Labor Recruiting

Question

TO WHAT EXTENT HAVE CHANGES IN LABOUR MARKETS OVER THE LAST 3 DECADES ALTERED THE WAYS IN WHICH ORGANIZATION RESOURCE, REWARDS AND MANAGE THEIR EMPLOYEES?

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INTRODUCTION: Resources are an important aspect of organizations. Resources have received a great deal of attention from organization theorists, and several different perspectives on resources have been developed. The political econ- omy model (Zald 1970, Wamsley and Zald 1973), the power-dependence model (Thompson 1967), and the resource dependency theory (Pfeffer and Salancik 1978, Pfeffer 1982) all suggest that resources flow from the external environment and that the ability of an organi- zation to control the flow of vital resources is critical to its success. These theories assume an open systems perspective (Katz and Kahn 1966) and suggest that the management of dependencies is a critical organizational function. More recently, the resource-based view of strategic management and the dynamic capabilities approach that is built on the resource-based view have turned the focus of attention from the external environment to the internal aspects of a firm and the ways that a firm uses its resources (Barney 1991, 2001). Resources, from this perspective, are the "specific physical (e.g., spe- cialized equipment, geographic location), human (e.g., expertise in chemistry), and organizational (e.g., supe- rior sales force) assets that can be used to implement value-creating strategies" (Eisenhardt and Martin 2000, p. 1107). They are "firm specific assets that are difficult if not impossible to imitate" (Teece et al. 1997, p. 516). From this perspective, resource bases are "heterogeneous and sticky" (Teece et al. 1997, p. 514). These features have led one group of researchers to suggest that "a firm should pay more attention to its resources than to its competitive environment" (Das and Teng 2000, p. 32). The resource-based view and the dynamic capabilities approach help us to see that, rather than being depen- dent on the external environment, firms create at least some of their resources. Indeed some of the resources they rely on are the relationships they create with other organizations (Eisenhardt and Schoonhoven 1996) and their internal organizational culture (Barney 2001). An institutional perspective on resources adds to this picture by 2

showing that the utility of resources changes as the relationships among participants in the field change (Leblebici et al. 1991). From this perspective, we see that resources are dependent on the configura- tion of the field. Leblebici et al. (1991) show how the relevant resources in the U.S. radio broadcasting indus- try changed over time as the dominant players changed from manufacturers to advertising agents to networks and finally to local stations. Moreover, they show that the process of change is an endogenous process in which new practices redefine the relevant resources. In this paper I combine the mutability of resources from the institutional perspective with the internal focus of the resource-based view to propose a practice-based theory of organizational resourcing. I show that, in addi- tion to field changes, changes in internal organizational processes are an important influence on resource muta- bility. Specifically, I show how changes in the internal processes of an organization can take one kind of resource and recreate it as a different resource. Under- standings from social practice theory enable me to develop these connections and developing these con- nections enables me to extend the understanding of resources in social practice theory SOCIAL PRACTICE THEORY AND RESOURCING: One strand of social practice theory has identified resources as an important aspect of structure. Structura- tion theory defines structure as "rules and resources, recursively implicated in the reproduction of social sys- tems" (Giddens 1984, p. 377).

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Figure 1 Resourcing Cycle

RESISTANCE: Resourcing is an important process to understand because it incrementally empowers some schemas over others. The incremental nature of the change can help us understand how resistance to change can emerge and why resistance might emerge in a process of change later rather than earlier. In this case, resistance emerged as the building directors realized how the change in resources that resulted from the changes in the hiring and train- ing routines altered their ability to enact the roles they wanted to play. Briefly, the building directors' preferred schema for their own role was as educators and commu- nity builders. Over time they found themselves increas- ingly less able to engage in the actions consistent with this role. This change is illustrated by the bulimia exam- ple. The resource that the resident staff had become did not enable them to enact themselves as educators and community leaders. Resistance to the changes in the hir- ing and training routines began to emerge as a result. Figure 3 illustrates the cycle from resource to scheme to action and back to resource that I observed in the residence hall in relation to this one set of practices. There are many different ways that any particular change in any of these elements could and do develop. The particular tracing that I supply here helps to see the rela- tionships between hiring, training, resident staff prac- tices, and building director practices that eventually manifest

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themselves as resistance. In each case, new actions created new resources that enabled new schemas and new actions Figure 3 Empirical Example of Resourcing Cycle

From a society point of view effectiveness is the extent to which organizations produce goods and services. Effectiveness is measured in teems. 1. Achieving ends with 2. Limited resources The meaning of organizational performance emphasizes two parts 1. Achieving desirable ends is necessary for effective performance.

