Lecture 3

- Contradicting evidence? What to do?

o Controleren of ergens een fout zit
o Mss werd een andere manier van aanpak gehandeerd waardoor de uitkomst
verschillend is => take the best practices from both authors. (example:
Lencioni and teambuidling; his book lacks on emmpirical support)
- Als je zo kritisch bent, blijven er dan nog dingen over? Ja!
o Psychology based on biology
 Competition and collaboration
 Derogation of competitors
 Interpersonal circumplex
 In-group vs out-group
 Need for autonomy
 ..
o Recruitment and selection
 Vroeger dacht men IQ testen het beste was om te gebruiken bij de
recruitering, maar eigenlijk blijken de gestructureerde interviews zeer
goed te werken.
 Schmidt and Hunter (1998) vs current studies: we have
 Gestructureerde interviews
 Job knowledge tests
 Empirically keyed biodata
 Work sample tests
 Cognitive ability tests
 …
o Learning and development
 Cognitive behavioral coaching
 Behavior modeling training: wat is goed gedrag en wat niet?
 After event reviews (AER): wat ging goed en wat ging er minder goed?
We weten dat dit een goede manier is, maar dat mensen dat niet zo
graag hebben.
 Challenge missions
 Groupdiscussions
 …
- Managers baseren hun beslissingen wel op bewijzen, maar kijken niet echt naar de
kwaliteit van het bewijs. DUS -> TEACH MANAGERS AND CONSULTANTS HOW TO
CRITICALLY EVALUATE THE VALIDITY, AND THE GENERALIZABILITY OF THE EVIDENCE
AND HELP THEM FIND “THE BEST AVAILABLE EVIDENCE”.
- Evidence based = science based?
- A combination of critical thinking and the best available evidence AND in general we
see evidence as just information..
- Model (zie slides) -> evidence based decision is just a combination of scientific,
experiental, organisational evidence and stakeholders concerns. -> THIS IS JUST A
INFORMED DICISION
- In de Jaren 60 -> vaak de intuitie volgen
- EVIDENCE BASED (MEDICINE): the founding fathers David Sackett and Gordon Guyatt
 o David Sacket: “half of what you learn in medical school will be shown to be
either dead, wrong or out-od-date within 5 years of your graduation; the
trouble in that nobody can tell you which half.”
- EVIDENCE BASED MANAGEMENT: founding mother -> Denise Rousseau -> on 2005 is
ze de discussie gestart; fouding fathers: Jeffrey Pfeffer en Robert Sutton
- Bounded rationality
o System 1
 Fast
 Intuitive, associative
 Heuristics and biases
o System 2
 Slow (lazy)
 Deliberate, ‘reasoning’
 Rational
- System 1: very prone (=vatbaar) to biases
o Seeing order in randomness
o Mental corner cutting
o Misinterpretation of incomplete data
o Halo effect
o False consensus effect
o Group think
o Self serving bias
o Sunk cost fallacy
o Cognitive dissonance reduction
o Confirmation bias
o Authority bias
o Small numbers fallacy
o In-group bias
o Recall bias
o Anchoring bias
o Inaccuraye covariation detection
o Distortions due to plausibility
o Ikea bias = tendency to like something more we build ourselves

- Errors and biases of human judgment: managers and consultants hold many
erroneous beliefs, not because they are ignorant or stupid, but because they seem to
be the most sensible conclusion consistent with their own professional experience. ->
gutfeeling (system 1 will always enage)
- Developing exeprt skill and intuiton
o A sufficiently regular, predictable environment
o Opportunities to learn regularities through prolonged practice and feedback
 THE MANAGEMENT DOMAIN IS NOT HIGLY FAVORABLE TO EXPERT
SKILSS AND INTUITON
- EBMgt is a 5-step approach:
o Formulate an answerable question.
 Focused questions (PICOC)
  Population
 Intervention
 Comparison
 Outcome/objectives
 Context
 4 source of evidence model …
 Building block method = 1 term per keer en dan uitdiepen
 Shotgun approach = inlezen/zoeken/ typen in alles
 Snowball approach = doorklikken
o Search for the best available evidence
 Reverse causation -> een correlatie wil niet zeggen dat er causaliteit is
o Critical appraise the quality of the found evidence.
 Piramide (onderaan startend) -> levels of internal validity
 Expert opinions: experts are of the opninion that…
 Surveys and casestudies: there are signs that…
 Before – after studies: there are signs that..
 Non-randomised controlled studies: It is likely that…
 Randomized controlled studies: It is shown that..
 => be carefull on how you formulate
 Generalizability:
 Keep in mind: what works in narrowly defined settings might
not work in another, but some psychological principles are
generalizable to all human beings.
o Integrate the evidence with managerial expertise and organizational
concerns and apply
 This is the point where you translate
o Monitor and evaluate the results
 Not always an easy recommendation to follow

OUTSOURCING IN HR

- A specific HR practice
- Entire HR process
- Questions:
o Which HR-activities are most often outsourced?
o What are reasons for outsourcing?
o Pro’s and con’s of outsoursing. Make or buy?
o How to.. outsource?
o Different degrees of outsourcing?
- = The use of external agents to perform one or more organizational activities.
- = Transfer of recurring HR activities that were previously carried out internally to
external organization.
- HR is the second most outsourced activity after IT
o pay administration (71%)
o employee training (60,5%)
o Interim/ Temp work (52,6%)
 o Recruitment and selection (20%)
o Advice on HRM (18,4%)
o …

- Why outsource? (POSITIEF)

o Operational reasons (6)
 Cost saving
 Economy of scale
 Economy on scope
 Economy on skill
 Saving on labor “head count”
 Buffer against ups-and-downs
 Insufficient resources
 Developments in HR-technology
 Imitating others
o Strategic reasons (4)
 Focus on core value creating activities
 Increase innovation capabilities
 Increase financial flexibility (& risk spreading)
 Need for specialized knowledge

- Risk of outsourcing (NEGATIEF) (10)

o Loss of control
o Dependance on the supplier
o Loss of expertise and knowledge
o Negative influence on employees
o Hidden costs
o Irreversibility
o Opportunity partners:
 Shirking
 Poaching
 Opportunistic repricing
o Conflicts and cultural differences
o Risk of information leaks
o Intensive management of the relations

- Outsource decision matrix -> slides

- Opportunity or treat for internal HR
o H1: organizations with a strong focus on strategic anchoring of HRM have a
high degree of HR-outsourcing
 Opportunity for HR:
 Strategic role becomes more important
 Routine and administration is outsourced
o H2: organizations with a strong focus on cost saving in HR have a high degree
in HR outsourcing
 Treat for HR:
  Reduce Head count
 In-company HR disappears
- Results (Delmotte and Sels, 2005): strong relation between the degree of strategic
anchoring of HR and the degree of HR outsourcing. No relation between degree of
outsourcing and focus on cost reduction.
- Personnel and payroll administration (cost = 60% vs added value 10%)
- HR services (cost 30% vs added value 30%)
- Strategic planning (cost 10% vs added value 60%)
- Awe, Kulangara en Henderson (2018): outsourcing enhances the firm performance.
When outsourcing functions were studied individually, only IT outsourcing had
significant effects on firm performance in comparision to other forms of outsourcing.
No clear conclusion on HR outsourcing.
- Lahiri, Karna, Kalubandi en Edbacherin (2022): do not outsource core activities!
- DEAL: Define, Eliminate, Automate and Liberate
-