critical learning journal

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Description

The individual assignment is a ‘critical learning journal’. Your learning journal is based on your insights and provides you with an opportunity to reflect on the ways in which the issues and concepts raised in the course affect you personally in your role as a manager.

Learning Journal Requirements

Based on the knowledge you have gained from the week-end workshops, self-reading and research you are expected to critically evaluate your learning in the unit:

  1. Choose any six topics of your interest from the lecture topics provided in the lecture schedule for your self-analysis. Ive already chosen 6 topics to make it simpler for you and I've also attached some of the lecture slides to make it easy to relate to!

Topic 1 - An institutional contexts framework for sustainable HRM

- Background to sustainable development

- Macro-level institutional contexts

- Meso-level national contexts

- Micro-level industry contexts

- Institutional strategic choices for sustainable HRM

Topic 2-Stakeholder theory and corporate sustainability

Stakeholder theory and HRM

Critical HRM

Simultaneous effects of HRM on organizations and stakeholders

Stakeholder harm index

Topic 3-HR Development and Performance Management

Topic 4-Sustainable HRM values and strategies

-Understand how sustainable HRM strategies and practices go beyond traditional approaches to HRM

Make practical suggestions how unsustainable HRM practices can be identified and reduced and how sustainable HRM practices can be designed and implemented

Critically discuss the contributions of sustainable HRM and key theoretical assumptions

Topic 5-Sustainable HRM Theories

-Compare sustainable and unsustainable aspects of HRM functions and high performance work practices (HPWPs).

Develop understanding of negative externality of HRM functions and HPWPs on the stakeholders.

Appreciate work harm of some of HRM functions and HPWPs (e.g. flexible work arrangements, work intensification etc.,) on the stakeholders.

Examine the social costs of HRM functions and HPWPs imposed on the stakeholders.

Topic 6- Green HRM for environmental sustainability

Environmental management system for sustainability

Perspectives of environmental management

Green HRM for anthropocentric and ecocentric environmental management systems

Employee level green HRM

Framework of green HRM for environmental sustainability

ONLY 1500 words

STRUCTURE

What you have learnt about yourself based on the subject knowledge gained from this unit?

( Intro, introduce all 6 topics and briefly explain)

Self-reflection: You demonstrate a willingness and ability to engage in self-reflection. You provide examples from your own experience. You show an understanding of the consequences of social, economic and environmental outcomes of sustainability impact on yourself, other stakeholders and the organization.

Conceptual understanding: You demonstrate a thoughtful understanding of conceptual material and sustainable HRM theories and concepts discussed in the course, and integrate them, as relevant, into your analysis.

Application: You demonstrate a willingness and ability to take steps towards personal change based on the knowledge gained in this unit. You discuss in depth possible action plans for improvement in your managerial behaviour.

Critically evaluate your management style based on your analysis and provide appropriate journal references for your critical evaluation.

Please use atleast 8 references from articles, texts books interviews ( not from website links, unless its an article)

