optimism Uninformed Optimism (Naivité) Completion TimeSource: Conner, D. R. (2006). Managing at the Speed of Change. Random HouseProf. Dr. Armin Trost Human Resource Management www.armintrost.de 244
  • Why Transformation Efforts FailJohn Kotter, 1995 1. Establishing a Sense 5. Empowering broad- of Urgency based Action 2. Creating the Guiding 6. Generating Coalition Short-Term Wins 3. Developing a Vision 7. Consolidating Gains & and Strategy Producing More Change 4. Communicating the 8. Anchoring New Change Vision Approaches in the CultureSource: Kotter, J. (1995). Leading Change: Why transformation effortsfail. Harvard Business Review. March-April 1995, pp. 61-67.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 245
  • Sources of Complacency Too much happy talk from senior Human nature, with its management A kill-the-messenger- capacity for denial, of-bad-news, low- especially if people are confrontation culture already busy or stressed The absence of a Too many major and visible visible Complacency resources crisis Organizational structures Low overall that focus employees on performance narrow functional goals standards Internal measurement A lack of sufficient systems that focus on performance feedback the wrong performance from external sources indexesAccording: Kotter. J. (1996): Leading Change. Harvard Business School PressProf. Dr. Armin Trost Human Resource Management www.armintrost.de 246
  • Change Management Framework Environment Action Fields Initialization Sponsorship/ Change Commitment Scope, Objectives Analysis & Vision Program Setup & Communication organization Principles Planning & Training & Design Support Control HRM Change Involvement Integration StabilizationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 247
  • Dilemmas require Guiding Principles Prevent We dont do losses We avoid too things by much noise halves Addressing80/20: Focus on problems what really matters Avoid additional costsWe take along all people Speed matters We avoid any Quality: doing irritation things right We endure painProf. Dr. Armin Trost Human Resource Management www.armintrost.de 248
  • Change Analysis Situation Situation Chances/F Training Target Group Risks before after ears NeedsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 249
  • Stakeholder-Analyse„Pain-Power-Analysis“ strong ✔D ✖ Opponent ✖ ✔ A ✖ B ✔ Supporter ✖  Promoter ✔ Power  Influencer  Decider ✖ ✔  Multiplier ✖C ✔ weak  Patient less Impact much „Pain“Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 250
  • Top Management Sponsorship/Commitment Level of Support Commitment InvestmentSponsorship/Commitment Convincement Acceptance Acceptance Understanding Listening Attention Time No Idea IgnoranceAccording: Conner, D. R. (2006). Managing at the Speed of Change. Random HouseProf. Dr. Armin Trost Human Resource Management www.armintrost.de 251
  • Roles Program Organization Target Group Sponsor Steering Group SB CA FK MA MA Project Team Project Lead CA FK SB Change Agent CA Consulting Team Project Lead SB Partner SB Sounding BoardProf. Dr. Armin Trost Human Resource Management www.armintrost.de 252
  • Roles in a Change Program 1/2  Sponsors – Have the power to sanction and legitimize change and to make decisions about change – Create an environment that enables change to be made on time and within budget – The sponsors make up the steering group  Change Agents – Responsible for making the change happen on an operational local level – They directly deal with employees and managers, who are impacted by the change (targets)  Target – The group who must actually change attitudes and behaviourProf. Dr. Armin Trost Human Resource Management www.armintrost.de 253
  • Roles in a Change Program 2/2  Project Team – Operationally drives the entire change program – The project team is led by the project leader, who is responsible 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 company‘s culture and the actual mindset of the employees – Provide feedback to the project team about acceptance and resistance on side of the target  External Advisors – Give advice to the project team from a neutral standpointProf. Dr. Armin Trost Human Resource Management www.armintrost.de 254
  • Corporate Communication Channels andActivities Available Media  Employee Newspaper  Intranet, Social Media  E-Mail Newsletter (with forums and (Meassage from the CEO) chatrooms)  Intranet  Department Meetings One-direction (with F&Qs)  Individual employee Interactive  Town Hall Meeting meetings  Broschures  Open Space Events  Posters  „Ask-the-CEO―-Meetings  Videos, webcasts  Workshops, Conferences  PPT-Presentations  Hotline  Social Media New MediaProf. Dr. Armin Trost Human Resource Management www.armintrost.de 255
