HRM7000 PEOPLE & ORGANISATIONS

BARBARA BARNES, OCTOBER 2017

Lecture 7
WRIT 1 ASSIGNMENT – INTERESTING STATISTICS….
 140 students submitted assignments before the 10pm deadline.

 16 students FAILED TO SUBMIT their work.

 Congratulations to student Silu Lin who gets the award for ‘flying-by-the-seat-of-your-pants’
 Your assignment made it through Turnitin at 9:58 pm!

 And Epic Fail to the student who tried to upload 2 minutes after the deadline!
NO TO MENTION…..

 Our mitigating circumstances procedure does NOT cover last-minute uploading which does not make it through
the system on time.

 ‘lost’ work – due to computer crashes, system failure, failure to pay your broadband bill etc.

 WHY?

 http://study.cardiffmet.ac.uk/IT/Pages/OneDriveforBusiness.aspx
AND THEN THERE IS TURNITIN SIMILARITY…

Let’s have a vote. What do you think

is the highest Turnitin similarity score for this
Semester’s Writ 1 assignments?
Bundles of HR policies and
practices

MBA 7000
LECTURE 7
IN TODAY’S SESSION

 What on earth do we mean by “Bundles of HR Practices”?

 How do they fit together?

 Why are they important?

 Exploring some policies and practices in more depth

HRM systems of practices, also called HR bundles, consist of
multiple HR practices
(Delery, 1998; Guest, Conway & Dewe, 2004; Huselid, 1995; MacDuffie,
1995; Subramony, 2009).

There are different relationships between the practices within a system

or bundle (Delery, 1998).
THE CONCEPT OF “BUNDLES”

 According to the Oxford English Dictionary, a bundle is

“a collection of things bound or otherwise fastened together”.

 Let’s use the simple analogy of a bundle of sticks…

 Why would you fasten them into a bundle?

BUNDLES

Fastening the sticks into a bundle makes them:

 Easier to carry (manage)
 Stronger – each one provides support for the other

In this analogy, the sticks are the range of HR policies and practices used in an organisation.

The string, or fastening is our overall HR strategy.

What happens if we cut the string….?

WITHOUT STRING, WE HAVE NOTHING TO KEEP
THEM TOGETHER

 Without a HR strategy, we just have random

policies or practices, with no structure or
support.

 What happens if I want to move this red

stick?
 MOVING THE RED STICK WILL (PROBABLY)
MAKE OTHER STICKS MOVE / FALL

 If I move the red stick, it may have an

impact on a number of the other sticks.

 Ergo, if I make changes to one HR policy or

practice, there is a likelihood that this might
impact some of our other policies or practices.
IN FACT….

 Depending on how much movement (change) I make, some of these outer sticks could roll away and fall off the
table!

 The same is true with HR policies and practices – creating a minor change in one has a possible impact on
another.

 Creating major change (e.g. introducing a new HR policy or practice) could mean that other policies or practices
no longer work.
WE NEED OUR BUNDLES (OF POLICY/PRACTICE) TO FIT TOGETHER

 So, each of the policies or practices we (HR) put in place, fits neatly into the HR
Strategy for our company – which in turn fits alongside the Marketing strategy, the
Our
Finance Strategy, the Sales strategy and so on. Company –
let’s call it
Company A
 Each of those ‘bundles’ of policies and practices contribute to the delivery of the
overall Organisation strategy.
LET’S IMAGINE THAT OUR COMPANY IS BOUGHT BY A BIGGER
COMPANY

 Let’s call the new company B.

 This new ‘parent’ company will want A to adopt B’s policies and
procedures.

 Can we (HR) make this happen overnight?

 No, it will be a time-consuming and careful process.
https://www.youtube.com/watch?v=UfY4qt6jLio
ENOUGH ABOUT STICKS.

 So, why are these “bundles of HR policies and practices” so

important?

 This is about joined-up thinking. For example, if we want to be

able to manage individual performance, what kind of policies
and practices do we need?
YOUR TURN

Working in pairs : What bundles of policies and practices would we need in relation to …

1: Employee Engagement?
2: Employee Health and Well-being?
Make sure you identify which of the other areas these
3: Pay and reward
might link to, and how they tie into Good Practice,
4: Redundancy and Lay-offs?
Legislation, Health and Safety etc.
5: Travel on Company Business?
6: Recruitment, Development and Talent Management?
MANAGING INDIVIDUAL PERFORMANCE

 Policies and practices which set expectations – what does the employer expect of the
employee (and what does the employee expect in return – e.g. Pay and Reward policy).
 E.g. Job Description, Contract of Employment, Key Performance Indicators, Individual goals or targets.

 Disciplinary (a) and grievance policy (b) and mandatory 3 step procedure – (a) is used if the
employee does not perform and given opportunity has not improved. (b) is used if the employee believes
they are being treated unfairly.
 Policy on recognition of and negotiation with Trades Unions or other employee
representative groups – may need to be used if employee is involved in a disciplinary hearing, or raises
a grievance.