Unformatted Attachment Preview

HRMG305 HR Development and Performance Management 2018-1 Stakeholder Theories for Sustainable HRM Lecture 3 Strathfield Campus - Monday 12 March 2018 Prepared by the National Lecturer in Charge: Dr Sugumar Mariappanadar Presented by: Liz Ashard 1 | Office | Faculty | Department Learning objectives Stakeholder theory and corporate sustainability Stakeholder theory and HRM Critical HRM Simultaneous effects of HRM on organizations and stakeholders Stakeholder harm index 2 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Similarities between sustainability and stakeholder theory and management Three main similarities: (1)they “build on normative foundations”, and have significant ethical implications; (2)they “rely on participation”, and are supposed to be implemented by societal consensus finding processes; (3)they both “aim at the integration of economic, social and environmental performances” (Steurer et al. 2005). 3 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Difference between sustainability and stakeholder theory Sustainability refers to principles and requirements that on organization must satisfy for being considered sustainable, whereas stakeholder theory is based on interactive and negotiation processes that result in an integration of the stakeholders claims with the corporate interest (Guerci et al., 2014). 4 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Stakeholder definition A stakeholder is “any individual or group who can affect or is affected by actions, decisions, policies, practices or goals of an organization” (Freeman 1984, p. 25). Why is it important for businesses to manage stakeholders’ expectations? The normative reasons emphasize the intrinsic value of stakeholders, seeing them as “an end”. The instrumental reasons, assume that corporate performances can be improved by managing properly stakeholders, seeing them as “a mean”. 5 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Five-phase stakeholder management process elaborated by Carroll and Buchholtz (2011) Stakeholder management process is important because managers can become effective stewards of their stakeholders’ resources by gaining knowledge on stakeholders and using the knowledge to predict and improve their behaviours in action. Phase-1: stakeholder identification Phase-2: the stakeholder stakes Phase-3: cooperation/threat identification Phase-4: responsibilities that the firm have towards its stakeholders Phase-5: What strategies or actions should firms take to best address stakeholders 6 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Stakeholder theory and HRM The reason why stakeholder theory is important for HRM is because HRM has to support the development of corporate sustainability by adopting a multi-stakeholder approach. This can be understand by exploring: • the reasons why HRM should adopt a stakeholder perspective; • who are the stakeholders of the HR system; • what are the specific managerial actions and activities that the HR department might take for effectively orienting the HR system towards the stakeholders’ interests and needs. 7 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Why HRM should adopt a stakeholder perspective? A stakeholder-oriented HRM system is crucial for monitoring intended and unintended impacts, and its effects on the stakeholders’ satisfaction. This pushes organizations towards finding new HR metrics, to be integrated with the more traditional ones typically based on the financial outcomes (Guerci et al., 2014). 8 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Who are the stakeholders of the HR system? Brockbank (2005) proposed that the stakeholders of the company HRM system are of four groups: investors and customers (considered external stakeholders) and employees and managers (considered internal stakeholders). Is that all? 9 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 What are the specific actions of HR department towards stakeholder interests • Which stakeholders are to be considered in the design, implementation, management and evaluation of the HRM system?; • What the stakeholders’ stakes are and, in particular, which of the stakeholders’ needs and interests are to be considered by the HRM professionals?; • Which actions and activities a HRM department can take for contributing to the satisfaction of those stakeholders’ needs and interests? • How a stakeholder-oriented HRM department can measure the effects of the HRM system such in way that satisfies the stakeholders’ evaluation needs? 10 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Critical HRM perspective The critical HRM perspective (e.g. Legge, 1995; Ramsay et al., 2000) views employers as the actors that benefit most in terms of organizational performance from high performance work practices (HPWPs), and that HPWPs are not beneficial or could even be harmful for employees in terms of their wellbeing. The critical HRM perspective endorses the negative outcomes of HPWPs on stakeholders based on the skeptical and pessimistic views (Peccei, 2004). In the skeptical view it is argued that employee benefits and organizational performance benefits are two distinct goals which are influenced by different sets or bundles of HRM practices (Boxall & Purcell, 2016). Furthermore, the pessimistic view highlights that organizational benefits could be achieved at the cost of reduced employee benefits and hence these two are not only distinct but are also conflicting outcomes (Legge, 1995). 11 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Simultaneous effects of HRM perspective The simultaneous effects perspective of HRM (Mariappanadar, 2003; Ehnert, 2009; Kramar, 2013) adds value to the mutual benefits and critical HRM perspectives by suggesting that high performance work practices (HPWPs) are most likely to cause harm to employees (in terms of personal, social and health wellbeing) while maximizing organizational performances but attempts can be made at the institutional level to minimize this harm on employees. 