Leadership & HRM in international organizations Summary

Lecture 1 introduction and setting the scene: what is the purpose of

IOs?
- The purpose and aims of intergovernmental organizations (IGOs).
- The importance and challenges of IGOs’ legitimacy.
- The relationship between legitimacy and authority

Actors in global governance

- States
- NGOs
- Experts and epistemic
communities (e.g.,
Intergovernmental Panel on
Climate
Change). *epistemic = relating
to knowledge
- Networks and partnerships (e.g., Active Learning Network for Accountability
and Performance)
- Multinational corporations (e.g., Apple, Google, Facebook)
- Private foundations (e.g., Bill & Melinda Gates)
- IGO and their bureaucracies (e.g., NATO, EU, WHO)

Global governance: “The collective effort by sovereign states, international organizations,

and other non-state actors to address common challenges and seize opportunities that
transcend
national frontiers. . . . [It is] an ungainly patchwork of formal and informal institutions”
“IGOs are organizations that include at least three states as members, have activities in
several states, and are created through a formal intergovernmental agreement such as a
treaty, charter, or statute. They also have headquarters, executive heads, bureaucracies, and
budgets”
Why do we need IGOs?
- Order and stability.
- Reduce transaction costs.
- Efficiently solve transboundary problems.
- When major trans-border upheavals and security or economic crises occur, IOs are
looked towards for guidance.
IGOs’ tensions
• Sovereignty vs Multilateralism (refers to an alliance of multiple countries pursuing a
common goal)
• Collective decision-making
• Resources and expertise
• Representation
• Implementation
Functions of IGOs
- Disseminate information
- Provide resources and technical assistance
- Act as a forum for discussions
- Define norms and standards of behaviour
- Create and supervise rules

Legitimacy
Why is political legitimacy important for IGOs? Because it affects IGOs’ ability to:
• Remain as focal arenas for state’s cooperation.
• Develop new rules and norms.
• Secure compliance with international rules and norms.
• Solve (global) democratic deficit.

Political legitimacy = a belief within a given constituency or other relevant audience that a
political institution’s exercise of authority is appropriate. legitimacy = the right & acceptance
of an authority

Authority is the right to make (binding) decisions and interpretations within a particular
area/region in the name of collective interest.

IGOs’ audiences: Constituencies and observers

- States.
- Governmental organizations.
- Civil society organizations.
- Citizens.
There is an elite-citizen gap in confidence in IOs: the upper class believes more strongly in
the legitimacy of/has more confidence in Ios

Types of authority
• Delegated authority: when IGOs exercise power that states have formally given away.
• Institutional authority: informal authority derived from an IGO being seen as rational, rule-
based and impartial.
• Moral authority: when IGOs apply pressure by referring to shared principles, morals, or
values.
• Expert-based authority: based on specialized knowledge.
• Capacity-based authority: when they help accomplish specific tasks.
 Readings

Krans (2015) The Challenges of Global governance, in International organisations: the

politics and processes of global governance (1-41)

Challenges of global governance.

Global governance: refers to institutions that coordinate the behavior of transnational
actors, facilitate cooperation, resolve disputes, and alleviate collective action problems.
Global governance broadly entails making, monitoring, and enforcing rules.
Government vs governance:
- Government: activities backed by formal authority.
- Governance: activities backed by shared goals, may not derive from legal and
formally prescribed responsibilities > so involves cooperation between various actors
Global governance is not global government, not a single world order. No top-down,
hierarchical structure of authority.
Growing need for global governance: systemic changes in the world in recent decades.
- Globalisation > states no longer have a monopoly on power and authority >
Movement of goods and people is easier thanks to technological advancements.
Communication also plays an important role.
- Cold War’s end: wave of democratisation. New political space for states and nonstate
actors for pursuing new types of cooperation in ending conflicts.
- Expanding transnationalism: processes through which individuals and various types
of nonstate actors work together across state borders. It is exhibited in the activities
of global civil society, NGOs, transnational advocacy networks, and transnational
social movements.
Civil society includes all organisations and associations that exist outside the state and the
market.

Actors in global governance

Global governance implies a multi-actor perspective on world politics.
- States: key actors. They have sovereignty and authority over their territory and
people, over powers delegated to international institutions. Primary sources of IGOs
funding and military capabilities. They create international law and norms. States are
sharing powers—including political, social, and security roles at the core of
sovereignty—with businesses, with international organizations, and with a multitude
of citizens groups

- Intergovernmental Organisations: IGOs can be considered independent from states,

since they are actors in their own right (their secretariats play key but often invisible
roles). Bureaucrats are often employees of the organisation itself, and do not depend
on a national government.
- Non-Governmental Organisations: key actors. Private voluntary organisations, made
up of individuals or associations with common interests. Not-for-profit groups and
for-profit groups.
- Expert and Epistemic Networks: need to posses knowledge to tackle global
challenges (e.g. climate change).
- Networks and Partnerships: importance of interactions of governmental and
nongovernmental actors across national boundaries. Networks can be examined both
as actors and structures.
- Multinational Corporations: nonstate actors conducting for-profit business
transactions and operations across the borders of three or more states. Investments
in multiple countries. Questions on how to regulate them. Fear of less developed
countries that MNCs will intervene in domestic affairs and challenge their
sovereignty.

Multilateralism refers to coordinating relations among multiple states in accordance with

certain principles. Relationships defined by agreed-upon rules and principles.

Leadership
Different sources of leadership: powerful and not-so-powerful states, coalition of states, an
NGO or coalition of NGOs, a skilful individual diplomat, an IGO bureaucrat. Leadership can
involve putting together a winning coalition to secure agreement on a new international
trade agreement; it may involve the skill of negotiating a treaty text acceptable to industry,
NGOs, and key governments. The US provided much leadership historically.

Actor strategies
One strategy is the creation of coalition groups. Group members have to negotiate a
common position to maintain cohesion, prevent defection to rival coalitions and choose
representatives to bargain on their behalf. A variation of coalition building strategy is the
creation of networks to expand their reach and link diverse groups with shared concerns and
awareness that common goals cannot be achieved on their own.
The proliferation of international forums means that states and nonstate actors can often
choose where to take certain issues—an option called “forum shopping”. In general, states
and nonstate actors will select forums where they believe they will get the best reception.

The varieties of global governance

Intergovernmental Organisations
- serve many diverse functions, including collecting information and monitoring trends
(UNEP), delivering services and aid (UNHCR), providing forums for intergovernmental
bargaining (EU) and adjudicating disputes (ICJ).
- They also “construct the social world in which cooperation and choice take place”
and “help define the interests that states and other actors come to hold”.
- IGOs “allow for the centralization of collective activities through a concrete and
stable organizational structure and a supportive administrative apparatus. These
increase the efficiency of collective activities and enhance the organization’s ability to
affect the understandings, environment, and interests of states.” Thus, states join to
participate in a stable negotiating forum, permitting rapid reactions in times of crisis.
- IGOs also impose constraints on member states policies and processes and exercise
influence. They set international and national agendas, forcing governments to take
positions on issues.

Nongovernmental Organisations
Governance functions of NGOs parallel many functions provided by IGOs. They can be
divided into service and advocacy groups (provision of processes at many levels to pressure
or persuade individuals, governments, IGOs, corporations and other actors to improve
human rights, protect the environment, tackle corruption, ban landmines or intervene in
conflicts.

Rule-Based Governance: International Rules and Law

Five recognised sources of international law by the ICJ: treaties or conventions, customary
practice, writings of legal scholars, judicial decisions and general principles of law. Growth in
treaty law.
For purposes of global governance, one major limitation of public international law is that it
applies only to states, except for war crimes and crimes against humanity. At present, only
EU treaties can be used directly to bind individuals, multinational corporations, NGOs,
paramilitary forces, terrorists, or international criminals. They can, however, establish norms
that states are expected to observe and, where possible, enforce against nonstate actors.
Another problem in the eyes of many is the absence of international enforcement
mechanisms and the role of self-interest in shaping states’ decisions about whether or not to
accept treaties and other forms of international rules. International law traditionally left
states to use “self-help” to secure compliance.
International Norms or “Soft Law”
These are shared expectations or understandings regarding standards of appropriate
behaviour for various actors, particularly states. They range from the norm that states are
obligated to carry out treaties they ratify (pacta sunt servanda) to the expectation that
combatants will not target civilians.
Some norms are so internalized in states that they are difficult to recognize unless a violation
occurs. Still others are weak, contested, or “emerging.” Many international legal conventions
set forth nonbinding obligations for states that are in fact norms and sometimes referred to
as “soft law.” Examples include human rights and labour rights norms, the concept of the
global commons applied to the high seas, outer space, and polar regions, as well as the
concept of sustainable development.
The degree of formalisation determines the strength of a rule.
Protocols are used to supplement the initial framework convention and form the “hard” law.

International Regimes and Regime Complexes

Where international regimes exist, states feel compelled to follow obligations. Because this
is “governance without government,” they comply based on an acceptance of the legitimacy
of the rules and underlying norms, and the validity of the decision-making procedures. They
expect other states and actors also to comply and to utilize dispute settlement procedures to
resolve conflicts.
Recently, scholars have identified a number of “regime complexes.” These are “networks of
three or more international regimes that relate to a common subject matter; exhibit
overlapping membership; and generate substantive, normative, or operative interactions
recognized as potentially problematic whether or not they are managed effectively.” A key
characteristic of regime complexes is the “divergence regarding the principles, norms, rules,
or procedures of their elemental regimes”.

Private Governance
Growing phenomenon. Private governance involves authoritative decision making in areas
where states have not acted, or have chosen not to exercise authority, or where states have
themselves been ineffective in the exercise of authority.

Public-Private Partnerships
Since the late 1980s, the variety of public-private partnerships involving the UN and most of
its specialized agencies, funds, and programs, has mushroomed with the recognition that
such partnerships can contribute to achieving internationally agreed development goals.

The politics and effectiveness of global governance

Among the central issues in the politics of global governance, then, are who gets to
participate in decision-making, whose voice gets heard, who gets excluded at what price,
and whose interests do certain institutions privilege. Power matters as do the authority and
legitimacy of global governance arrangements that increasingly depend on the
accountability and transparency of multilateral institutions. And, as with all types of
governance, effectiveness, or the ability to deliver public goods and to make a difference,
matters.
Global governance arrangements exist because states and other actors create them and
imbue them with power, authority, and legitimacy and deem them valuable for performing
certain tasks and serving certain needs and interests. Yet IGOs are not just passive structures
and agents of states. Power, whether in global or local governance, is intimately linked to
authority and to legitimacy. IGOs can exercise power in large part because they are generally
recognized to have legitimate authority, just as states whose governments are recognized as
legitimate are recognized by other states and accepted as members of IGOs.

Authority and Legitimacy: Who Governs and On What Basis?

Historically, states were the only entities thought to have authority in international politics,
due to their sovereignty, and the only authority IGOs had was assumed to be that delegated
by states and, hence, was subject to withdrawal. In recent years, however, more attention
has focused on the issues of authority and legitimacy. There is gradual recognition of the
varied bases of authority and legitimacy in global governance.
Five bases of authority in global governance are: institutional, delegated, expert, principled,
and capacity-based:
1. Institutional authority is derived from the rules and purposes of an institution,
whether an IGO such as the IMF or a credit-rating agency.
2. Delegated authority is the primary basis of IGO authority: delegated authority from
member states for certain tasks such as peacekeeping
3. Expert authority: derives from the need for certain tasks to be done by those with
specialized knowledge about them. And, while expertise may make an IGO
authoritative, the institution will also be shaped by that expertise in how staff see the
world and define issues, what policy options are considered, and the very culture of
the institution
4. Principled authority: reflects the fact that many IGOs and NGOs are created precisely
to serve or protect a set of principles, morals, or values
5. Capacity-based authority: demonstrated ability to accomplish set tasks is a further
basis of authority
Why do actors obey rules in the absence of coercion or change their behaviour when
shamed by a transnational advocacy group or accept the authority of the ICJ or a private
credit-rating agency? The decision to comply with rules, norms, and law fundamentally rests
on legitimacy: “the belief by an actor that a rule or institution ought to be obeyed.
A key aspect of legitimacy in the international system is membership in the international
community, whose system of multilateral, reciprocal interactions helps to validate its
members, institutions, and rules (IGOs, like the UN, for example, are perceived as legitimate
to the extent that they are created and function according to certain principles of right
process, such as one-state, one-vote).
Legitimacy is also increasingly tied to whether nonstate actors and civil society have a voice
and can participate in global governance

Accountability
Democratic norms have demanded greater accountability and transparency. Some of these
demands come from NGOs and civil society groups; others come from democratic
governments, major donors, and major borrowers.
Accountability: reporting, measuring, justifying, and explaining actions.
The question is, therefore, to whom, for what, and by what mechanisms various global
governance actors are accountable. Are IGOs accountable only to their member states, for
example? To their major donors? To development aid recipients? Hierarchical / fiscal
accountability, peer and public accountability?

