Human Resource Business Partnering (MBA module 7 of 8)

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Introduction

  • ROLE: What skills/competencies are required from an HR Professional 
    • CREDIBILITY: How to build an HR professional identity
    • IMPACT: Leveraging placement experiences
  • ‘Companies need to redefine the skills, the intrinsic capabilities, and the range of experiences that are required of HR practitioners. Business partners should be chosen for their credibility in the business, their interpersonal skills and problem solving capabilities, and the breadth of their experience in applying people management principles to business situations. They will need to be supported by a distinct cardre of service providers – those who excel at flawless process execution and posses deep expertise in a particular service area ... To deliver on what the business needs, HR must put its own house in order, starting with the skills and capabilities of its staff.’ (Lawson et al, 2005:13-14)
  • Organisational complexity and the human resource environment
    • Influence of strategy: universalistic (Marchington & Grugulis, 2000), contingent (Bowen & Ostroff, 2004), configurational (Wright & Snell, 2001)
    • Complexity in systems: principle, policy, practice and product (Colbert, 2004)
    • Complexity in decision making: rational v non-rational (Wright & MacMahan,1992; Boxall, 1993)
    • The internal environment: political (Schuler et al,1993; Ferris et al 1999; Collins & Smith, 2006)
  • Shared roles
    • Relative roles: Typologies (Donald & Donald,1929; Legge,1978, 2005; Tyson, 1987; Storey, 1992; Ulrich, 1997; Wright et al, 2001; Caldwell, 2003; Guest & King, 2004)
    • Integrated roles: Integrated decision making (Armstrong & Long, 1994)
  • The relative influence of HR professionals
    • Historical influence: lacking (Hegerty & Hoffman, 1987; Buller, 1988)
    • Future influence: hopeful (Miles & Snow, 1984; Borucki & Lafley, 1984)
    • CEO influence: importance (Weichun et al, 2004)
    • Integrated influence: fundamental (Grundy & Brown, 2003)
    • The structure of human resource management: “the Ulrich model !” (Ulrich, 1997; Sheehan, 2005)
  • I want a “seat at the table” ... really !
    • ‘although HR representation on the senior committee, a direct reporting relationship with the CEO and good informal relationships provide appropriate access for HR to make a contribution, other factors such as the business credibility of the HR manager, the level of CEO HRM commitment and the level of corporate cultural support for HRM, were stronger determinants of strategic integration.’ (Sheehan, 2005:199)
  • The competencies associated with a business partner role and the centrality of credibility to its success
    • The business partner role: customer interface role (Ulrich, 1997)
    • Competencies: sets of skills (Ulrich & Yeung, 1989; Ulrich, 1997; Wright et al, 1998; Ulrich & Brockbank, 2005, 2007, 2012)
    • Credibility: the ‘domain of final necessary competency.’ (Ulrich, 1997:253)
    • Credibility and metrics: fundamental, the ‘Holy Grail’ ?(Fitz-enz, 2002; Guest et al, 2002; Toulson & Dewe, 2004; Lawler et al, 2004; Weiss & Finn, 2005)
    • ‘HR organisations able to perform strategy analytics are the ones most likely to be position as strategic partners. Having analytic data about strategy is a powerful way to gain a seat at the strategy table while having data about the operation of the HR function is not.’ (Lawler et al, 2004:31)
    • ‘In many respects the “Holy Grail” for HR functions is the ability to show the bottom-line impact of their activities. This is a powerful way to increase HR’s influence on company business decisions and future business strategies.’ (Lawler et al, 2004:29)
  • Aldrich, 2009 and Aldrich et al 2015
    • The roles played by CEOs and senior business line managers are the most important variables that mediate the management of firm human resources and therefore if human resource professionals wish to influence decision making they need to be capable of building partnerships with the business line managers they work with.
    • Decision making influence in areas that have weak institutional influence is possible where individual human resource professionals have built partnerships with business line managers. Influence in these cases is therefore fragile and transient.
    • Partnerships, and therefore influence, appear to be possible where business line managers find human resource professionals to be credible.
    • It was also found that the structure of human resource functions and their interface with the human resource environment will change over time and the degree of institutionalised influence is likely to depend on the nature of the decision and the
      • Philosophy of the CEO to the management of firm human resources
      • Adoption of this philosophy by senior line business managers
      • Nature of the business decision and the need for boundary spanning
      • Personality and competencies of individual human resource professionals – ultimately their credibility
      • Success of their human resource function colleagues in delivering human resource services
  • Credibility of human resource business partners factors
    • The human resource representative’s knowledge of the external competitive environment
    • The human resource representative’s knowledge of the internal competitive environment
    • The track record of the human resource representative in delivering on their part of business plan execution
    • The business manager’s trust in, and personal empathy with, the human resource representative
    • The track record of the human resource function as a whole in delivering human resource service support to the business manager
    • The availability and use of data to analyse the business impact effectiveness of human resource initiatives (note: business impact with regards to net revenue and market share, not data that measures the efficiency of the human resource department)
    • The proactivity of the human resource representative
    • The courage of the human resource representative to stand by their convictions
  • Future roles in human resource management
    • A clear focus on talent as a strategic investment by the most senior business managers: the CEO as chief talent officer/chief investment officer who segments the talent portfolio
    • Business line managers who portfolio-manage segments of the talent portfolio
    • Commercially aware, credible, business partners in the human resource function who analyse the talent portfolio from a financial perspective
    • Human resource specialists who provide risk management support
  • A Talent Portfolio Management (Aldrich, 2009) approach to managing human resources requires advanced skills, for example in organisational analysis and statistical modelling, which may not currently be part of the core competencies of professionals in the human resource function and therefore this approach, though straightforward to conceive, may require a radical change in thinking by business line managers and the human resource professionals that support them. The implications include
    • A strategic approach to management of the talent portfolio, led by the CEO. This involves an understanding of the fundamental links between leadership and management capability as it relates to the human resource environment; talent portfolio management; and, better firm performance
    • An integrated and strategic working relationship between the human resource function and business managers
  • Changing competencies in human resource management cont’d
    • Stronger numerical, analytical and commercial skills in the human resource function
    • Greater measurement around talent, building up to sophisticated human capital metrics
    • The identification and active management of people related risk
  • What Effective HR Looks Like
    • After nearly two years surveying more than 1,000 organizations, studying nearly 100 talent and HR practices, and evaluating lots of data about how companies evaluate HR for its impact on profitability, revenue growth, and other financial metrics, we can say what leading companies do. Truly effective HR organizations today are taking on a whole new identity.
    1. Design employee experiences by segmenting and understanding the work lives of your people. Design thinking takes into account how people already work, make decisions and otherwise organize their day and effort – and uses that knowledge to build specific HR-driven tools to help employees meet goals, improve skills, collaborate and feel more engaged.
    2. Use HR technology to help improve people's productivity and experience at work. HR-driven technology has the potential to do much more than automate existing practices. High-impact HR organizations find opportunities to use technology to improve productivity, feedback, and alignment among teams throughout the company. 
    3. Lead the company's digital transformation. As many companies struggle to understand what the digital revolution means for their businesses, HR is uniquely specifically positioned to lead rather than follow. Organizational structure, reward systems and incentives – all under the purview of HR – are critical pieces for businesses in reaching the digital future.
    4. Understand and support agile and team-centric organizational models. Traditional hierarchies no longer represent the way that most work really gets done. High-impact HR organizations offer collaborative solutions to help constantly shifting team structures with issues such as goal management, performance management, coaching, check-ins, and development.
    5. Work with leadership to shape a culture of trust, inclusion, purpose, and accountability. High-impact HR organizations don't just focus on compliance and control – the ‘hard issues’. By focusing on culture, high-performance HR teams are able to address multiple entry points for ‘soft issues’. 
    6. Design the HR function to operate as a network of teams, breaking down siloswithin the HR function and with the rest of the business. While specialization in issues like recruiting, learning, compensation and other key  functions is important, almost all problems today are multi-disciplinary. High- impact HR teams operate as agile consulting groups, bringing together all the  disciplines into action when a problem emerges.