12 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Stressed, overworked, too much to do.......Ping!!!!! Work related health aspects of harm of high performance work practices (HPWPs Stress at work 2 https://www.youtube.com/watch?v=8Dez_4YpMIs (2:06) Funny commercial / ad about the levels of stress at work https://www.youtube.com/watch?v=6-nurmms_1k (1:00) 13 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 The harm of work on stakeholders The harm of work practices highlighted in the sustainable HRM is based on the negative externality perspective, which reflects the cost shifting to the stakeholders of the management of the harm of HRM practices. The negative externality of HRM practices (Mariappanadar, 2012a; Ehnert & Harry, 2012; Kramar, 2013) is the social cost of welfare loss imposed by HPWPs on the stakeholders (e.g., employees, their family members and communities) for ‘reduced’ psychological, social and work related health wellbeing outcomes. 14 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Contd.. The harm of HRM practices based on negative externality is different from the skeptical and the pessimistic views of HPWPs (Peccei, 2004 cited in Van de Voorde et al., 2012) and the conflicting outcome perspective literature (e.g. Legge 1995; Ramsay et al., 2000) in two ways. The first difference is based on the welfare loss caused by the harm indicators of HRM practices such as ‘reduced’ psychological, social and work related health wellbeing outcomes for the stakeholders. The second difference is about cost shifting to the stakeholders for managing the harm caused by HRM practices, which is understood based on the social costs of welfare loss for the stakeholders. 15 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Stakeholder harm index (Mariappanadar, 2014) The stakeholder harm index of HPWPs is defined as a catalogue to capture the harmful aspects of reduced psychological, social and work related health wellbeing outcomes for the stakeholders (employees, their families, and the community) and the aggregate social costs of welfare loss due to such harmful aspects caused by either a specific form of HPWP or a bundle of HPWPs. 16 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Contd.. The harm of HPWPs is understood based on welfare loss caused by the harmful aspects of HPWPs. That is, the harmful effects of HPWPs restrict the stakeholders (employees and their family) from maximizing the utility function of paid work for improved individual psychological, social and health wellbeing or good for a society. 17 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Valuate the costs of harm indicators •Direct costs or market price of harm indicators •Indirect costs of harm indicators Stage 3 Identification and allocation of costs to appropriate levels •Employee level •Family level •Community level Stage 2 Cost measure for harm of HRM practices •Psychological harm •Social and work related health harm Stage 1 Figure 1 The costs framework for harm of HRM practices on stakeholders (Mariappanadar, 2013) 18 | Office | Faculty | Department ......................................................... 18 Table 1 A Stakeholder Index of Harm of HRM practices Costs attributed to single or multiple stakeholders (C1) The cost measure for psychological aspect of harm (C2) Type of harm indicators (C2a) Direct/indirect costs (C2b) Single stakeholder (employees) – R1 Problems thinking clearly and decision making at work Costs of longitudinal relative deprivation ($15,000 or more) Single stakeholder (employees & their partners) R2 Cost measures of harm of work intensification as a HRM practice The cost measure for social aspect of harm (C3) The cost measure for work related health aspect of harm (C4) Type of harm indicators (C3a) Direct/indirect costs (C3b) Increased conflict between partners leading to divorce Direct average costs of $ 30,000 for an affected individual Single stakeholder (the society or government) – R3 Type of harm indicators (C4a) Insomnia Coronary heart disease (CHD) Severe headaches, shoulder and back aches Multiple stakeholders (employees and to society) – R4 Burnout Multiple Alcohol abuse stakeholders (family having detrimental effect and to employees) – on affected employees’ R5 work capabilities 19 | Office | Faculty | Department Change in career path (85% less income at the time retirement compared to the former career) Transitional unemployment and reduced annual salary Burnout and work related depression Decrease in Costs of child marital satisfaction due to neglect due to alcohol organisational stressor and abuse role overload ......................................................... 19 Direct/indirect costs (C4b) Total direct average costs for caring an affected individual with insomnia $1039. Annual per capita direct health care costs of $839 for individuals with CHD. The estimated annual treatment costs for chronic musculoskeletal pain in the US is $ 100 billion. Annual per capita health and disability costs of $5,415 to the society for caring affected individuals. Usefulness of stakeholder harm index The stakeholder harm index can help managers identify and capture the harm of certain work practices so as to detect discrepancy in ethics of care for the stakeholders so as to introduce HR policy and practice change interventions to minimize the harm. Subsequently, by using the index evaluate over a period of time, the effectiveness of any intervention in minimizing the harm of certain work practices that are imposed on the stakeholders can be determined as well as achieve financial performance for the company. 20 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Contd.. The stakeholder harm index will facilitate HR practitioners with detailed knowledge of the industry in which firms are operating to identify the harm of HPWPs and set standards for management-based regulation, social self-regulation and sustainable work systems at the institutional level. This will arguably lead to more practicable standards for the negative consequences on the stakeholders as well as be more effectively monitored. 