Effectiveness: Measuring Success and Failure

The second critical challenge involves the effectiveness of governance and the success or
failure of different approaches to addressing needs and problems.

Tallberg, Zürn; The legitimacy and legitimation of international organizations:

introduction and framework (581-596)

While states have granted IOs more political authority in recent decades, in the expectation
that they can help solve pressing problems and shape practices, IOs’ long-term capacity to
deliver is conditioned on their legitimacy in the eyes of governments and citizens.
1. legitimacy influences whether IOs remain relevant as the focal arenas for states’
efforts to coordinate policies and solve problems.
2. legitimacy affects IOs capacity to develop new rules and norms. No legitimacy means
it is difficult to gain support from governments for ambitious policy goals and secure
ratification of agreements.
3. legitimacy influences IOs’ ability to secure compliance with international rules and
norms. In general, legitimacy is a much cheaper means to secure compliance than
coercion. Few IOs have coercive power, thus legitimacy is particularly important in
global governance.
4. the legitimacy of IOs also speaks to fundamental normative concerns about global
governance. If IOs lack legitimacy in society, this contributes to a democratic deficit in
global governance. As political authority increasingly shifts to the global level,
democracy’s preservation requires that IOs both are structured in accordance with
democratic principles and are perceived by citizens as legitimate systems of
governance.

Realists (world politics is always and necessarily a field of conflict among actors pursuing
wealth and power) see legitimacy as a means of power wielding that states exploit to
advance their interests, but that is not expected to constrain their actions.
Liberal institutionalists have viewed legitimacy more positively, highlighting its functional
usefulness to the collective of states. Claude (1966) suggests that IOs fulfil an important
political function of collective legitimization, while Ikenberry (2001) argues that the
establishment of legitimate world orders after wars helps to reduce costs of enforcing the
peace.
Conceptualising legitimacy and legitimation
legitimacy = belief a political institution’s exercise of authority is appropriate. Legitimacy
from this perspective lies with the beliefs and perceptions of audiences, not the normative
goodness of an institution.
- authority refers to the recognition that an institution has the right to make decisions
and interpretations within a particular area, legitimacy refers to the perception that
these rights are appropriately exercised.
- Legitimacy engages with normativity: by recognizing that legitimacy beliefs are
formed in a context of societal norms about the appropriate exercise of authority.
Legitimation: actors seek to make a political institution more legitimate by boosting beliefs
that its rule is exercised appropriately.

Legitimation and delegitimation

Discursive practices or behavioural practices (mobilisation: demonstrations, political
petitions, social media campaigns)
we conceive of legitimation and delegitimation as varying on three dimensions: intensity
(strength), tone (direction), and narratives (content):
- Intensity refers to the number of legitimation or delegitimation events (e.g.,
statements, reforms, protests) within a given time frame. Legitimation intensity
varies extensively across IOs, as some organizations are subject to widespread
criticism and defence, while other IOs fly beneath the radar of public contention.
- Tone captures whether discursive and behavioural practices frame the IO in positive
terms (legitimation) or negative terms (delegitimation).
- Narratives are patterns in the standards invoked to justify or challenge IOs. We use
the term narrative in the broad sense, to refer to the evaluative content of both
discursive and behavioural practices, as both contain an element of communication

Explaining legitimacy and legitimation

How institutional features matter for legitimacy and legitimation? We posit that legitimacy
beliefs are the outcome of an evaluation of IO features which audiences care about. This
understanding is based on the notion of bounded rationality – while it shares the first
perspective’s emphasis on the institutional features of IOs, it also recognizes the second
perspective’s point about individuals’ use of cognitive shortcuts.
Central institutional features: authority (demands legitimacy), procedure and performance
(sources of legitimacy).
- Authority: matters for legitimacy because international authority challenges the
sovereignty and autonomy of nation-states (traditional locus of legitimate authority).
IOs that possess higher levels of authority can be expected to engage in self
legitimation to a greater extent than IOs with lower levels of authority. By the same
token, we could expect an increase over time in the intensity of legitimation by IOs,
reflecting their growing political authority over recent decades.
- Procedure: rational-legal legitimacy: ‘properly administered rules by properly
appointed authorities’ (Weber) > emphasis on democratic and purposive procedural
standards, such as participation, transparency, legality, and impartiality. The
legitimacy of courts does not reside in the positive consequences they generate, but
in the independence and impartiality of judicial systems.
- Performance: How well IOs perform can also be expected to infuence legitimation.
When decisions fall short of widely held expectations, this opens up opportunities to
contest an IO’s legitimacy. When IOs fail to deliver and are criticized on those
grounds, this is typically met with legitimation, aimed at regaining the confidence of
audiences.
 Lecture 2: Macro HRM; How to fit the context?
Macro HRM - How can HRM contribute to the achievement of organizational goals?
❑ What is (S)(I)HRM?
❑ What is the role of context?

What is (S)(I)HRM?

HRM
– ‘The management of work and people towards desired ends’
 “Human resources are intrinsic characteristics of human beings, which people can apply to
the various tasks & challenges of their lives”. People are NOT ‘human resources’ – they
possess it
SHRM
– refers to the pattern of planned human resource deployments and activities intended to
enable an organization to achieve its goals
– It involves all of the activities that are implemented by an organization to affect the
behaviour of individuals in an effort to implement the strategic needs of a business
SIHRM
– “Human resource management issues, function, policies, and practices that result from the
strategic activities of multinational enterprises and that impact the international concerns
and goals of those enterprises.”
– “Being globally competitive, efficient, sensitive to the local environment, flexible and
capable of creating an organization in which learning and the transfer of knowledge are
feasible”
From central development – local implementation > central inspiration – regional
development – local implementation

context
A vertical fit between HR and strategy = necessary
 Aligning HR practices with the organisation context and strategy as well as the external
context (national factors) to accomplish economic and socio-political goals
– EVERY organization can solely built competitive advantage via people > importance of HRM
HRM - Economic purposes
 Contribute to (financial) performance
 Focus on cost-effective and –efficient labor
 Access to potential employees with the right KSA – as cheap as possible
HRM - Socio/societal purposes
 values and norms of organizations have to fit with the values and norms of society (i.e. –
UK – EU)
– Social laws, rules and regulations have to be respected
 There can be differences between different members of Int. Organizations – culture plays a
role (Hofstede)
– Individualism- Collectivism?
– Power centralization or decentralization?
– Path dependency?
HRM – Political purposes
 Contribution to the internal and external challenges in terms of
– Law
– Rules and regulation
 HRM has to be legitimate – inside and outside the organization

General HR strategies
- High-performance strategy
• Improve performance via efficiency
• Fits with HRM & more economic purposes.
- High commitment strategy
• Via trust, self-regulation
• Focus is more on socio/societal purposes.
- High involvement strategy
• Via decision-making and devolving power
• Focus is more on political purposes

More specific HR-strategies

1) ‘Industrial model of HRM’ – HARD HRM
- ‘tailorist’ jobs
- Influenced by labor unions
- Internal Labor Market
Administrative regimes
System of bureaucratic rules and procedures that define jobs, assign people to jobs,
strengthen job security and determine pay
- Basic idea: Distinction between managers and employees

2) ‘Remuneration model of HRM’ – HARD HRM (*money paid for work or a service)
 Logical consequence of the industrial model of HRM
 Designed for managers and specialists
 Salary instead of wages based on the hours actually worked
– Trust & more flexibility & more security & more responsibility
 Performance-related pay
 Learning & development is crucial

Impact context
 Development in management and organization perspectives
 Hawthorne studies
– What if we provide some attention to employees?
 SOFT HRM
– Development of the ‘High involvement model van HRM’
– Focus on skills and the potential of employees
– Challenges in task enrichment or in providing more autonomy or in discussions with
managers
– Empowerment is key
 What also changed was the intensification of ‘knowledge’
– Knowledge society
– More service-oriented organizations
» More labour intensive
» More co-creation
» More collaboration

Change in HRM & types of employees and employment contracts – Am I an official or not?

Impact – Int. organizations

 'Model employer’ – set the example for other organizations
– Recruitment & selection based on competencies
– Job security is crucial (Brexit?)
– Hierarchical way of promoting
– High level of learning & development
 Change through impact NPM (new public management) BUT efficiency is not the main goal
– achieving other goals at a low cost
 Question of state autonomy & control VS benefits
 Question of making clear agreements and arrangements

Conclusion
 (s)(I)HRM builds on the principles of HRM
– more challenging because of the interunit-linkages, dependencies, division of decision
making power etc.
– Global integration or local adaptation?
– Multinationals must always adapt to local laws and regulations –
 the question is to what extent they integrate or are adaptive
– Respect for International laws and regulations
 Adapt with respect to local rules and regulations
 To what extend do you still have autonomy and control as a state?
 Readings
Collings (2015)
Strategy and IHRM
SIHRM: “Human resource management issues, function, policies, and practices that result
from the strategic activities of multinational enterprises and that impact the international
concerns and goals of those enterprises”. “Being globally competitive, efficient, sensitive to
the local environment, flexible and capable of creating an organization in which learning and
the transfer of knowledge are feasible”
Different SIHRM functions:
1. differentiation and integration of local units.
2. resource allocation across those units.
3. SIHRM policies and practices associated with local units’ resource utilisation.
Multinational enterprises (MNE) had to rethink their approach to management, SIHRM and
specific HR practices.
SIHRM should reflect and respond to changes in general external factors, such as political,
economic, sociological, and technological macroenvironmental factors, as well as to
asymmetrical events and threats, the increased need for resilience, and environmental
dynamics.
3 interacting elements of HR function in MNEs:
- Global corporate role of HR
- HR practices
- Crisis management and coordination
In the revised framework, which reflects the focus of international business and HRM
research in recent decades, De Cieri and Dowling (2012) suggest that there are reciprocal
relationships among organizational factors, the HR function in the MNE, and the MNE’s
overall performance.
MNE performance: financial performance, social performance, and enterprise resilience.

New frontiers in strategy and IHRM

Integrative strategy process
From the conventional point of view, “strategic management” is a process used to rationally
determine an appropriate strategy on the basis of clear goals and objectives, environmental
analyses, evaluations of alternative strategic options, and action planning.

Decentralised strategy making is measured as the extent to which an organization distributes

decision-making power that enables lower-level managers to react to emerging events, for
example, power to modify products and services, to pursue new customer segments, to
develop new competencies, or to adopt new practices > Power is dispersed in lower
hierarchical levels.
In an MNE with a decentralized strategy, HR’s role may centre on such activities as working
with local/subsidiary managers on horizontal transfers and in-patriation; acting as a source
of inspiration for subsidiary HR managers in their efforts to develop training, development,
and leadership programs for subsidiary employees; and providing the global support needed
to enable subsidiaries to respond to local labour-market conditions.

Centralized and decentralized strategy-making processes are arguably complementary

because strategic intent must be flexible in order to accommodate responsive actions, and
dispersed organizational initiatives need the coordination and direction provided by strategic
intent. Response to changing conditions means that flexibility and possibility to allow
autonomous actions is needed. Yet, general direction and coordination remain important.
These observations suggest a need for integrative strategy processes that combine
decentralized emergent strategy making with centralized intended strategy making.