    7. Regenerate, professionalize, and continuously develop your HR professionals. Demand the same level of growth and innovation as you would from other functions of the business and give your people lots of opportunities for developmental assignments, external education, research, and visits to peer companies.
Building an Outstanding Workforce
  • People paradigm
    • Meaning and purpose: beliefs, values, attitudes
    • Resources: mental, physical, spiritual
    • Environment: sensory inputs
    • Emotional state and cognitive process: constructed reality
    • Behaviour: actions, impression management, learning and development
  • Organisation paradigm
    • Meaning and purpose: mission, vision, goals, objectives, beliefs, values
    • Resources: valuable, rare, imperfectly imitable, organisation support
    • Environment: competitive, political, economic, social, technological, legal, environmental
    • Strategy: constructed reality
    • Behaviour: actions/stakeholder impression management, review and change
  • People management framework
    • People: informed leaders and boundary spanners
    • People advisors: 
      • Social responsibility
      • Mental
      • Physical
    • People portfolio management: funding and report
      • Strategic workforce planning
      • Acquisition and transition
      • Talent development
      • People experts
      • People specialists
      • Operational service delivery
      • People portfolio management
    • People specialist
      • Legal and compliance
      • Operations
      • Marketing
      • Finance
      • Technology
      • Data analytics
Motivation
  • Hypothetical construct which refers to a set of multiple internal processes with multiple consequential behaviours (Furnham, 2005)
  • Individual variables
    • Ability - job knowledge
    • Skills
    • Disposition – stable traits
    • Beliefs and values
    • Affective mood state
  • Context
    • Nature of the task/job
    • Physical environment
    • Implicit and explicit rewards – reinforcers
    • Wider corporate culture
    • Social norms
  • Personality and Motivation
    • A complex relationship between personality, ability, motivation, job satisfaction, productivity, absenteeism and turnover and studies on the impact of personality and job motivation have found the following
      • Goal setting: emotional stable, agreeable and conscientious individuals set higher goals
      • Expectancy motivation: stable and conscientious individuals have higher expectancy motivation
      • Self-efficacy motivation: stable and extraverted individuals have higher self- efficacy motivation
  • Money and motivation
    • Furnham (2005) has noted that it is a great motivator for those who need or value it enough, most effective when it has noticeable impact and there is a direct link to performance. He also notes that its power to satisfy is impacted by four reasons
      • Adaptation: the initial positive impact of a pay-rise or bonus wears-off quickly
      • Comparison: as wealth increases the comparison group changes and people find there is always someone wealthier
      • Alternatives: as wealth increases the marginal utility of money declines and other aspects of life become more valuable
      • Worry: as wealth increases people tend to worry less about money problems and transfer their focus on other areas of their lives
  • Maslow (1954)
    • A five level hierarchy of needs, stating that as a lower-order need is satisfied the need for the next higher-order need is activated. Starting at the base of Maslow’s pyramid these needs are as follows
      • Physiological: basic the needs of shelter and sustenance
      • Safety: the need of freedom from threats of physical and mental harm
      • Social: the need to belong, to be accepted and included
      • Esteem: self-respect and respect and recognition from others
    • Self-actualisation: self-fulfilment and maximisation of potential
    • The first three needs are known as deficiency needs which impact people’s physical and psychological health. The last two needs are known as growth needs and relate to peoples’ ability to develop and fulfil their potential.
  • Herzberg et al (1959)
    • A belief that job satisfaction is caused by motivation factors and job dissatisfaction is caused by maintenance, hygiene, factors
      • Motivational: work itself, responsibility, growth potential, achievement, recognition, advancement
      • Maintenance: working conditions, salary, personal life; interpersonal relations; company policies and administration, supervision, security and status
      • When the hygiene factors, potential dissatisfiers, are unfavourable then job dissatisfaction results but when favourable, the conditions for job satisfaction exist
      • While the potential dissatisfiers are related to the environmental context of work the potential satisfiers are related to the nature of the work itself and its outcomes.
      • If the motivators are favourable, then job satisfaction occurs and if absent a neutral state is experienced.
  • McGregor (1960) – Theory X
    • Typical worker
      • Inherent dislike of work
      • Are lazy
      • Avoid responsibility 
      • Self-interested 
      • Lack ambition 
      • Lack intelligence
      • Individually-goal oriented 
      • Work solely for a sustainable income 
      • Security v achievement
    • Style of management
      • Individual goals
      • Use rewards or punishments as motivation
      • Hard: us v them
      • Hard: close supervision 
      • Hard: intimidation 
      • Hard: immediate punishment
      • Hard: could breed resentment
      • Soft: less strict 
      • Soft: lenient 
      • Soft: could breed entitlement
  • McGregor (1960) – Theory Y
    • Typical worker
      • Feels work is a natural activity
      • Is internally motivated
      • Enjoys their job
      • Does not need close supervision
      • May seek and accept responsibility
      • Is self-directed – still need approvals
      • Is one of the most valuable assets to the company
      • Has potential not just a few
    • Style of management
      • No need to threaten punishment
      • More personal relationship
      • More discussion
      • More flexibility
  • Alderfer (1969)
    • Three needs (ERG) any one of which can be triggered at any point in time:
      • Existence: aligned with Maslow’s physiological and safety needs
      • Relatedness: aligned with Maslow’s social needs
      • Growth: aligned with Maslow’s esteem and self-actualisation needs
    • As this theory is less operationally prescriptive it is a better fit to the results of research that supports that people seek to satisfy certain needs in a work context.
  • McClelland (1987)
    • A recurrent concern for a goal state or condition as measured in fantasy, which drives, directs and  selects the behaviour of the individual (McLelland, 1987)
    • Focused on three motives
      • Need for Achievement (N-Ach): the desire to excel in relation to a set of standards. It is the drive to succeed
      • Need for Affiliation (N-Aff): the desire for close personal relationships
      • Need for Power (N-Pow): the desire to be influential and affect an organisation
  • Behaviour Modification and Social Learning Theories
    • Behavioural modification theory: introduces contingent reinforcement where certain rewards or punishments will illicit particular behaviours regardless of an individual’s needs or values. 
    • Social-learning theory: considers both individual needs, values and feelings of equity and therefore the mediating effect of cognitive processes when contingent reinforcement is introduced. The attitudes and values of workers perceived as role models will impact perceptions of job satisfaction of those observing them.
    • Timing  The closer the reward to the performance event the more effective it is
  • Goal Setting Theory
    • Goal-setting is the process of developing, negotiating and formalizing the targets  or objectives that an employee is required to attain (Furnham, 2005)
    • Research of Locke (1984) with regard to the impact of goal-setting on job performance
      • Challenging goals are more likely to drive higher performance
      • Specific goals are more likely to lead to higher performance
      • Feedback is likely to lead to higher performance
      • Where people believe they have the ability and feelings of self-efficacy to achieve goals, higher performance is more likely
      • Where people feel accepted and supported, higher performance is more likely  
    • Frequency, quality and veridicality of the feedback received Furnham (2005)
    • Is a crucial component of goal setting
  • Management by objectives (MBO) first outlined in The Practice of Management (Drucker, 1954) intends to improve the performance of organisations
    • By clearly defining objectives that are agreed to by both management and employees
    • Sharing goal setting and the development of action plans to encourage participation and commitment among employees, and align the objectives of all stakeholders
    • But can privilege the setting of goals over the plan required to achieve the goals and may not adequately consider the context within which the objectives and goals are being set.
  • The development of Objectives and Key Results (OKRs) is attributed to Andy Grove who introduced the approach at Intel (Grove, 1983)
    • Objectives: are what is to be achieved, action-orientated and inspirational.
