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1 Structural Configurations and Styles of Human Resources Management.pdf
- 1. Advanced Human Resources Management Catarina Rocha Masterin Business Management
- 2. 1. Structural Configurationsand Styles of Human Resources Management; 2. Strategic Management of Human Resources; 3. Appraisal and reward systems and Human Resources Management; 4. International Human Resources Management; 5. Challenges of population aging for Human Resources Management. Course Contents Total working hours/Workload (hours) – 162 h Contact hours : 42 TP; 3 S ECTS credits: 6.0
- 3. • Alternative 1- (Regular, Student Worker) (Final, Supplementary) - Final Written Exam - 50% - Practical Work - 50% • Alternative 2 - (Regular, Student Worker) (Special) - Final Written Exam - 100% Assessment methods
- 4. Câmara, P., Guerra,P. & Rodrigues, J. (2016). Humanator XXI: Recursos humanos e sucesso empresarial (7ªed.). Alfragide: D. Quixote. Crawshaw, J., Budhwar, P., & Davis, A. (2020). Human resources management: strategic and international perspective. London: Sage. Lussier, R. N., & Hendon, J. R. (2021). Human Resource Management: Functions, Applications, and Skill Development (4ªed.). Springfield College, USA: SAGE Publications, Inc. Rees, G., & Smith, P. (2021). Strategic Human Resource Management: An International Perspective (3ª Ed.). SAGE Publications Ltd. Rego, A., Cunha, M., Gomes, J., Cunha, R., Cardoso, C. & Marques, C. (2015). Manual de Gestão de Pessoas e do Capital Humano. (3ª Ed). Lisboa: Edições Sílabo.. Recommended Reading
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- 6. Starting at the beginning.... •What is Human Resource Management? • How did it come about? • Has Human Resource Management changed over time?
- 7. Historical perspective https://youtu.be/d1jOwD-CTLI Classical Approach(late 30) Human Relations Approach (decades of 50 to 70) Systemic Approaches - contigencial (the 60s)
- 8. CLASSICAL APPROACH (LATE 30) •The phenomenon of large organization is new and relatively low; • The technologies of production are incipient; • The expansion of markets begin to have a major impact; • Discovering the optimal rules of operation; • Organization as a closed system, technologically centered and whose sole purpose is the search of efficiency seen as a function of optimization of the technical system; • The individual must adapt to the 'machinery' should laminate it so that they can, with automatic, complement it and contribute decisively to the optimization of the technical system;
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- 10. Scientific Management (Taylor) Theschool had its origin in the U.S.A. His concern was to increase business productivity by increasing the level of effectiveness and efficiency of the workers. Taylor started as a factory worker in 1878, later passing to overseer foreman, chief of workshops and finally engineer, registered some 50 patents for inventions in machinery, tools and work processes; This school puts the emphasis on tasks, concerning itself with: - The working method - The movements required to perform the tasks; - The standard time for the task.
- 11. Presuppositions of the Scientific Managementof Labor: 1. The workers who perform the same tasks must do so, all in the same way, and according to the best way there is to do so; 2. Incumbent upon the Administration to make a careful study of the labor of the worker and establish the best way to execute it; 3. The supervisor is responsibility of monitor and control the worker, the worker is responsible solely to perform the work; 4. The work has better results and it becomes more economical, if all the movements necessary for its implementation is subdivided into small pieces; 5. We must save the time and the effort of the worker. The unnecessary movements are eliminated and the useful movements simplified.
- 12. Presuppositions of the Scientific Management of Labor: 6.Adaptation of workers to the task; 7. Greater specialization of workers; 8. Greater specialization of tasks; 9. Improving the efficiency of labor. Efficiency is the relationship between actual performance and the performance of the worker previously established, with an efficiency of 100% 10. The worker who produces more must be better paid. CRITICS • Mechanical view of the man; • The Human beings are passive, without will, without initiative, other than the money; • Excessive specialization of the worker; • It does not include the human aspects of the organization.