Multilevel reasoning must be applied in SIHRM

Problem with macro-level explanations:
1. likely to be many potential lower-level explanations for macro-level relationships that
cannot be rejected through macro-analysis alone. Even if a large sample can be
constructed on the basis of macro units of analysis, the problem of alternative
explanations may persist.
2. A second argument for the importance of micro-foundations lies in the fundamental
mandates of SHRM: to assist in strategy implementation, and to enable an
organization to gain and sustain a competitive advantage.
3. A third argument is that explanations that involve the micro level are typically more
stable, fundamental, and general than macrolevel explanations.
SIHRM’s purpose is to develop and implement global HR strategies, policies and practices
enhancing enterprise resilience, financial and social performance, by providing support for
both centralized and decentralized strategy making. Attention should be given not only to
the macro-to-micro mechanisms (from global strategy to individual perceptions of
implemented HR practices), but also to the importance of distinguishing between the
levels when talking about SIHRM’s impact on performance.
There’s a shift from central; development > local implementation to central inspiration>
regional development > local implementation. So besides the scope, it’s important to
consider at which level the HR strategies are developed.
There’s a difference between intended and implemented HR strategies > MNEs and
subsidiaries are often exposed to multiple and conflicting institutional demands, if demands
from different levels conflict (those from headquarters and subsidiary countries) it becomes
difficult to obtain/maintain legitimacy and thus conform practices to the logics of both
environments

Boxall (2018) Chapter 9: HR strategies in services

Services: a system supplying a public need that is not material

Difference with manufacturing:
1. Service firms are more labour-intensive. Labour costs have more impact on pricing.
2. Services have a higher level of intangibles than manufacturing and a greater range of
quality levels or heterogeneity to which customer satisfaction can be very sensitive.
 3. Services are produced and consumed as when customers demand them
(simultaneous production and consumption). Services are often seasonal with peaks
of demand. Services need a flexible staffing system, scaling up staffing through a
temporary or casual workers to cope with spikes in demand and maintaining a
smaller core of permanent workers.
4. Customers are involved in co-producing a range of services. They play a role in less-
skilled services (e.g. refilling a vehicle, booking travel or entertainment, conducting
banking transactions)

HR strategy in private sector services

Business strategies in basic services are often focused on reducing the costs of producing the
service.
- Scripted model of HRM: attempt to standardise how front-line service workers deal
with customers. Courses for workers on how to approach customers. Specific steps to
follow. Managers use the scripted model of HRM to drive efficiency improvements
and reduce heterogeneity in the service encounter. They seek to process large
numbers of customers rapidly and consistently.
- Employee well-being: scripting interactions can bring order to the chaos of high-
demand services.
- Dualistic approach to HR strategy: inner core of manager and specialist who control a
larger pool of frontline workers.

Differentiated services
- Markets where customers pay a premium for a higher quality of service (e.g. travel
services).
- Key difference between manufacturing and services: in manufacturing it is possible to
have higher quality at a smaller price; in services, high quality often comes at a higher
price.
- High-involvement model in service work
- Can include more attention to service process. Great investment in training precision.
Increased monitoring.
- Management can also increase empowerment of members of frontline staff.

Knowledge-intensive services
- Classical professions (e.g. control of services in law, accounting, medicine) and newer
forms of knowledge-intensive services (e.g. software development, expert work in
financial services).
- Workers in these fields are human capitalists. They explore new techniques and
challenges to expand their potential. Very successful firms become similar to
monopolies.

Professional and expert models of HRM

 - Professionals organise themselves into partnerships. Each partner is an independent
agent, contributing to the larger partnership of which they are a member.
- Conjunction of high qualifications, high discretion and high pay.
- Expensive services.
- Possibility to outsource non-core aspects of their operations.

HR strategy in public sector services

The public sector embraces three sets of activities:
- Public professional services: armed services, schools, universities, hospitals and social
agencies
- Central government ministries or departments: employ policy advisers,
researchers/analysts and other administrative staff
- Local government: planning, contracting and providing a range of services in local
communities.
Organisations are mission-led > multiple, vague and ambiguous goals. Desire for doing
societal good

Model employer tradition

Goal to establish a competent and strictly impersonal discharge of official duties by secure
and appropriately paid public servants.
Recruitment based on assessment of competence. Provision of employment security and
promote employers on a rational basis in a hierarchical structure of job grades.

New public management, public debt crises and austerity

- Increased control on expenditures in state services.
- Programs of privatisation selling off public utilities. Encouraging private investments.
- Organisations were able, in theory, to determine their own models of HRM. One
impact was the search of employment patterns outside the traditional grade
structures, and at reduced cost.
- Growth in outsourcing.
- High control on outputs.
- After the 2008 crisis cuts were made in public administration employment.

Public sector HRM in a stage of siege

- Many aspects of model employer remain unchanged: Commitment on equal
opportunity and inclusion.
- End of jobs-or-life culture. Insecurity in public sector has emerged.
- Great emphasis on performance management. However, this can be counter-
productive. Rules-based performance standards can erode ethics-based engagement
and undermine professionals’ and clients’ confidence in each other.
- Work intensification is a problem for governments, weakening attractiveness for
public service careers.
 Boxall (2018) Chapter 11: HR strategies in multinational firms

Multinational companies (MNCs) = Multinational enterprises (MNEs) = Transnational

companies (TNCs).

Multinational strategies and structures

Four sets of motives underpinning international business activities:
1. natural resource seekers. E.g. companies in oil and gas production, mining, etc.
2. Market seekers: firms that have saturated their home markets and run out of ways
to grow profitably, so they go international.
3. Efficiency seekers: firms trying to rationalise the structure of established resource-
based or market-seeking investments.
4. Strategic asset seekers: firms acquiring the assets of foreign corporations, aiming to
augment the acquiring firm’s global portfolio of physical assets and human
competences

Strategies of multinationals address two major questions:

1. How to obtain better access to resources, including more cost-effective production
capabilities than they have in their home country.
2. How to take advantage of greater market opportunities than they have at home.
MNCs face challenging issues of coordination. They can have an international division to
control foreign activities.
Multinational subsidiaries and value chains
*subsidiary = a company owned or controlled by another company > mother / holding
company
Five types of relationship between an MNC and its suppliers:
- Market value chain configurations: contract for the supply of standard products
requiring only low levels of skill. Low task complexity associated with low
employment stability and high levels of labour turnover.
- Modular value chain configuration: suppliers make products or services to the lead
firm’s specifications
- Relational value chain configurations: tasks performed by the supplier are complex
and not easily codified, but suppliers are highly competent and provide lead firms
with an incentive to outsource to gain access to complementary competencies.
- Captive value chain configuration: supplier are dependent on the lead firm, which
provides detailed instructions and engages in high levels of monitoring and control.
- Hierarchical value chain configurations: relate to vertically integrated subsidiaries.
Tasks are highly complex and unmodifiable. Because highly competent suppliers
cannot be found outside the firm, these tasks are kept in-house.
Financialisaton and multinational behaviour
MNCs shift around their resources between national jurisdictions, so that they maximise
financial benefits.
The strategies of multinational firms have their roots in two drives:
- The desire to obtain greater or cheaper resources than those available at home
- The desire to penetrate new markets in the search for greater profitability

There are 3 ways MNCs can respond to local HR practices:

- Forcing their own approach
- Reframing through keeping local policies but renaming them into words the HQs
want
- Sensitive approach, identifying existing barriers and trying to overcome them through
raising awareness > advantageous for market acceptance.

The social legitimacy of multinational HR practices

- Problem when MNCs are seen to be exploiting local conditions offending
international standards for human rights or humane conditions of work.
- MNCs now subscribe to codes of conduct. Some are issued at world level.
- Sometimes however, production is relocated to non-union areas and outsourcing to
labour contractors, making meaningful implementation difficult.

Lecture 3: Micro HRM – HR practices

HR-practices
- recruitment and selection (inflow)
- learning and development
- performance management
- (outflow)
What are these practices exactly? What does HRM do and how does it contribute to the
organization?

How can organizations/managers build and (re)new the workforce that an organization
needs?
- Quantity – bore-out VS burn-out - over- and understaffing
- Quality –mix of employees with different KSA

Necessary – performance – to achieve organizational goals: Balance between outflow and

inflow
- Constantly recruiting and training = cost
- Loss of social capital = cost
 - Temporary unemployment is also a cost, but just a little more 'economical on LT'
than firing people

GOAL of this process = managers ensure that the right number of people with the right skills
are present at the right time in the right place to perform the tasks assigned to them as
efficiently and effectively as possible and thus to achieve the organization's short- and long-
term objectives

1. Recruitment and selection

Recruitment - GOAL:
- Attract high-quality candidates
- Develop a pool of candidates from which the best can be selected
– Importance of validity, reliability and fairness
- Necessary? Knowledge of the strengths/attractiveness of your organization & labour
market power
- Recruitment is done through various channels
Recruitment strategies

High

High

Low
*High organizational intelligence > Means that the organization is fully aware of their
strengths/weaknesses, what they can and can’t do. Basically means that they conducted a
SWOT analysis.
Recruitment
- Global labour mobility
> Pool of candidates enlarges
>> Migrants VS Expats
- Skills shortages
> Labour market with full employment
>> Make jobs attractive – be creative in recruitment
» e.g. NZ – return-to-work mothers
Selection
- Inflow of new employees
Diverse methods
References
Interviews (Hypothetical questions, Real experience,
Cognitive tests, Personality tests , Skilsstests, mailbox,
exercise, role play, presentation...)
- Essence of reliability, validity and fairness
Equal treatment of candidates during selection
Balanced procedures

2. Learning and development (on level of organization + individual > these interact)

- Creates a ‘flow’ within org.

- Learning & training or relevant KSA (Knowledge Skills Abilities)
– To learn is to develop – explicit learning (formal, codified, official trainings) or
implicit/tacit learning (on-the-job learning, more unconscious, more ambiguous and
internalized. Can be developed or copied from others)

Individual learning
• Association/ conditioning – (Skinner – Carrot & the
stick)
• Stimulus and response
• Social learning - Learn by watching others
• Coping behaviour – ‘role models’
• Behaviour modelling training
• Experiences
• Active experimentation
• Abstract conceptualization
• Reflection

Organisational learning – Knowledge management (p. 238)

= how the organization manages its knowledge resources to meet current and future needs.
Two types of organizational learning:
 - Single- and double-loop learning
> Single-loop = process that enables the organisation to meet its current objectives
> Double-loop = process of questioning and adjusting the underlying objectives or
policies
- Learning as the development of routines that guide behaviour

How can we encourage and manage performance? > Through individual motivation (of
employees)
- Three elements determining the effort we put into work
– Direction – end goal
– Intensity – level of effort
– Persistence – duration of effort
- Satisfy our needs
- Levels of motivation = personal

Motivation theories
- Maslow’s hierarchy of needs Five basic needs: psychological, safety, social, self-
esteem and self-actualisation. However, research evidence indicates that we can be
motivated by more than one need at a time and do not progress neatly up a
hierarchy.
- ERG Theory (Alderfer, 1969) > adaptation of Maslow’s theory to the workplace.
Assumes that three factors create motivation (can be active at the same time)
 (Acknowledgement of) Existence: Need for survival and physical well-being
 Relatedness: Need for interpersonal relationships, status and recognition
 Growth: Desire for personal development and self-fulfilment (create a career
plan)
- Needs Based Model of McClelland (1987). Instead of suggesting that there are
‘universal’ needs that are more or less active, it views needs as implicit and therefore
more similar to personality traits. People have different levels of three needs
• Need for achievement: drive to do well, to succeed and to do things better for own
personal satisfaction.
• Need for power: The desire to have influence over others > will be motivated by the
opportunity to gain prestige and control at work.
• Need for affiliation: the desire to build friendly, cooperative relationships and
people with a strong nAff will be motivated to do teamwork, where they can work in
an interdependent way with others.
- Equity Theory people engage in social comparisons between the effort put by
themselves and others. Judgements about fairness and equity motivate performance.
Expectancy theory – Vroom (1964). By understanding three key perceptions that individuals
have about the outcomes, we can predict the amount of effort they will put into their work:
1. Valence: how desirable the end result or outcome is for the individual
2. Instrumentality: how likely the individual believes it is that a certain level of
performance will actually result in the desired outcome
3. Expectancy: how much an individual expects that their efforts will manage to achieve
the level of performance needed for the outcome
– Motivational Force (MF) = Valence x Instrumentality x Expectancy

- Goal-setting theory – Locke & Latham (p. 100)

Having goals affects performance: Goals give direction / are energizing / improve
persistence / activate our knowledge & skills. People put more effort when they have
more challenging and specific goals. Commitment and feedback are essential
- PSM – Public Service Motivation
“An individual's predisposition to respond to motives grounded primarily or uniquely
in public institutions and organizations” (Perry & Wise, 1990)
- “Motivational force that induces individuals to perform meaningful public service “
(Brewer & Selden 1998) > Hence, the willingness to serve the public good
- Compassion for others, attention to the public interest, interest in policy and politics,
self-sacrifice (public interest takes precedence over self-interest)
- Job design: design work in a way that encourages people to work efficiently and
effectively.
Job-characteristics model – Hackman and Oldman (1975) > giving employees the capacity to
craft their own job in the way they like/ in a way that better suits them). What do I do, how
do I do it? There are five core job dimensions which increase motivation;
1. Skill variety: How many different skills do I use in order to complete my job?
2. Task identity: To what extent do I complete a ‘whole’ piece of work?
 3. Task significance: How much impact does my work have on other people?
4. Autonomy: How much freedom and discretion do I have to decide how and when I
will do my work?
5. Feedback: To what extent do I receive clear and direct information on my
effectiveness?
6. Task variety: How many different tasks do I complete in my work?
+ social dimensions: interdependence, feedback from others, social support.
 These dimensions result in psychological states that are critical to work
outcomes: experienced meaningfulness of the work, experienced responsibility
for the outcomes, knowledge of the actual results of the work (how well do I
perform?)