  • Dimensions of a Communication Plan  When to inform?  What will be the content, main  Who will inform, send message? the message (CEO, Manager, Project  Why is it relevant? Leader)? What should be achieved with the  How will be informed, message? which media will be used?  Whom to inform, which target group?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 256
  • Communication PlanExample When Who How What Why Whom Invitation to All March 1 CEO Mail Manager Meeting Save the Date Managers All Dept. Objectives of Announcement All March 12 Managers Change Open Space Employees Meeting Project Agenda, Open Clarity about All March 18 Intranet Space Schedule Open Space Employees Lead Manager role at Manager All March 20 CEO Mail Open Space Briefing ManagersProf. Dr. Armin Trost Human Resource Management www.armintrost.de 257
  • Communication Dilemma Early Communication ? Late Communication High Need for Information and Planning Knowledge, Certainty Low Time, ProgressProf. Dr. Armin Trost Human Resource Management www.armintrost.de 258
  • Involvement Strategies high Active Role in the Project Individual Focus Measures Groups/Works hops Intensity Sounding Board Open Space Social Media Employee Survey low limited Reach broadProf. Dr. Armin Trost Human Resource Management www.armintrost.de 259
  • Open Space – ImpressionsHaniel/Metro 2009MLP 2012Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 260
  • The Idea FactoryBrainstoreProf. Dr. Armin Trost Human Resource Management www.armintrost.de 261
  • Key Terms Change - Change Management - Re-enigneering - Restructuring - Product- versus functionoriented Organization - Merger & Acquisition - Culture Change - Leadership Culture - Strategic Change - Change Curve - Resistance (overt/hidden) - Locus of Control - Informal Thought/Opinion Leader - Uninformed optimism - Sense of Urgency - Quick (Short-term) Win - Vision - Change Analysis - Change Management Principle - Stakeholder - Stakeholder Analysis - Management Sponsorship - Sponsor - Steering Committee - Change Agent - Sounding Board - Communication - Communication Dilemma - Communication Strategy - Training - Stakeholder Involvement - Focus Group - Open Space EventProf. Dr. Armin Trost Human Resource Management www.armintrost.de 262
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 263
  • Main Questions  What are central and local responsibilities in an international HR organization?  How are responsibilities of an HR department changing?  What are major roles/areas in a modern HR organization?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 264
  • Global Organization Headquarter Regional Headquarter SubsidiaryProf. Dr. Armin Trost Human Resource Management www.armintrost.de 265
  • Variety of International Organizations International Multinational Headquarter as ethnocentric, Local differentiation as strategic and cultural center. guiding principle. Subsidiaries Resources are transferred from act autonomously in order to Headquarter to local units. meet local need. Global Transnational The world is seen as one single For all relevant processes the market. Operations are right balance between local controlled centrally from the differentiation and global corporate office in order to integration is achieved . achieve global integration. Source: Bartlett, C.A. & Ghoshal, S. (2002). Managing Across Borders. Harvard Business School Press.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 266
  • Balance in a transnational Approach global Employer Branding Career website Executive HR-IT Compensation Employee Referral Program Global Integration Talent Campus management Recruiting Office Candidate Training Selection Training local Local DifferentiationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 267
  • From traditional to future HR Strategy Consulting Support Administration Traditional HR Future HRProf. Dr. Armin Trost Human Resource Management www.armintrost.de 268
  • The 4 Ps of HR Critical role in helping to Player develop any business strategy HR professionals helping the business Partner lines solve their human issues The protectors of company Police policies and procedures The politest people in the Polite companySource: Les Hayman (2010). http://leshayman.wordpress.com/2010/08/26/hr-polite-to-police-to-partner-to-player/Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 269