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- 14. Classical Theory of Organization (Fayol) •The emphasis is in the analysis of the structure, visualizing the organization as a collection of parts or organs. Concerned primarily with the analysis of the hierarchical structure of organizations putting the accent on the command line in which all depend on organizational functioning; His great contribution is to explain the functions that characterize the manager's role in the organization: Predict, Organize, Command, Control and Coordinate; For Fayol dependency of subordinate to the hierarchical superior it is also complete and not personal; Fayol ¹ Taylor Man-Servant Man - Machine
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- 16. Seeks the perfectorganization Presents a concept of organization that once defined their objectives and activities, it is possible to formulate a system of rules and roles to be played by individuals; Once again presumed a closed system, unchanging face an exterior, that is supposed to be possible to predict and characterize in full; Classical Theory of Organization (Weber))
- 17. Bureaucratic Model Principles(Weber): • Free people, shall meet the objectives duties of their functions • …In a functioning hierarchy well established … • …with clearly defined competences … • …. as a result of a contract based on a opens(free) selection, according … • …. professional qualification (in a rational way ): are named (not elected) according to the qualification revealed by examination and certified by a diploma … • …Are paid according to graduates salary, according to hierarchical level and assumed responsibilities,… have the right to retire; • …treat their role as sole or principal profession… • …Looking ahead to a career according to seniority or benefits under the service, or both, depending on the judgment of his superiors… • … Work totally separated from the means of administration and without the appropriation of their jobs… • Are submitted to a uniform discipline restricted to their functions as well as a control.
- 18. Human Relations Approach (decadesof 50 to 70) https://youtu.be/rLVp-CrBnPo https://youtu.be/TIx5xovXDyc • Arise as a counterpoint, and in direct opposition, race classical approaches; • "Man, the individual in the organization, must be the point of departure and arrival of any normative or analysis of organizational functioning"; • This shift of focus of technical production - analysis towards the social system, has opened a whole new perspective on the functioning of organizations;
- 19. Elton Mayo • EltonMayo in the 20s developed a series of works which came to be known as the "Hawthorne Experience": • Mayo chose two working groups that performed the same tasks. One worked under variable light intensity and the other - the control group - worked under constant intensity. • The purpose of the experiment was to determine the effect of illumination on the productivity of the workers; • What was observed was that there was no correlation between the light intensity and productivity but in this interfere other variables, psychological; • It was found that production increased when workers assumed that the light intensity increased and productivity has reduced, when they assumed that the light intensity as diminish.
- 20. Elton Mayo • ;WithMayo the issues of motivation of individuals in the organization and the impact of leadership style on productivity, become central to the study of organizations. Concepts such as informal organization (relationship, on the sidelines of the established hierarchy, which is generated spontaneously between individuals who are not only workers but also people with personalities and motivations that go far beyond its role in the organization) and as Moral of workers (Indicator of motivational level of the internal social system), have become key elements in deep study and understanding of the functioning of any organization.
- 21. • The manis seen not merely as an internal element of the organization but as a whole - a human being with its own objectives and social integration, who does not abandon "at the company's entry"; • The motivation of behavior and interpersonal relationships become to be regarded as the true key to production efficiency; https://youtu.be/Kxc8KceOb14
- 22. SYSTEMIC APPROACH https://youtu.be/1L1c-EKOY-w https://youtu.be/GPW0j2Bo_eY Itappears in the mid 60s as a reaction to “ The One Best Way “ . In this theory the behavior of organizations depends on the situational variables it is subject to, so according to the characteristics of its surroundings, the technology that supports it, the size and characteristics, the organization has to find the ideal of management.