    • Key Results: are how the objective is achieved and should be specific, measurable, time-bound, aggressive but realistic. They share the same attributes as SMART goals (specific, measurable, assignable, realistic and time-bound)
    • Completion of all objectives must result in the attainment of the objective. There are four ‘superpowers’ of OKRs (1) focus and commit to priorities (2) align and connect for teamwork (3) track for accountability (4) stretch for amazing (Doerr, 2017).
    • Key Performance Indicators (KPIs) may measure the Key Results of OKRs. However while KPIs may be used over a long period the Objectives part of OKRs will often exist for a short period and the KPIs the selected KPIs will change as the OKR changes
  • This should be implemented by CFRs which consist of Conversations, Feedback and Recognition  which “like OKRs champion transparency, accountability, empowerment and teamwork, at all levels of the  organisation” (Doerr, 2017)
    • We need a new HR model for the new world of work. That transformational system, the contemporary alternative to annual reviews, is continuous performance management (Doerr, 2017).
    • Conversations: authentic, coaching orientated discussions between the leaders and contributing colleague
    • Feedback: bi-lateral and network communication to reflect on contribution and guide future behaviour
    • Recognition: appreciation shown privately and publicly for service and contribution
  • Equity Theory
    • Furnham (1992), the assumption that
      • People make comparisons between their position and those around them
      • People seek to ensure their perceived position relative to others in the organisation is equitable
      • This comparison is likely to consider both the input of ability and discretionary effort and the attributable outcomes in terms of financial reward, benefits, development and progression.
    • It is a subjective process that can be influenced by personality factors. The three outcomes are a
      • Perception of under-reward inequity
      • A perception of over-reward inequity
      • A perception of equitable reward
    • In situations of perceived inequity people will tend to respond by behaviourally increasing or decreasing inputs, raising or lowering outputs and/or psychologically modifying the perceptions of their own and/or others performance.
    • Research has in most cases supported equity theory and is closely associated with organisational justice which looks at the
      • Decision making process behind outcomes, procedural justice
      • Logistical process of delivering outcomes, distributive justice
      • The way the outcomes are communicated, interactional justice
    • Another aspect of motivation relates to the absolute value an individual derives from particular outcomes, the relative contribution of this value to a position of perceived equity or inequity and therefore the degree to which they are satisfied by outcomes relative to their colleagues.
  • Expectancy Theory
    • The assumption that people are rational in considering how much input to deliver based on their view of likely outcome scenarios. This suggests motivation is the result of three different beliefs that people hold
      • Expectancy: that one’s effort will result in desired levels of performance
      • Instrumentality: that one’s performance will be rewarded
      • Valence: the perceived value if the reward
    • The basic theory was expanded by Porter and Lawler (1968) who added intrinsic and extrinsic motivation to the concept of valence and by Lawler (1973) who included the concept of reward equity.
      • Intrinsic motivation: is the satisfaction gained from undertaking work itself
      • Extrinsic motivation: is the satisfaction gained from rewards received for undertaking work
  • Self Determination Theory
    • The theory around intrinsic motivation was set out in the book of the same name (Deci, 1975) on  which Self Determination Theory was subsequently built (Deci et al, 2001). This is another needs- based theory which suggests that we have three universal needs
      • Competency
      • Autonomy
      • Relatedness
    • They believe that organisational environments should be designed to allow these innate needs to flourish.
  • The Chimp Paradox (Peters, 2012)
    • A simplified representation of psychological mind, our human brain, frontal lobe, our chimp brain, limbic lobe, and our computer brain, parietal lobe.
      • The human brain is said to be the real and rational you
      • The computer contains memory banks for reference
      • The Chimp is the emotional machine that thinks independently from the human brain and can make decisions.
    • The book describes how an individual would approach a task and the foundations for task success. This includes the core principle which stands for
      • Commitment
      • Ownership
      • Responsibility 
      • Excellence
    • Prior to commencing a task, check that there is a real possibility of achieving it. The motivation to complete a task as an emotion that is chimp-driven and drives towards or away from an experience
      • Commitment: comes from the human brain and is not dependent on feelings. “When you decide to do something, remind yourself that it is commitment not motivation that matters”  (Peters, 2012)
      • A commitment screen is used to define what is required for a task and how challenges can be overcome
      • The key requirements to complete the task are either essential, significant or simply desirable
      • The key challenges are seen as: hurdles, barriers and pitfalls.
      • Hurdles are obstacles that need to be addressed directly, barriers are difficulties which can be overcome with good planning, and pitfalls are derailing behaviours
      • While at times the goal may feel far way and challenges get in the way and cause the Chimp to scream, if the goal is still possible the Chimp can be subdued
    • Ownership: having enough control of the planning as well as the execution of a task which drives feelings of pride and increased chance of success. If there is not enough input into planning and limited decision-making during execution then this might increase feelings of anxiety driven by the Chimp and decrease the chances of success
    • Responsibility: for the success of a task introduces accountability and discipline organisation is not the same as discipline, as very organised people may not be disciplined enough to drive a task to completion. Having responsibility for a task and the need to report on progress increases the chances of success as both the Human and the Chimp feel obligated to act
    • Excellence: where it is recommended that high but achievable goals are set to increase the chances of success. The Chimp will not be happy if a task is not achievable so aim for personal excellence.
    • Carrots and sticks: people prefer to be encouraged, supported and rewarded, receiving recognition and appreciation for what their performance. If employees fail to meet employer expectations within this environment then they may need more support and development and if they still fail, they will face the consequences but not the organisational equivalent of sticks such as public humiliation, passive aggressive communication and the perpetuation of feelings of guilt. Examples of organisational carrots include: variety of rewards, celebrations, recognition, encouragement and support.
  • Drive (Pink, 2009)
    • Drive: The Surprising Truth About What Motivates Us (Pink, 2009), builds on Motivation 1.0, based on survival, Motivation 2.0, based on external rewards, carrots, and punishments, sticks. His book suggests Motivation 3.0 based on the three essential elements
      • Autonomy: gives people control over planning and delivering tasks
      • Mastery: gives people a feeling of satisfaction as they improve their understanding, a desire to develop despite the dedication required and difficulties faced
      • Purpose: relates to the overall reason why an organisation exists and also the fundamental purpose of the individual
    • Traditional ‘if then’ rewards can ... extinguish intrinsic motivation, diminish performance, crush creativity, and crowd out good behaviour ... encourage unethical behaviour, create addictions, and foster short-term thinking (Pink, 2009)
    • Motivation 2.0 is said to be associated with Type X behaviour which focuses on extrinsic rewards, whereas the proposed Motivation 3.0 focuses on intrinsic motivation, Type I behaviour.
  • Neuroscience (Swart et al, 2015)
    • In Neuroscience Leadership (Swart et al, 2015) it is acknowledged that despite the many theories of motivation, it is not yet fully-understood.
    • Emotions are said to be response states which allow the brain to assign meaning to sensory inputs, whether something should be approached or avoided, and avoidance emotions are stronger and more numerous
    • The brain has a stronger negative reaction to loss than positive reaction to gain, a work environment built on threats and that does not support creativity, innovation and co-operation will lead to lower motivation and performance than one which assign people to roles that are 
    • Socially relevant, meaningful, challenging but not impossible, in an atmosphere of positive encouragement with clearly articulated goals. It means timely and appropriate feedback, good delegation of autonomy and responsibility, and fair and transparent reward structures (Swart et al, 2015)
  • Employee Engagement
    • In MAGIC: Five Key Ways to Unlock the Power of Employee Engagement (Maylett and Wride, 2014) the five key elements required to create employee engagement were stated to be
      • Meaning: where work transcends instrumentality, aligned with employee interests and values
      • Autonomy: control and flexibility in decision making
      • Growth: professional personal development
      • Impact: clarity in the relationship between work and organisational outcomes
      • Connection: internal and external stakeholder relationships and sense of belonging
  • Employee Experience
    • The Employee Experience Advantage (Morgan, 2017) notes three employee experience environments
      • Cultural
      • Technological
      • Physical Environment
    • In The Employee Experience: How to Attract and Retain Top Performers and Drive Results (Maylett and Wride, 2017) defines employee experience as
      • The sum of perceptions employees have about their interactions with the organisation in which they work” and starts with the following statement
      • Every important business outcome lies downstream from the experience and engagement of the people who make the organisation go
      • Employee experience (EX) is about “creating an operating environment that inspires your people to do great things” (REF) and a high quality sustainable customer experience (CX) is not possible without high quality EX
  • Performance Management
    • Given your understanding of motivation theories, employee experience and employee engagement what should be the key elements of a  performance management system?