- (2) JD-R model (Job design – personal resources)

- (3) Role of rewards (p. 104)
Provision of material rewards – pay (influences attractiveness of organization)

- 3. How can we encourage and manage performance?

Performance management goes beyond encouraging motivation
Different ways to manage performance
- Management-by-objectives
 Time-specific goals, where to employees are committed and which are
continually provided with feedback
- Ensuring that individual performance contributes to organizational performance
 Providing feedback on good and bad performance
 Differentiating between employees
 Performance-related rewards
 Identifying areas for training and development
Outflow (employees leaving, a certain amount is also good for the organization) – worst case
scenario of poor performance

Conclusion
Horizontal fit between HR and strategy > How HR practices fit together in bundles to
contribute to the strategy
• Skill-enhancing bundles
• Motivation-enhancing bundles
• Empowerment-enhancing bundles
 Sutton Chapter 3: Recruitment and selection

Organisations are able to meet their business goals or fulfil strategic aims if they have the
right HR in place. HRM and OB (Organizational Behaviour) perspectives are closely related on
many issues, such as the validity, reliability and fairness of different selection methods or the
role of individual differences in performance.

Resourcing strategy and planning

We can see how HR concerns are integrated with wider organizational issues in selection and
recruitment when we consider the strategic approach to resourcing.
Strategic resourcing: according to our organizational strategy, which human resources do we
require? Four key phases
1. Planning
2. Attracting potential applicants
3. Selecting the best applicants
4. Retaining high-quality employees.
Planning stage: take account of the macro-level issues of workforce planning as well as
micro-level issues of job analysis.

Macro level: workforce planning

- Strategic workforce planning: how will the business strategy be realized through
HRM? Includes succession planning, flexible working arrangements, supply and
demand forecasting, skills audit and gap analysis, and talent management.
- Workforce planning must be agile, responding to short- and long-term issues.
- Main challenge in workforce planning: predicting the future.
Cappelli (2009) has suggested that supply chain management models and techniques can be
used in workforce planning because they face similar tasks: how to ensure a match between
supply and demand in an environment of uncertainty. We can overcome some of this
uncertainty by:
- Developing a more accurate assessment of supply, particularly the skills of individual
employees
- Creating better simulations of demand based on the business plan
- Understanding the impact of assumption in demand simulations, and how changes in
these assumptions will influence the models
- Being aware of the costs involved in a mismatch of supply and demand and adjusting
the forecast to the risks of uncertainty

Workforce planning
1. First stage: the strategy and business plan’s implications need to be understood.
Formulate necessary actions to accomplish the strategy. Which knowledge, skills and
abilities (KSAs) are needed?
2. Second stage: detailed analysis of the organisation and its environment. Basis for the
forecast that will be developed in stage 3. Environmental analysis: PEST framework:
- Political: governmental policies and change, pressure or lobbying groups, legislation
(home and international), regulations.
- Economic: home and international economic trends, taxation, seasonal changes and
market cycles, exchange rates
- Social: consumer attitudes, demographics (of the potential workforce or consumers),
ethnic or religious factors, brand and company image, media
- Technological: maturity of technology, new or emergent technologies, competing
and replacement technologies, innovation, intellectual property.
3. Third stage: develop a forecast of supply and demand: an understanding of the available
human resources within and outside the organization > what roles and KSAs does the
organization need in order to meet its goal.
4. Fourth stage: turn the strategy, analysis and forecasting into a concrete plan of action.
This is likely to involve efforts towards retaining important existing staff, recruiting new
staff, developing succession plans, drawing up learning and development activities and
possibly also dealing with downsizing issues. NOT a linear process, constant monitoring
and evaluation.

Micro level: job analysis

 - After the higher level planning. Developing a clear outline of what a job will entail, by
conducting job analyses. Identification of knowledge, skills and behaviours that
contribute to good job performance for a specific role.
- Very detailed explanation of the specific jobs (e.g. who to report to, hours of work,
terms of employment, etc.)
- The job description is used as a basis for the person specification. The activities and
requirements of the job are ‘translated’ into an outline of the skills and competencies
that an ideal job candidate would have.

Competencies
Competencies can be thought of as sets of behaviours that are key to good job performance.
They capture what a job holder can and wants to do. Competencies need to be written in
such a way that they capture observable behaviours associated with different levels of
performance. Identify good or high-level performance + have indicators of bad performance.

1. Attracting candidates
Recruitment strategy
Different strategies available. Windolf (1986) developed a typology that can be used to
describe types of recruitment strategies based on an organization’s labour market power
and internal resources.
High labour market power: greater choice over the recruitment strategy to adopt and best
remuneration packages (salary, benefits, working conditions, etc.)
Organisational intelligence: most relevant internal resource (the extent to which the
organization can collect and process information, use its knowledge and develop complex
strategy).
Global labour mobility > In recruitment terms, the increasing level of international migration
for work means that organizations can draw on a much larger and more diverse pool of
candidates.

Recruitment channels > Different ways to recruit candidates. The channel needs to provide
access to as many qualified candidates as possible, while providing a cost-effective solution.
Corporate website: one of the most effective methods.

2. Selection methods
Different selection methods:
 - CV and application form: based on candidate CV (experience and qualifications).
Problem with candidates exaggerating their qualifications.
- Interviews: most popular method. There may be bias and subjectivity from the
interviewer. Common biases:
o Halo/horns: a single piece of information to judge a person.

o Primacy/recency: first or last information is the easiest to remember.

o Stereotypes: prejudice or assumption.

o Attribution bias: assume the reason of someone’s behaviour

Bias can be overcome with training. Assessment needs to be clear and unambiguous.
Interviewers should justify their behaviour. Standardised and structured interviews ensures
same questions and evaluation method. Behavioural or situational (structured) interviews.
- References
- Psychometric testing: measure a candidate's personality. (Ability tests, Personality
tests)
- Biodata: a collection of basic information about a person and their career, work and
life accomplishments. Resource intensive.
- Work samples: excellent method. Prediction of job performance > Group exercises,
Role-plays, Presentations
- Assessment centres: based on a list of competencies for the Job, a series of measures
such as tests, interviews and role-plays may be developed so that the competencies
can be assessed more than once.

Fairness in selection
3 main criteria when judging a selection method:
- Reliability: way of thinking about the consistency of a measure: a reliable measure
will give the same results every time it is used.
- Validity: A valid selection method is one that measures what it claims to.
- Fairness: candidates are treated equally and that the decision is made based on fair
and balanced procedures. 3 determinants of how fairness in selection is perceived:
o Elements of the selection procedure

o Information that is used to make selection decisions

o Actual results of the selection procedure

Difficult to stop discrimination in selections. Sometimes unfair, or even discriminatory

against particular groups. Adverse impact occurs when two groups score differently on a
particular measure and it results in differential hiring rates for the people in each group.
Reasons why differences exist that do not necessarily reflect differences in ability:
 - Measurement method
- Test coaching
- Applicant perceptions (of test validity)
- Stereotype perceptions
- Criterion composition

Sutton Chapter 5: encouraging and managing performance

Performance: most important issue that managers and organisations deal with. To manage
performance effectively, we need to start by finding out what motivates people to do a good
job. Recognition that people will perform better when they are motivated.
Three areas of work motivation:
1. Theories that focus on individual differences and personality, internal people’s
motivation.
2. Role of the job itself in motivating people
3. Role of rewards in helping or hindering motivation.

Individual motivation
Motivation: three elements determining the effort people put into work:
- Direction: goals
- Intensity: level of effort put into a particular task or attempt to achieve a goal
- Persistence: how long one continues their efforts when facing difficulties

Two approaches in explaining differences in individual motivation:

1. People are motivated to meet different needs
2. Levels of motivation are part of one’s personality. Some people are more motivated
than others
Three different strategies to determine pay, differentiated in terms of how they assign
“worth” to a particular role or person:
1. Pay based on the relative worth of the job to the organisation. Higher value of the job
means higher pay. Either based on the job itself or on specific skills needed.
2. Performance-related pay reflects individual worth: assessment of performance.
Direct incentive effects (higher performance leads to greater pay) + sorting effects:
particular approaches to pay will attract and retain particular employees, specifically
those who will respond well to the approach and perform at a higher level.
Challenge: how can performance be effectively evaluated and monitored?
3. Commercial worth of the employee (labour-market approach centred on the levels of
supply and demand)

Salary sacrifice schemes involve employees deciding to ‘sacrifice’ some salary in exchange
for particular benefits such as extra holidays. In flexible benefit frameworks, the organization
offers employees a range of different benefits of varying value and each employee can
choose the ones they prefer, adjusting the salary up or down as appropriate.

Performance management (PM)

- … is about ensuring that the individual’s performance contributes effectively and
efficiently to the overall organizational performance
- One of the key elements of effective performance management is creating a shared
understanding between individuals and the organization about what should be
achieved, and managing people in a way that leads to higher organizational
performance.
- Functions of PM: Providing feedback on performance, Differentiating between
employees to distribute performance-related rewards, Identifying areas for
developing and training
- The aim of PM systems is to support individual employees in contributing to the
overall performance of the organization. They can consist of policies and practices
that help to align employee goals with organizational goals and enable and motivate
employee or team performance.
Key elements of an effective PM system include:
- Alignment of objectives: providing clarity on roles and objectives
- Building engagement: PM encourages better relationships between employees and
managers and builds commitment
- Central role of line managers: good managers will be good at PM, a good system can
support and enable this process
- Evaluation: important to have ongoing evaluation of the PM system to ensure it
delivers its objectives
- Impact on other organisational processes: PM can identify potential, can be linked to
learning and development activities, often used to provide performance-related pay
The PM cycle can be modelled using a simple management cycle of ‘plan-act-monitor-
review’:

Management by objectives (MBO) > having objectives and focusing on achieving them.
Similar to goal-setting theory. Four key elements of MBO:
1. Goals have to be specific
2. Commitment: To ensure that people are committed to the goals, participative
decision making is key. That means managers should avoid imposing goals on
employees, but encourage them to be involved in the choice of the goals.
3. Time-specific: Goals need to have time limits in order for performance assessment to
function.
4. Feedback: Continual feedback is best, so that employees can adjust and improve
their performance as they go along.