21 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 A Paradox Perspective for Sustainable HRM HRMG305 HR Development and Performance Management 2018-1 Week 4 Workshop Strathfield Campus - Monday 19th March 2018 - 5pm Presented by: Liz Ashard 1 | Office | Faculty | Department CONCEPTS for this week ❑Tension between sustainability and HRM ❑The Paradox Perspective ❑Key Organisational Paradoxes ❑Key Paradoxes for HRM ❑Strategies to Cope with Paradox 2 | Office | Faculty | Department AGENDA Lecture - Paradox Perspective for Sustainable HRM Recap on last week - Stakeholder Theories Sharing the Blogs. Discussion and debate. Drilling down into some of the areas mentioned in the lecture. Assignment due next week. Questions Activities 3 | Office | Faculty | Department RECAP Stakeholder Theory The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization. It was originally detailed by Ian Mitroff in his book "Stakeholders of the Organizational Mind", published in 1983 in San Francisco. Sourced: https://en.wikipedia.org/wiki/Stakeholder_theory Stakeholder theory states that the purpose of a business is to create value for stakeholders not just shareholders. Business needs to consider customers, suppliers, employees, communities and shareholders. Source: Stakeholder Theory. https://stakeholdermap.com/stakeholder-theory.html 4 | Office | Faculty | Department RECAP Difference between sustainability and stakeholder theory •Sustainability refers to principles and requirements that on organization must satisfy for being considered sustainable, •whereas stakeholder theory is based on interactive and negotiation processes that result in an integration of the stakeholders claims with the corporate interest (Guerci et al., 2014). 5 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 RECAP Why HRM should adopt a stakeholder perspective? A stakeholder-oriented HRM system is crucial for monitoring intended and unintended impacts, and its effects on the stakeholders’ satisfaction. This pushes organizations towards finding new HR metrics, to be integrated with the more traditional ones typically based on the financial outcomes (Guerci et al., 2014). 6 | ............................................................................................................... Office | Faculty | Department ........HRMG305 Sustainable HRM & Stakeholders 2018-1 Activity Sharing the blogs – Discussion and debate ‘On how stakeholders can negatively impact on business financial outcomes’ (200 -300 words) 7 | Office | Faculty | Department Paradox What does it mean? •A paradox is a statement that, despite apparently sound reasoning from true premises, leads to an apparently self-contradictory or logically unacceptable conclusion. • A paradox involves contradictory yet interrelated elements that exist simultaneously and persist over time •Some logical paradoxes are known to be invalid arguments but are still valuable in promoting critical thinking. Source: Wikipedia 8 | Office | Faculty | Department Sensemaking: Dealing with Organisational Sustainability Paradoxes Gaia Grant How can groups generate innovative approaches for dealing with organisational sustainability paradoxes? A collective sensemaking perspective “We cannot solve our problems with the same thinking we used to create them.” Albert Einstein https://www.youtube.com/watch?v=e6LVzvEuAJI (5:02) 9 | Office | Faculty | Department Paradox Perspective It is argued that researchers can learn new aspects about an organization by replacing a logic perspective, predominant within western research, with a paradox perspective on the analysis of the organization. A paradox perspective rests on the assumption that mutually exclusive phenomena exist in the organization. Ann Westenholz Source:http://journals.sagepub.com/doi/abs/10.1177/0143831X99204002 10 | Office | Faculty | Department 11 | Office | Faculty | Department Activities DISCUSSION What is Stakeholder Theory? - R. Edward Freeman https://www.youtube.com/watch?v=bIRUaLcvPe8 (2:57) Shareholders vs. Stakeholders -- Friedman vs. Freeman Debate - R. Edward Freeman https://www.youtube.com/watch?v=_sNKIEzYM7M (1:17) 12 | Office | Faculty | Department Essential Question It is possible to avoid the tension between sustainable HRM contributing to profit maximization and stakeholder well-being? 13 | Office | Faculty | Department Looking at the first assignment Institutional and stakeholder context .... Assessment task 1 - Week 5, Mon – 26th March, via Turnitin before 5pm Individual essay – 30% - 1000 words Question: Critically analyse the institutional and stakeholder contexts for developing sustainable HRM as a new discipline to achieve corporate sustainability. Purpose: The purpose of this assessment is to help you develop an understanding of the contexts for sustainable HRM. Creating Value – Stakeholder strategy https://www.coursera.org/learn/uva-darden-advanced-business-strategy/lecture/2p8A3/sources-of-institutionalpressure (9:26) 14 | Office | Faculty | Department Activity Case study for discussion Human Resource Management in Context Use the case study handout to analyse the institutional and stakeholder contexts for developing sustainable HRM as a new discipline to achieve corporate sustainability in this organisation. 15 | Office | Faculty | Department Next Week Week 5 ❑Sustanable HRM values and characteristics ❑Remember to read through the Lecture slides and articles BEFORE the workshop ❑First Assignment is due for submission 16 | Office | Faculty | Department Institutional Context (1 of 2) • Institutional Context: Includes other elements of society besides national culture such as: • Education • The government • The legal system • These can affect important business-related differences among societies. • May encourage adoption of values inconsistent with national cultures. 