  • The Dave Ulrich HR Role Model Strategy Strategic Partner Change Agent Defining and Creating a renewed executing strategy organizationProcesses People Administrative Employee Champion Expert Increasing employee Building an efficient commitment and infrastructure capability Operation Source: Ulrich, D (1997(: Human Resource Champions. Harvard Business School Press. Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 270
  • HR Business Partner Responsibilities  Provide HR consultation, policy interpretation, and strategic planning to all levels of client organization.  Manage HR projects and program implementation for Public Policy, Law, & Security and Strategy, Development, & Planning organizations.  Responsible for providing Human Resources support in the areas of ethics, compliance, EEO, compensation planning, performance * management, talent management, headcount management, leadership development, staffing, absence management, employee relations, and labor relations.  Ability to influence without direct authority.  Provide analysis of data and monitor HR results through key metrics. Develop and communicate status of key initiatives with HR reports.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 271
  • Managing Queries Intranet Q&A Call-Center, Virtual HR Service HR Expert, Assistent Center HR Business HR Director (shared) Partner ESS Hotline Yellow Page 70 % 20 % 5% 5% 100% 30 % 10 % 5% 0%Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 272
  • Decentralized Recruiting Organization HR Application Marketing management Definition of Target Profile Preselection Application Unit A Data Base Introduction Assessment Job Offer Job Offer Preparation NegotiationApplicant HR Application Marketing management Definition of Target Preselection Profile Unit Application B Data Base Introduction Assessment Job Offer Job Offer Preparation NegotiationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 273
  • Selecting Tasks to be handled by a SharedService Center close Assessment Introduction Job Offer Negotiation Job Offer Close to Preparation Preselection Applicant Application management Definition of HR Target Profile Marketing far high Standardization lowProf. Dr. Armin Trost Human Resource Management www.armintrost.de 274
  • Integrated Recruiting Organization withcentralized e-Recruiting Technology Definition of Target Profile Unit A Introduction Assessment Job Offer Negotiation HR Application marketing management Pre- Shared Applicant e-Recruiting Recruiting Selection Center Job Offer Preparation Definition of Target Profile Unit B Introduction Assessment Job Offer NegotiationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 275
  • Three Pillar Model of modern HR-Organization Central Coordination HR Business Partner Center of Expertise Customers near to business company wide Individual support of Dealing with complex HR- Managers managers on HR- related Issues related topics Shared Service Center IT company wide Employees Hotline Delivery of standardized and regularly Applicants ESS demanded services to all employees with high volume (e.g. payroll) MSS Partner-/Supplier ManagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 276
  • Outsourcing, Onshoring, Offshoring multi-client Offshore Outsourcing Scope of Service Delivery single-client Onshore Outsourcing internal Shared Onshoring Service Offshoring Center near/ close far home Cultural/regional DistanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 277
  • Prioritizing Tasks to be outsourced high Strategic Employer Branding Performance Relevance (EVP) Management Trainee- high Programs Top-Management Placements Specificity of middle Expatriation Requirements Recruiting for Exit- Interviews Non-Key Functions low Payroll Onboarding MS Office Trainings Pension low less Internal Competence more compared to external service providerProf. Dr. Armin Trost Human Resource Management www.armintrost.de 278
  • Reasons why Companies outsource Focus Quality Costs Flexibility Focus on company‘s External service Leveraging Demand for services core competencies providers are long- economies of scale, depends on actual and on ultimate term experts in their competition against needs purpose of the field and compete other service organization against other service providers, purchasing providers power of clientProf. Dr. Armin Trost Human Resource Management www.armintrost.de 279
  • Key Terms Global Integration - Local Differentiation - Global HR Organization - International HR Organization - Multinational HR Organization - Transnational HR Organization - HR Target Role Model - HR Business Partner - Virtual Assistant - Shared Service Center - Center of Expertise - Three Pillar Model of modern HR Organization - Outsourcing - Onshoring - OffshoringProf. Dr. Armin Trost Human Resource Management www.armintrost.de 280