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2. Efficient use of resources is necessary but insufficient for effectiveness. Organizational

performance

depends

upon

individual

and

group

performance. Organization consists of people performing jobs alone and with others. In order to achieve high levels of organizational performance, managers must achieve high levels of performance. CRITERIA OF ORGANIZATIONAL EFFECTIVENESS: Two main conclusions of systems theory are: 1. Effectiveness criteria must reflect the entire input process, output

cycle, not simply output. 2. Effectiveness criteria must reflect the interrelationship between the organization and large environment. From these two points we can derive two corollaries 1. Organizational effectiveness is an all encompassing concept which includes a number of component concepts. 2. The managerial task is to maintain the optional balance among these components. PRODUCTION: Production reflects the ability of organization to produce the quantity and quality of output which the environment demands.

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EFFICIENCY: This concept is defined as the ratio of outputs to inputs this short run criterion focuses attention on the entire input process output cycle, yet in emphasizes the input and process elements. SATISFACTION: The conceptualization of the organization as a social system requires that some consideration be given to benefits received by its participants as well as its customers and clients. ADAPTIVENESS: Adaptiveness is the extent to which organization can and does respond to internal and external changes. This criterion refers to management’s ability to sense changes in the environment as well as within the organization itself ineffectiveness in achieving production, efficiency and satisfaction can signal the need to adapt managerial practices and policies or the environment may demand different outputs or provide different inputs thus necessitating change. DEVELOPMENT: An organization must invest in itself to enhance its capability to survive in long run. The usual development endeavors are training programs for managerial and non managerial personnel, but more recently the range of organizational development has enlarged to include a number of psychological and sociological approaches.

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A

MODEL

FOR

MANAGING

ORGANIZATIONS:

BEHAVIOUR

STRUCTURE PROCESSES: The model is not presented as being predictive or exhaustive, instead it is designed to 1. Identify crucial behavioral, structural and process variables. 2. Suggest how external environment influences organizational decision makers 3. Provide a framework 4. Emphasize the importance of viewing manager’s responsibilities 5. Stress the importance of performance outcomes it Reference: Organizations Third edition Behavior structure processes Gibson, Lvancevich & Donnelly DEFINITION REWARD MANAGEMENT: Reward management is concerned with the formulation emplementation of strategies and policies that aim to reward people fainly, equitably and consistently in accordance with their value of the organization at deals with the design, implementation and maintenance of reward processes and practices that are grared to the improvement of organizational team and individual performance.

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THE AIM AND REWARD MANAGEMENT: The strategic aim of reward managerial is to develop and implementation the reward policies, processes and practices required to support the achievement of the organizations business goals the specific aims are:  Create total reward processes that are bared on beliefs about what

the organization values and wants to achieve  Reward people for the value they create  Reward the right things to convey the right message about what is important in terms of expected behaviours and outcomes.  Help in the process of motivating people and gaining their

commitment and engagement  Support the development of a performance culture. CONTRIBUTORS TO THE CONCEPT OF REWARD MANAGERIAL: Much of the impetus for the development of the reward management concept has come from us writers, especially caroler with strategic pay and more recently, treat people right, Schuster and zingheim with the new pay and flamery, Hofrichter and Platen with dynamic pay. STRATEGIC PAY: Lawler emphasized their when developing reward policies it is necessary to think and act strategically about reward. Reward policies should take account of the organizations goals, value and culture and of the challenges of a more competitive global economy. New pay develop the individual and organizational behaviour that a company needs if its business goals are to be met.

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“In treat people right” Edlauter stresses the importance of creating a virtuous spirat in which both employers and employees win. THE NEW PAY: Lawler’s concept of the new pay was developed by schustes and zingheim who described its fundamental principles as follow: 1. Total compensation programmes should be designed to reward results and behaviour consistent with the by goals of the organization. 2. Pay can be a positive force for organizational change. 3. The major thrust of new pay is in introducing variable lat risk pay. DYNAMIC PAY: Flannery, Hofrihter and platters expounded the concept of dynamic pay and suggested that the nine principle that support a successful pay strategy are 1. Align compensation which the organization is culture, values and strategic business goals 2. Link compensation to the other change 3. Democratize the pay process 4. Demystify compensation 5. Measure results 6. Refine. refine again refine some more.