A balanced scorecard (BSC) is defined as a management system that provides feedback on

both internal business processes and external outcomes to continuously improve strategic
performance and results. The balanced scorecard is a strategic management tool that views
the organization from different perspectives, usually the following: Financial (shareholders),
Customer, Business process (the key processes you use to meet and exceed customer and
shareholder requirements), Learning and growth. For each of these perspectives, the
balanced scorecard prompts you to develop metrics, set performance targets and collect and
analyze data. Your scorecard thus offers an efficient mechanism for reviewing strategy
implementation based on measurement.

Challenges in implementing PM systems

PM at the individual level: the appraisal
Three significant challenges that PM system faces dealing with an employee:
1. Issue of politics and power (e.g. an employee may view the performance
management system as an opportunity to gain higher wages by convincing the
manager that he is performing at a high level)
 2. Issue of how the information gathered in performance appraisal is used. How reliable
are the performance measurements? 360-degree appraisal, where an employee's
performance is rated by supervisors, peers and subordinates (and sometimes even
external clients or customers), is increasingly popular because it provides a more
rounded picture of an individual’s performance.
3. How performance can be accurately measured. The most straightforward criterion
for performance measurements could be considered the output criterion, especially
where they are clearly linked to organizational goals. Specific behavioural criteria can
be more useful than outputs if employees’ actions can be directly observed and rated
in terms of their effectiveness or desirability to the organization.

Dealing with poor performance > Difficult. Managers often avoid removing employees for
poor performance because of:
- Emotional attachment
- A belief that poor performers can be developed and that this investment will result in
improved performance.
- Practical barriers: fear of litigation (process of taking legal action) and widespread
resentment
To make the process fair:
1. The organisation needs a clear policy and process to deal with poor performers
2. Managers should ensure they use an ‘evidence-based’ approach, in order to
demonstrate to the employee how and where the performance is not up to standard.

Sutton Chapter 10: Learning and development VERSIE 1

Individual learning > Learning, Training, & Development (personal and professional growth
relevant to career)

Simple learning: association

Association represents basic learning (classical conditioning), like associating the ringing bell
with food for animals.
More complex is operant conditioning: associative form of learning, associating an action
with its consequence or outcomes that influences our actions.
These approaches do tend to view the individual as quite passive in the learning process:
actions are simply ‘determined’ by the associations of stimuli and response.

Social learning
Social learning theory: an important aspect of human learning is that we learn by watching
others. As learners, we are not only responding to rewards and punishments, but actively
thinking about what we are doing. Social learning theory shows how we learn complex
behaviours by copying other people. People copied are called “models”.

Behaviour modelling training (BMT), type of training based on social learning theory. Five
essential ingredients:
1. Clearly define the set of behaviours or skills to be learnt and explain them to the
trainees.
2. Provide a “model” of those behaviours. Can be done through a video or
demonstration. Including negative models.
3. Give trainees the opportunity to practise the new skills and behaviours.
4. Provide feedback and reinforcement based on the practice sessions.
5. Maximize the transfer of new skills to the job. This can be done by using practice
scenarios generated by the trainees themselves, training managers as well, and
introducing rewards for the new behaviours into the trainee’s job.

Experiential learning Theory (ELT) > central role of experience in learning processes. Learning
goes through a continuous process from experiencing an event through thinking about it and
trying to improve performance
1. Concrete experience
2. Reflective observation: for example ‘what went well and what could be improved’
3. Abstract conceptualization: developing ideas or theories that would explain the
experience. E.g., if the conversation became adversarial, was it because the
subordinate felt threatened
4. Active experimentation: trying out new ideas to see if the situation can be improved.
To be effective, learners need all four abilities in the cycle. Learning is the process of creating
knowledge through the transformation of experience. Some important principles in ELT:
- Learning is a continual process, we should recognize this procedural nature rather
than seeing it as the achievement of a specific set of outcomes. This continuous
process is grounded in our experiences: we constantly test out new knowledge and
concepts against our experiences.
- The learning process is filled with tension and conflict: as we learn, new concepts
come into conflict with our previous knowledge, skills or attitudes and we need to
resolve these concepts if we are to learn anything. There is conflict in the learning
process itself, between reflection and action, theory and practice.
- Learning is a holistic process: that is, it involves all our functioning — thinking,
feeling, behaving and perceiving — in a process of adapting to the world. Learning
shouldn’t be seen as a specialized function but as ‘the major process of human
adaptation’
 - Learning is an active process of transaction between the person and the
environment: it is not something that takes place internally within the learner, but is
applied in normal life.

Learning styles
A popular approach to understanding individual learning is to suggest that people have
different styles in how they learn and that training should be adapted to the individual’s
style.

Important elements in learning and training:

1. Importance of metacognition: how developing an understanding of how we learn can
be the basis of our own development.
2. Discussion of learning styles can be a catalyst for individual, organisational or
systemic change
Issues with the learning styles literature:
- Problem of labelling learners: both trainers and learners may start to use labels as
stereotypes.
- There are relatively few models of learning styles that have sufficient and convincing
evidence behind them or acceptable psychometric properties for their
questionnaires.
- There is little evidence that adapting the training or teaching style to learners
proposed style makes any difference in the effectiveness of learning

Informal learning
Informal learning has the benefits of being very flexible and adaptable as it is tailored
towards the individual, but has the challenge that it is difficult for organizations to monitor
and evaluate it.
There are, however, ways that organizations can incorporate informal learning opportunities
into their formal training and development schemes (e.g. peer feedback).
E-learning could provide formal and informal learning integration

Training and development

Training needs analysis
If the investment an organization makes in training its staff is to be realized, the training
should be based on a thorough needs analysis. It would clearly be a waste of resources to
provide training that was not needed by certain individuals or did not contribute to overall
organizational aims.
The analysis should take place at three levels:

Strengths-based development: helps employees to identify their strengths and look for ways
to use them more.

Type of skills
- Foundation skills: such as literacy and numeracy. These are the outcomes of basic
education and allow people to continue their education and training.
- Transferrable skills: such as communication or teamworking. These skills are needed
in a variety of contexts within and outside employment, and there is a strong
expectation that they will be developed in higher education alongside subject specific
knowledge.
- Technical/vocational skills: technical abilities and knowledge needed to carry out
specific tasks, for example using database software or changing the oil in a car.

E-learning
- Learning package delivered via computer, commonly through the internet. Problems
in effectiveness.
- E-learning has two potential benefits over other methods, namely reduced costs and
increased flexibility.
- Problems: learners have more control over their learning, lack of support.
Training transfer: The extent to which what we learn in one situation is transferred to a new
situation. The context of the learning refers to how similar the learning context and the
performance context . are. Near transfer occurs with more similar contexts } and far transfer
with more different contexts:
- Knowledge domain: This is the extent to which a skill learnt in one domain is
transferred to another domain. For example, a learner might be expected to transfer
logical thinking skills developed in a maths course to problem-solving in a business
studies course.
- Physical context: Does the learning take place in similar physical surroundings to the
performance context?
- Temporal context: The time that elapses between learning and performance.
- Functional context: How is the skill taught? If it is taught as an academic skill, far
transfer would entail transferring that skill to a new functional context such as the
workplace, whereas near transfer would simply mean performing the skill within the
same academic context.
- Social context: The extent to which a skill learnt alone could be applied in a team or
vice versa.
- Modality: The skill may be learnt in one modality (e.g. auditory) and applied in a
different one (e.g. written). An example of this might be learning something in a
lecture and then attempting to apply that knowledge or skill in writing an essay.

Three main contributors to effective training transfer:

- Personal characteristics: Trainees with higher cognitive ability, conscientiousness and
self-efficacy demonstrated better learning transfer. In addition, those who were
more motivated and took part in the training voluntarily also showed a moderate
increase in training transfer effectiveness.
- Environmental factors: If the organization has a good transfer climate availability of
equipment and opportunity to practise as well as positive and negative
reinforcement trainees are able to transfer their learning much more effectively.
Support from peers and management is also important in encouraging transfer.
- Learning outcomes of the training: Where training results in higher self-efficacy and
knowledge for the participants, they are more likely to be able to transfer the
learning to their job situation.

Evaluating training
Training evaluation can be carried out at four different levels:
1. Reaction: how the trainees reacted to the training, how they felt about it. feedback
sheets
2. Learning: how much the trainees learnt on the programme. tests or interviews.
 3. Behaviour: to what extent the trainees change their work behaviour as a result of the
training. This is more difficult to assess and can involve further interviews and
observations, as well as gathering feedback from the trainees’ colleagues or
manager.
4. Results: this is the extent to which the training impacts on organizational-level
outcomes and is the most difficult to assess, primarily because organizational
measures have so many contributing factors.

Organisational learning
Knowledge: resources the organisation already has.
Learning: development or acquisition of this knowledge.
Knowledge management: how the organisation manages its knowledge resources to meet its
current and future needs.

Five images of knowledge (different ways of viewing knowledge):

1. Embrained: conceptual and knowledge that relies on a person’s cognitive abilities, for
example the kind of knowledge you theoretical might develop on a university course.
2. Embodied: action-oriented knowledge that is highly context specific, using physical
presence and information from the senses, including conversations with others. An
example would be knowing how to deliver some difficult feedback to a specific
colleague.
3. Encultured: knowledge based on developing shared understandings, for example
storytelling that develops a common understanding of how things are done in that
organization.
4. Embedded: knowledge contained within the organization’s routines. For example, a
hospital’s A&E department has a set of routines for dealing with incoming patients,
which represents the ‘knowledge’ of how to deal with medical emergencies.
5. Encoded: knowledge ‘encoded’ in signs and symbols, including language. An example
would be the recipe and manufacturing process for a certain type of shampoo, which
is captured in the company’s manual.

The learning organisation and organisational learning

Some authors distinguish between ‘organizational learning’ and the ‘learning organization’ in
order to emphasize different aspects of learning in organizations.
- Organisational learning is not simply the sum of individual learning in the
organization but the integration and embedding of that individual learning into and
through the whole organization (Linstead et al., 2009). That is, it takes individual
learning a step further to make it useful to the whole organization.
- A learning organization has learning as a focus and central tenet; it encourages and
facilitates learning by employees in order to continually develop itself. This concept
was popularized by Peter Senge (1990), who claimed that the only sustainable
 competitive advantage was in being able to learn faster than the competition. A
learning organization is one that can adapt to its changing environment and survive,
much like a biological organism; essentially, it translates new knowledge into new
behaviour (Garvin, 1993).

Single-loop learning: process that enables the organisation to meet its current objectives.
Double-loop learning is the process of questioning and adjusting the underlying objectives or
policies, rather than simply trying to meet them.

Several traps that can prevent organisational learning:

- The competency trap: by overinvesting in our strengths, we also take less time to
learn other important new skills
- The ambiguity of success: not only do people change their interpretations of what
constitutes ‘success’, but different groups or individuals within an organization may
evaluate an event differently. For some it may be a success and for others a failure,
with correspondingly different lessons to be learnt.
Social learning is important. Communities of practice, learning through participation in these
groups. Mutually engaged members with a shared repertoire of routines, vocabulary, styles,
etc.

Sutton Chapter 10: Learning and development VERSIE 2

Learning and development
Individual learning

Important to distinguish learning, training and development.

Learning: acquisition of new knowledge, skills and abilities.

Training: process of helping employees develop KSAs needed
Development: Personal and professional growth revelant to career

Simple learning: Association.

Most basic element of IL (individual learning).

Classical conditioning: Experiment of dogs, learnt to associate ringing of a bell with food so
they respond each time.
Operant conditioning: Association of an action with its consequences or outcomes that
influence our actions. If there is a reward, we are more likely to do something.

Rewards and punishments: reinforcers

Social learning theory: human learning by looking at others.

- Emphasizes ability to develop hypotheses on what is successful behaviour, gather
feedback, reflect on feedback to refine behaviour
- Shows how we learn complex behaviours by copying people
- New job: company jargon and attitudes

Copied people: Models. We reproduce their behaviour> modelling

Verbal modelling: for example through a manual that is given to you on your first day, you
copy behaviour through the manual, not a ‘real life’ model

Behaviour modelling training (BMT)

>type of training.

