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HRM P.3 Cheat Sheet by

HRM part 3 for the exam


can be developed through training
willin­gness is an essential precon­dition to successful hrm implem­ent­ation. Many are not enthus­iastic. Maybe because of lack of person­al/­company incent­ives.
Capacity, Support, Policy­/Pr­oce­dures
the time they have for both operat­ional as HR tasks
advice and coaching from HR specia­lists on how to perform hr activities eg conflict manage­ment; how to do perfor­mance apprai­sals; how to address discipline issues -> difficult subjects that come with people management
clear, but not too many; remove possible biases, but at the same time not too compli­cat­ed/­det­ailed -> see previous outcomes of Gratton study. If FLM don’t know how to use hr practices they adjust and fine tune it to their own unders­tan­din­g/b­eliefs.
Ability, Motiva­tion, & Opport­unity

Intern­ational business approaches

Ethnoc­entric approach:
places natives of the home country of a business in key positions at home and abroad
Polyce­ntric approach:
foreign subsid­iaries are locally managed by host-c­ountry nationals while corporate positions are likewise filled with home-c­ountry nationals
Regioc­entric approach:
places managers from various countries within geographic regions of a business
Geocentric approach:
any person best suited for the position, regardless of the employee's backgr­ound, culture or country of origin
within 1 company more approaches possible, long history versus recent mergers units. Not a black-and white situation, fluid, also: companies might want to avoid the word ethnoc­entric, race related.

Intern­ational business approaches

Ethnoc­entric approach: strategic decisions are made at headqu­arters (HQ). Key positions at domestic and foreign operations by HQ manage­ment: expatr­iates from parent country.

Polyce­ntric approach: the company treats each subsidiary as a distinct entity with some decisi­on-­making autonomy. Subsid­iaries are managed by host-c­ountry nationals, rarely to be promoted to HQ. Parent country nationals not to be sent abroad.

Regioc­entric approach: Staff will go abroad but within the region (e.g. Europe). No promotion to HQ. Great deal of decisi­on-­making autonomy for subsid­iaries.

Geocentric approach: worldwide integrated business. All staff is treated equally and strictly judged on ability.


Best-p­ractice approach
Belief that some HRM practices will outperform other practices in all circum­stances (best practices)
increase salaries linked to organi­zat­ional perfor­mance, job security, partic­ipa­tion, extensive training, commun­ication and involv­ement of employees, teamwork and decent­ral­ization
“One size fits all”
Best-fit approach
HRM practices related to “the context”: organi­sation strategy and internal factors
Relati­onship with timing and situat­ional specific aspects of the organi­sation.
HRM practices do or don’t fit (“best fit” instead of “best practice”)
The essence is an “outsi­de-in approach”
= the way that HR practi­ces­/po­licies are effective and aligned with the organi­sation.
People management practices need to be tailored to an organi­zat­ion’s specific circum­sta­nces.
Thus different combin­ation of HRM practices may be effective and practices may change in response to specific external or internal influe­nces.
Context: business model, eg intern­et/­web­based of Easyjet, labour market, unions, workforce, social values, laws.

Global talent management

Mobility of employees: entering, promotion, change of position, demotion, dismissal, resign­ation, lay off, retirement
Mobility is part of policy to acquire new compet­ences and hands-on experience in dealing with change, renew workforce
Management Develo­pment: focuses on succession of top manager; organized and secure availa­bility of qualified candid­ates. High potential managers: guided, monitored for 8- 10 years to qualify for top positions. Intern­ational assignment part of that journey (broaden horizon, get acquainted with
Talent manage­ment: not limited to high potential managers. 3 flavors
Certain employees
Certain positions
Global Talent Manage­ment: combines certain employees and certain positions

Expat adjustment & failure

Factors: indivi­dual, family related, assign­ment, country and organi­zat­ional factors
Cultural novelty contri­butes to success: culture too different from one’s own
Main reason for expat failure is inability of expat or spouse to adjust. Accomm­odate spouse­/family
Tangible aspects of a country (public admin systems) are more easily to adjust to then aspects that are not direct, visible (relig­ious, cultural aspects)
Work related issues easier to cope with than the effects the assignment might have on family members
Adjustment is multif­aced: cognit­ional change in knowing, behavioral change in doing, and emotional change in accepting and feeling ok
Emotional change: High low roller coaster develo­pment, while other changes follow a more even, straight line
Spill over effect
Cross-over effect
Main cause for failure: inability to adjust­->early determ­ination of assignment
Psycho­logical contract

Best HR Practices (Pfeffer)