17 | Office | Faculty | Department Institutional Context (2 of 2) • It is important to understand the dominant institutional context of any society, and appreciate its influence on individuals and organizations. • Understanding the institutional context is critical to effective multinational management. • At a basic level, a manager cannot completely understand any society without examining its national culture and institutional context. 18 | Office | Faculty | Department Exhibit 3.1: The National Context and Multinational Companies 19 | Office | Faculty | Department HRMG305 Sustainable HRM and Stakeholders 2018-1 Sustainable HRM values and strategies Lecture 5 Strathfield Campus – Monday 26th March 2018 Prepared by the National Lecturer in Charge: Dr Sugumar Mariappanadar Presenter by: Liz Ashard 1 | Office | Faculty | Department Learning objectives Understand how sustainable HRM strategies and practices go beyond traditional approaches to HRM Make practical suggestions how unsustainable HRM practices can be identified and reduced and how sustainable HRM practices can be designed and implemented Critically discuss the contributions of sustainable HRM and key theoretical assumptions 2 | Office | Faculty | Department Ethical issues with current approaches of HRM HRM is commonly defined as the productive use of people in enabling organisations to achieve their strategic goals and satisfy individual needs (Stone, 1998). Critical HRM highlights the ethical deficiencies in mainstream HRM. For example, is it ethical to call ‘human’ as a resource to be exploited? 3 | Office | Faculty | Department 4 | Office | Faculty | Department The focus of mainstream HRM The focus of mainstream HRM is efficiency. Organisations control HRM to achieve their strategic goals (Wright and McMahan, 1992). 5 | Office | Faculty | Department The focus of critical HRM The ideology of unitarism in the mainstream HRM is being used to control any divergence of interest between organization and employees in order to achieve organizational goals (Kamoche, 1994). However, the critical HRM theorists believe in pluralist (multiple purposes) and collectivist nature to the workplace. 6 | Office | Faculty | Department Stakeholder theory and HRM The reason why stakeholder theory is important for HRM is because HRM has to support the development of corporate sustainability by adopting a multi-stakeholder approach. This can be understand by exploring: • the reasons why HRM should adopt a stakeholder perspective; • who are the stakeholders of the HR system; • what are the specific managerial actions and activities that the HR department might take for effectively orienting the HR system towards the stakeholders’ interests and needs. 7 | Office | Faculty | Department The ethical questions for HRM Is it right or wrong to manipulate employees using the focus of mainstream HRM? Under what circumstances, if any, is it allowable for employees to be “used” as a means to an end To what extent, if at all, should the organisation act in the interest of employees. These ethical questions relate to individual’s rights 8 | Office | Faculty | Department Propositions to evaluate the ethical issues of HRM Individual employees must be treated with “respect”. An organisation or an employee should not undermine the autonomy of an individual (Greenwood, 2002). 9 | Office | Faculty | Department What is “respect”? Respect includes the rights of an employee such as the right to freedom, the right to well-being and the right to equality. The right to freedom includes not only negative freedom, such as the right to not be physically restrained, but also positive freedom such as the right to not be coerced or hindered by the effect of external forces (Rowan, 2000). 10 | Office | Faculty | Department What is “manipulation”? Manipulation is a broad category that includes any successful attempt to elicit a desired response from another person without the means of physical force (coercion) or rational argument (persuasion). A person who is manipulated makes a choice based on incorrect or unsound reasoning, as a result of a deliberate attempt by another to mislead or deceive them (Greenwood, 2002). The right to well-being can be understood as the right of individuals to pursue their own interests and goals and organisation must also recognize individual’s interests (Rowan, 2000). Equality implies that everyone has rights to freedom and wellbeing equally. 11 | Office | Faculty | Department Corporate social responsibilities (CSR) CSR is defined as actions that appear to further some social good, beyond the interests of the organisation and that is required law (McWilliams & Siegel, 2001). Others define CSR is of voluntary nature and it is not an altruistic activity but it can be strategic for an organisation. CSR as an alternative form of addressing employee needs and thus forestalling efforts to organise labour (Preuss et al., 2009). 12 | Office | Faculty | Department Ethics of care When organizations’ HRM practices are strategically driven by the internal referenced efficiency they can disregard ethics of care. The ethics of care (Mariappanadar, 2012) in the HRM context refers to the ethical choices organizations face when seeking to maximize profit as well as reduce the harmful aspects of HRM practices on the stakeholders, such as employees, their families and communities, so as to maintain harmonious relations between the employer involved and the stakeholders. 13 | Office | Faculty | Department Contd.. The issue with ethics of care does not stop with the harm imposed by work intensification on the third parties (stakeholders) but it also raises a subsequent question, ‘who pays to overcome the harm imposed by such practices on the third parties’. The cost part of the associated harmful effects of practices by organizations due to lack of care for the third parties is explained by externality. 14 | Office | Faculty | Department Negative externality The negative externality is something that costs the organization nothing for their actions or business practices, but those actions or business practices impose psychological and social aspects of harm on third parties (stakeholders) such as employees, their families and communities (Mariappanadar, 2011). 