Human Resources Management (Lepak/Gowan) – Chapter 2

Plan for achieving a competitive advantage over its rivals
Cost leadership strategy
Outperforming competing firms within an industry by maintaining the ability to offer the lowest costs for products or services; costs are the underlying focus; maximizes predictable employee outcomes (jobs functions)
Differentiation strategy
Achieving competitive advantage over competing firms by providing something unique for which customers are willing to pay; jobs geared towards particular objective (creativity, customer service)
Company characteristics
Size and stage of development; second organizational demand
Small businesses
Generated between 60-80% of net new jobs over the past decade; hires 40% of tech workers; represents over 99% of all employers; roughly 50% of private-sector employees, more than 600k startup businesses are created each year
Stage of development
Startup, emerging growth, maturity, decline/transition
Organizational culture
Set of basic assumptions, values, and beliefs of a company’s members; informal or unwritten side of the organization; shaped by company founder, history, actions of managers, etc.
Organizational culture influences employee management
1) Affects managerial decisions about specific practices to use with HR functions; 2) Influences effectiveness of different HR practices; 3) effectiveness of employee management practices
Psychological contract
Perceived obligations that employees believe they owe their company and that their company owes them
Work/life balance
Balance between the demands of work and the demands of employees’ personal lives
___% of mothers in US workforce have children under the age of ____
60%; three
___million full-time employees had flexible work schedules in 2004
The expectations of employees about how they should be treated while at work
Distributive justice
Fairness of what individuals receive from companies in return for their efforts
Procedural justice
Perceptions of whether the processes that are used to make decisions, allocate rewards, or resolve disputes or that otherwise affect employees are viewed as fair
Procedural fairness criteria
Consistency, bias suppression, accuracy, correctability, representativeness, ethicality
Managers should ensure that allocative procedures are consistent across people and over time
Bias suppression
Managers need to prevent personal self-interest and blind allegiance to narrow preconceptions
Decisions must be based on good information and informed opinion
Managers must be open to opportunities to modify or reverse decisions based on inaccurate information
The allocation process must represent the concerns of all important subgroups and individuals
The allocation process must be compatible with prevailing moral and ethical standards
Interactional justice
How employees feel they are treated by their managers/supervisors in everyday interactions
Responses to perceived violations of psychological contracts
Voice, silence, neglect, exit, destruction
Actions an employee might take to correct a situation that he or she views as unfair
A form of nonresponse and a willingness to live with the circumstances, even if they are viewed as unfair
Failure to completely fulfill one’s duties
Departure from the company
Counterproductive behaviors that damage the company, such as vandalism, theft and aggression
Environmental influences
Labor force trends, technology, globalization, ethical/social responsibility
Labor force trends
Aging workforce, demographic diversity
Percentage of individuals in 55-and-older age group is expected to grow ____ times as fast as the rest of the workforce
Percentage of individuals in 65-and-older age group is expected to grow ____ times as fast as the total labor force
Women in the labor force is expected to grow by ____% byetween the years 2006 and 2016
Women are expected to make up ____% of the US labor force in 2016
Work away from the traditional office setting using technology
Global International strategies
Domestic, international, multinational, global, transnational
Domestic strategy
Focuses on serving the market within a particular country
International strategy
Expand the markets in which they compete to include multiple countries
Multinational strategy
When companies establish autonomous or independent business units in multiple countries
Global strategy
A company strives to achieve global efficiency
Transnational strategy
Strives to achieve the benefits of both a global strategy and a multinational strategy
Practice of sending work that was once performed domestically to companies in other countries or opening facilities in other countries to do the work
Global factors
Economic considerations, cultural differences
US-owned manufacturing plants in Mexico
Degree to which people in a country prefer to act as individuals rather than as members of groups
Power distance
Degree of inequality among people that population of a country considers normal
Uncertainty avoidance
Degree to which people in a country prefer structured situations with clear rules about how one should behave over unstructured situations that are more ambiguous
Degree to which a society stresses values that have traditionally been viewed as masculine (assertiveness, performance, success, and competition) over feminine values (quality of life, personal relationships, service, care for the weak, solidarity)
Eight stakeholder groups with regard to ethics
Shareholders, community, governance, diversity, employees, environment, human rights, product
Top 5 pressure points for unethical behavior
Following the boss’s directive, meeting overly aggressive business/financial objectives, helping the organization to survive, meeting scheduling pressures, wanting to be a team player
___% of US companies have written code of ethics

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