07 - HR aspects of PM.

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问题 English 答案 English
HRM definition.
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The strategic and coherent approach to the management of the most valued asset: the people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage.
'management of the most valued asset'
HRM may include...
HARD
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hiring, | appraisal development, | reward system | development of employees.
Strategic significance of employees.
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The creation and fulfilment of the strategy relies on the skills, knowledge and creativity of the people.
Today, employees are seen less an an expensive necessity but as a strategic resource that might provide the organisation with competitive advantage.
Operational significance of employees.
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Successful completion of a task relies on having employees with appropriate skills and abilities to carry out their work.
Aims of reward system:
#
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Risk attitude aligning*. | Employing and retention. | Legal obligations. | Awarding for performance. | Control salary costs. | Justice and consistency. | Objectives of organisation achieving. | Motivation.
RELACJOM systemu wynagrodzeń
*Employees attitude aligned with that of the organisation.
Methods of reward:
BP BP E
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Basic Pay. | Performance related work (PRP)*. | Benefits in kind. | Pension. | Executive share option scheme.
PIG KPC
* Piecework. | Individual PRP. | Group PRP. | Knowledge contingent pay. | Profit related pay. | Commission.
Benefits of linking reward scheme to performance:
#
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Motivation. | Interminable improvement focus. | Clearness of what creates organisational success. | Attracting staff.
MICA
Problems of linking reward scheme to performance:
DUCATS
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Dysfunctional behaviour. | Unmotivated*. | Cost. | Achievement prioritising. | Targets setting. | Stress source.
DUCATS
*If target outside of employee control, difficult to achieve or rewards are insufficient or inappropriate.
Dysfunctional behaviours of PM system:
SS GOT MMM
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Sub-optimisation.| Short-termism.| Gaming.| Ossification.| Tunnel vision.| Misrepresentation. | Misinterpretation.| Measure fixation.
Ossification = lack of flexibility. | Sub-optimisation = nieoptymalność.
Measure fixation = E.g. measuring behaviour or results that are not important
Non-accounting management style:
by Hopwood
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Non-financial measures, such as customer satisfaction.
Budget constrained management style by Hopwood:
2cz
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Short-term financial performance is measured | using, say, ROCE.
Profit-conscious management style by Hopwood:
2cz
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Measures of long-term profitability, | such as NPV.

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