Reference: Reward managerial Michael Armstrong & Helen Mush’s 5th Edition 10

REWARD PRACTICES: Organizations apply a variety of rewards to attract, motivate and retain employees. Each reward relates to specific objectives membership and seniority job status, competencies and performance. Each reward objective has both advantages and disadvantages. MEMBERSHIP AND SENIORITY BASED REWARDS: It is called (“Pay for pulse”) represent the large part of moral paychecks. Employees receives either the same wages and benefits, or there financial rewards increase with years of service. Membership and seniority based rewards tend to attract job applicant with security needs. Reduce stress, and sometimes improve loyalty. ADVANTAGES: 1. May attract applicants 2. Minimizes stress of insecurity 3. Reduces turnover DISADVANTAGES: 1. Doesn’t directly motivate performance 2. May discourage poor performers from leaving 3. Golden handcuffs may undermine performance. JOB STATUS, BARED REWARDS: Almost every organization rewards employers to some extent bared on the status of the jobs they occupy. Job evaluation is commonly used to rate the worth

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or status of each job, with higher pay rates going to jobs that require more skill and effort, have more responsibility and have more difficulty working condition. 1. Promotion based pay increase 2. Status bared benefits ADVANTAGE: 1. Tries to maintain internal equity 2. Minimizes pay discrimination 3. Motivates employers to compete for promotion DISADVANTAGE: 1. Creates political tactics to increase job world

2. Creates psychological distance between employers and executives COMPETENCY-RARED REWARD: Organizations are shifting from rewarding job status to rewarding employees for their skills, knowledge and other competencies that had to superior performance. SAMPLE REWARDS: 1. Pay increase based on competency 2. Skill bared pay ADVANTAGES: 1. Improve workforce flexibility 2. Tends to improve quality 3. Consistent with employ ability 12

DISADVANTAGE: 1. Subjective measurement of competence

2. Skill bared pay plans are expensive TASK PERFORMANCE: Sample rewards 1. Commissions 2. Merit pay 3. Gain sharing 4. Profit sharing 5. Stock option ADVANTAGES: 1. Motivates task performance 2. Attract performance oriented applicants 3. Organizational rewards create an ownership culture DISADVANTAGE: May weaken motivation of job itself May distance reward gives from receives May discourage creativity PERFORMANCE BARED REWARD: Performance bared rewards have existed since Babylonian days in the 20th century B.C. But their popularity has increased dramatically over the part decade.

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Some of the most popular individual team and organizational performance bared rewards.

Organizational rewards: Stock ownership Stock applicant Profit sharing Score card Team rewards: Bonus Gain sharing Individuals rewards: Open book Award / bonus Commission Piece rate

INDIVIDUAL REWARDS: It is come in several forms. Many employees receive individual bonuses or awards for accomplishing a specific task or performance goal. Real estate agents and other sales people typically earn commissions, in which their pay increase with rules volume. Piece rate system reward employees bared on the number of units produced. TEAM REWARDS: Organization are shifting their focus from individuals to teams and consequently, employees are finding a larger part of their total paycheck build on team performance. 14

In which gain sharing plans is a reward system in which team members earn bonuses for reducing costs and increasing labour efficiency in their work process. A variation of gain sharing is open book management, it involves sharing financial information with employers and encouraging them to recommend ideas that improve those financial results. ORGANIZATIONAL REWARDS: In which two organizational level reward to motivate employees. Profit sharing and employee stock ownership plans (ESOPs). 1. Profit sharing plans pay bonus to employees 2. Employees stock ownership plans encourage employees to buy shares in the company, usually at a discount price. Reference: International Bedit organizational behaviour Steven L. Mcshane Mary Annvon Glinow. (McGraw Hill) TRADITIONAL CAREER STAGES: One traditional way to analyze and discuss careers is to consider them in stages or steps. Exploration: A career stage that usually ends in the mid-twenties as one makes the transition from school to work.

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Establishment: A career stage in which one begins to search for work and finds a first job. Mid-Career: A career stage marked by continuous improvement in performance, leveling off in performance, or beginning deterioration of performance. Late Career: A career stage in which individuals are no longer learning about their jobs nor expected to outdo levels of performance from previous years. Decline (Late Stage): The final stage in one’s career, usually marked by retirement. ENHANCING YOUR CAREER: The following suggestions are consistent with the view that you, and only you, hold primary responsibility for your career: 1. Know yourself 2. Manage your reputation 3. Build and maintain network contacts 4. Keep current 5. Document your achievements 6. Keep your options open.