- 23. • The organizationmust continually adapt to the changes: the organization, such as group and individual, it is an open and dynamic system in constant readjustment and reorganization in order to survive. This change is gradual and continuous; Assumptions: • The organization is in constant interaction with the environment. An organization must perceive the change, be sensitive to change in environment and provide sufficient flexibility to reorganize its resources, optimizing their adaptation; • The organizational goals must match as closely as possible with the personal goals of people who work in there. • The organization is in constant interaction with people who work there, who are seen as beings with skills and capabilities, the organization will provide an suitable environment and the ability for workers to perform in it;
- 24. 1. Structural Configurationsand styles of Human Resources Management
- 25. Organizational Structure: üAll companieshave a structure, which emerges as a way to operationalize the strategy, to support it, organizing the means and by delisting the available resources. üThe structure emerges as an instrument of coordination and control. üFor a structure to play its role it has to: • Be a source of continuous satisfaction of internal and external customers; • Respond effectively to market conditions; • Generate productivity gains
- 26. Organizational Configuration Specific way ofstructuring and making an organization work, from the combination/network of coherent relationships between the components of the structure and its contexts (contingency factors) and whose main characteristics are explained by the dominant force of one of the parts of the organization.
- 27. • Organization’s structurerepresents its effort to align internal processes with its external environment while balancing structural dilemmas: • Differentiation versus Integration • Gaps versus Overlaps • Underuse versus Overload • Lack of Clarity versus Lack of Creativity • Excessive Autonomy versus Excessive Interdependence • Too Loose versus Too Tight • Goalless versus Goal bound • Irresponsible versus Unresponsive The structure of the organization and its functioning are dependent on the characteristics of the external environment. There is no single and better way to organize. Organizational Structure:
- 28. Differentiation versus Integration -tensionbetween allocating and coordinating different types of work -the more complex a role structure (lots of people doing many different things), the harder it is to sustain a focused, tightly coupled enterprise. Gap versus overlap -If the main responsibilities are not clearly assigned, there may be gaps or overlapping activities causing conflicts and wasted effort. -if employees have too little work, they become bored -overload, can lead to impersonal care Underuse versus overload Lack of clarity versus lack of creativity -if they are unclear, they often tailor their roles around personal preferences -when responsibilities are over defined, people conform to prescribed roles and protocols
- 29. Excessive autonomy versusexcessive interdependence -too autonomous, people often feel isolated -if units and roles are too tightly linked, people are distracted from work and waste time on unnecessary coordination Too loose versus too tight -how to hold an organization together without holding it back -people go their own way if too lose -spend too much trying to beat system if too tight Goalless versus goalbound -few people know what goals are -people cling to goals long after they have become irrelevant or outmoded Irresponsible versus unresponsive -performance suffers if irresponsible -harmful if too rigidly to policies or procedures
- 30. Structural components • Complexity -number of components and variables that the company has to deal with. Complexity can differentiate the organization in three ways: Horizontal differentiation (existing functional units); Vertical differentiation (number of hierarchical levels) and Geographical differentiation (company dispersion). • Formalization - degree of standardization of positions. High formalism is a sinom of very clear defined rules/norms and therefore little autonomy. The degree of formalism may vary between the positions of the same company. • Centralization - degree to which decision-making is concentrated in a single point of the organization, in which the management of the top makes all the key decisions with little or no participation of the intermediate managers. Centralization conditions the greater or lesser participation/involvement of workers.. The structure emerges as an instrument of coordination of activities and control of the performance of the members of the organization. It is typically defined as how to manage three components: complexity; formalization and Centralization.