Corporate social responsibility (CSR)
  • In The Rise of the Social Enterprise, (Deloitte, 2018) business enterprises were seen as becoming social enterprises. Social enterprise is defined as
    • An organisation whose mission combined revenue growth and profit-making with the  need to respect and support its environment and stakeholder network
    • Government can often be slow in legislating on societal issues, especially global ones
    • The private sector can play an important role in helping to effect societal change and three areas
    • Organisations with a poor track record held to account by their workforce, suppliers and investors
    • The report card is increasingly a public and global one
  • CSR refers to the integration of an enterprise’s social, environmental, ethical and philanthropic responsibilities towards society into its operations, processes and core business strategy in cooperation with relevant stakeholders (Rasche et al, 2017)
  • Organisational Benefits of CSR
    • In the Deloitte report, 77% of respondents cite citizenship as important only 18% said it was reflected in their organisational strategy and 56% it was not a focus or not well developed or invested in.
    • Commercial organisations have a mix of responses from simple adherence to regulation, to a response focused on business return and finally a response that is altruistic.
    • Conducting business in accordance with norms that integrates economic, social and environmental principles is a strategy that increases shareholder value.
    • Socio-environmentally proactive firms are found to have higher than mean dividend return, earnings per share growth and cumulative sales growth but lower than mean EBITDA than their sector peers have lower short-term liquidity than their sector peers and while their total leverage is significantly lower their long-term leverage is significantly higher.
    • High social responsibility and environmental sustainability (SRES) companies have higher managerial efficiency ratios such as ROA, ROI and ROE (DiSegni, 2015)
  • CSR Leadership
    • Corporate sustainability (CS) is seen as representing an organisations
      • Continuity and long-term orientation
      • Adaptability to the environment
      • The consideration of interests of the stakeholders that to a great extent represent the triple bottom- line.
    • One study found that
      • Leadership behaviour supporting CS were similar to ‘normal’ effective leadership practices but also an additional task of boundary spanning between the organisation’s CS activities and its environment.
      • Promoting CS requires an energised workforce who operate in a positive, trusting and co-operative social climate and who are inspired by ethical executives who lead by example.
    • CEO ethical leadership and firm performance can have a positive relationship but it needs support by a strong program of corporate ethics which together enhance firm ethical culture. § Carroll’s model (Caroll, 1991) includes four responsibilities: economic, legal, ethical, and discretionary > philanthropic.
    • Perceptions of CSR impacts a variety of employee attitudes and behaviours including trust in organisational leadership. All four variables have an indirect negative impact on cynicism mediated by employee trust.
    • Mediating role of organisational trust has been examined in relation to perceived CSR and employee cynicism. Organisational cynicism is defined in three dimensions
      • Cognitive: where employees feel the firm lacks integrity
      • Affective: where the employees develop negative feeling to the firm
      • Behavioural: employees publicly criticising the firm. CSR activity may contribute towards a positive working environment which in turn helps to reduce cynicism. (Rupp et al, 2006).
    • Organisational signals to stakeholders around their CSR activity is communicated in the context of other information which may suggest an instrumental rather than moral driver for CSR activity
    • The degree to which a CEO is perceived as an ethical leader has an impact on this and also the importance of the executive group in CSR decision-making
    • Narcissistic CEOs are seen to care more about CSR than hubristic CEOs who care less and have been found to have higher profile corporate philanthropy and maintain successful programs
    • Little empirical evidence has examined the competencies of sustainability leaders but one competency framework for effective sustainability leadership sees them as (1) results driven (2) inclusive operators (3) change agents (4) ethically orientated (5) visionary thinkers.
    • One study investigated the relationship between integrity and transformational leadership behaviour, transformational leadership and CSR and the mediating effect of transformational leadership between integrity and CSR. The conclusions
      • Support the premise that transformational leaders have a moral dimension, act as role models of ethical behaviour and contribute to an ethical climate in the organisation.
      • Determined the importance of middle management in the cascading process of CSR activity and environmentally favourable behaviour.
      • Found an exponentially positive relationship between perceived CSR and organisational pride which mediates levels of job satisfaction and affective commitment.
    • Ethical leadership has been seen to moderate the indirect effect of CSR on firm performance via firm reputation when ethical leadership is strong but not weak.
    • CSR communication should start with employees who are convinced about the genuine motives underlying CSR activity
    • Leaders can choose between an instrumental or integrative style
    • Employees will be more likely to be advocates for the organisation and feel more affective attachment when the underlying reasons are genuine and not instrumental
    • Organisations should not treat CSR as an add-on activity to their traditional business model but something that should be carefully planned and integrated into organisational strategy and culture
    • Organisations could use a model of corporate and employee social responsibility congruence, mediated by internal, external and relational contingent factors to help increase the authenticity of their CSR activities
  • CSR Leadership and Gender
    • similarities and differences between genders and leadership styles around CSR but a dominant style of leadership was found to be the worse style for deploying a CSR strategy.
    • The presence of women on boards has an indirect impact on financial performance with CSR possibly acting as a mediating factor.
    • Male CEOs with gender diverse boards are more likely than other firms to have a strong environmental record.
    • Firms with women CEOs and female interlinked board members are less likely to be challenged by environmental concerns.
    • Overall gender diverse leadership teams are more effective than other firms at pursuing positive environmental strategies.
    • The presence of female directors is associated with a stronger firm-level commitment to CSR and that this is true even if there is only one woman on a board § another factor mediating the effectiveness in boards in promoting CSR activity is the degree to which it is independent.
  • CSR and OCB
    • CSR is often linked to organisational citizenship behaviour (OCB) which is defined as ‘individual behaviour that is discretionary, not directly or explicitly recognised by the formal reward system, and that in aggregate promotes the effective functioning of the organisation’.
    • OCB is not bounded by role specifications or tasks.
    • Higher levels of OCB have been linked to higher levels of employee performance and promotions and higher customer satisfaction.
    • CSR activities are seen as not only enhancing firm performance and reputation but it can also influence employee’s OCB under conditions of high task significance.
    • Performance increases when employees believe organisations perceive moral consistency with CSR activity and the nature of the organisation and also that it is strategically beneficial to the organisation.
  • CSR Stakeholders
    • Stakeholders perception of CSR authenticity (Mazutis and Slawinski, 2015) is summarised by
      • uthentic CSR is distinctive and socially connected, it acknowledges stakeholder goals which are reflected in firm values and tailored CSR activities.
      • Inauthentic CSR is generic and socially disconnected, it engages in superficial activities that ignore stakeholder goals.
      • Disingenuous CSR occurs when firms relate to their stakeholder goals but do not live this in their own values and activities, there is a lack of value congruence.
      • Misguided CSR is exemplified where firms have strong values, but these are disconnected from the firm’s social context and stakeholders.
Diversity and Inclusion
  • The terms diversity and inclusion are often conflated but one useful distinction  is that while
    • “Diversity can be mandated and legislated ... inclusion stems from voluntary actions” (Winters, 2014)
    • “Workforce diversity refers to the division of the workforce into distinct categories that (a) have a perceived commonality within a given cultural or national context and that (b) impact potentially harmful or beneficial employment outcomes such as job opportunities,  treatment in the workplace, and promotion prospects – irrespective of job-related skills and qualifications”. (Barak, 2014) 
    • “In inclusive organizations and societies, people of all identities and many styles can be fully themselves while also contributing to the larger collective, as valued and full members”.  (Shire et al, 2018)
    • Optimal Distinctiveness Theory (ODT) is an area of research that examines the balance between individuals finding social cohesion with others while maintaining their unique  identity (Shore et al, 2011).