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 281
  • Main Questions  What are major IT-solutions in HR?  What is the difference between expert-systems and user-systems?  What are major functionalities of HR IT-solutions in fields like recruiting or learning?  What are future trends in HR-IT?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 282
  • HR-Software ProviderProf. Dr. Armin Trost Human Resource Management www.armintrost.de 283
  • The Solution of WorkdayProf. Dr. Armin Trost Human Resource Management www.armintrost.de 284
  • Expert-SystemProf. Dr. Armin Trost Human Resource Management www.armintrost.de 285
  • Typical Solutions of Expert- and User-Systems Administration Value Creation Standardized processing Creative usage Automatization Personal judgements Reliable results Fuzzy output Employees*  Master Data  Skill-Maintenance Rare usage Maintenance  360-Degree-Feedback Event-triggered  Leave Request  Performance Appr. No training efforts  Course Booking  Application  Time Record  Online-Training Experts (HR)  Payroll  Intern Talent Pools Frequent usage  Pre-Selection  Succession Planning Limited to intense  Training Admin.  Talent Review training efforts  Internal Mobility  Course Development  Interview planning  Job Posting * Employees, Manager, Applicants etc.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 286
  • Screenshot „Abwesenheitsmitteilung“Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 287
  • Roles and Activities as Part of a Recruiting-Process ... Applicant Application Recruiter Pre- Work Job Posting Interview Selection Contract Manager Vacancy Pre- Selection Onboarding Request Selection Systems Related Organisations Online- Competence Payroll Management Jobboard ManagementProf. Dr. Armin Trost Human Resource Management www.armintrost.de 288
  • ... and how they appear on the Screen Cornerstone SuccessFactorsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 289
  • Learning Management System (e-Learning) Learner Portal LMS CMS External personalized & Learning Management Content Management Content intranet-based System System Qualifications Training Learning Literature Administration Content Databases Generation Role Learning Strategies Relevant Embedding Websites external Personalized Profile-Matching Content Training Offers Communities of Formal Practice Tests & Standards Learning History Certificates Authorization Analytics Collaboration Authorization & Company Tests Accounting InformationProf. Dr. Armin Trost Human Resource Management www.armintrost.de 290
  • Hype Cycle for Human Capital ManagementSoftware (Gartner, 2012)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 291
  • Trends Bring your Social Mobile Cloud Big Data own Device Employees use Solutions support Data usage and IT Resources Smart usage oftheir private and collaboration and maintenance such as software, mostly most preferred communication at anywhere at storage space that unstructurred, fast devices and work anytime. are delivered as a changing data ofsystems at work services over a very high volume(e.g. Handy, Laptop, Interfaces to Availability of network (internet) Mail-Systems) Social Media systems on Plattforms (e.g. smartphones and LinkedIn, Xing) tablets.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 292
  • Key Terms HR Information System - User-System - Expert System - Usability - Employee Self Service (ESS) - Administration versus Value Creation - e-Recruiting - Learning Management System (LMS) - Mobile HR - Gartner Hype Cycle - Bring your own Device - Cloud Computing - Big DataProf. Dr. Armin Trost Human Resource Management www.armintrost.de 293
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 294
  • Main Questions  How are both the role of the users and the markets affected by Web 2.0 and social media?  What are practical examples of social media usage in the field of HRM?  How can social media be implemented and what are different types of social media usage?  What are relevant conditions for effective social media implementation and usage?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 295
  • From Web 1.0 to Web 2.0 Web 1.0 Web 2.0 www....com www....com Publisher Content Consumer Content ProsumerProf. Dr. Armin Trost Human Resource Management www.armintrost.de 296
  • Social Media www....com A A B B C C User profiles, Content & RelationsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 297