- 31. Fundamental Structural Models 12HUMANATOR Figura 8.1 Modelos Estruturais ESTRUTURA MECANICISTA ESTRUTURA ORGANICA Baixa diferenciação horizontal Cooperação (na vertical e horizontal) Alta diferenciação horizontal Relações hierárquicas rigidas Tarefas fixas Tarefas flexíveis Alto formalismo Baixo formalismo Canais de comunicaçãoformais Comunicação informal .Centralização do poder de decisão Descentralização do poder de decisão There are several solutions that managers have adopted in the combination of the three structural components, however the organizational design ends up integrating into one of two fundamental structural models: MECHANISTIC STRUCTURE: : - High horizontal dfifeenciancy - Rigid Hierarchical Relations - Fixed tasks - High formalism - Formal communication channels - Centralization of decision-making power
- 32. Fundamental Structural Models HUMANATOR Figura8.1 Modelos Estruturais ESTRUTURA MECANICISTA ESTRUTURA ORGANICA Baixa diferenciação horizontal Cooperação (na vertical e horizontal) Alta diferenciação horizontal Relações hierárquicas rigidas Tarefas fixas Tarefas flexíveis Alto formalismo Baixo formalismo Canais de comunicaçãoformais Comunicação informal Descentralização do poder de decisão Organic Structure: - Low horizontal differentiation - Vertical and horizontal cooperation - Flexible tasks - Low formalism - Informal communication - Decentralisation of decision-making power
- 33. Why can structuresbe so different? 1. Strategy: The structure is one of the means used to achieve the objectives of the strategy, if there is a change in the strategy it should be accompanied by a change in the structure. For example, if the strategy is little diversification of products this will lead to a less complex structure, with fewer sectors and therefore less need for coordination (tended to be organic). Relationship between strategy and structure: Innovation strategy = organic structure Cost reduction strategy = mechanistic structure Imitation strategy = mechanistic structure and organic structure The studies identify four variables responsible for these differences:
- 34. Why can structuresbe so different? 2. Dimension: The size of an organization has an impact on its structure. A large organization will necessarily have to have functional (or horizontal) differentiation in order to reap the benefits of specialization, also implying that management must also increase hierarchical (or vertical) differentiation in order to coordinate all existing functional units.. Relationship between Dimension and structure • Larger dimension = greater complexity (to some extent), then greater vertical differentiation • Larger dimension = greater formalism given need for greater control • Larger dimension = smaller centralization given the impossibility of controlling all areas
- 35. Relationship between technologyand structure: Routine technology = high complexity; tight regulation, centralization of power = Mechanistic structure Innovative Technology = low complexity, low formalism, low centralization = Organic Structure Why can structures be so different? 3. Technology: methodology used by the organization to transform inputs into outputs. Technologies can be routine (automated and standardized operations) or innovative (custom- made activities).
- 36. Why can structures be sodifferent? 4. Engaging: an organization is inserted in an environment that can be more or less stable, with greater or lesser supply of resources and more or less complex (heterogeneous). Relationship between the environment and the structure: Environment with fewer resources, with greater dynamism and complexity = organic structure Engaging with more features, less dynamism and simpler = mechanistic structure
- 37. Mintzberg Structural Configurations Mintzberg: presents uswith a typology of structural configurations that appear aligned with different and tasks. and environments. Mintzberg’s Fives • Strategic apex • Middle management • Operating core • Techno structure • Support staff
- 38. GRH - Structural configurations Thebasic components of the Organization Mission, Vision and Values of the Organization; Controll 1.Direct supervision 2.Relationships with external environment 3) Formulate strategy Support outside the workflow (canteen, coffee shop, cleaning) Technicians responsible for planning and organizing work: - Standardization of work process - Standardization of work output Operators who perform the work: 1)Secure inputs 2) Transform inputs to outputs 3) Distribute outputs 4) Provide direct maintenance 1) Communication 2) Disturbance handling 3) Direct supervision (span of control)
- 39. Mintzberg’s Structural Configurations •Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy Direct supervision (CEO gives orders), mostly strategic apex and operating core with few middle managers or support staff, usually found in young organizations, and almost all organizations revert here in emergencies
- 40. Forces Weaknesses • Simplicity •Few maintenance costs • Minimal ambiguity •Informal communication •Solid identification with the organization • Autocracy •High concentration of power in a single person - centralization •Little challenging in the long run (for employees) • Difficulties in dealing with complex environments