  • A McKinsey report, Diversity Matters (2014) noted that
    • Companies in the top quartile for racial and ethnic diversity were 35% more likely to perform better financially than their sector medians and for gender diversity this was 15%.
    • In 2012 the average percentage of women in the UK and US on executive teams was respectively 12% and 16% and lack of representation for ethnicity/race was 78% and 97% respectively.
    • Diversity would become more critical due to socio-demographic changes, regulation, talent shortages and the purchasing power of minority consumer segments.
    • A more diverse workforce and leadership team are likely to make more informed and robust decisions that better reflect their social context.
    • This leads to a more engaged employees and higher performance.
  • D&I Leadership
    • While a diverse workforce can lead to positive organisation outcomes there may also be negative impacts: increasing conflict, turnover, less cohesion and poorer performance.
    • Targeting diversity initiatives specifically towards women instead of all employees may lead to the anticipation of bias by women and men.
    • Diversity management practices have mainly been focused on gender, disability, age, race and ethnicity as well as members of other marginalised groups in the workplace, while inclusion practices
      • “Have sought to create equal access to decision-making, resources, and upward mobility  opportunities for these individuals’. (Shore et al, 2018)
    • Inclusion is seen as helping to reap the potential rewards of diversity.
    • An examination of the literature on inclusion has identified a number of themes (Shore et al, 2018)
      • Safety: the need to feel safe, both physically and psychologically
      • Work group involvement: a sense of belonging and access to critical information and resources
      • Feeling respected and valued: appreciated by the team and the organisation
      • Influence on decision-making: a sense that their ideas and perspectives are valued, that they are listened to
      • Authenticity: where employees can share valued identities that differ from the pervading organisational or team norm without fear of negative outcomes
      • Recognising, honouring and advancing diversity: the senior leadership team demonstrate that they value diversity through their words and actions
    • Diversity intelligence (DQ) is a recent tool which it is suggested can contribute to more D&I in the workplace.
    • It is suggested that DQ assessments need to be created for hiring and development based on research that suggest individuals possess multiple intelligences that reflect our social.environment and therefore which are all important to leadership.
    • Authentic and servant leadership are thought to create ‘long-term, positive relationships based on mutual trust’ in turn promotes positive dialogue across a diverse workforce.
    • Virtuous leadership traits include, humility, gratitude, forgiveness and altruism.
    • A Deloitte report entitled, The Six Signature Traits of Inclusive Leadership: Thriving in a diverse world (2016) stated that diversity comes in four types
      • Markets: for instance emerging markets
      • Customers: changing demographics and attitudes
      • Ideas: with various agents of disruption highlighted including technology and hyper-connectivity
      • Talent: socio-demographic factors combined with expectations of equality and equity.
    • This idea can be extended to incorporate the diversity of all stakeholders.
    • Deloitte (2016) define the elements which are required for an inclusive culture
      • “Creating an atmosphere of fairness and respect, where people feel valued for who they are, their uniqueness, but also have a sense of belonging and the confidence and inspiration to share their ideas  without fear of negative outcomes.”
      • The results of their research suggest that in addition to the traits and competencies traditionally associated with successful leadership, six signature traits are now required of a leader is to be inclusive
        • Commitment
        • Courage
        • Cognisance
        • Curiosity
        • Cultural intelligence
        • Collaboration
      • In addition to each trait there are fifteen specific elements all of which can be developed.
    • Korn Ferry published The Inclusive Leader (2016) which looked at the traits and abilities required for leaders to be inclusive in their ‘thoughts, perceptions and actions – and to inspire an inclusive mindset in others’. Their research included the analysis of 2.5 million leadership assessments and determined the key traits include
      • Flexibility
      • Adaptability
      • Openness
      • Authenticity
    • The report also stated that a 21st century leader is by definition an inclusive leader as for organisational success leaders must
      • Think globally and therefore have cultural agility
      • Be innovative and therefore be open to diverse points of view
      • Be able to drive change and therefore be able to motivate diverse teams
      • In growing a business be aware of the opportunity to service under represented customer segments
  • Embedding and Engagement
    • Within Inclusive Leadership (Sweeney and Borthwick, 2016) a guide to developing an impactful D&I strategy, the authors offer a framework for mapping the extent to which it is embedded and how engaged leaders and managers are in their thinking and actions
      • Low embedding and low engagement result produces inertia and no lasting progress
      • High engagement and low embedding produces a lot of initiatives with limited impact
      • Low engagement and high embedding will result in imposed change which may not carry the hearts and minds of the workforce
      • High engagement and high embedding creates inclusion which will result in sustainable change
  • Context and Bias
    • Research suggests that teams led by women are more effective than teams led by men depending on the context (Post, 2015)
      • Team size increases: they report more cohesion, co-operative learning and participative
      • Team is geographically dispersed: they report more co-operative learning and participative learning
      • Functional diversity increases: they report more cohesion
    • It appears that when the need for co-ordination is high women may have a more positive impact on team performance than men.
    • Bias can occur through implicit stereotypes, ingroup favouritism and outgroup homogeneity bias and McKinsey (2014) suggests overcoming bias within a strategic context by
      • Education and development
      • Changing organisational decision making
      • Providing salient information about peer achievements
      • Positive imagery
      • Diversity messages from respected thought and opinion leaders
  • The Paradox of Inclusion
    • Research has pointed to the ‘Paradox of Inclusion’, noting that ‘working towards inclusion in diverse organisations and societies can often be experienced as polarizing and presents many challenges and tensions’ (Ferdman, 2017). This paper explores three core dilemmas of inclusion and suggests how each one can be managed
      • The paradox of self-expression and identity contrasts an emphasis on belonging and absorption v distinctiveness and uniqueness
      • The paradox of boundaries and norms contrasts an emphasis on stable and well defined standards vs shifting and flexible standards
      • The paradox of safety and comfort contrasts an emphasis on comfort and “my way” vs discomfort and openness to change
    • In Diversity at Work: The practice of Inclusion (Ferdman and Deane, 2014) the practice of inclusion is also noted as having paradoxes. It is about both everyday behaviour and organisational and social systems, its about both structures and processes, it is about both comfort and it is about discomfort and both deriving practical benefits and about doing what is right and just.
    • It is argued that “inclusion goes far beyond merely developing soft skills of caring and compassion, to a need for courage and making tough decisions.” (Gallegos, 2014)
  • Cultural Context
    • Inclusion research undertaken in a Chinese context drew on inclusion literature that was based on Western perspectives and therefore the types of inclusion practices adopted by organisations and the perception of inclusion by organisational members (Tang et al, 2015). This research found seven factors of inclusion management
      • Inclusive teamwork
      • Inclusive communication
      • Inclusive decision-making
      • Fairness in treatment
      • Inclusive leadership
      • Tolerance
      • Inclusive adaptation
    • Tolerance is seen as unique in the Chinese context and maybe driven by cultural norms. In addition, in a Chinese context inclusion is defined as having reciprocity between the organisation and its workforce rather than from an organisation to its workforce.