15 | Office | Faculty | Department Contd.. Organizations to enhance their holistic corporate sustainability initiatives by proactively identifying the negative externality and minimize the harm of HRM practices on employees, their families and communities. Holistic corporate sustainability suggests that each person or organization has a universal responsibility towards all other beings (Van Marewijk, 2003). 16 | Office | Faculty | Department Values of sustainable HRM Sustainable HRM must treat employees with respect, care for employees and other stakeholders by identifying and reducing the harm of work imposed on them, and respect freedom of employees. 17 | Office | Faculty | Department Figure 4.1. An integrated model of sustainable HRM system Sustainable business strategy, organizational design & process Sustainable organizational values • • • • Social consciousness Developmental humanism Ethics of care Humanistic organizational values Sustainable HR strategies Characteristics of sustainable HRM practices Employee knowledge, skills and abilities with Sustainability champion social consciousness Altruistic employee motivation Low employee High health and social consideration for harm HR regeneration Organizational performance Facilitate green HRM Minimize harm of work on stakeholders & facilitate HR regeneration Synthesis effects of sustainable HRM practices 18 | Office | Faculty | Department Sustainable corporate assistance program Corporate sustainability Economic, environmental and social goals of corporations Table 4.1. Definition for sustainable organizational values Sustainable organizational value Social consciousness Ethics of care Utilitarian instrumentalism Developmental humanism Humanistic organizational values Altruistic employee motivation Prosocial value orientation 19 | Office | Faculty | Department Definition The highest level of organizational consciousness that focuses on systems, policies and practices to include the characteristics of care, compassion and altruism in HR practices (Chiva, 2014). In the HRM context refers to the ethical choices organizations face when seeking to maximize profit as well as reduce the harmful aspects of HRM practices on the stakeholders, such as employees, their families and communities, so as to maintain harmonious relations between the employer involved and the stakeholders (Mariappanadar, 2012a). Emphasizes the quantitative and calculative business strategic aspects of managing HR, just as rationally as any other factor of production (Mariappanadar, 2003). It is about without disregarding the important of strategic HR management, perceives employees as an asset and stresses the significance of their development, learning and commitment to yield better economic performance as well as satisfied staff (Mariappanadar, 2003). Emphasizes the possibilities of integrating humanistic values with general moral principles such as employee well-being and employee personal growth with strategic management goals such as maximum productivity and long-range economic rationality (Alvesson, 1982). Witnessing another person in need may elicit empathic concern (e.g., sympathy, compassion) and that produces an altruistic motivation to reduce the distress of the person in need (Dovidio et al., 1990). Prosocials compared to employees who are individualists and competitors provide greater positive weight and equality to others' outcomes, exhibited greater reciprocity with others depending on the degree of cooperation, and strongly inclined to exhibit the same level of cooperation as they expected from others (Van Lange, 1999). Table 1: Characteristics of control, commitment and sustainable HR practices (Mariappanadar, 2016) Attributes of HR practices Characteristics of Control HR practices Characteristics of Commitment HR practices Characteristics of Sustainable HR practices HR attributes instrumental in improving organizational performance Employee competencies (Knowledge, skills and abilities - KSA) Align employee competencies with those of an organization (a clan system) in selection, training Employee competencies are aligned with organizational and employee interests for mutual benefits in selection, performance appraisal, training and retaining Employee competencies align with mutual interest of employees, organization and stakeholders in selection, performance appraisal, training , and retaining Employee motivation Extrinsic motivation Intrinsic & extrinsic motivation Individual and altruistic motivation Employee participation – employee empowerment Employee empowerment is low due to high work standardization Organizational citizenship Sustainability champion HR attributes of harm of work while improving organizational performance Health harm of work High health harm on employees High health harm on employees Low health harm on employees and supply chain HR Social/family harm of work High social harm on employees & family High social harm on employees & family Low social harm on employees, their families and supply chain HR Future supply of skilled HR Low consideration for HR regeneration Low consideration for HR regeneration High consideration for HR regeneration globally HR attribute for the reduction of harm of work Employee support through employee assistance program 20 | Office | Faculty | Department Employee assistance program for individual employee to cope with the consequence of workrelated stress Employee assistance program for stress management interventions for employees to cope with work-related stress and improve organizational outcomes. Sustainable corporate assistance program Achieving workplace wellness along with worker wellness. Figure 1: A Framework of employee work and career conditions for designing sustainable HRM (Mariappanadar, 2016) 2 High obscured harm of work and high benefits for employees and 2 increased benefits for organization 1 Low harm of work and low benefits for employees and increased benefits for organization Normal work 1 Employee