 Policy and procedure in terms of training and development plans, to help the
employee improve their performance.
FROM FARNHAM (2010) BUNDLES OF HR PRACTICES

The central idea is that [ ] a number of specific HR

strategies and practices can bring about improved
organisational performance [irrespective of the type
of organisation or its market].
BUNDLES OF HR PRACTICES CONTRIBUTE TO:

 Improved employee attitudes and behaviours

 Lower levels of absenteeism
 Lower staff turnover (people leaving)
 Higher productivity
 Higher quality
 Better customer service
….. Ergo Higher profitability.
THE A M O MODEL (PURCELL ET AL 2003)

In order for bundles of HR policies and practices to

actually work, we also need:-

People with the ability and skills to work with others

People who are motivated to work and want to do it
well
Give people the opportunity to deploy their skills in the
job and contribute to workgroup and organisational
success.
METHODOLOGICAL CRITIQUES

 There is no consistency in the number of specific HR

practices included in the described bundles.

 Wood (2003) argues we should focus on the underlying

orientation for integrated management that may be
reflected in different types of practices, rather than trying
to identify a single set of practices applicable across all
companies.
PAY & REWARD
PAY AND REWARD

“…most of us are… realistic about our earning potential

and seek a balance between what we estimate to be
that potential, the level of effort we expend and
inconvenience we are prepared to suffer and our
earnings”

Lewis et al (2003)
EMPLOYEES PAY OBJECTIVES
(LEWIS ET AL, 2003)
 Purchasing Power

 Felt Fairness

 Relativities

 Recognition
PURCHASING POWER
To earn sufficient money to support the lifestyle to
which we aspire
 Housing, food, transport, family support
 Equal Pay Act 1970
 Job Evaluation
 National Minimum Wage £8.21 for over 25’s
 Living Wage £9.00 (£10 for London)
FELT FAIRNESS
 Subjective judgement (e.g. top officers’ pay)
 Depends on background of employee
 Depends on employee aspiration
 Consequences of underpayment?
 …job dissatisfaction; lateness; lack of co-operation; absence
 Importance of HR Policy- e.g. Inclement Weather Policy
 UK: Gender Pay Gap publication
 RELATIVITIES

Fair in relation to what?

 National comparators

 Individual comparators

 Job comparators

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkin
ghours/articles/thegenderpaygapwhatisitandwhataffectsit/2016-10-26
RECOGNITION

 Job well done

 Non pay benefits
 Employer/ employee expectations
 Management style
CONTINGENT PAY

 Payment by results – basic pay plus

 Piecework and work-measured schemes
 Individual Performance Related Pay (or Appraisal Related Pay)
 Competence Related Pay (output and process)
 Skill- based Pay
 Profit Related Pay
NON PAY BENEFITS
 Pension Schemes
 Personal Security (accident cover, sick pay)
 Financial Assistance (loans, mortgages)
 Personal Needs (holidays, child care, flexibility)
 Company Cars
 In Work Subsidies
 Intangible Benefits
PAY AND REWARD

 Overall policy on salaries and grades or bands and other rewards. E.g.
 Holiday entitlement – needs an annual leave policy and procedures (practice) to
book time off.

 Links to Policies on parental leave, maternity leave, adoption leave etc.

 Mandatory legal requirements for pension provision (practice)

 Policies and practices enabling other financial and non-financial benefits and reward
mechanisms.
EMPLOYEE ENGAGEMENT & WELL BEING
ESSENTIAL TO COMPETITIVE ADVANTAGE IN ORGANISATIONS
DEFINITIONS OF EMPLOYEE ENGAGEMENT

 ‘’A workplace approach designed to ensure that

employees are committed to their organisation’s
goals and values, motivated to contribute to
organisational success, and are able at the same
time to enhance their own sense of wellbeing’’

(Engage for Success, 2014, p.2)

DEFINITION OF EMPLOYEE WELLBEING

 ‘’ A state of wellbeing in which every

individual realizes his or her own potential,
can cope with the normal stresses of life, can
work productively and fruitfully, and is able to
make a contribution to her or his
community’’

(Engage for Success, 2014, p.2)

WHY DO YOU THINK WELL BEING AND ENGAGEMENT MATTER?

 There is a difference between those who are emotionally

attached to their jobs and those who are doing their jobs just
because it provides promised rewards such as pay, and training.
(CIPD, 2012)
Survey by Westfield Health, 2015
 At Mars, we believe associates are at the heart of our business and drive our

performance. Supporting associates in managing their health & wellbeing is a mutual

benefit to Mars, our associates and their families. Understanding wellbeing and the

impact on performance is key in delivering our business objectives and our ability to
WHY IS HEALTH AND WELLBEING IMPORTANT AT
compete in a competitive market both today and tomorrow.
MARS?
CIPD ENGAGEMENT/FACTSHEET 2017

 Employees who share a mutual-gains relationship

with their employers tend to deliver improved
business performance.

