Uman Esource Anagement: Prof. Dr. Armin Trost

HUMAN RESOURCE
MANAGEMENT
Prof. Dr. Armin Trost
Main Questions
What is Human Resource Management (HRM)?
Which Megatrends determine future challenges
in HRM?
What are key fields of action in HRM?
Human Resource Management
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Innovation
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From manual work to knowledge work

0%
1900
1930
20%
40%
17
60%
80%
100%
83
30
70
49
1970
51
62
2000
38
75
2020
knowledge work
25
manual work
Source: Zukunftsinstitut (2008)

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Demographic Changes in Germany

50%
40%
30%
25-34
35-49
50-64
65+
20%
10%
0%
2010
2015
2020
2025
2030
2035
-10%
-20%
-30%
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Globalization
German global Trade
Source: Statistisches Bundesamt: www.destatis.de

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Web 2.0 User-generated Content
Web 1.0
Web 2.0
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Megatrends determine future Challenges in HRM
Acquire the right talents

Innovation
Give the right rewards

Support lifelong learning
Demography
Leverage employee potential

Support diversity
Globalization
Build successors
Competitive
Advantage
Retain and share knowledge

Shape attractive working conditions
Web 2.0
Manage strategic changes

Value Change
Use latest technologies

Retain the best talents
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Human Resource Management (HRM)
All planned and controlled activities of an

organization to build and maintain the
relation between employees and the
organization in order to meet both business
objectives and employee expectations
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Key Terms
Human Resource Management - Innovation - Demographic
Changes - Knowledge Work - Value Change - Web 2.0 Globalization
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
How are company strategy and HR strategy
related?
As part of an HR strategy which company
functions should be of the highest priority?
How to plan quantitative workforce demand on
both strategic and operational level?
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Strategic Priorities
Innovation
Brand
Price
Design
Quality
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Company Strategy HR Strategy
Company Strategy
Employees
HR Strategy
Strategic Challenges
Competencies
Key Functions
Strategic Priorities
Motivation
Recruiting
Business Objectives
Commitment
Development
Competitive
Advantages
Values
Communication
Availabilty
Layoffs
Company Vision
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Which function is of the highest Importance?

Management
Core Functions
Product
Mgmt
R&D
Design
Prod.Planning
Production/
Engineering
Facility/
Security
Marketing
Sales/
Key
Account
Mgmt
Service/
Support
Public
Relations/
Comm.
Purchase
Logistics
Supportive Functions
Quality
Mgmt
IT
Controlling/
Accounting
Human
Resource
Mgmt
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Key- and Bottleneck-Functions
Low
Talent
Availability
High
Low
Strategic
Relevance
High
Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in

Zeiten des Fachkrftemangels. Heidelberg: Springer.
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Added Value in Key Functions and other

Functions
Added
Value
Key Functions
In key functions there

is an exponential
relationship between
performance and
added value
Mean
Others
Added value in key

functions is higher
compared to other
functions
Performance
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Age Structure Analysis

600
500
Manager
Employees
400
Number
300
200
100
20
25
30
35
40
45
50
55
60
65
70
Age
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Factors determining Workforce Demand
Senior
Promotion
out
Hiring
From outside
Promotion
Losses
Retirement,
Turnover
Professional in
Junior
Growth
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Strategic Workforce Planning
2013
2014
2015
2016
Employees
120
128
132
140
Demand
18
23
28
29
Internal Availability
15
12
External Demand
11
20
22
Risk
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Quantitative Workforce Planning Methods

Leading Indicators
Determine the ratio between Performance and required
numbers of employees based on programmatic
assumptions (e.g. professors/students, nurses/patients).
Trend Analysis
Applying statistical models that predict labour demand for
the future, given objective statistics from the previous
years
Task Analysis
Tasks are identified and quantified in terms of
appearance and workload
Conclusion by Analogy
Determine workforce requirements according to those of
similar organizational units or companies
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Operational Workforce Planning

Year
Revenue
(T)
#Sales
Reps
Revenue/
FTE* (T)
#Other
FTE
Total #
of FTE
#Mgr
2004
6.000
30
200
39
2005
6.480
35
185
11
46
2006
6.998
37
189
12
49
2007
7.558
37
204
12
49
2008
8.163
36
227
13
49
2009
8.816
43
205
14
57
2010
9.521
46
207
13
59
2011
10.283
55
187
15
70
10
2012
11.106
58
191
17
75
11
2013
11.994
60
200
18
78
11
2014
12.954
65
20
85
12
Demand
Average annual Revenue Growth
8%
Average Revenue/Sales Rep (T)
200
Average Relation Other Ees/Sales Reps
0,31
Span of Control
* FTE: Full Time Equivalent