Selective recrui­tment & selection
integrity test, structured interv­iews, select best person
Extensive training
Compre­hensive training, learning, and develo­pment
Perfor­mance related pay
yearly bonusses for best performers
Team working
decent­ralize respon­sib­ility
Inform­ation sharing & commun­ication
management presen­tat­ions, newsle­tters, intranet, CEO role in commun­ication
Reduction of status differ­ences
avoiding status symbols linked to management positions, parking, secret­aries, offices, elevators, higher levels of building
Employment security
benefits unempl­oyment, death, insurances etc

High Perfor­mance Organi­sation (HPO)

“Achieves financial and non-fi­nancial results that are exceed­ingly better than those of its peer group over a period of time of 5 years or more, by focusing in a discip­lined way on that what really matters to the organi­sation”
By adapting quickly to internal and external changes
Integrated management structure
Continuous develo­pment of core business
Treating employees as most important asset

HR is about the Business

HR is not about HR • Think outside in • Connect HR to investors and customers
Talent: competence x commitment x contri­bution • Leader­ship: why, what, how • Culture: behavior, pattern, identity • Organi­sation capabi­lities
HR as an organi­zation• Integrated HR practices • Inform­ation Manage­ment, HR analytics • Employee Perfor­mance

Forces reshaping HR impact

Business context DESTEP
Pace of change
Stakeh­older expect­ations
Personal context
on business success

HPO Five Pillars

Quality of management
Continuous improv­ement and innovation
Focus on the long term
Openness and action orient­ation
Quality of employees

Recognized HR ambigu­ities

Overlap between personnel management as a set of activities for all managers versus personnel management as a specialist function
Difficulty of defining success in personnel manage­ment, determ­ining who or what was respon­sible for success or failure and identi­fying the unique contri­bution of the personnel function
Personnel managers are part of manage­ment, while having a ‘special’ relati­onship with and respon­sib­ility for the workers

HRM- implem­ent­ation

Requir­ements for HR profes­sionals
Points of attention regarding Line Management
clarity about their respon­sib­ility in taking on HR tasks and the importance of these different tasks
insight into operat­ional problems of managers
the organi­sation should give managers the chance to focus on key HR tasks
good commun­ication
Ensure workable "span of contro­l"

Applying HPWP

The applic­ation of individual HPWPs (best practice in HRM) with no further horizontal alignment or fit.
The applic­ation of mini-b­undles that represent the alignment of two or three HPWPs.
The applic­ation of a sophis­ticated HPWS, including multiple HPWPs.

Approaches regarding HRM (Brewster, 2012)

Intern­ational HRM is the way organi­sations manage their HR across different countries. This can be done by:

Contextual HRM: takes into account differ­ences between countries regarding HRM.
Univer­salist HRM: one HR policy for all countries.

High Perfor­mance Work Systems

High Perfor­mance Culture ->
High Perfor­mance Organi­sation ->

High perfor­mance work systems

Selective Recrui­tment & Selection
Intensive training for employees
Perfor­mance Related Pay
Team cooper­ation
Inform­ation exchanges, commun­ication
Reducing status differ­ences
Security and safety of employees

Examples of HPW Practices

Job rotation
Self-d­irected work leaders
High levels of skills training
Problem solving groups
Encour­agement of innovative and creative behaviour
Extensive employee involv­ement and training
Implem­ent­ation of employee sugges­tions
Contingent pay based on perfor­mance
Inform­ation sharing
Use of attitude surveys
Compre­hensive employee recrui­tment and selection procedures


Derived from the word “expat­riate” a person who lives outside their native country.
Born and raised in another country than the one he works in/is sent to
Earns above average
Works for a company with an intern­ational orient­ation
Sent abroad by the company he works for
Returns to his home country after a couple of years abroad
Often management positions due to high costs
High education
Often spouse­/ch­ildren accompany the expat
Internal labor market
Work visa
Why accept expat assign­ment?
Enhance career­-> intern­ational experience
Language abilities, cultural flexib­ility, person­ality traits -> more likely to accept
Willin­gness spouse major factor

Perfor­mance Management

To actively manage employee behavior in order to achieve behavior that contri­butes to organi­sat­ional goals.
Made up of:
input (skills, knowledge, attitude),
throughput (work behavior),
output (outcomes from work behavior: results).
Major advant­ages: links individual and organi­sat­ional goals.
Related to reward, develo­pment, coaching, career planning and dismissal.

Questions when designing the PMP

Who is to be evaluated?
What is to be evaluated?
Who performs the evalua­tion?
What is the time frame?
Should we be using objective or subjective evalua­tions?
Do we apply relative or absolute perfor­mance indica­tors?
Should a forced distri­bution be used?
What should be the role of cultural aspects?


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