 It’s therefore no surprise that employers value engaged

employees; not only are they happier, healthier and
more fulfilled than 'disengaged' employees, but they are
more likely to increase customer satisfaction levels,
productivity and innovation.
LINKAGES BETWEEN WELLBEING, ENGAGEMENT AND
PERFORMANCE

 Engage for success found that engaged employees with high wellbeing were 35% more attached to their
organisations than those with lower wellbeing.

 ``meaningful work leads to lower levels of absence because people are engaged with their work’’
(Soane et al. 2013)

 ``When employees feel engaged and productive at work, they assessed their overall lives more highly than not
engaged or actively disengaged employees’’ (Gallup, 2013)
The Power of Employee Engagement
WHAT IS HR’S ROLE?
Champion engagement

Drive cultural Facilitate

change process

Identify
Be a
organization-
role model
wide issues

Lead action
EFFECTIVE PRACTICES
 Manage performance
• Make sure employees know what is expected – and how work links to mission

• Meet regularly with employees

• Provide opportunities to grow and develop

• Hold employees accountable – avoid transferring poor performers

 Recognize contributions
 Make sure employees’ opinions count
 Create a positive work environment – respect work/life balance
 Communicate
 Measure and re-measure engagement.
EFFECTIVE PRACTICES (CONT)

 Select supervisors who can supervise – and build

engagement

 Give them training, resources and support

 Hold supervisors accountable for

engagement
 Engagement is everyone’s responsibility

 It must be a strategy

 Lead from the top

 Involve unions

 Hire with care; probation is part of selection

 Onboard (induction training) well.

 How Do We Achieve
High Levels of Engagement?
 ENGAGEMENT PROCESS MODEL

1. Plan

5. Sustain 2. Survey
Engagement
and Resurvey Communicate

4.Take
3. Analyze
Action
 How Do We
Know If
Our
Employees
are Engaged?

Ask Them!
 On the Other Hand …
Not engaged
 Not strongly committed to organization
 Feels trapped
 Gives bare minimum

Actively disengaged
 Poor relationship with organization
 Only going through the motions
 ENGAGEMENT AND WELL-BEING
 Company-wide strategy incorporates commitment to employee engagement policies.
 HRM dept. devise an engagement and well-being policy.
 Engagement surveys are sent out (practice)
 Results collated and analysed – what is working and what are employees unhappy about. (practice)
 Action plan to address the issues. (practice and may involve changes to other policies).
 Re-survey after a suitable time period to see if the changes implemented (practices) are working.

 Strategy and policies on well-being

 Initiatives such as healthy-eating campaigns and cycle-to-work etc
 Policies such as help to funding the cost of a bicycle (tax free), providing counselling for a range of ‘problems’ employees
may encounter inside or out of work.
 Provision of exercise facilities or discounts at local gym or other providers.
EMPLOYEE ENGAGEMENT MATTERS
HR has
critical role – Engagement
champion, levels are low
facilitator and
model But can be
improved

Engagement
Engagement is
should be
not just an
measured
“initiative” or
“program” Survey results must
be acted on
CONCLUSIONS

 Different reward objectives between employers and employees

 Employee pay objectives related to purchasing power; felt
fairness; relativities; recognition
 Pay increasingly linked to individual and organisational
performance
 Non pay benefits often overlooked
REFERENCES

 Guest, D., Conway, N., & Dewe, P. (2004) Using Sequential Tree Analysis to Search for ‘bundles’ of HR

Practices. Human Resource Management Journal. 14 (1) pp 79-96

 Delery, J. (1998) Issues of fit in strategic human resource management: Implications for research. Human

Resource Management Review, 8 (28) pp 586-597

 Becker, B. and Huselid, M.A. (1998) High Performance Work Systems and Firm Performance: A Synthesis of
Research and Managerial Implications. Research in Personnel and Human Resource Management, 16, pp53-
101
REFERENCES

 Farnham, D. (2010) HRM in Context: Strategy, insights and solutions. 3rd Edn. London : CIPD

 Boxall, P., & Purcell, J. (2003). Strategy and human resource management. London: Palgrave Macmillan.

 Wood, S. (2003) Human Resource Management and Performance. Int. Journal of Management Reviews. 1 (4) 367-413

 Lewis, P., Thornhill, A. and Saunders, M. (2003) Employee relations – understanding the employment relationship. Harlow : FT Prentice Hall

 MacDuffie, J.P. and Kochan, T.A. (1995) Do U.S. Firms Invest Less in Human Resources?: Training in the World Auto Industry? Journal of Industrial Relations 34 (2)
pp147-168

 Subramony, M (2009) A meta‐analytic investigation of the relationship between HRM bundles and firm performance. Human Resource Management 48 (5) pp
745-768