- 41. Mintzberg’s Structural Configurations •Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy Standardized work processes, large technical component, big support staff and many middle managers, works best for mass production or service delivery, highly centralized controls and efficacy, influenced by government agencies
- 42. Forces Weaknesses • Efficientin standardized activities •Grouping by specialty "reduces" staff duplication • Conflict between organizational effectiveness and individual satisfaction • Unadaptable, heavy •Reduced instruction/training of employees •Bureaucratic
- 43. Mintzberg’s Structural Configurations •Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy Standardized work skills (training), structure of hospitals, universities and professional firms, large professional operating core with lots of autonomy, large support staff to back-up professionals, best for stable and complex environment, poor innovation but perfects current knowledge
- 44. Forces Weaknesses • Efficientin very specialized and complex activities • Autonomy of professionals •Professionalization is the dominant force •Trend towards conflicts between sub-units with support staff • Difficulties in controlling the work that is performed • Poor adaptation to innovation
- 45. Mintzberg’s Structural Configurations •Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy Independent units connected by overlay of administration, structure of most big corporations, standardized work outputs, performance of units usually tracked as economic outputs, social aspects of decisions are not recognized/rewarded
- 46. Forces Weaknesses • Focusingon results • Excellent vehicle for training of division managers • Be a "business within another business" (facilitating links) • Duplication of activities and resources • Little incentive cooperationbetween divisions (balcanization evident) • Coordination problems between Units
- 47. Mintzberg’s Structural Configurations •Simple Structure • Machine Bureaucracy • Professional Bureaucracy • Divisionalized Form • Adhocracy Complex and non-standardized, control by mutual adjustment instead of standardization, many managers scattered throughout (project managers, functional managers), least efficient but best for innovation.
- 48. Forces Weaknesses • Abilityto innovate, respond to changes and stimulate articulation between several specialists. • Good configuration for creativity problems, unscheduled tasks, very complex and turbulent environment (complex, dynamic) • The dominant force is collaboration. • High training/education of employees • • Conflicts • Little clarity in the superior-subordinate relationship • Ambiguities as to the level of authority and responsibility •
- 49. Each component exerts distinctpressures • Strategic apex: pushes for more alignment, centralization • Middle managers try to protect autonomy and room to run their own unit • Techno structure pushes for standardization, believes in measurement and monitoring • Support staff prefers less hierarchy, more collaboration
- 50. How can weoperationalize the Human Resources function in an organization?
- 51. CURRENT FRAMEWORK • In atime of economic crisis, unemployment, HRM becomes increasingly complex; • The HRM is going through major innovations (globalization); • Workers are no longer regarded as costs and are being treated like people, endowed with intelligence and creativity; • Terminology used today: Personnel Management or Human Resources and Skills Management;
- 52. METAPHOR OF "HARD"AND "SOFT" Brewster e Legge ž"Hard" (resources) - considers the people as a cost; ž"Soft" (human) - considers the people as an investment.
- 53. HRM - DEFINITION •Resources: "Are the means that organizations have to fulfill their tasks and achieve their objectives:“ • Human Resources: "These are people who enter, remain and participate in the organization, whatever his rank or his task."
- 54. HRM DEFINITION “A set ofmeasures that help you organize human labor at organizations in order to obtain an optimal performance and efficiency in conditions of full development of the potential and ability of people .. " Mário Ceitil
- 55. HRM DEFINITION “Is in theplanning, organization, development, coordination and the control of techniques capable of promote the efficient performance of staff, while the organization is the medium that allows people to collaborate with it to achieve individual goals related directly or indirectly with the work. " Chiavenato
- 56. PROCESS OBJECTIVE ACTIVITIESCARRIED OUT Attracting Who will work in the organization. Market research of HR. Recruiting people. Selecting people. application What will people do in the organization. Integrate people. Description and analysis of functions. Performance evaluation. maintenance How to retain people. Remuneration and Compensation. Social benefits. Health and Safety at Work. Relations with Labor Unions. development How to prepare and develop people. training Organizational development. monitoring How to know what they are and what they are doing . Database. Controls of productivity. Social Report. BASIC PROCESSES IN PEOPLE MANAGEMENT
- 57. MAIN OBJECTIVES OF HRM •Create, maintain and develop a number of people with skills, motivation and satisfaction to achieve the objectives of the organization; • Create, maintain and develop organizational conditions of application development and full satisfaction of the people, and achievement of individual goals; • Achieve efficiency and effectiveness through people.