early-career stage 1 4 High harm of work and high benefits for employees and increased benefits for organization 3 4 6 Moderate harm of work and low benefits for employees and increased benefits for organization 5 3 Employee mid- career stage Employee career life-cycle 21 | Office | Faculty | Department High harm of work and high benefits for employees and increased benefits for organization 7 Low harm of work and low benefits for employees and increased benefits for organization 5 Employee late- career stage High simultaneous benefits Simultaneous positive impact of HPWPs Work intensification Extreme work Low simultaneous benefits Sustainable HRM Theories HRMG305 Sustainable HRM and Stakeholders 2018-1 Week 6 LECTURE Strathfield - Monday 9th April 2018 Presenter Name: Sugumar Mariappanadar 1 | Office | Faculty | Department Learning objectives Compare sustainable and unsustainable aspects of HRM functions and high performance work practices (HPWPs). Develop understanding of negative externality of HRM functions and HPWPs on the stakeholders. Appreciate work harm of some of HRM functions and HPWPs (e.g. flexible work arrangements, work intensification etc.,) on the stakeholders. Examine the social costs of HRM functions and HPWPs imposed on the stakeholders. 2 | Office | Faculty | Department High performance work practices (HPWPs) In the HRM literature it is common to find that most HRM practices in particular some of the high performance work practices (HPWPs) are driven by organizations’ internally referenced efficiency focused approaches (Mariappanadar, 2003). HPWPs aim to assure greater flexibility and motivation of employees, to increase the participation of employees in decision-making, and to take advantage of their problem-solving and communication skills (Colombo et al., 2007). These HPWPs are shaped by strategic and economic aspirations of organizations to achieve competitive advantage through employees (Pfeffer, 1998). 3 | Office | Faculty | Department Critical HRM The critical HRM perspective (e.g. Legge, 1995; Ramsay et al., 2000) suggests that the economic aspirations of organizations using HPWPs may also have negative impacts on well-being issues relating to stakeholders. Hence, in this chapter the negative impacts of HRM practices in particular HPWPs on the stakeholders. Using a stakeholder aspect as a component of sustainable HRM would foster a moral relationship between organizations and employees instead of a purely instrumental approach to HRM (Greenwood and De Cieri 2007). 4 | Office | Faculty | Department Simultaneous effects The simultaneous effects of HRM indicated in the framework of sustainable HRM theories highlights that strategic HRM practices, such as HPWPs, work intensification, overwork etc., used to enhance organizational performances also have positive or sustainable and negative or unsustainable impacts on employee well-being. There are three different perspectives of simultaneous effects of HRM; they are the mutual benefits perspective, the critical HRM perspective and the synthesis effect perspective. 5 | Office | Faculty | Department 6 | Office | Faculty | Department Theory of Negative Externality of HRM Highlights an organization’s failure to assimilate the cost of negative impacts of HRM practices instead transferred to the stakeholders to manage the negative impacts (Mariappanadar, 2012b). The theory of negative externality is relevant for sustainable HRM because the theory helps to the social costs imposed on the stakeholders to manage negative impacts of certain HPWPs. Organizations can subsequently use this understanding of negative externality of HRM practices to reduce or minimize such negative impacts to improve well-being while increasing organizational performances. 7 | Office | Faculty | Department 8 | Office | Faculty | Department Attributes of negative externality The attributes of negative externality of HRM practices are the characteristics of harm of practices that negatively impact on employees, their families and the community. The negative impact of the attributes of negative externality of HRM practices are understood by the harm indicators. 9 | Office | Faculty | Department The attributes of harm ▪Level of harm – The level of harm of HRM practices is about employees’ evaluation of high or low risk of harm of work practices that leads to negative personal, social and work related health outcomes for employees and their family. ▪Keefe et al. (2002) found in their study of meat workers in New Zealand, who lost their jobs due to downsizing, that there was an increased risk of serious self-harm which led to hospitalization or death (suicide) when compared to the employed cohort. 10 | Office | Faculty | Department Contd.. •Manifestation of harm – The manifestation attribute of harm of work practices refers to when the harm manifest itself by negatively affecting personal, social and work related health outcomes for employees and their family. •For example, Price et al. (2002) proposed in their study that a single discrete life event such as job loss due to downsizing triggers short-term (instantaneous effect on family members) and long-term (time lagged depression due financial strain) adversities. 11 | Office | Faculty | Department Contd.. •Impact of harm – This attribute refers to the temporary or permanent impact of harm of work practices have on personal, social and work related health outcomes for employees and their family. •For example, Kets de Vries and Balazs (1997) found that victims tend to neglect their appearance; they also tend to suffer from insomnia and loss of appetite along with preoccupation with negative thoughts. Victims of downsizing may be able to overcome this temporary harm once they regain employment. •Price et al. (2002) revealed that the chain of adversity appears to have a long lasting negative impact on victims’ mental health, suggesting that even reversible life events such as job loss can have lasting effects upon those who experience them. 12 | Office | Faculty | Department Negative externality The attributes of negative externality of HRM practices is used to understand the different negative impacts on the stakeholders. For example, Mariappanadar (2012b) reviewed the negative externality of work intensification, as a strategic HRM practice, on the stakeholders (employees, their families, and the community) using the attributes of negative externality of HRM practices. In this review, he found that work intensification at surface level seems to be an efficient practice for the company. However, if the costs of negative externality of work intensification imposed by organizations on the stakeholders are also taken into consideration while calculating the efficiency for an organization then it is more likely to reflect inefficiency. 