HUMAN RESOURCE MANAGEMENT HRM Dynamics of Organizational Behavior
HUMAN RESOURCE MANAGEMENT (HRM) Dynamics of Organizational Behavior Virginia Tech MBA Program Andrew Watson
Agenda • Human Resource Management: Ch. 8 • Erik Peterson at Biometra (A): case • Break • Erik, continued • Stress and Work-Life Balance: Ch. 9 • Looking forward
Psychological Contract • George & Jones (p. 213) define as: • An employee’s perception • of his or her exchange relationship with the organization, • outcomes the organization has promised to provide to the employee, • and contributions the employee is obliged to make to the organization. • Why is it useful to introduce the psychological contract? • After all employment contract defines an exchange relationship • Written and signed, sometimes read
Influences , Types, and Violations • Influences on psychological contracts • Written documents • Direct communication • Starts during recruitment, continues after hire • Observation • Types of psychological contract • Transactional • Tend to be shorter-term and specific, e. g. , for contingent worker • Relational • Tend to be longer-term and more general, evolve over time • Many contracts are neither fully transactional nor fully relational • When psychological contracts are broken • Motivation suffers • And so, sometimes, do people (GJ’s Japan example)
Performance Appraisal • Can employees’ performance be accurately appraised? • If no, much OB theory is in trouble • For example, recall Instrumentality from Expectancy Theory • Perception of the performance-outcomes relationship • Difficult to make this relationship strong if performance can’t be appraised! • Performance appraisal has two main goals: • Encourage employee motivation and performance • Provides feedback, which contributes to intrinsic motivation • Provide accurate information for decision making • About pay, promotions, placement, … • About plan for employee’s career
Designing Appraisal Systems • The design of a performance appraisal system involves choices such as the following • Mix of formal and informal appraisal • What to appraise • Behaviors vs. Results (vs. Traits, but the latter gets KO’d early) • How to appraise • Objective measures • Subjective measures • Using a scale? May reduce, but not eliminate, perceptual inaccuracies • Who appraises? • Immediate superior usually single most important appraiser • Others? Self, peers, subordinates, customers, … (sum to 360 degrees)
Compensation • Will follow GJ in focusing on pay • Although there are many possible forms of compensation • Some theories of learning and motivation suggest Merit Play • Merit Pay Plans • Based on individual’s performance? Group’s? Organizations? • Merit pay usually comes as a bonus, rather than as a raise • Difficult to implement if organization’s finances are tight • Pay differentials: • Principle of comparable worth • Differentials between: • Demographic groups • Top and bottom levels of organization
Careers • Career: sum of work-related experiences throughout lifetime • Contrast with rest of Ch. 8 • More about the individual than the organization • Presented by group, rather than by AW…
Stress • GJ definition (p. 245): • The experience of opportunities or threats • that people perceive as important • and also perceive they might not be able to handle or deal with effectively • Notable things about this definition: • Importance of perception—again! • Could highlight the words: experience, perceive (x 2) • Opportunities represent potential benefits • But can be a source of stress • Might remind us of something we’ve heard about certain Chinese words…
Crisis = Danger + Opportunity? • Often said that the Chinese word for crisis combines the characters for danger and opportunity • Said by JFK, Nixon, …
Consequences of Stress • Physiological • e. g. , insomnia, elevated blood pressure • Psychological • Stress-induced feelings and emotions • More negative attitudes than normal • In extreme cases, burnout • Behavioral and performance-related • Positive stress • Up to a certain point, increase in stress improves performance • Negative stress • After that point, increase in stress impairs performance
Stressors: Sources of Stress • Work-life conflict • Job-related • Include role conflict, role ambiguity, overload, underload, … • Group- and organization-related • Include conflicts of personality and culture • Personal • Some arise from personal, rather than work, situations • e. g. , argument with family or friends • Others arise from individual differences • See next slide
Individual Differences and Stress • Personality • Neuroticism • Openness to experience • Locus of control • Self-esteem • Ability • Self-efficacy is the perception of ability • Hence varies between individuals and between behaviors
Coping Strategies for Individuals • Problem-focused • Time management • Role negotiation • Help from mentor • Emotion-focused • Exercise • Meditation • Social support • Clinical help • Nonfunctional
Coping Strategies for Organizations • Problem-focused • Job redesign • Reduction of uncertainty • Communication, including taking employee input • Job security? • Provide day care or similarly helpful facility • Flexible work schedules • Telecommuting • Emotion-focused • Provide exercise facility • Organizational support • Employee assistance program (EAP) • Time off
Looking Forward • Tomorrow • I’ll send feedback on first presentations • Or you call me on my cell (617 792 0021) in the afternoon • Group 1 call at 1 pm, group 2 at 2, etc. • Next week • JLL(A) case • Org. design and culture: Ch. 16, 17 • Week after • Second presentations • Not many more weeks after that… • Usual closing
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