Strategic Human Resource Management Current Developments and the HE ContextDavid GuestProfessor of Organizational Psychology & Human Resource ManagementKings College, London

The Starting PointIs your university able to attract and retain the kind of talent that will ensure a high RAE rating in 2008?

Does your university provide attractive development opportunities for young up-and-coming staff?

Are there effective mechanisms for dealing with the kind of poor quality teaching that can lead students to complain to governors?

The Starting PointDoes the institution have in place the kind of performance indicators that permit you to make sound judgements about the management of human capital?

Can you judge whether you have ethical human resource policies and practices in place?

For what do you hold the human resource department accountable?

Reasons for Interest in HRMBasis for competitive advantage and better performanceTo attract and retain a high quality workforceTo manage change and innovationGrowth of evidence-based case for adoption of human resource policy and practiceInterest in human capital and ethical reportingTo manage universities effectively and efficientlyResponse to financial incentives

Approaches to HRM1.HRM as strategyIntegration of HR strategy with university strategy

2.HRM as managementLine management accept responsibility for managing their staff within HR strategy

3.HRM as utilisation of talent (human capital)An integrated culture, philosophy and HR policy and practice to gain high commitment and performance

HRM as guardian/promoter of fair treatmentHRM as performance managementHRM as administration

The Main Elements of Performance ManagementPERFORMANCE MANAGEMENTPERFORMANCE APPRAISALPERFORMANCE-RELATED PAYPERSONAL DEVELOPMENT PLANSOBJECTIVE SETTING AND REVIEWCOACHING MENTORING FEEDBACK

High Commitment HRMOpportunity to participateEmployee motivation Employee competenceEmployee commitment

High Performance HRM PracticesSelection based on quality/approach to work/capacity to learnUse of realistic job previews in selecting all staffExtensive provision of trainingDeliberate development of a learning organization

Design of jobs to make full use of skills and abilitiesStaff/teams responsible for their own qualityFormal appraisal of all staff at least annuallyPartnership system of employment relations

Systematic goal setting and feedbackInternal promotion if at all possibleHigh basic pay and organization-based contingent payHarmonised terms and conditions for all staffEmployment security emphasised

Formal system of communicating values to staffStaff informed about company performance and prospectsRegular use of attitude surveys

HEFCE Strategic PrioritiesRecruitment and retentionDevelopment and trainingEqual opportunities

Staffing planningPerformance review and rewardPoor performance +Strategic integrationPerformance indicators

Choosing HRM Outcomes and Measures of PerformanceStandard performance indicatorsGoal-based perspectivesBalanced score-cardResource acquisition modelsBench-marking and ratiosProcess models; process effectivenessStakeholder perspectives

The Outcome Measurement Challenge: Evidence from 110 UK Health Service Trusts 1 2 3 4 5 6 7 81Labour turnover - 2Absence 16 -3Staff Costs-07 19 -4Productivity-01 13 26 -5Unit Labour Costs 07 05 11 89 -6Appointments on time-16 10 07 54 53 -7Complaints 02 -05 09 25 20 27 -8Return on capital-03 21 05 08 05 21 11 -

Correlation above .18 p

HRM and Performance

Low adoption of HR practices in the UKNumber of HR practices in the public (N=546) and private sectors (N=1277)WERS data

Effectiveness of Human Resource Departments (CEO responses)

HR and profit per employee

HRM Performance Links: UK NHS Trusts % deviation from average

Managing People Through the Psychological Contract: Why the Interest?Breakdown of the traditional dealA career in return for loyaltyA fair days work for a fair days payLow pay but high autonomyIndividualisation of the employment relationshipOrganizational change and violation

Defining the Psychological ContractThe perceptions of both parties to the employment relationship, organization and individual, of the reciprocal promises and obligations implied in that relationship

The state of the psychological contract is concerned with whether the promises and obligations have been met, whether they are fair and their implications for trust.

The DealEmployer Delivers onPromisesEmployeesDeliver on PromisesFairnessTrustCommitmentWell-BeingPerformance

Promises made and kept by the organization%Central Local Health Industry Govt. Govt.Fair pay: promise made 65 7170 71 promise fully kept 34 5453 52

A career: promise made 69 4954 47 promise fully kept 32 5157 48

Do you feel fairly rewarded for the amount of effort you put into your job?%Central Local Health Industry Govt. Govt.

Yes 56 65 65 69

No 44 35 35 31

Extent to which you trust senior management to look after your best interests%Central Local Health Industry Govt. Govt.

A lot 14 26 28 33

Somewhat 40 38 36 30

Only a little 28 23 21 18

Not at all 18 13 14 19

The Psychological Contract FrameworkThe Good Employer

The High Quality WorkplaceTheDealSatisfiedAnd ProductiveWorkers

The Good EmployerEmployee PartnershipFlexibleEmploymentPracticesClimate of Positive Organisational SupportProgressive Human Resource PracticesThe Good EmployerHigh Quality Workplace

The High Quality Workplace % positive response Reasonable demands/manageable workload 74 Some personal control over work 67Support from supervisors and colleagues 82Positive relationships at work 93A reasonably clear role 76Involvement in changes affecting you 83

Effective supervisory leadershipRarely/ Most ofNever the timeMotivates you to work effectively 20 47Provide feedback on how you are doing 23 45Help you improve your performance 29 37Make you feel you want to quit this job 72 9Provide praise and recognition 24 33Get on your nerves 29 12Support you when necessary 11 63

Exploring the LinksHigh quality workplaceEffective supervisoryleadershipNumber of promises.40.44.47.12.08.12State of the psychologicalcontract.16.37.35Human ResourceManagementFlexible Practices

Exploring the Links contState of the psychologicalcontractJob satisfactionLoyalty to supervisorOrganisational CitizenshipExcitementIntention to quitOrganisational commitmentWork-life balanceLife satisfaction.32.28.13.24.19.16.11 -.09

High Quality Workplaces and StressHighQualityWorkplacesOrganisational CommitmentMotivationStressIntention to quitPositive state of Psychological contractWork SatisfactionSatisfaction with Work-Life Balance.35.08-.32-.12.09.16.12HumanResourceManagementFlexiblePracticesLong Hours.12-.12.40

Issues ArisingWhat sort of HR strategy?How well integrated an HR strategy?Strategic or reactive HR?What role for middle managers?What role for the HR function?What psychological contract is offered?Does your university deliver on its promises?Modes of cultural leadership what do you pay attention to?