People analytics
  • The use of data and analytic tools to identify insights on people that enable faster, more accurate, and more confident business decision-making
  • Data analytics empowers business teams to leverage granular data from across their organisations to support pro-active decision making
  • Evolving Capabilities
    • The development of a People Analytics capability tends to be a evolutionary process, from simple operational reporting through to predicative analytics
    • Operational Reporting
      • Reactive, ad-hoc, non-repeatable, manual and time consuming
      • Disparate data sources, difficult to develop coherent datasets
    • Advanced Reporting
      • Increased data sophistication – drawing together data from multiple disparate data sets
      • Multi-dimensional reporting – using dash-boarding solutions to allow drill down / through capabilities
    • Advanced Analytics
      • Development of advanced statistical pattern analysis
      • Incorporate a wide variety of internal and external data sources
    • Predictive Analytics
      • Development of predictive models and what-if scenario analysis
      • Scenario analysis allows more effective resource planning and risk mitigation
  • People Analytics Approach
    • Defining the approach to People Analytics demands an assessment of internal capabilities
    • The grid below provides a useful mechanism for assessing the optimal balance of ease of implementation versus impact
    • The optimal approach uses agile data analytics to deliver quick wins – this allows HR teams to build a track record of delivery without significant investment
  • HR Analytics Competencies
    • The delivery of People Analytics solutions requires the alignment of a number of core competencies to provide maximum impact
  • What to measure
    • Defining key metrics to be analysed via People Analytics will be dependent on a number of factors, driven primarily by the availability of data
    • People Analytics has typically leveraged data available to HR teams within organisations to assess the following key metrics
      • Turnover - regretted hires and volume: find patterns and use qualitative research to find out why
      • Talent acquisition costs - time taken, fees paid, internal v external, retention rates: find patterns and use qualitative research to find out why
      • Intervention returns - relationship between employee engagement, customer satisfaction, revenue: find patterns and use qualitative research to find out why
      • Workforce planning - current composition, scenario predictions for segments e.g. roles to be eradicated due to emergent technology such as AI, responsive robotics, distributed ledger technology
    • As People Analytics becomes more established, the demand to collect, collate and leverage additional data sets is likely to drive the growth of new and more sophisticated analytic outcomes
      • People risk analysis - leverage People Analytics to identify patterns to highlight risk of talent pool loss
      • Integration of HR Analytics – Bring together People Analytics with other analytics functions across the firm to leverage broader sets of data thus adding additional value to findings presented to senior management
  • Phases of a People Analytics Build
    • No organisation commences their People Analytics journey from the perfect place.
    • It is critical to
      • Have a clear vision and mission for the function
      • Optimally locate the function
      • Have senior executive sponsorship
      • Have clearly defined goals and objectives
    • Phase One
      • Secure sponsorship and budget
      • Decide on initial business cases for analysis
      • Decide on the mix of internal talent and external support
      • Decide if any lateral hiring is required
    • Phase Two
      • Order priorities
      • Appoint project teams
      • Execute initial projects
    • Phase Three
      • Review outcomes
      • Make recommendations
      • Where applicable ensure the analysis can be replicated by the client
  • Case study 1 The Challenge
    • Our client, a major European Investment Bank, was looking to carry out disparity analysis to assess employee performance rating versus compensation across their trading business lines
    • Falling profitability across trading business lines had prompted senior management to develop a more granular understanding of individual trader performance
    • Employee performance ratings were highly concentrated towards the upper end of the range, thus reducing the information content of the rankings applied
    • We worked with our client to identify additional data sources to align with the performance rating data to support disparity analysis
      • Granular Risk / Capital adjusted P&L performance
      • Discretionary bonus information
      • Employee engagement scores
    • These additional data points resided in disparate sources across finance, trading and HR systems
  • Case study 1 The Approach
    • Leveraging agile advanced data analytics, we sourced; loaded and normalised the data from each of the identified sources
    • Working with HR and business stakeholders; we aligned P&L, performance and engagement data with compensation information to provide an individual employee level view
    • Having normalised the data to the individual trader level, we leveraged statistical methods to develop disparity analysis displaying comparative performance
    • In order to enhance the analysis, we requested historical data sets which allowed us to build a time series of performance to show how trader performance had changed through time
    • Leveraging BI tooling, we developed a series of dashboard views which allowed senior management users to visualise relative performance across their business lines
  • Case study 1 The Outcome
    • The use of HR Analytics empowered senior business stakeholders and human resources teams to build a powerful set of tools in assessing employee performance
    • Employee performance ratings had provided limited insight, however by leveraging profitability, compensation and engagement information gave senior management a powerful tool for comparative analysis
    • Leveraging disparity analysis allowed stakeholders to quickly identify outliers and drill down through to the individual data points
    • The use of time series data gave stakeholders the ability to track changes in relative performance across multiple periods
    • The disparity analysis allowed senior business and human resources teams to develop a robust resourcing plan to improve overall business performance
    • The repeatable nature of the HR Analytics solution developed provided an ongoing framework for monitoring the effectiveness of the resourcing plans
    • HR Analytics allowed human resources teams to provide powerful strategic insights to senior business stakeholders
  • Case study 2 The Challenge
    • Our client, the transaction banking division of a major European Investment Bank had suffered from high levels of staff turnover and falling employee engagement
    • Exit interviews and engagement with senior sales managers pointed to lack of supporting data infrastructure as a limiting factor for meeting sales targets
    • Sales teams lacked visibility on key client pricing and activity metrics reducing sales effectiveness
    • Senior divisional management worked with HR teams to develop the business use case for investing in better sales data analytics
    • Disparate billing and charging infrastructure and poor client reference data made the development of Sales MIS complex
    • The desire to retain key employees meant that the solution needed to be delivered quickly to improve team moral
    • IT teams lacked the experience to deliver a pragmatic data analytics solution to meet senior management deadlines
  • Case study 2 The Approach
    • We were engaged by the client to leverage their business and data analytics expertise to deliver a Sales MIS solution
    • Our team engaged directly with sales teams to define user requirements for the solution
    • Leveraging data analytics technology, we sourced, loaded and normalised data from disparate billing and charging systems
    • Worked with client data reference teams to develop a single view of client across the division
    • Using data analytics we aggregated revenue, volume balances and pricing information by client and incorporated historical data to develop time series analysis
    • We developed BI dashboards that allowed sales teams to drill down from high level summaries through to individual client and product granularity
  • Case study 2 The Outcome
    • We successfully delivered the Sales MIS dashboarding solution to our Transaction Banking client
    • Engagement with sales teams throughout the development process ensured the delivered solution incorporated all necessary data to enhance client interaction
    • Rapid, agile development of the solution ensured sales teams had credibility in the delivery of the finalised solution
    • Immediate uplift in sales revenue and client satisfaction
    • Senior business and HR stakeholders developed a methodology to track sales team engagement and benchmarked employee turnover statistics to validate the impact of MIS investment
    • High ROI from leveraging data analytics to provide enhanced MIS
Talent management on Selection and Reward
  • Neuroscience
    • Cognitive gadgets
      • In Cognitive Gadgets, Heyes (2018) introduces mechanisms of thought embodied in our nervous systems, that enable our minds to go further, faster, and in different directions than the minds of any other animals. These distinctively human cognitive mechanisms include causal understanding, episodic memory, imitation, mindreading, normative thinking and many more. “They are gadgets, not instincts, because they are the product of cultural and not genetic evolution. She notes that cognitive development that leads to new ways of thinking is passed from generation to generation not through our genes but through social interaction” 
    • Constructed emotions
    • In How Emotions are Made, Feldman Barrett (2018) concludes that “The theory of constructed emotion is a biologically formed, psychological explanation of who you are as a human being. It takes into account both evolution and culture. You are born with the same brain wiring as determined by your genes, but the environment can turn genes on and off, allowing your brain to wire itself to your experiences. Your brain is shaped by the realities of the world that you find yourself in, including the social world made by agreement among people. Your mind is a grand collaboration that you have no awareness of. Through construction, you perceive the world not in any objectively accurate sense but through the lens of your own needs, goals and prior experience.”
    • This constructionist view is aligned with thinking in evolutionary causal essentialism and social constructionism.
    • Bias and heuristics
      • Decision-making is fraught with bias and heuristics.
      • Neuroscience for Leadership explains that “heuristics are experience-based processes for solving problems, often relying on trial and error. The term has been used in psychology for unconscious, instinctive or learned processes which are quick and tend to work in most cases but can lead to mistakes. Systematic errors are known as biases. Fallacies are mistakes in reasoning or belief, which may, in some cases, also be due to biases or heuristics.”
      • It is difficult to eradicate unconscious bias.