13 | Office | Faculty | Department The Theory of Harm of Work It is important to understand negative impacts or harm indicators that the attributes of the negative externality have on the stakeholders (e.g. employees, their family members and the community) so as to evaluate the social costs imposed on the stakeholders to manage the harm of work (Mariappanadar, 2012b). Hence, the harm indicators of negative externality are used to identify the presence or manifestation of harm of work and can be used to raise awareness of managers and researchers the negative consequence (harm) of HPWPs on the stakeholders (e.g. employees, their family and the community). Also, the harm indicators can trigger socially responsible organizations to develop sustainable HRM practices to minimize such harm of work imposed on the stakeholders. 14 | Office | Faculty | Department The theory of harm of work The profound negative impact on employees and their family members for reduced or loss of psychological, social and work related health well-being outcomes that are caused by the work practices used by organizations to extract maximum skills, abilities and motivation of employees to achieve highly effective and efficient performance (Mariappanadar, 2014a). 15 | Office | Faculty | Department Conceptual Model of Harm Indicators of NE of Organisational Practices 16 | Office | Faculty | Department The Theory of Harm of Work and Sustainable HRM It is important for this purpose an early identification of harm of HPWPs is essential so that organizations can be proactive and introduce sustainable HRM strategies to minimize the harm of work before the harm starts curbing employees to make positive contributions to their families, community based voluntary activities and be a productive resource for other prospective employers. 17 | Office | Faculty | Department The Costs Framework for Harm of HRM practices The costs framework (Figure-1) for harm of HRM practices (Mariappanadar, 2013) proposes three components to valuate the cost of harm of HRM, and they are the cost measures for the harm of work, identification and allocation of the cost of harm of work, and valuation of cost of harm of work. The component of cost measures for the harm of work highlights the measure for the costs of harm of work using the welfare ‘loss’ to the stakeholders (e.g. employees, their family and the community) due to the harm of work. Welfare loss in the HRM context is about an employee being restricted by the harmful aspects of HRM practices for maximizing the utility function of paid work for improving an individual’s psychological, social and health well-being outcomes. The reason for using welfare loss in HRM because the definition of harm of work (Mariappanadar, 2012b) is about the harm it causes on employees and their family members, which impairs their effective utility function of paid and unpaid work. 18 | Office | Faculty | Department Figure 1 The costs framework for harm of HRM practices Valuate the costs of harm • Direct costs or market price • Indirect costs Stage 3 Identification and allocation of costs to appropriate levels • Employee level • Family level • Community level Stage 2 Cost measure for harm of HRM practices • Psychological harm • Social and work related health harm Stage 1 19 | Office | Faculty | Department The Stakeholder Harm Index (SHI) The stakeholder harm index of HRM practice is defined as an index to capture the aggregate welfare loss or social costs of reduced personal, health, emotional and social wellbeing outcomes for stakeholders (employees, their families, and the community) caused by the harm of either a specific form of HRM practice or a bundle of HRM practices. The SHI is proposed based on a heuristic argument of microeconomic theory to indicate the ‘welfare loss’ to employees, their families and communities caused by the harm indicators that are triggered by the harm of HRM practices. 20 | Office | Faculty | Department 21 | Office | Faculty | Department Role of sustainable HRM on minimizing NE of organisational practices In the literature, workplace flexibility (Hill et al 2008) is discussed as an organisational practice to counter the social issues or NE of work intensification. Work flexibility can be identified as a sustainable strategy because it takes into consideration employee wellbeing as well as an organisation’s internal referenced efficiency. 22 | Office | Faculty | Department The theory of synthesis effects of HRM practices The theory of synthesis effects of sustainable HRM practices is about improving organizational performances through HRM practices as well as attempt to ‘reduce’ the harm of those HRM practices on employee well-being because these two polarities are not mutually exclusive but they are mutually reinforcing. 23 | Office | Faculty | Department Empirical evidence of synthesis effects 24 | Office | Faculty | Department SUSTAINABLE HRM and HPWS Conclusion • Support simultaneous effect (increased organisational performance and increased employee harm) • Synthesis effect (increased organisational performance and reduced employee harm • No mutual benefits for organisation and employees off HPWS and bundle of HPWSs 25 | Office | Faculty | Department
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