Five components:
1. Clearly define set of behaviours to be learnt and explain to trainees
2. Provide model of behaviours (through video, demonstrating)
 Also negative models.
 o Helps with transferring knowledge but can be confusing.
3. Give trainess opportunity to practice new skills and behaviours
4. Provide feedback and reinforcement based on practice sessions
5. Maximize skill transfer
 Can be done through practice scenarios, training managers, introducing rewards
for behaviour

Impact of:
 Procedural knowledge: how to do things/skills
 Declarative knowledge: expressable knowledge, e.g. written test
 Attitudes
 Job behaviour
 Work group productivity,
 Work climate

BMT: improved procedural and declarative knowledge. Modest effect on attitudes, small
improvement in behaviour, little influence on work group outcomes.

Experiential learning theory(ELT): emphasizes central role of experience

- Improvement based on experience

Learning styles:
1. Concrete experience: Carrying out activity
2. Reflective observation: Observing/reflecting on experience (What went well? What
could improve)
3. Abstract conceptualization: Developing ideas of theories which would explain
experience.
4. Active experimentation: Trying new ideas to see if situation can improve

Learning= process of creating knowledge through transformation of experience

Principles for understanding learning at work:

1. Should be viewed as continual process grounded in experiences
2. Process is filled with tension and conflict
3. Holistic process: involved all our functioning (thinking, feeling, behaving perceiving).
Should be seen as major process of human adaptation
4. Learning is active process of transaction between person and environment

Learning styles
Popular approach: suggesting people have different leartning styles and training should be
applicable to own learning style.
Five families of learning

Important elements of learning and training

1. Importance of metacognition: developing an understanding of how we learn
2. Catalyst for individual, organizational or systemic change

Issues with learning styles

1. Labelling learners: stereotypes
2. Few models of learning styles that have sufficient and convincing evidence or
acceptable psychometric properties
3. Little evidence of adapting training making difference
4. Approaches often lead to dismissal of actual knowledge

 No evidence of interaction with learning style and optimal learning

Informal learning

Learning takes place at work places informal.

e.g. through relationship building, mentoring and feedback

e-learning: learning whenever however employees want. Is more cost effective.

Lifelong learning

Continuing or continuous professional development (CPD): individual engaging in ongoing

development of skills and knowledge to ensure people are up to date
 Improving own competence

Map for guiding CPD:

Hardships with critical reflection:
1. Difficult skill to develop
2. Can be disruptive even if mastered> knowledge of flaws in systems
Analysis of training

‘deficit’ view of performance: focusing on what someone can not yet do or isn’t good at,
and attempts to improve this

Strengths-based development helps employees to identify their strentghs and look for
ways to use them more.

Types of skills
1. Foundation skills: literacy, basic knowledge eigenlijk
2. Transferrable: communication or teamkworking
3. Technical/vocational: abilities and knowledge needed to carry out tasks

Skills gap in different countries: technical skills less available.

Training methods

E-learning: refers to leatrning via computer.

Problems: grouping e-learning together fails to distuinghish well and poorly designed
packaged.

Advantages:
1. Reduced costs
2. Increased flexibility

Issues:
1. Relies on learning actually learning
2. Motivation necessary
3. Possibility of learning in isolation.
Sorgenfrei and Smolnik: importance of understanding ‘learning control’ dimension

MacPherson et al:
1. E learning lacks personal supports
2. Reduced contextualization, making training less meaningful or relevant

Doe sgive organization pointers on effectiveness maximization

Garava et al. e-learning influenced by individual factors like motivation and support as well
as design dfactors.

Main areas of optimizing e-learning

Improving training effectiveness

Practice

Learning is a process

Spaced practice: rest periodes between practice, gives better than

Massed practice: no space

Training transfer: the extent to which what we learn in.one situation is ‘transferred’ to a new situation.

Contexts of training:
Contribution to effective training transfer:

1. Personal characteristics
2. Environmental factors
3. learning outcomes of the training: if it resulst in self-efficacy and knowledge it will be
more succesfull

evaluating training.

Challenge: demonstrating impact or value for money. Evaluation can be carried out in 4
levels:

1. reaction
2. learning
3. behaviour
4. results
Organizational learning

Knowledge management: how the organization manages its knowledge resources to meet its
current and future needs
Tacit knowledge: knowledge we may not be aware of, instincts for example.
Explicit knowledge
Knowing: a process mediated by language, techonological control and collaborative systems,
situated in a particular context and pragmatic,: has a purpose.

Organizational learning: integration and embedding of individual in organization

Learning organization: has learning as a focus and central tenet.

Single loop learning: enables organization to meet current objectives.

Double loop learning: questioning what the criteria defining high quality actually are and
how relevant they are for individual trainee or organizational success

Argyris: often crisis as momentum needed for learning to start. (error detection)]

In contrast: learning as development of routines that guide behaviour. Through events

procedures policies and beliefs are constructed.
Exploitation: faster and more predictale results
Exploration: uncertain and often negative results
- needs high visibility
- needs protection of corruption

 caused organizations to be trapped in suboptimal performance.

Communities of practice: we learn through participation with whom we interact (Wenger

(1998)).

COP three criteria:

1. Mutually engaged members
2. shared repertoire of routines
3. Engaged in joined enterprise

Collings Chapter 11: Performance management in the global

organisation

Performance management systems

Performance management is the key process by which organizations assign work to
employees, set goals for them, determine standards, review and evaluate work, and
distribute rewards.
PMS has two purposes:
1. Administrative decisions: promotions, merit raises, bonuses
2. Development goals: feedback, coaching and counselling
PMSs that are designed and implemented according to the organization’s unique context
and needs are essential for the successful implementation of business strategies.
Performance management systems and MNEs
Implementing a single PM system would be cultural assimilation. Cultural integration should
be pursued. It takes more work and time.
Employee PM consists of three phases: design (why, what, how, how often, who),
implementation, and evaluation.

The global context

PESTEL analysi: Political, Environmental, Social, Technological, Economic, and Legal
dimensions of a business environment.
Clearly, when it comes to MNEs, the outer-most layer consists of the “culture” and the
“structure” of a society in which organizations operate. External culture includes elements
such as beliefs, values, practices, and norms dictated by the national culture. This would
correspond to the social aspects of a PESTEL analysis. The external “structure” relates to
those other contextual elements, such as government regulations, legislation, industry,
sector, type of ownership, unionization, technological and economic conditions, and
demographics and so on.

Culture and language

Cultural and language differences can lead to gaps in understanding, or a lack of coordinated
thinking, among participants in a PM system. So, implementing PM systems across the globe
requires that MNEs spend more time doing the additional communication needed to bridge
those gaps.

So how do we manage when we do not share culture? One managerial response is

structured communication. The larger the cultural distance, the more important it will be for
PM systems to include explicit over-communication using multiple sources to reduce
possible cultural misunderstanding
For cultural integration to occur, it is important for managers to learn local perspectives as a
first step.

PMSs in three leading economies

PMS in USA
Culture of individualism. In the US there is a strong emphasis on using PM systems for
informing administrative HR decisions, such as awarding merit raises and making
promotions. The use of PM for developmental purposes remains rather limited.
PMS in China
Historically, PM systems were primarily managed by the state. Widespread implementation
of PM systems at the enterprise level in the private sector too. legacy of the state planned
economy, combined with a relatively collectivist culture, are themes that pervade PM in
China.
PMS in India
PM systems have existed in India for rather a long time. In public sector > for over a century.
Several private sector organizations have also had formal evaluations in place for the same
period. Indian companies are making rapid progress in implementing state-of-the-art PM
systems. Diversity, in its various forms, continues to be one of the main challenges faced by
MNEs operating in India.

Lecture 4

- The way you look at motivation influences how you will deal with motivation inside
your organization
 Three areas – role of rewards (p104)

Material rewards -> Pay

o Influence on attracting people to the organization

 Pay based on relative worth of the job of the organization:

 Grade the job itself
 Grade the value of specific skills
Value of the job to the organization. If everybody can do it, they will not use that pay
in the end.

 Performance-related pay
 Reflects the individual worth of employees in terms of an
assessment of their individual performanxe
Do you achieve more etc
 Pay based on commercial worth
 Labour market approach
How much labour power does my organization have, more power = more often
providing opportunities of paying based on commercial worth (external approach)

Total reward

Performance management (important because of impact on individual outcomes as well as

organizational outcomes)
- Goes beyond encouraging motivation
- Different ways to manage performance
o Management by objectives
= specific goals which are time-specific, whereto employees are committed and
which are continually provided with feedback
- Ensuring that individual performance contributes to organizational performance:
 Providing feedback on good and bad performance
 Differentiating between employees
  Performance-related rewards
 Identifying areas for training and development

Outflow = worst case scenario of poor performance

HRM outcomes
JD-R model

Nurses case

Work-life balance

- Importance of people in organization, does my employer pay attention to me as an

employee and as a person?
o Subjective, can vary between people

- For the first time around 1970 – “the balance between an individual’s work and
personal life “
o How can employees find a balance between all the challenges in the work and
private domain?

- Important role of HR to facilitate the balance between work roles and personal roles>
creating the balance

Work-life balance
Importance of this concept has increased enormously
- Changing vision on livelihood
- (young) women entering the labor market
- Expanded to men and working couples – everyone
- Globalization
- Soft HRM
Challenges
- Technological advancement (modern communication technology)
- Increase in expectations of WB and wn’ers
“24/7 opening hour culture of modern society”

- Work domain: “where monetary returns are expected fr the efforts put in either
working for somebody or self-employed
- Life-domain: “more encompassing involving in its fold-family, friends, hobbies,
religion, community etc.”
 Who are you associated with outside of work?
 Expect a certain amount of time, energy and commitment- less
enforcing
 Unpaid – social attachment & obligations

Conflicting expectations – three forms of conflict

1. time based conflict: too little time
2. Tension based conflict: some things are asked but your norms and values don’t
support
3. Behavior based conflict: what if you do things or have to do things and your
background doesn’t allow it?
All are interconnected

‘Spillover effect’ positive?

- BUT work is not the only causes of conflict, other issues in the life domain can also be
a source of conflict
- Work-life interference (WLI) and life-work interference (LWI)

What are HRM outcomes?

What if we cannot find a balance between work and life?

Engagement: turnover
“ a positive fulfilling, work-related state of mind that is characterized by vigour, dedication
and absorption”

- Vigour: “high levels of energy and mental resilience while working, the willingness to
invest effort in one’s work, and persistence even in the face of difficulties
- Dedication: “ a sense of significance, enthusiasm, inspiration pride and challenge”
- Absorption: “ being fully concentrated and deeply engrossed in one’s work, whereby
time passes quickly and one has difficulties with detaching oneself from work”

example: being out and boss calls

Engagement>turnover> importance of SHRM

HR-practices
- Empirical study in Malaysia, employees in oil & gas industry
  Men 57%
 Highly educated – bachelor or higher degree (100%)
 Majority were highly experienced (5-8 years, 42%)

Intended-actual-perceived human resource management

HRM has to be strategic to be effective.

HR-practices
- Training: “ the extent to which people like or dislike the set of planned activities
organized to develop the nowlegde, skills, and attitudes required to effectively
perform a given task or job” (Schmidt, 2007)

Performance appraisal: how honest, unbiased and motivating is the performance

management system?
 Feedback is a resource and creates personal growth -> ++ engagement

Compensation satisfaction: “amount of overall positive or negative affect (or feelings) that
individuals have toward their pay “ (Miceli&Lane)
 Influences motivation- balance between input/output (equity theory) -> no effect

3 important elements.
1. Type or sample matters (whos in the survey)
2. Link to total reward system, might clarify why we don’t find a significant effect on pay
and performance
3. This is a paper in the Malaysian oil and gas industry > cultural context matters enzo

2 more elements:
Engagement has negative effect on turnover (leaving)

How can we define people management and what makes It relevant?

The studies of leadership and HR-Management share a common goal:

- Developing a better understandiong of how to effectively manage people in
organizations
 People are an organizations greatest asset
  Investing in human beings is important in creating welfare (for organizations and
individuals alike)

- Leadership: understanding the personal and interpersonal dynamics of how

individuals influence each other towards collective goals
- Leader behaviors and releant outcomes
 Follower motivation and performance
- The larger organizational context in which leaders operate = source of influence for
employees

Important: how both of them are connected and share ideas on how to motivate individuals.