      • Mirror neurons can contribute to discriminatory behaviour.
      • Group culture, in and out groups, can encompass overt and covert bias and stereotyping.
      • System 1 and System 2 are metaphors for cognitive processing that is fast and slow; they have been identified with the limbic and neocortical areas of the brain. In Thinking Fast and Slow, Kahneman (2012)
      • Our thinking is not always as rational as we might expect and hope; biases and stereotypes can be both conscious and unconscious. Avoid bias and unconscious bias when screening CVs and in interviews, including in the use of AI. Use of psychometric tests for predictive purposes and fit to team.
  • Interviews
    • Talent Portfolio Management
    • Managing people is an exercise in risk management – a treasury analogy: “having the right people in the right roles, in the right place, at the right time, at the right cost and maximising discretionary effort and positive outcomes”
    • Clearly financial assets are not as complex as people eg there is no discretion. How can we make sense of this complexity through predictive analytics, how can hiring and developing people become more than just ‘gut feel’ ?
    • Science: through occupational psychology theory > psychometric testing
    • Select the relevant instruments: e.g. Watson Glaser (cognitive ability) and Hogan (personality) BUT
    • Only data points: these provide data points only and are note sole indicators to ‘hire or don’t hire’ or ‘promote or don’t promote’
    • The predictive validity of structured and unstructured interviews (often competency based) is 58% but structured interviews combined with cognitive ability tests is 76%1.
    • Reference checks on their own have a validity of 26% but when combined with cognitive ability tests the predictive validity rises to 70%
  • Psychometrics
    • The predictive validity of personality tests are 32% but when combined with cognitive ability tests the predictive validity rises to 68%. Example of Ambition and Likeability for negotiators.
    • Cognitive ability tests also predict the ability to learn on the job.
    • Watson Glaser: assesses critical thinking through 3 sub-scales: Assumptions, Arguments and Conclusions.
    • Hogan: assess personality through 3 tools: Motives, Values, Preferences and Interests (MVPI), Hogan Personality Inventory (HPI) and Hogan Development Survey (HDS).
      • MVPI: 10 scales. 20 items in each scale. Focuses on the fit between the individual and the organisation culture and directly assesses peoples motives eg the degree to which they are motivated by, for instance, money, security, fun
      • HPI (Bright side): 7 scales. 206 items arranged around sub-themes. Based on Five Factor Model (FFM) of Personality: Extraversion, Agreeableness, Conscientiousness, Emotional stability, Intellect. Focuses on the self-presentation of reputation in the context of ‘getting along’ and ‘getting ahead’.
      • HDS (Dark side): 11 scales. 14 items in each scale. Three clusters: Moving away (managing insecurity), Moving against (managing self- doubt) and Moving towards (managing insecurity). Focuses on performance risk factors/derailers.
    • Personality types
      • Personality types differ from personality traits, as they are categorizations based on reported and observed features, such as preferences.  There are a number of type theories, and one example is the Myers–Briggs Type Indicator (MBTI). However, it is worth noting that type- based theories have been criticized for ignoring evidence that human personality is normally distributed rather than based on grouping  people, and that dividing people can be misleading; once labelled as part of a group, stereotyping may occur; it may lead to self- fulfilling behaviour and resistance to change; and that instances of pure types are rare. Despite this, MBTI remains popular for individual and team development, although, like all type-based tools, it is not used for selection.
    • Personality traits
      • Traits can be defined as dimensions of individual differences in tendencies to show consistent patterns of thoughts, feelings and actions.
    • Costa and McCrae’s ‘Big Five’ Paul Costa and Robert McCrae claim that there are five basic, unrelated, dimensions of personality
      • Neuroticism: sensitive, emotional and prone to anxiety and rumination
      • Extraversion: outgoing, assertive, active, talkative and likes groups
      • Openness to experience: curious about the inner and outer world, open to new experiences and innovation
      • Agreeableness: interpersonal style, compassionate, good-natured and eager to cooperate and avoid conflict, empathising
      • Conscientiousness: purposeful, strong-willed, determined, conscientious, well organised, has high standards and always strives to achieve goals.
    • Personality traits cont’d
      • The NEO-PI test is used to provide information relevant to occupational performance and adjustment and provides test results against a number of facets for each of the Big Five domains.
      • Different traits will be correlated to different behaviours in an organizational context, with extraversion and conscientiousness seen as important for jobs with a high degree of social contact, and neuroticism having a negative correlation with work success. Neuroticism is the strongest correlate to job satisfaction, followed by conscientiousness and extraversion. In terms of personality, the ‘more extraverted, emotionally stable, conscientious, agreeable and open to new experiences people are, the more they will tend to engage.’
      • While the relationship between the Big Five model and work outcomes is compelling, it was developed in a Western context, and researchers have identified a possible sixth factor related to authoritarianism. Further research could be undertaken to test for cross-cultural efficacy.
    • Hogan
      • The Hogan Personality Inventory was first published in 1986. It is based on the Five Factor model of personality and measures normal, bright- side personality characteristics that describe how people relate to others when they are at their best. Normal personality affects people’s  ability to get along with others and achieve their goals.
      • Socio-analytic theory, discussed below, specifies that personality should be defined from the perspectives of the actor and observer. Personality from an actor’s perspective is a person’s identity that is manifested in terms of the strategies a person uses to gain acceptance and status. Personality from an observer’s view is a person’s reputation and is defined in trait evaluations – the actor’s characteristic ways of behaving in public.
      • Reputation is the perception held by others regarding the characteristics of an individual based on the accumulation of any behavioural information, acquired both directly and indirectly. Instead of trying to change reputation through changing behaviour, it is more effective to change perceived reputation first. For instance, the impression of a person’s effectiveness may be changed with little or no change to actual task behaviour and performance.
      • The HDS addresses the dark side of interpersonal behaviour, which can be strengths but, when overused, can cause problems at work and in life. It measures aspects of people’s daily behaviour that may be seen at times when they are not actively managing their public image. These situations might include those involving high stress, change, multi-tasking, task saturation, poor person–job fit or when someone feels so comfortable in their work environment that no concern is given to public image.
  • Assessment centres
    • Assessment centres
      • Are used to assess competencies/skills
      • Can last from half a day to two days
      • Are considered a fair and wide ranging way of assessing candidate’s skills and abilities
      • Use a range of selection methods for individuals and for groups
    • Types of activity
      • Current affairs discussions
      • Work-related problem solving
      • In-tray exercises
      • Case-studies
      • Presentations
      • Role-plays
  • Reward - motivation
    • Self-determination theory (SDT) - we have three universal needs
      • Competency: skill, self-efficacy, self-worth
      • Autonomy: control, self-regulation
      • Relatedness: belonging, self-esteem.
    • SDT - is “centrally concerned with the social conditions that facilitate or hinder human flourishing. The theory examines how biological, social, and cultural conditions either enhance or undermine the inherent human capacities for psychological growth, engagement, and wellness.”
    • Drive: The surprising truth about what motivates us, Daniel Pink - Motivation 3.0, which is based on three essential elements
      • Autonomy: self-direction
      • Mastery: abilities are matched to challenges, to enable the experience of flow – see below
      • Purpose: a sense of existential meaning
    • Flow – “work done well, that stretches us enough, but not too much, from which we get immediate feedback, which takes us beyond ourselves, can give the brain pleasure. It can also help us develop a sense of confidence and our own social worth.” Mihaly Csikszentmihalyi, The Evolving Self
    • Furnham (2005) has noted that money is a great motivator for those who need or value it enough, most effective when it has noticeable impact and there is a direct link to performance. He also notes that its power to satisfy is impacted by four reasons
      • Adaptation: the initial positive impact of a pay-rise or bonus wears-off quickly
      • Comparison: as wealth increases the comparison group changes and people find there is always someone wealthier
      • Alternatives: as wealth increases the marginal utility of money declines and other aspects of life become more valuable
      • Worry: as wealth increases people tend to worry less about money problems and transfer their focus on other areas of their lives
    • In The Hope Circuit, Martin Seligman writes that the intrinsic pursuit of meaning and engagement is much more predictive of life satisfaction than extrinsic factors such as the pursuit of pleasure - including position power and financial reward - such externalities together account for no more than 15 per cent of variance in life satisfaction.