  • Google PageRank versus Social Bookmarks  The more links refer to a D C A website the higher is its Google PageRank  The Google-Algorithm F takes into account the PageRank of the E B referring sites G Social Bookmarking. The relative importance of a website depends on the number of people who like it.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 298
  • Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 299
  • Forrester‘s seven overlapping Levels ofSocial Technology Participation 2013 Source: http://empowered.forrester.com/tool_consumer.htmlProf. Dr. Armin Trost Human Resource Management www.armintrost.de 300
  • Cluetrain Manifesto (1999)Selected Theses (10 of 95)  Markets are conversations  We are waking up and linking to each other. We are  In both internetworked watching. But we are not markets and among waiting intranetworked employees, people are speaking to each  But first, they must belong to other in a powerful new way a community  Companies can now  Markets do not want to talk to communicate with their flacks and hucksters. They markets directly. If they blow want to participate in the it, it could be their last chance conversations going on behind the corporate firewall  To speak with a human voice, companies must share the  Youre too busy "doing concerns of their business" to answer our communities. email? Oh gosh, sorry, gee, well come back later. Maybe.  We know some people from your company. Theyre pretty  There are no secrets ... cool online ... Source: Rick Levine, Christopher Locke, Doc Searls: Das Cluetrain Manifest. Econ Verlag 2002 Siehe auch: www.cluetrain.com/Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 301
  • Social Media are faster and more targeted thanany traditional Media Journalist Editor Medium Incident Journalist Interview Draft Article Reader Time Incident Victim Tweet Follower Follower‗ TimeProf. Dr. Armin Trost Human Resource Management www.armintrost.de 302
  • Democratization ofHuman Resource Management?  Employers are evaluated by  Employees and candidates current and former decide what‗s good or bad employees and applicants  Teacher and learner become  User share image-videos and the same -- users produce job ads – the good and the and share knowledge content bad ones  Users who share similar  Everybody can act as a interests communicate, headhunter – and earn collaborate and learn in money virtual communities  Candidates are present in the  Current and former web and passively wait for employees evaluate each employers to approach them other  Interviewers, future  People share their thoughts colleagues and managers are about strategic corporate googled by candidates changesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 303
  • Social Media/Web 2.0 in Talent Acquisition Employer Outside Career Job- Inter- Talent Candidate Branding View Infos Posting action Search RetentionBlogsForums Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 304
  • Social Media Roadmap Check & Targets Listen Do it Develop Target group Involve and Definition & action Constantly check definition (whom understand target on Social Media effects of social to reach) group Activities media activities Setting social Consider internal Defining a social Set priorities and media objectives conditions media policy develop selected (what to achieve) social media activitiesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 305
  • Cases Four trainess in a regional bank regularly post events and informal affairs on Facebook. To plan their activities they run a weekly editorial meeting. By doing so, the trainees try to reach pupils and raise the pupils interest in an apprenticeship at the bank. Moreover they already build some relations to future potential trainees (Fans). The four trainess received an iPhone for free, which they can even use for private purposes. They defined a social media policy by their own with supervision from the bank.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 306
  • Cases In an internationally operating accounting firm all employees were encouraged to produce videos about their company. All videos were then posted on an internal plattform where all employees were asked to vote for the best ones, which then were presented on YouTube. The ultimate objective of this initiative was to present an authentic picture of the company to the outside world and to attract potential candidates.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 307