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Reference: Fundamentals of HRM Eights edition David A Decenzo Stephen P. Robbin CAREER PLANNING AND EMPLOYEE NEEDS: What Employees Want?  Career equity  Supervisory concern  Awareness of opportunities  Employment interest  Career satisfaction CAREER DEVELOPMENT: Career development consists of the personal actions one undertakes to achieve a career plan. These actions may be sponsored by the HR department or the manager, or they may be undertaken independently of the HR department. This section reviews the tactics employees use to achieve their career plans and then discusses the HR departments role in career development. INDIVIDUAL CAREER DEVELOPMENT:

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Each person must accept his or her responsibility for career development or career progress is likely to suffer. Once this personal commitment is made, several career development actions may prove useful. These actions involve:  Job performance  Exposure  Networking  Resignations

 Organizational loyalty  Mentors and sponsors  Key subordinates  Growth opportunities  International experience JOB PERFORMANCE: The most important action an individual can take to further his or her career is good, ethical job performance. The assumption of good performance underlies all career development activities. When performance is substandard, regardless of other career development efforts, even modest career goals are usually unattainable. Career progress rests largely on performance. EXPOSURE: Career progress also is furthered by exposure. Exposure means becoming known (and, it is hoped, held in high regard) by those who decide on promotions, transfers, and other career opportunities. NETWORKING:

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Networking means gaining exposure outside the firm. Personal and professional contacts particularly through professional associations give one contacts that can be useful in identifying better jobs.

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RESIGNATIONS: When greater career opportunities exist outside the organization, a resignation may be the only way to meet one’s career goals. ORGANIZATIONAL LOYALTY: In some organizations people put loyalty to career above loyalty to the organization. MENTORS AND SPONSORS: Many employees quickly learn that a mentor can aid their career development. A mentor is someone who offers informal career advice. Neither the mentor nor the employee always recognizes that the relationship exists. Instead, a junior worker simply knows someone who gives good advice. KEY SUBORDINATES: Successful managers rely on subordinates who aid their performance. The subordinates may possess highly specialized knowledge or skills that the manager may learn from them, or they may perform a crucial role in helping a manager achieve good performance. In either case, employees of this type are key subordinates. They exhibit loyalty to their bosses and a high ethical standard. GROWTH OPPORTUNITIES: When employees expand their abilities, they complement the organization’s objectives. For example, enrolling in a training program, taking noncredit courses, pursuing an additional degree, or seeking a new work assignment can contribute to employee growth. These growth opportunities and both the HR department’s

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objective of developing internal replacements and the individual’s personal career plan. INTERNATIONAL EXPERIENCE: For those who aspire to senior operating or staff positions, international experience is becoming an increasingly important growth opportunity. Among major domestic corporations, a growing percentage of sales is often derived from international operations, particularly in industries such as automobiles, pharmaceuticals, computers, electronics, and aerospace. As the proportion of international sales and operations grows, the importance of international experience increases, becoming a virtual prerequisite in global corporations such as Coca Cola, Eli Lily, Procter and Gamble, Ford and General Dynamics. Managing employees is a big deal for organizations now a days.Business world is dynamic and in order to cope with these changes modern organizations require Competitive employees. Employee management ultimately links with human resourse management. Human resourse management is a design of formal system in the organization to ensure effective and efficient use of human talent to accomplish organization goals.(HRM by Robert mathis) As business world is changing dynamically in order to be responsive to these changes at every cost organizations wants to retain competitive employees When ever organizations have to replace employees this is a big matter of concern for them how to hire competitive employees?.

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In managing employees first concern is how to hire competitive employees?who are responsive to every change in business world immediately . now there are different techniques by using we can hire competitive employees including recruitment selection validity and reliability orientation and training etc(own description) RECRUITMENT: Locating identifying and attracting capable candidates is called recruitment how do organizations find employees? At a job fair southwest airlines recruitment team distributed air sickness bags printed with the slogan sick of your job? Although online recruitment allows organizations to identify applicants cheaply. These are the new methods for recruitment which were not applicable decades ago SELECTION: Once the recruiting effort has developed a pool of candidates next step is to determine. Who is best qualified for the job . this step is called selection or screening job applicants To ensure that the most appropriate candidates are hired . VALIDITY AND RELIABILITY: Any selection device that manager uses should demonstrate validity. A proven relationship between the selection device and some relevant criterian. Type of selection devices are application forms, written tests, performance simulation tests, interviews etc(management by Stephen p robbins)