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Workforce Planning using Task Analysis

Example Italian Restaurant
Assumptions
Tasks
Duration/
Task (Min)
Duration (h)
Core Tasks
Guests/Day
Guests/Table
200
3
28
Prepare Table
1/Table
67
Take order
1/Table
67
Tables/Day
67
Prepare Pizza
1/Guest
200
13
Hours/Day
15
Billing
1/Table
67
Chat
1/Table
67
400
0,5
Drinks/Guest
Prepare Drinks
Additional Tasks
10
Breaks
5%
Administration
10%
Misc.
20%
Total
Working
Hours/Day
38
Workforce Demand (FTE)
4,7
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Key Terms
Strategic Priority - Strategy - Business-HR-Strategy Linkage
- HR Strategy - Value Chain - Key Function - Bottleneck
Function - Age Structure Analysis - Workforce Demand Strategic Workforce Planning - Operational Workforce
Planning - Planning with leading Indicators - Task Analysis
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What does the traditional approach in recruiting
look like?
How is a company able to position and present
itself as an attractive place to work through
building an employer brand?
Which active search strategies help companies
to find and approach passive candidates?
How can companies retain promising and
talented candidates?
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Internal versus external Hiring
Internal Hiring
External Hiring
Lower risk
New perspectives/ideas
Short Time-to-Fill
Lower training efforts
Lower costs
Competitor insights
Internal competition
More options
Faster integration
Development opportunities
Less options
Higher costs
Higher training costs
More integration efforts
Disappointed colleagues
Higher recruiting risks
Conflicts among managers
Higher turnover
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Job Ads
Employee Value
Proposition
Job
Job-ID
Location
Social Media
Tasks and
Responsibilities
Requirements,
Education,
Competencies
Attractive aspects
Application
Send-to-friend
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Contingent Workforce
Contract
Worker
Employment
Contract
Salary
Performance
Direction
Agreement
Supplier
Client
Fee
According: Holtbrgge, D. (2004). Personalmanagement. Heidelberg: Springer.

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Career Fairs
Direct and immediate
contact to potential
candiates
Immediate preselection and job
offering
Direct Competition
with other employers
Limited focus on
specific target groups
Limited contact to
passive seekers
Lower quality
candidates
Additional information
services
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Executive Search
Usually executive positions will be filled through the
(secret) help of executive search consultants
Leading executive search agencies are Egon Zehnder
International, Heiddrick & Struggle, Russel Reynolds,
Korn/Ferry, Kienbaum
The overall fee is 33% of the candidates future total
target annual salary which is billed independently of
the success of the search (retained search)
There is a difference between active search based on
research and ad-based search
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Executive Search Process

Determine Requirements
related to Position to be
filled
Interview Candidates
Identify Target
Companies
(Consider off-limits)
Check References of
most suitable
Candidates
Candidate Search and

direct Approach
Negotiate job-related
Conditions (e.g. Salary,
Sign-on Bonus)
Present profiles of three

possibly suitable
Candidates
Coach new Executive

during first 100 Days of
Employment
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Talent Relationship Management
Target Group
Definition
Employee
Value
Proposition
Active
Sourcing
Candidate
Retention
Positive
Candidate
Experience
Selection &
Recruiting

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Employer Image as a competitive Advantage

- X%
- X%
- X%
- X%
- X%
Awareness
Company
Image
Branding
Employer
Image
Job
Appeal
Application
Retention
Personnel Marketing/
Relationship Management
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Which Promise?
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Product Brand versus Employer Attributes
Product
Employer
Function
Inno-vation
Prestige
Design
Quality
Prize
Products
Company
People
Values
Offers
Tasks
According: Corporate Leadership Council (1999). The

Employment Brand. Washington: The Corporate Executive
Board.
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Building an Employer Brand

Target Group Definition
Operation
Analysis
Creative Formats, Rules

& Processes, Validation,
Campagnes
Employer Image,
Target Group Preferences,
Employer Stengths,
Labour Competition
Strategy
Employee Value
Proposition (EVP),
Media strategy
Source: Trost, A. (Hrsg.) (2009). Employer Branding. Arbeitgeber positionieren und
prsentieren. Kln: Luchterhand.
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Potential Employee Value Propositions