Hard hrm does not care much about employee development, focusing on making sure
performance is at a high level
Can interact in 7 ways:

1. Distinguishes LS and HRM as different elements, both impacting individual

motivation and engagement of employees. Two independent elements trying to have
an effect on motivation and engagement
2. More connection. Leadership and hrm recognize they both contribute to same goal >
rely on each other. Idea is left apart and developed further in 3.
3. It is still recognized that there is a difference, but they have to interact with each
other to make sure the employee motivation goes up. They need each other >
supplement
4. Idea that combination as such is not important, but there needs to be synergy
between LS and HRM. Both really have to be combined, that has the strongest effect
on employee motivation and engagement.
5. Wise to divide in what you do and how you motivate employees. Implement different
approach towards employees, depending on what goals are and what you want to
achieve
6. Sees hrm and LS as opposing, they take the context into account
 7. LS and HRM needs interaction, but this can be done in different ways.

Need to know: HRM and LS interact with each other.

Conclusion:

Impact of the context. Macro HRM. Vertical fit, strategy

Micro HRM
Today: important element of individual outcome, impact organizational outcome.

Khan. Work Life Balance: A Conceptual Review

The drivers for work life balance (WLB) can be attributed to changes in the
- demographic distribution of the labour force
- technological advancement (employees can now work from home and are always
contactable due to phones)
- 24/7 opening hour culture in modern society

Life and work can conflict, or they can support each other: family helps in reducing and
managing the family obligations> positive family spill-over / work-family enhancement (more
often occurs in collectivist cultures)
Gender influences work-life conflict > women have more issues, because women tend to
have more family obligations than men. Married women experience more work-life conflict
than unmarried women. Mothers with younger children experience the highest work-life
balance issues.
supportive family and work factors > higher cases of job satisfaction, affective commitment
and organisational citizenship behaviour.
New innovative strategies/policies adopted from organisations include flex-timing, part time
work, job sharing, telecommuting, compressed working week to maternity benefits, parental
leave, paternity
leave, onsite day care, emergency child care, elder care arrangements.
The stress level within employees has increased due to feeling of being controlled with
technology

Memon - Satisfaction matters: the relationships between HRM practices, work engagement
and turnover intention
Study examines employees’ satisfaction with HRM practices. Specifically: what is the effect
of training, performance appraisal and pay on work engagement and consequently on
turnover intention
Findings – The findings indicate that training satisfaction and performance appraisal
satisfaction are the key drivers of employee engagement at work. Work engagement in turn
has a negative impact on employee turnover intentions.
Practical implications – Training plans should be designed to make the relevant jobs more
attractive and fulfilling, thus increasing employees’ level of work engagement. Besides,
ensuring that the appraisal system is fair is pivotal to work engagement. Work engagement
will cultivate a strong sense of emotional attachment between employees and employers,
thus reducing the turnover intention
HRM engagement strategy, or engagement driven strategic HRM: measures such as training,
performance appraisal and financial compensation (pay) > contribute to positive workplace
attitudes, behaviours and performance by increasing engagement and therefor lowering
turnover intentions
JD-R considers HRM practices to be job resources. These resources are energising;
motivating employees to be highly engaged with their work, which in turn generates positive
performance outcomes. Resources include for example:
- Training (satisfaction) > increases employees’ capacity to meet job demands
- Performance appraisals > According to JD-R theory, performance feedback is the key
resource that reduces job demands and stimulates personal growth and
development. Employees perceive themselves to have been fairly treated by their
employer if they regard the appraisal to be fair, unbiased and mutually beneficial.
Such fair treatment generates a sense of obligation on the part of the employee,
which they act upon in terms of work engagement. In short, employees’ positive
perceptions of the performance appraisal system motivate their engagement
- Opportunities for development (satisfaction)
- Participation in decision making and communication
- Pay (satisfaction) > The perception of equity is essential to employees’ satisfaction
with their pay. Employees’ look to achieve equilibrium between what they put into
their work in
terms of effort, knowledge and skills and what they gain in terms of compensation
(no evidence found! In contrast of traditional thought)
 Strong predictors of work engagement (results support this)
Satisfaction of implemented HRM practices acts as potential job resource that encourages
employees’ determination and work efforts, which translates into positive outcomes (i.e.
lower turnover intention)
Leroy. Managing people in organizations: Integrating the study of
HRM and leadership
The studies of Leadership and HR-Management share a common goal: Developing a better
understanding of how to effectively manage people in organizations. Leadership is a process
by which a person influences others to accomplish an objective and directs the organization.
HRM looks at the systems and processes in an organization that attempt to influence people
in a systematic way, usually on a larger scale
many of the strengths and challenges of each domain (HRM and Leadership) could be
counterbalanced by theoretical insights and empirical research findings from the other
domain. For example, insights from the work on leadership could help better understand
how HRM is implemented in organizations and work on HRM could provide knowledge on
contextual influences in the leadership field > combination gives a better understanding of
effective people management in organization
value-based leadership > In reflecting desired-end goals, values provide insight into how
individuals are differentially motivated, how those motives influence their behaviors, and
how leaders end up motivating followers. A value-framework with four axes…
- self-enhancement (pursuit of personal status and success)
- self-transcendence (concern with the well-being of others)
- conservation (preservation of the past and resistance to change)
- openness to change (independence and readiness to change).
… can be used to map leadership styles. For example those commonly discussed such as
transformational, transactional, servant, ethical, authentic, shared and inclusive leadership
and LMX
From the overview it should be clear that (1) different HRM systems and leadership styles
use different values as the basic mechanism for influence and (2) that there is quite some
diversity in these approaches, including differences between leadership styles and between
leadership styles and HR approaches. We will use the idea of fit between HR and leadership
approaches in the next
section to elaborate on how HR and leadership interact with each other.
Theory of person-environment fit. PE-fit describes the different ways in which individuals (do
not) fit in their environment and the consequences of a lack of fit for motivation and
performance.
Seven possible ways in which Leadership and HRM may interact:
1. Independent > operate in isolation, independent effects. BUT: not realistic
2. Enactment > leaders play a crucial role in enacting the practices suggested by
HRM. Analytically speaking, this option looks at Leadership as a mediator between
HR systems and employee motivation and performance. BUT: this option ignores
some of the power and politics in the reality of many organizations where the
HRM department seldom has the power to motivate or force leaders in the
desired direction
3. Supplementary Fit > Leaders and HRM are independent parties and sources of
influence whose interaction co-determines employee behaviours. They can align
to create optimal effects, or they can undermine each other’s effects by confusing
employees as to what is expected of them.
4. Synergistic Fit > A synergistic perspective suggests Leadership and HRM mutually
reinforce each other to send stronger signals together than they do separately.
 5. Complementary Fit > improved results can be achieved by having in some form
oppositional perspectives from HR and Leadership. Complementary fit perspective
allows an organization to play at different fronts simultaneously to foster more
overall inclusion of people in the workplace.
6. Perceptual Filters > There are a variety of possible filters between how something
was intended/enacted and how it is perceived. Leadership and HR focus as a filter
to each other. Depending on the choice of either a similar or an opposing value-
perspective, HR and leadership may be viewed differently.
7. Dynamic Fit > fit may evolve and change. From that perspective, repeated
interactions between HR and Leadership may help create more alignment either in
creating supplementary, synergistic, or complementary fit or in alleviating
perceptual filters that may exist between parties. For example, it can be argued
that authentic leadership behaviours help create more system coherence and
alignment in the overall system of influencing people.

Lecture 5

How can we define leadership?

Difficult to define

Definitions > more

1. Leaders have certain capacities/skills/power to direct and energize people to achieve
goals > Rainey 1979
2. Having followers
3. Leaders should help employees in organization to achieve specific goals/activities

Leadership is:
1. Complex set of processes
2. Context dependent
3. Qualities, skills, aptitudes and behaviours

Leadership styles: set of leader qualities, skills, aptitudes and behaviours used to describe or
prescribe ideal leader patterns.

Transactional and transformational leadership

Transactional: focused on daily interactions between leaders and followers (give amount of
money, you do specific task)
Transformational: engages in emotions of followers

Transactional leadership

- Basic type of leadership (overall)

- Reward and punishment
- Focus on (specific) task and behavioral exchange
- Leaders ensure that followers have what they need

Transformational leadership

- Emotional and intellectual component

- Energy and determination
- Inspiration
- Vision and charisma
- Provision for challenge and encouragement for subordinates
- An appropriate degree of risk taking
- Seen as role models

When are they most effective?

Transactional: if everything is already clear/settled>established

Ethical leadership

- Internal (HR) positive effects

- Correct ue of public resources
- Direct consequences on citizens trust in organizations

Trust

Definitions of ethical leadership

Components of ethical leadership

- Being an ethical role model to others – moral aspect – role of social learning
- Treating people fairly
 - Actively managing ethics in the organization
- Relational component

Ethical vs unethical leadership

Unethical:
- Use their positions to gain personal benefits at the expense of others
Ethically neuteral:
- Unaware or fail to reflect
- Free of improper behavior but do not stimulate proper behavior.

Unethical leadership is not the same as the absence of ethical leadership.

- Absence of ethical leadership is best understoond as ethically neutral leadership
- Unethical leadership refers to leader behaviors or actions that are illegal or violate
existing moral standards

Ethic-based approaches: Dilemmas

- Are the chosen means acceptable?

(Deontological or duty approach)

- Are the chosen goals acceptable?

(Teleological or utilitarian approach)

Summary of article

Collaborative leadership
  A way to deal with intergovernmental organizations
 Solving strategic and substantive complexities

Breaks with more hierarchical structures> horizontal relations, connections with

organizations and actors in order ot solve a problem.

Important elements in defining collaborative leadershiop

- The network environment of collaborative leaders is more complex than hierarchical
leadership settings due to:
- The various goals each member of the network has for the outcome of their
combined effort.
- The constraints that are imposed upon the collective action by the home
organizations of the various members of the network.
Collaborative leaders have to spend time on:
- People-oriented behaviors: motivating personnel, creating trust, treating others as
equals, maintaining a close-knit group.

Collaborative leadership: skills

- Emphasizes power-sharing among organizations
- Requires a long-term perspective
- Emphasizes a cooperative, win-win perspective
- strong service mentality and tend to excel at consultation
- strong sense of community
 Collaborative leadership: best practices

Complexity leadership
 Hassan. Does Ethical Leadership Matter in Government? Effects on
Organizational Commitment, Absenteeism, and Willingness to Report Ethical
Problems

RQ: what are the consequences of ethical leadership within the public sector?
Findings: ethical leadership reduced absenteeism and had a positive influence on
organizational commitment and willingness to report ethical problems.
*ethical leadership can increase follower satisfaction with the leader, the perception of
leader effectiveness, the quality of the leader-member exchange relationship, organizational
commitment, and prosocial behavior, as well as reduce deviant employee behavior
Existing evidence suggests that the leadership in public organizations often fails to achieve
the desired ethical standards, and that there are many violations of ethical standards by
employees (e.g., misreporting hours worked, employment discrimination, sexual
harassment, and violations of privacy). Employees who observe workplace misconduct often
fail to report it, because they often noted doubt that management would take appropriate
corrective action and a fear of retaliation.
What does ethical leadership mean? Ethical leadership = “the demonstration of ethical
conduct through personal actions and interpersonal relationships, and the promotion of
such conduct through two-way communication, reinforcement and decision-making”
three essential attributes or components of ethical leadership are
1. being an ethical role model to others
2. treating people fairly
3. actively managing ethics in the organization (actively promote ethical
behavior among their followers by clearly communicating ethical standards
and expectations, providing ethical guidance, and holding followers
accountable for ethical and unethical conduct)
Ethical leaders can create a safe organizational climate in which employees feel comfortable
discussing ethical issues and reporting ethical problems without fear of retaliation. When
employees have a leader who is honest, trustworthy, and fair, they are more likely to think
that the leader will agree with or understand their concerns and respond to them
appropriately. They will feel more comfortable discussing sensitive ethical issues and will be
more likely to report ethical problems. Quickly discovering and resolving ethical problems
can prevent or reduce negative consequences, such as damage to the organization’s
reputation, costly lawsuits, and loss of public trust. Not only will such reporting discourage
misconduct, but it also reflects employee confidence that the organization’s leadership will
take appropriate and corrective action
Specifically, managers can make ethical behavior more salient by setting clear ethical
standards and guidelines and providing opportunities for subordinates to get advice on how
to deal with ethical issues. Managers can encourage open and honest communication of
ethical problems and take action to deal with any problems and protect the messenger from
negative repercussions. Additionally, managers can model ethical behavior, recognize good
examples of ethical conduct, and hold people accountable for unethical actions. A few of the
subjects that should be included in leadership development programs are ethical awareness,
role modeling of ethical behavior, and the importance of trusting relationships for infl
uencing employee attitudes and behavior.
Social learning theory suggests that individuals learn about appropriate behavior by
observing the behavior of role models, and managers can serve as legitimate models for
normative behavior
Organizational commitment refers to emotional attachment to, identification with, and
involvement in one’s organization, and it reflects agreement with organizational values and
goals as well as feelings of personal satisfaction derived from involvement in the
organization. Organizational commitment has important implications in terms of decreasing
turnover intentions and increasing job performance and organizational citizenship behavior

Murphy: Complexity Leadership in Public Sector Systems

 the twenty-first century, the multiplicity of actors, contexts, and paradigmatic shifts in public
administration present distinct challenges to leadership.
 - enabling leadership to ensure a balance of administrative (formal) and adaptive
(informal) functions.