  • Cases Employees of an internationally operating company in the telecommunication industry gave HR access to their LinkedIn- profiles. Once there is an attractive applicant, his/her relation to current employees is checked and -- if possible -- HR tries to seek internal references. The ones who deliver references are then asked to name further candidates in his/her social network who might fit to the profile in question just as you would do in an employee referral program.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 308
  • Cases A german provider of financial software got rid of the regular employee survey. They ask their employees to rate the company on kununu* instead. Each quarter, all comments, traffic-indicators and results are reported and discussed by the executive board. * www.kununu.com. Glassdoor is a similar website on an international basis (www.glassdoor.com)Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 309
  • Cases On a simple, internal platform all employees of an internationally operating company in the computer gaming industry are encouraged to assign up to ten points to colleagues they successfully worked with. The amount of points an employee gets by the end of the year determines his/her variable pay.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 310
  • Cases A german gymn-franchiser runs an employee manual in the form of an internal wiki. This manual describes how to deal with typical daily problems. All employees are free to include new rules, edit existing ones and make comments. At the end the census among the employees always decides upon whats valid or not. Only whats currently written in the manual counts. The executive board is not empowered to impact the content of this wiki. Once the executive board intents to change something they must bring in their succestions just like every employee can do.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 311
  • Cases In a midsize insurance company employees are encouraged to post succestions on an internal plattform. All employees have the same budget of 500 Euros which they can assign to suggestions they prefer. The one who brought in a suggestion always gets 10% of the total budget assigned to his/her idea.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 312
  • Cases At a globally leading car manufacturer 200 exclusively selected employees write blogs about their daily work-life. These employees are absolutely free in what they write and how they write. The intention is to provide authentic and appealing insights into the daily life of this company and to attract potential candidates. The traffic of all blog entries is constantly tracked, which enables the company to communicate a real-time ranking- list of all entries and bloggers. As a result all bloggers compete against each other in reaching the top of the list.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 313
  • Cases At a globally leading provider of HR-software both employees and clients are encouraged to post product proposals on a dedicated plattform, which in turn are commented and evaluated by employees and clients. A core product planning committee then prioritizes all proposals by taking into account all evaluations and comments on a regular basis. Decisions are always communicated on the same platform. Those clients, who are engaged the most are invited to an annual client roundtable.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 314
  • Social Network Analysis Nodes – Relations – Density – Centrality – Cliques – Cluster (Community) – StarsProf. Dr. Armin Trost Human Resource Management www.armintrost.de 315
  • Ways of Social Media Usage Uncontrolled passive Central Delegated Communication Communication Communication Some employees actively Social media is seen as just Internal target group use social media and another channel to centrally representatives are possibly communicate work- communicate official privileged to communicate related content content in a one-to-many work-related content within direction clearly defined bordersProf. Dr. Armin Trost Human Resource Management www.armintrost.de 316
  • Ways of Social Media Usage Peripheral Peripheral Strategic Communication Connection Connection All employees communicate Employees are encouraged Internal and external about daily informal affairs to network both internally networks are strategically and events within clearly and externally and to built and used defined borders (rules) communicate informal and work-related contentProf. Dr. Armin Trost Human Resource Management www.armintrost.de 317