Offers
Tasks
Company
People
Values
Purpose
Compensation
Attractive tasks
& projects
Products/
Services
Peoples
Personality
Company
culture
Environment &
Climate
International
work
Technology
leader
Leadership
quality
Social
responsibility
Innovation
Market leader
Qualification
level of
workforce
Famous leader
Impact
Success
Health of
others
Benefits
Career
opportunities
Work-LifeBalance
Location
Collaboration
Diversity
Public
reputation
Trust &
Respect
Quality of live
Work flexibility
Security
Customers

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An historical Example
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To the point
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Defining the Employee Value Proposition

Employer
Strengths
Target Group
Preferences
Competitors
Strengths
Employee Value
Proposition
E
authentic
EVP
E
relevant
E
different

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Focus on Opportunies, Chances, Perspectives
* Grades are not everything. Your talent also matters!
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From EVP to specific Messages
EVP
Strengths
Evidence & Stories
Target group specific messages

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Media Channels
N:N
Facebook
Internet-Forums,
Communities
Twitter
Blogs
Workshop
Personal
Conversation
Career
fairs
Companypresentation
1:1
YouTube
CareerWebsite 1.0
Print
1:N

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Active- passive- and non-seeking Candidates
Read job ads, visit career

fairs, apply actively
Active
Seeker
Passive
Candidates
Non-Seeker
Have a job, are open for new

opportunities, observe the
market but dont visit career
fairs
Are not interested in a new job

opportunity by any means, are
happy with their situation,
new in their current position,
close to retirement, ...
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Active and passive Ways of Talent Sourcing

High
Guerilla
Recruiting
Competitive
Intelligence
Poach the
Recruiter
Tribal
Recruiting
Competitiveness
Social
Community
Recruiting
Talent
Scouting
Employee
Referrals
Executive
Search
Campus
Recruiting
Career
Fairs
Job Ad
Networks
Low
Low Engagement
Line
High

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Campus Recruiting
Target Universities
Relationship Building
Marketing Activities
Criteria definition,
prioritization of
universities/faculties and
selection
Building social
relationships to students,
professors, with faculties
and student
organizations
Measures to get in
touch, evaluate and
retain students with high
level of talent and
motivation
Partnering between employer and target

university
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Campus Recruiting Roles
Student
Ambassador
HR
Top-Manager
Students
Manager/
Employees
Professors
Career
Center
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Campus Recruiting Measures

High
Internships
Presentations/
lectures
Benefit*
Theses
Scholarships
Case-StudyWorkshops
Company
Sponsorship
Inhouse
Days
University
Days
Theses
Award
Posters
Low
Low
Effort
High
* Based on numbers of applications

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Social Networks
A-Player know A-Player

The Strength of weak ties
Growing usage of employee
referral programs
Referrals are seen as highly
credible
Growing social media usage
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Employee Referral Programs

Employees refer to
potential candidates
(friends, former
colleagues etc.)
Recommended
Person
Company gets in
touch with
recommended person
Once the
recommended person
gets hired the
employee who
referred to him/her
gains a bonus
Hiring
Referral
Company
Employee
Bonus
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Social Community Recruiting
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Candidate Segmentation
Very
High
Candidate
Potential
Medium/
High
C
Low
Relevance
to
Key-/Bottleneck Function
High

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Candidate Retention Measures
1:1
B (C)
A (B, C)
Regular Conversation with
line representatives
Invitation to
company events
Intensity
Greeting
cards
Social
Media
Access to
Intranet
1:N
Weekendworkshops
Holiday
Jobs
Company
magazine
Breakfast
with the CEO
Job-Offers
Theses
Personal
gifts
Information about vacant positions

Newsletter
Priority
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Internship Program
Employee
Formal Assessment
Project Work
Regular Internship
Talent
Pool
Company keeps
relationship to former
intern
Responsibility for a small
project of relevance for
the company/business
function
Transactional work on a
daily basis in one or more
business functions
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Candidate Retention Cycle
Talent-Pool
Nomination
Operation
Planning
Documentation
Job-Offer
Recruiting