Leadership originally is legacy of the ‘great man thesis’ (heroic figure who leads)
- the notion of leadership as “being in” a specific administrative leader or chief
executive officer remains the dominant paradigm. For example, authors have
focused on qualities that enable one to enter the fundamental state of leadership
(Quinn 2005 ), which is “an underlying characteristic of an individual” (Boyatzis
1982 , 21). The result has been an overabundance of studies that focus on the
values, qualities, and behavioral styles that make for “good” leadership.

Leaders have an influence “in and around the system”

Leadership is regarded as a social, dynamic, and processual phenomenon

Complexity leadership theory suggests that formal, top-down administrative forces and
informal, adaptive emergent practices are entangled within and across people and practices
- The leadership function involves directing, planning, and resourcing activities

adaptive leadership is an informal leadership process that involves generating and advancing
novel solutions in the face of adaptive needs of the organization
- innovative responses to complex problems trigger further change and ‘higher-order
responses’

Enabling leadership serves to cope with the coordination rhythms, or oscillations, between
top-down, hierarchical dynamics and complex, emergent adaptive systems

Four core tensions:

1. adaptation and change can lead to chaotic collective action and “sustained periods
of stress”
2. Leadership in certain environments required to help actorsd make sense of what is
happening + give meaning to unfolding events
3. Enabling leadership can be required to connect “otherwise disjointed groups”
4. sometimes involves actively removing, excluding, or alienating certain actors, and
yet in other situations, leadership is required to protect dissident voices
 in low-complexity cases, administrative leadership practices—such as directing,
planning, and resourcing activities; creating clear lines of authority; and integrating
innovation into the formal system—were particularly prevalent. 
o adaptive practices were few and far between and appeared during decision
points that introduced new actors into the system whose input was considered
and then integrated into the otherwise linear planning and implementation
processes.
 still present as well in medium complexity cases. 
o actively supporting the inclusion of diverse skills and perspectives (including
boundary spanning) appears to have been particularly important in these cases,
as well as in the high-complexity cases. 

 adaptive practices were observed to a greater extent in the most complex cases.
o stimulating innovative ideas and changing plans, processes, and routines in
response to tensions—also featured more than in the mediumand low-
complexity cases.
o consistent with the view that leadership can create the context for innovative
ideas and new ways of working to flourish and for innovative responses to
complex problems. 
o in the medium- and high-complexity contexts, the residents’ associations
became symbols and catalysts for actions by directing attention to what was
important for stakeholders

 The disruption of existing patterns created a counterforce to inertia, but subsequent

sensemaking around possible futures dampened real fears. In Roden Street, enabling
activity involved leveraging social and political dynamics to stimulate or resist
change. Social and political pressures imposed by the context were converted to an
advantage

 nature of leadership does vary by levels of environmental complexity

  Enabling leadership is required to both maintain a sense of stability in order to
coordinate, structure, and control organizational activity (administrative) and generate
the conditions for innovation, change, and transformation (adaptation)  

Conclusions

well-designed leadership programs, incorporating a focus on individuals, their relationships, and situational
context and complexity, can assist in the development of positive leadership outcomes

Leadership development can also involve shaping the reasoning and affording opportunities to actors to generate
activities aimed at resolving the prevailing challenges faced by the collective while exploring synergistic
opportunities for coping with enduring tensions.

Core function of leadership: embrace tensions and help shift actors beyond either/or/
toward paradoxical thinking that entails a both and mind-set that is holistic and dynamic.

- Acceptance and engagement with leadership tension can help actors live and
thrive with pressures

Silvia: Collaborative governance concepts for successful network

leadership
Collaborative governance concepts for succesful network leadership – Silva

Increase of collaborative networks: governance changing from hierarchical, command-

control mechanisms in public services to multiple government, non- and for- profit
organizations. Governments more reliant on other systems and structures.

 more and more actors involved because not 1 has all the necessary resources.

Vertical and horizontal relationships develop in different levels in government

- higher levels provide the fiscal support while the lower levels do the program
planning, implementation and management
o Result: boundaries between levels of responsibility authority and activity
becoming blurred

Traditional management and leadership not appropriate in such a collaborative setting.

Problem with translating hierarchical leadership to networks: Two contexts (Hierarchical

and network) have differences.
- Network environment may be more complex due to different goals of members and
their constrants
o Managers need to adapt leadership to cope with demands of different
environments
Different behaviours needed for different contexts:

Network context (Transformational??)

- Leaders spend more time on people-oriented behaviours (trust, motivating etc)

Hierarchical context (Transactional?)

- Leaders spend more time focusing on scheduling, assigning, coordinating etc.

Both contexts
- managing organizational environment: identifying resources and stakeholders and
maintining support.

Collaborative leadership (in networks)

Key question: how to lead someone who neither works for me nor has ownership in my
organizations ethos?

Four behaviour categories

1. Activation

- Balancing membership as to incorporate various groups with stakes in the

collaborative venture.
- Activities that facilitate or impede collaborative efforts
- Incorporating “right” network members and empowering them to be involved >
supported partnership, was in-line with the spirit of collaboration
- Playing politics/manipulating network and members undermines success.

2. Framing

Three major media through which leadership can be enacted:

- Structure (of organization)
- Process (of network)
- Participants (network members)

Through these, lesders can engage in behaviors aimed at managing power and controlling
agenda.

3. Mobilizing

Leader must gain and maintain support to successfully work outside of the traditional agency
boundaries.
- Convincing agency of the need to reach out to others to solve “wicked problems”
- Promote network to current and potential partners (encourage involvement)
 4. Synthesizing

Synthesizing: about promoting an environment in which members can operate effectively

through making a positive environment. > Importance of trust!!

Bringing individual ideas etc into discussion = key to solving shared problems
- Why? -> until perspectives of members are understood>no consensus

Behaviors focusing on brainstorming (expanding number of alterntives being discussed)

helped for shared vision achievement

Partnership synergy: successfully synergizing/taking advantage of all perspective, skills,

knowledge and abilities of various members

Key factor for partnership synergy: Leadership effectiveness

- Taking responsibility
- Fostering respect
- Empowering partners
- Etc.

Collaborative leadership and network effectiveness (NE)

Findings.
- Activation behaviors had no significant impact on NE
- Activation behaviors aimed at identifying personell and resource needs set
groundwork for success, but not directly caude effective networks
- Time spent engaging in framing behaviors took away network effectiveness ability
- Ensuring agreement regarding goals and mission lays foundation for network
success
- However, spending time getting everyone on same page takes away valuable
time.

Issue: establishment of legitimacy. > Networks need support of external stakeholders in that
they control resources and influence the network’s ability to function.
 Network also needs own membership

- Mobilitization behaviors have significant influence on network effectiveness

- Synthesizing behaviors positively impact network effectiveness

Conclusion

Task of leader: guide a group of independent but related entities towards a shared goal
(which none of them can solve alone)
- Needs different behaviors than an hierarchical setting
Teamwork: network members must see value of network
Resources: define what the network can accomplish > right mix of resources
Understanding: creating common ground. (must be accomplished as quickly as possible since
it costs time)
Stakeholder support: support of internal and external stakeholders.
- Can be done b publicizing accomplishments, helping stakeholders see the value
Trust: the glue that holds the network together. IF there is trust, members will more kilwly
fully engage.

Lecture 6

Hall & Woods: Theorizing the role of executive heads in

international organizations
This article is based on an extensive literature review of scholarship on international
organizations, complemented by interviews with executive heads and senior managers of
international organizations between 2013 and 2016.
It is found that the executive heads of international organizations operate in a constrained
environment — states establish, design, use, change and finance them. Executive heads are
also constrained by the normative, geopolitical and technological/scientific environments in
which they operate. However, we argue that they are not simply pawns of powerful member
states, as some scholars maintain. Rather, they can navigate and push back against three
constraints emphasized in the IR literature: legal-political, resource and bureaucratic.
Executive heads can overcome legal-political constraints by generating greater autonomy for
their organization, resisting political capture and brokering (= negotiating towards
agreement) supportive coalitions of states, even when they have a limited degree of
delegated discretion + can overcome bureaucratic pathologies by attracting, developing and
retaining excellent and diverse staff, as well as setting evaluation and ethical frameworks for
accountability
leaders (whether states or non-state actors) enable cooperation through three types of
leadership:
(1) structural leadership (material power, so that the US has more material power than
smaller, weaker states);
(2) entrepreneurial leadership (strong negotiation skills);
(3) intellectual leadership (the power of ideas to reframe bargaining).
 All must be present for cooperation to occur.
Critics because null hypothesis not considered: “if a particular leader were not there, would
cooperation have occurred anyway?”
Principal-agent scholars have examined exactly how powerful states control the leadership
and staff of an international organization. They may closely monitor and enforce reporting
requirements through ‘police patrols’ (active monitoring to detect violation) or ‘fire alarm’
oversights (third party monitoring like institutional checks on budget) . Powerful states may
also go into informal governance. In sum, in international cooperation, leaders must both
broker decision-making among states and lead a bureaucracy.
Executive heads may be constrained operationally by their partner organizations in the field,
as well as by their operating environment and can be both enabled (international
telecommunication) as constraint (hackers) by technological and scientific circumstances.
Legal-political constraints:
 Decision-making rules of the organization
 Executive heads have different formal roles in the organizations
 Selection and reappointment process of executive heads
An executive head’s success (or failure) to overcome legal-political constraints may be
evidenced by (overcoming legal-political constraint):
(1) the addition, or subtraction, of tasks to a mandate;
(2) the mobilization of an inclusive coalition within the organization in support or to
block such action; and
(3) the centrality of the institution in dealing with a new, relevant issue.
Overcoming resources constrains
two major financing constraints:
 resource scarcity (which relates to the amount of financing) and
 resource autonomy (which relates to the quality of financing):
An executive head can exercise influence by ensuring that their resources are maintained,
and even increased:
 An executive head can lobby states to increase the core and/or unrestricted financing
of an organization.
The funding of a multilateral offers another observable indicator of the leadership’s
performance. Two indicators are relevant: the quantity (stable, replenished or increased)
and the quality of financing (the proportion earmarked).
Overcoming bureaucratic constraint:
 Operationalizing and implementing strategic plans. (Executive heads can use the
requirement to report regularly to members and stakeholders on their progress (e.g.
in annual reports) as a way to set (and to direct efforts towards) clear measurable
goals)
 Attracting, developing and retaining excellent, diverse staff. (promotions, turnovers,
culture and meritocracy also matter)
 A culture of accountability and improvement (declarations of conflicts of interests,
complaint & evaluation mechanisms,

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