  • Conditions determine the Type of Social MediaUsage  To what degree does the executive board impact social media usage inside the company?  Which chances and risks are seen by the executive board related to social media usage?  Is the company culture driven by openness and trust?  Is there a natural affinity and activity towards social media among the employees and the company‗s social environment?  Are there any real opportunities related to social media usage?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 318
  • Typical Content of Social Media Policies  Do not communicate any sensitive, business-related information  Everyone is legally responsible for his/her comments  Conflicts among employees should be resolved off-line  If a member of the media contacts you contact our public relation department  Respect copyrights  Be authentic and always demonstrate respect, trust and honestyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 319
  • Key Terms Web 2.0 - Prosumer - Social Media - Enterprise 2.0 - Google PageRank - Social Bookmark - Forresters Level - Cluetrain Manifesto - Democratization - Shitstorm - Career Fanpage (Facebook) - Kununu - Blog - LinkedIn/Xing - Tweet/Retweet - Twitter - Social Media Roadmap - Wiki - Social Network Analysis - Node - Relation - Density - Centrality - Clique - Cluster (Community) - Star - Ways of Social Media Usage - Social Media PolicyProf. Dr. Armin Trost Human Resource Management www.armintrost.de 320
  • HRM Landscape HR- Strategy & Planning Talent Development Change Management Learning Talent Acquisition Work Retention Candidate Compensation Selection & Benefits HR Social HR HR-IT Organization Media ControllingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 321
  • Main Questions  Why and how are indicator systems used in HR and what are typical examples?  How are indicators defined and implemented?  What is the added value of employees and how can it be estimated?  Is it possible to estimate the ROI of large-scale investments in Human Resource Management?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 322
  • Control Loop Target Corrective Target/Actual Actions Deviation Causes AnalysisProf. Dr. Armin Trost Human Resource Management www.armintrost.de 323
  • Selected Indicators in HRM HR Marketing & Recruiting Training & Development Retention  Employer ranking  Days of training/employee  Turnover rate  Number of applications  High-Potential rate (general, differentiated)  Cost per hire  Average time on current  Tenure  Time to fill level (HiPos)  Employee commitment  Early turnover (during  Internal placement rate  Reasons for leaving probation period)  Trainee rate Workforce/Organization Compensation & Benefits Performance & Productivity  Average age  Labor costs/total costs  Revenue/employee  Female/male ratio  Labor costs/employee  Human Capital Value  Women in leadership  Tariff employees (%) Added (HCVA) positions (%)  Compensation structure  Human Capital ROI  Span of control  Sick leaves/employee  Temporary contracts (%)  Bradford Factor (SxSxD)  Accidents/1000 employeesProf. Dr. Armin Trost Human Resource Management www.armintrost.de 324
  • Cost per HireWhat‘s in, what‘s out?  Advertising costs  Opportunity costs related to involved line employees  Candidate travel costs  Costs of recruiting  Executive search retainer infrastructure (e.g. and contingency fee e-Recruiting)  Selection tools and  Referral bonuses measures  HR Marketing events  Salary of employees involved in recruiting  Sign-on-bonuses  Costs for facilities of the  Relocation costs recruiting organization  Onboarding costs  Market ResearchProf. Dr. Armin Trost Human Resource Management www.armintrost.de 325
  • Time to Fill Workforce Start HR Signed Job End of Demand Marketing/ Offer Onboarding Search Vacancy Selection First Day End of at Work Probation Period ? ?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 326
  • Relevant Indicator Dimensions What? Which indicator will be used? For whom? Why? Who is the customer To which objective does of the indicator? the indicator relate? How? Which sources and methods are used to calculate the indicator?Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 327
  • Balanced Scorecard Financials Targets KPI Customer Processes Targets KPI Targets KPI Vision & Strategy People Targets KPI Source: Robert Kaplan and David Norton, “Strategic Learning and the Balanced Scorecard, 1996Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 328