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Employee training is an important activity in managing employees. Many years ago. There was not so much competition so business environment was not so dynamic But now a days each and every moment in business environment introducing new. Ways to be competitive employee training is one of them . ( picture in words) TYPES OF TRAINING: One of the most popular types oftraining that organizations provide individual sexual harassment , safety, management skills, development , and supervisiory skills, for many organizations ,employee interpersonal skill training , communication, conflict resolution, Team building ,customer service,and so forth is high priority.(management by Stephen p robbins) After hiring competitive employees now its big headache for organizations to retain and motivate them . whenever we talk about motivation there are different theories in this regard as well . IMPORTANCE OF RETENTION: One technology company with 500 employees , SAS institute, determined that turnover cost of their highly skilled employees averaged 60,000 per departure . by focusing on retention , the firm has had an attrition rate 17 % below the industry average, meaning that 850 million employees had to be hired at estimated savings of more than 50 million per year . SAS focus on retention has allowed the organizations to be more innovative with its retention programs.(hrm by robert mathis)

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ORGANIZATIONS

STRATEGIES

,

OPPORTUNITIES,

AND

MANAGEMENT; Organizations components that effect employee retention are related to strategies ,opportunities and management of the organization . in some organizations external events are seen as threatening , whereas others see changes as challenges requiring responses.The latter approach can be sourse of competitive advantage , especially if an organization is in growing ,dynamic industry. One factor affecting how employees view their organizations is the vision are quality of organizational leadership . often such vision is demonstrated by having an identified strategic plan that guides the firm,s response to change . if a firm is not effectively. Managed, then employees maybe ‘turned off” by the ineffective response and inefficiencies they deal with in their job.(hrm by Robert mathis) Career development ,career planning ,rewards and retensions, competitive benefits. Special benefits, performance and compensations, recognition, job design are barriers. To employee turnover and promotes employee retention.(own words) MOTIVATION: Motivation refers to the process by which persons efforts are energized, directed, And sustained towards attaining a goal .although , generally speaking, motivation. Involves any effort exerted towards a goal.A motivated person puts forth effort and Work hard .however quality of efforts must be considered as well as its intensity.

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EARLY THEORIES OF MOTIVATION: Early theories of motivation included maslow hierarchy of needs theory,herzbergs two factor theory, Mcgregor,s theories x and y. MASLOW HIERARCHY OF NEEDS: The best known theory of motivation is probably Maslow,s hierarchy of needs theory it says; within every person is a hierarchy of five needs; psychological needs, safety needs, Social needs, esteem needs, self actualization needs, Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next is activated and that once a need is substantially satisfied the other one is dominated in this way individual moves up from one hierarchy to the next one. He further says if you want to motivate one person you need to understand what need level that person is on in the hierarchy and focus on satisfying needs at or above that level MCGEORGE’S THEORY X AND Y; Douglas mcgregor is best known for proposing two sets of assumptions about human nature ; theory x and theory y. Theory X is a negative view of people that assumes workers have little ambition ,dislike work, want to avoid responsibility, and need to be closely controlled to work effectively;

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Theory Y is the positive view that assumes workers can exercise self direction .accept, And actually seeks out responsibility, and consider work to be natural activity,(management by Stephen p robbins) These theories are very helpful in motivating employees .employees can be motivated by other methods as well by giving them recognition ,incentives, satisfaction, because employee motivation is very important factor in employee management. EMPOWERMENT PRACTICES: A psychological concept in which people experience more self determination meaning , competence and impact

regarding their role in the

organization. SELF DETERMINATION: Empowered employees experience self determination which consists of freedom ,independence and discretion over their work activities. MEANING: Employee who feel empowered care about their work and believe that what they do is important . COMPETENCE: Empowered people have feelings of self efficiency ,meaning that they are confident about their ability to perform ther work well and have a capacity to grow with new challenges.

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IMPACT: Empowered employees view themselves as active participants in the organization that is their decisions and actions have an influence on the company’s success. CREATING EMPOWERMENT: Chances are that you have heard corporate leaders say they are “empowering the workforce” what these executives really mean is that they are changing the work environment to support empowerment job characteristics clearly influence the dynamics of empowerment (MCGROW_HILL 3E)

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