- 58. Function: HR MANAGER •"It consists in promoting the efficiency and effectiveness of workers of a given organization, so that it can achieve its objectives as best as possible. • For this purpose, plans, directs and coordinates activities to provide workers with conditions that contribute to their professional and personal satisfaction, so they have an attitude to work more committed and motivated. • The activity of a human resources professional is based on, therefore, in reconciling the organization's interests with the interests of those who work it. "
- 59. žencourage and supportthe business strategy of the company; žbe a source of satisfaction of internal and external customers; žnot to bring unnecessary structural costs. The operationalization of the HR function should:
- 60. Styles of Human Resource Management žThere arevarious views on the most effective way to operationalize HR management: Model A: Empowerment of Line Managers Based on the assumption that the Line Managers should also take the responsibility of HR Management in its field, it is not necessary an autonomous structure.
- 61. Advantages: § lower coststructure § to responsibility line manager § Can be optimized with the creation of coordination committees § It can work well in small businesses Disadvantages vThe line managers do not always have the appropriate profiles; vRequires training of LM in behavioral components vOverloads LM vDoes not apply to large companies (equity)
- 62. Styles of HumanResource Management Model B: The HR department coordinator and performer of people management. Alienation of the line managers of the issues related to people management. Creation of a centralized and bureaucratic structure that will be the HR department.
- 63. Advantages: § Ensures thefairness of individual solutions in people management, functional coordination, consistency and homogeneity of HR tools used and career planning. §Ensures the protection and promotion of culture. §Applies to large companies Disadvantages vThe HR Managers are not seen as partners; vRemoves flexibility to line managers; vAttempt of line managers in circumventing the rules; vFormalization, rigid procedures; vcosts
- 64. Styles of HumanResource Management Model C The HR department as a partner of the Line Manager. Dynamic partnership between the Line Manager and HR Manager. The HRM has its own structure, light, focused on the needs of internal customers. Its mission is to support the line manager, while maintaining the necessary equidistance.
- 65. • This modelassumes the following assumptions: •Modern businesses require a professionalized HR structure that ensures the protection of values and company culture, cross-functional coordination and career management, internal equity and the selection and dissemination of a set of specific tools that enable people to manage, in support the business. •People are internal customers in a logic of integrated marketing. •The primary responsibility for people management is up to line managers who are advised by HR specialists, to find appropriate solutions.
- 66. • Main objectivesof the HRM •Being a partner of your internal customers, providing them with the methodologies and tools for managing people, helping them to solve organizational problems and sharing with them the vision to develop the business. •Provide advice and support to maintain the functional flexibility and facilitate the search for new models that optimize the relationship between available resources, seeking to conserve the readiness to change and adapt to the challenges of the external envelope. •Being the guardian of values and company culture, ensuring internal equity.
- 67. • Provide personnelservices, including:: -Attract and Retain the best people - Coordinate the planning of HR - Lead the technical training programs and behavioral -Determine appropriate levels of salary and benefits -Ensure the administrative control and the relationship with the official entities. •Represent the company in collective contracts and labor disputes.
- 68. Model D -The outsourcing of the HR function • the company will reflecte about their central and peripheral strategic activities; • the company must make an appointment to the market to analyze the cost / benefit of this solution; • find the right partner; • prepare a schedule of transfer services; • communicate across the enterprise; • make the monitoring performance of the contract and the quality of services.