  • Implementing an Indicator SystemExample: Turnover Early Warning Definition of Scope/Objectives Analysis Method Definition Definition of client, objectives Systematic analysis of turnover Definition of methods and tools and functions causes and possible early to track/measure turnover Setting budgets, timeline and indicators drivers and predictors project structure Develpment of a model to Defining ways to analyse and Approach definition explain and predict turnover report data and results behavior Meeting with client/steering group Interviews with managers, former Workshop with experts, clients and project lead employees, experts and HR managers Evaluation Operation Implementation Checking validity and Tracking data and report to Development and acceptance clients implementation of indicator Defining fields for Data usage and related actions system and related technical improvements infrastructure Identification and training of impacted employees (clients) Validation study interviews with client, user trackingProf. Dr. Armin Trost Human Resource Management www.armintrost.de 329
  • Calculating the ROI of HR-related Investments What‘s the Problem? What are the costs related to the problem? What‘s the solution? How much does the solution cost? Which improvements might be achieved through the solution? ROIProf. Dr. Armin Trost Human Resource Management www.armintrost.de 330
  • Example 10 HiPos (20%) leave the company every year voluntarily Problem (average annual salary: 120.000 €) 200%* × 10 × 120.000 € = 2.400.000 € Costs (* Cost per turnover as a percentage of annual salary) Solution All HiPos get a company car 50 × 10.000 €* = 500.000 € Solution Costs (* annual costs per company car) Turnover reduction by 25% lead to reduced turnover Improvements costs of 600.000 € ROI ROI = (600.000 € - 500.000 €)/500.000 € × 100% = 20%Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 331
  • Human Capital Value Added Non-Human Capital Value Creation Total Costs - Labor Costs Products Revenue Human Capital Labor Costs Human Capital Value Added = Revenue – (Total Costs – Labor Costs) Source: Jac Fitz-Enz (2000). The ROI of Human Capital. Amacon.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 332
  • Value Added and Rentabiliy* Döner Shop Desig Office 1 FTE 1 FTE Human 40 Revenue Human Revenue 220 180 220 Non- Human 160 Non- Human 20 Human Capital 220-160 220-20 = 60 = 200 Value Added/FTE 1 1 Human Capital 220-160 220-20 = 1,50 = 1,11 ROI (Rentability) 40 180 * in 1.000 €Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 333
  • HCVA/Employee* in german DAX30-Companies(2007) Addidas 70 Metro 26 Allianz 136 RWE 132 Bayer 94 SAP 163 Daimler 97 Siemens 70 Henkel 69 TUI 29 Hypo Real Estate 556 Volkswagen 23 * In 1.000 €Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 334
  • Performance IndicatorsExample Company Performance Revenue 200.000 k€ Revenue/FTE 100 k€ Employees 2.000 FTE Profit/FTE 10.000 € Total Costs 180.000 k€ HCVA 160.000 k€ Labor Costs 140.000 k€ HCVA/FTE 80 k€ Work days/Year 220 HCROI 114 %Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 335
  • Added Value in Key Functionscompared to other Functions Added Value 1 2 3 Key Functions 0,5 1 1,5 Other Functions C B A PerformanceProf. Dr. Armin Trost Human Resource Management www.armintrost.de 336
  • Differentiated Added Value Calculation C 10% B 70% A 20% Key FTE 20 FTE 140 FTE 40 Functions Factor 1 Factor 2 Factor 3 Per employee (1.000 €): Per employee (1.000 €): Per employee (1.000 €): 10% HCVA 69 HCVA 139 HCVA 208 Labor Costs 80 Labor Costs 100 Labor Costs 120 Benefit - 11 Benefit 39 Benefit 88 Others FTE 180 FTE 1.260 FTE 360 Factor 0,5 Factor 1 Factor 1,5 Per employee (1.000 €): Per employee (1.000 €): Per employee (1.000 €): 90% HCVA 35 HCVA 69 HCVA 104 Labor Costs 60 Labor Costs 70 Labor Costs 90 Benefit -25 Benefit -1 Benefit 14 Source: Trost, A. & von Bothmer, L. (2010). Lohnende Rechenspiele In Personalwirtschaft 07/2010 S. 22-24.Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 337
  • Four simple Business Cases  To hire an A-Player in a key function one day faster than before: 536 €/day  To hire an A-Player instead of a B-Player into a key function: 49.000 €/year  To increase productivity of all (1.260) B-Players in non-key functions by 1%: 869.400 €/year  To convert a C-Player into a B-Player in a non-key function: 15.000 €/yearProf. Dr. Armin Trost Human Resource Management www.armintrost.de 338
  • Key Terms Control Loop - HR Controlling - Indicator System - Employer Ranking - Time to fill - Cost per Hire - Early Turnover - Trainee Rate - Span of Control - Bradford Factor - Indicator Dimensions - Balanced Scorecard - Return on Investment (ROI) - Human Capital Value Added - Human Capital ROIProf. Dr. Armin Trost Human Resource Management www.armintrost.de 339