  • Performance metrics
    • Firm level
      • Key performance and health indicators
      • Link to balanced scorecard
    • Organisation unit level
      • Team effectiveness Individual effectiveness
      • Link to appraisals
      • Link to balanced scorecard
    • Project level
      • Project tracking
      • Milestones
      • Deliverables
    • Key performance indicators (KPIs)
      • Population
        • Headcount
        • Turnover for investors %
        • Total turnover %
        • Regretted turnover %
        • Average tenure
        • Sick-days
        • Sick days/Headcount
        • Engagement/commitment data
        • Disciplinary cases
      • Diversity and inclusion
        • Gender diversity %
        • BAME diversity %
        • Gender pay gap
      • Talent Acquisition
        • Hires in period
        • Time to hire
        • Acceptances/Offers
        • Hiring success %
        • Direct cost per hire
        • Error rates in onboarding
        • Agency data – on/off balance sheet
      • L&D and Performance
        • WG, Hogan, CS, Firo-B
        • Potential ratings (Attitude v Performance)
        • L&D cost/Headcount
        • Performance ratings
        • Compliance completion of training
        • Compliance completion of reporting
    • Objectives and key results (OKRs)
      • Objectives: are what is to be achieved and should be action-orientated and inspirational. 
      • Key results: describe how the objective is achieved and should be specific, measurable, time-bound, aggressive but realistic. 
      • They share the same attributes as SMART goals (specific, measurable, assignable, realistic and time-bound). Completion of all objectives must result in the attainment of the objective.
      • There are four important aspects of OKRs:
        • Focusing and committing to priorities
        • Aligning and connecting for teamwork
        • Tracking for accountability
        • Stretching for amazing results
      • Key performance indicators (KPIs) may measure the key results of OKRs. However, while KPIs may be used over a long period, the objectives part of OKRs will often exist for a short period and the selected KPIs will change as the OKR changes.
  • Balance scorecard
    • Firm results
      • Key firm performance metrics (KPIs)
      • Operating profit and available bonus pool
    • Organisation unit results
      • Key organisation unit performance metrics (KPIs)
      • Achievement of organisation unit projects (OKRs)
      • Compliance reporting met
    • ExCo project delivery
      • Achievement of ExCo projects (OKRs)
    • Individual contribution
      • Successful achievement of SMART individual objectives
      • Compliance reporting and leadership in setting the right risk and compliance culture
      • Leadership in setting a positive CSR, including ESG, culture
      • Coaching and development of team members
      • Having a commercial mindset
      • Quality of internal relationships
      • Quality of external relationships
  • Equity theory
    • Furnham (1992), the assumption that
      • People make comparisons between their position and those around them
      • People seek to ensure their perceived position relative to others in the organisation is equitable
      • This comparison is likely to consider both the input of ability and discretionary effort and the attributable outcomes in terms of financial reward, benefits, development and progression.
  • Organisational justice
    • Research has in most cases supported equity theory and is closely associated with organisational justice which looks at the
      • Decision making process behind outcomes, procedural justice
      • Logistical process of delivering outcomes, distributive justice
      • The way the outcomes are communicated, interactional justice Another aspect of motivation relates to the absolute value an individual derives from particular outcomes, the relative contribution of this value to a position of perceived equity or inequity and therefore the degree to which they are satisfied by outcomes relative to their colleagues.
  • Gender pay gap
    • The gender pay gap is calculated as the difference between average hourly earnings (excluding overtime) of men and women as a proportion of average hourly earnings (excluding overtime) of men’s earnings.
    • It is a measure across all jobs in the UK, NOT of the difference in pay between men and women for doing the same job.
    • The gender pay gap among full-time employees stands at 8.9%, little changed from 2018, and a decline of only 0.6 percentage points since 2012.
    • The gender pay gap among all employees fell from 17.8% in 2018 to 17.3% in 2019, and continues to decline.
    • For age groups under 40 years, the gender pay gap for full-time employees is now close to zero.
    • Among 40- to 49-year-olds the gap (currently 11.4%) has decreased substantially over time.
    • Among 50- to 59- year-olds and those over 60 years, the gender pay gap is over 15% and is not declining strongly over time.
    • One of the reasons for differences in the gender pay gap between age groups is that women over 40 years are more likely to work in lower-paid occupations and, compared with younger women, are less likely to work as managers, directors or senior officials.


Customer 3.0 (Kotler 2012)
  • Customer more sophisticated and price sensitive
  • Always out of time and need convenience
  • Growing product parity between suppliers
  • More accepting reseller brands and generics
  • High service expectations
    • Decreasing supplier loyalty
    • [Downside]
  • Non-differentiation
  • Costly service give away
  • Pricing readily matched
  • Advertising is getting more expensive and less effective
  • Spending too much on sales promotion
Models and tests
  • Money and motivation (Furnham, 2005) on adaptation, comparison, alternatives, worry
    • Cannot always get pay rise and how to motivate the employee
    • People always compare pay with one another
    • Equity theory: put in effort and expect rewards or recognition - how does HRBP design and define such reward?
    • Expectancy theory (Lawler 1973): expectancy, instrumentality, valence
    • Expectancy theory was expanded by Porter and Lawler (1968): intrinsic and extrinsic motivation
    • Doing a benchmark of what the employees’ salary should be revised and how to manage them.
  • Maslow hierarchy level 
    • (DEFICIENCY) Physiological, safety, social, (GROWTH) esteem, self-actualisation
  • Herzberg (1959) Two factor theory
    • Motivational and maintenance
  • McGregor (1960) Theory X & Theory Y
    • Theory X is workers are typically lazy and management are harsher
    • Theory Y is workers are motivated and management are more relax
  • Alderfer (1969) three needs (modified from Maslow)
    • Existence, relatedness, growth
  • MaClelland (1987) Human motivations (modified from Maslow)
    • Need for achievement, need for affiliation, need for power
  • Operant Conditioning Theories - rewards & punishments
    • Behavioural modification theory: reward and punishment
    • Social-learning theory: individual needs, values and feelings of equity
  • The practice of management drucker (1954)
    • Management by objectives (MBO)
    • Goals should be set by both the employees and employer. HR should be the one who focus on that and ensure the process
    • Objectives and key results (OKRs) (Grove, 1983)
    • 3 superpowers of OKRs: focus and commit to priorities, align and connect for team work, track for accountability, stretch for amazing (Doerr, 2017)
  • Self determination theory (Deci et al, 2001).
    • Competency, autonomy, relatedness 
  • The Chimp paradox (Peter, 2012)
    • Once they have been assigned the task, they will follow through - responsibility and ownership
    • HRBP should implement mechanism to spot such behaviour as this method will yield the best work result
  • Neuroscience (Swart et al, 2015)
    • How we do work is how our brain tells us to. This is important for the HR to adopt programs that will enhance key employee’s brain
  • Further employee engagement - MAGIC: Five Key Ways to Unlock the Power of Employee Engagement (Maylett and Wride, 2014)
    • Meaning, autonomy, growth, impact, connection - how HR can make an employee more engaged?
    • If an employee is motivated and engaged, he can fulfill the KPIs from their head much easier and free up the HR from involving in the many secondary roles
  • Employee Experience Advantage (Morgan, 2017)
    • Cultural, Technological, Physical Environment - how to create such environment
    • The Employee Experience: How to Attract and Retain Top Performers and Drive Results (Maylett and Wride,
    • 2017)
    • Have strategy with the marketing and top management to portray a very good culture to attract talent
    • What are the ways to retain talents, engage them and discover they are getting unhappy
  • Tests
    • Hogan test
    • Watson Glaser test

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