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Positive Candidate Experience
Speed
Transparency
Appreciation
The companys reaction

on incoming applications
and throughout the entire
recruiting process is
faster than thoses of the
competitors
The candidate is always

clear about current
status. He/she
understands why certain
selection instruments are
used and gets
appropriate feedback
The candidate is treated

with full respect. The
company consequently
demonstrates its interest
in those candidates it
wants to hire.
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Key Terms
Internal versus external Hiring - Job Posting/Add - Career
Website - Contingent Workforce - Career Fair - Public
Jobboard - Executive Search - Off-Limit - Talent Shortage Talent Relationship Management (TRM) - Employer Image Brand - Product versus Employer Brand - Employee Value
Proposition - Employer Positioning - Employer's Strengths
- Labor Competition - Target Group Preferences - Active
Seeker - Passive Seeker - Active Sourcing - Social
Community Recruiting - Referral Program - Guerilla
Recruiting - Campus Recruiting - Internship Program Talent Pool - Candidate Retention - Candidate Experience
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidat
Candidat
ee
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
During a companys recruiting process how are
the most suitable candidates selected and which
risks need to be controlled?
How can a company determine a candidates
future performance? Which selection criteria are
typically used?
What are the most commonly used selection
methods?
How can you determine the quality of a selection
method in terms of objectivity, reliability and
validity?
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Recruiting Risks
High
False
Negative
Right
Positive
Right
Negative
False
Positive
Actual
Performance
Low
Low
Predicted
Performance
High
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Job Position Employee
Position
Job
Employee
Responsibilities
e.g. teacher, butcher,
manager, sales
representative
Job Family
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Job Architecture
Joblevel
Chief Marketing Officer
Executive
Head of Accounting
Upper
Management
Research Manager
Department Head
Team Lead
Senior
Sales
Representative
Research
Assistant
Junior
Marketing
R&D
Production
Sales
Admin
HR
Job Family
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Content and Purpose of Job Analysis
Critical
Incidents
Selection
Criteria
Requirements
Job
Description
Magic
Moments
Attractive
Aspects
Employee Value
Proposition
Job Analysis
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Critical Incident Technique

Example: Waiter in a Restaurant
Critical Incidents
Requirements
Restaurant is crowded and

guests become impatient
Friendliness
Guests complain about inedible

dishes
Speed
Resilience
A drunken group of guests with

no money in their pockets
Knowledge
A guest wants to learn more

about minor details of a specific
wine
Coolness
The cook is sick and his deputy

is out of his depth
Empathy
Direction
Diplomacy
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Limitations of Job Analysis

Job-related aspects change
over time
Jobs need to be identified and
classified (job architecture)
It might be the employee who
defines his/her job (dejobbing)
Job descriptions may increase
bureaucracy
Job descriptions support the
this-is-not-my-job mindset
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Relevant Candidate Dimensions

Knowledge
Interests
Expectations
Attitudes
Contacts
Personality
Motivation
Competence
Talents
Age, Gender,
Look?
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... and how they might be judged

Education
Interview
Reason to
Apply
Private
Engagement
References
Appearance
Motivation
Letter
CV
Former
Development
Photo,
Appearance
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Candidate 1
Engineer
Intelligent
Teamplayer
Confident
Result-oriented
Ambitious
Creative
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Candidate 2
Engineer
Intelligent
Teamplayer
Confident
Result-oriented
Ambitious
Creative
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Social Judgement Biases

First Impression
The tendency for a
perceiver to rely on early
cues or first impressions.
Stereotyping
The tendency to
generalize about people
in a social category
Recency Effect
The tendency for a
perceiver to rely on
recent cues or last
impressions.
Contrast-Effect
The tendency to judge
upward or downward
because of a comparison
with another candidate
who was recently judged
Projection
The tendency for
perceivers to attribute
their own thoughts,
priorities and feelings to
others
Halo-Effect
The tendency to provide
similar ratings across
different dimensions
based on an overall
judgement
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Recruiting-Funnel
Application
10:1
2:1
Pre-Selection
TelephoneInterview/
Test
5:1
Personal
Interview
2:1
3:2
Hiring
Accepted
Job-offer
Assessment
Center
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Selection-Process
Criteria definition
Results
consolidation
Appropriate tools
and methods
Decision
Usage
Communicating the
decision
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Selection Methods Overview

Method
Spread
Effort
Objectivity
Validity
Resume
Cognitive
Ability Test
Physical
Ability Test
Personality Test
Biographical
Questionnaire
Personal
Interview
Assessment
Center
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Selection Method Overview

Method
Spread
Effort
Objectivity
Validity
Reference Check
Background
Investigation
Google
Heuristics
Physiological
Tests
Graphology
Games/Simulation
s
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Myers-Briggs Type Indicator (MBTI)

Extraversio
n
Introversion
Information
Sensing
INtuition
Decision
Thinking
Feeling
Structure
Judging
Perceiving
Favorite World
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D2
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Intelligence
Select the option that best fits the pattern of
the previous images
For each question determine the number

that best fits the pattern of the previous
numbers
1. 1, 3, 6, ?
2. 3, 5, 8, 13, 21, ?
3. 3, 6, 18, 108, ?
4. 4, 1, -3, -4, ?
5. 95, 36, 15, ?
6. 6, 13, 29, 63, ?
7. 1, 1, 2, 6, ?
8. 12, 33, 55, ?
9. 99, 86, 73, ?
10. 2, 5, 8, 35, ?
11. 4, 16, 49, ?
12. 73, 61, 56, 62, ?
13. 1588, 1820, 2148, 2204, 2284, ?
14. 923, 937, 963, ?
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Intelligence
There is scientific evidence, that people who earn
more money are often not as happy than those who
earn less money.
Please create as much theses supporting this
finding as possible.
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Intellingence Score Distribution
Frequency
Mean:
100
Standard-Deviation:
15
85
100
115
Test-Score (IQ)
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Projective Tests
Thematic Apperception Test
Rorschach-Test
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Online-Tests
Advantages
Global access/availability
Low operating costs
Opportunity for adaptive
item presentation
Automatic/immediate
analysis and reporting
Opportunity to track
response time
Disadvantages
Limited control over test
situation and subject
behaviour
Limited opportunities to
professionally support
interpretation of results
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Advantages of Psychometric Test Methods

High objectivity due to limited impact of test operator
High comparability across candidates due to
standardized test conditions
Limited costs per test usage
Test can be used as modules complementing other
selection measures
Tests require minimal infrastructures and can be used
in almost every situation
Tests can be exposed even online at any time and at
many locations
Analysis is very simple (e.g. score is equal to the
amount of correctly-answered items)
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Interview Structure
Tension
Informal
Talk
Questions
about the
applicant
Open
Questions
Company/Jo
b
Presentation
Next Steps
Time
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What both sides want to know in an Interview
Applicant
Employer
Why am I invited?
Why are you here?
What can your company

offer me?
What can you do for us?
What kind of employer are

you?
What distinguishes your
company from others?
Can I afford to work at your
company?
What kind of person are

you?
What distinguishes you from
others who have the same
skills?
Can we afford you?
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Interview Questions to assess Competencies

Strategic Thinking
How does the work you are currently doing affect your
organizations ability to meet its mission and goals? Do you
think your work is important? If yes, why? If no, why not?
Planning
Describe a time when things didnt turn out as you had planned.
What did you do to analyze the situation and how did you
address the issue?
Interpersonal Relations
Give an example of a situation where the group of people you
worked with on a regular basis had a serious conflict. What was
the conflict about? How were you involved in the conflict? What
was the outcome?
Communication
Tell me about a time when you really had to pay attention to
what someone else was saying, actively seeking to understand
their message? How did this challenge affect the manner in
which you portray important messages to others?
Source: Corporate Leadership Council (2004): Interview Questions to Assess Competencies

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Combined Interviews
Interview 1
HR
Criteria
Interview 2
Manager
Interview 3
Techn. Exp.
Panelinterview
Teamability
Technical Skills
Motivation
Leadership
Mobility
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Assessment Center
Candidates
6-15
candidates
Assessors
Well-trained
psychologists
and
managers
Criteria
Intelligence,
social
competence,
mobility
...
Methods
Tests,
groupexercises,
Interviews,
...
Situations
In-tray,
presentation,
Role play,
...
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Assessment Center Setting
Participants
Assessor
Facilitator
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Assessment Center Exercises

Dynamic
Introduction
Meet
Employees
Role play
(role not
defined)
In-Tray
Case Studies
Role play
(role defined)
Psychometric
Tests
Business
Simulation
Group
problem
solving
Standard
Individual
Group
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Assessment Center Architecture

Criteria
Introduction
Group
Exercise
In-Tray
Intelligence
test
Interview
Leadership
Communication
Intelligence
Mobility
Intercultural
Sensitivity
Organization
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Judgement Scheme
Example Introduction
Nr.
Criteria
Points
Commends
Speaks loud and clear
mumbles
Keeps eye contact
sometimes
To the point
Body expression
overdone
Structure
Uses flipchart
Stays in time
3 Minuts
Uses Time
Speeds up
Total
27
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Advantages of Assessment Centers

High objectivity, reliability and validity through
multiple methods, exercises, criteria, assessors
Comparability of candidates within and across
assessment Centre cycles
Reflection of future duties and responsibilities
Limited risk of social desirable behaviour
High transparency of requirements in the eyes of
the participants
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Correlation
Correlation reflects
linear relationship
between two
variables (X and Y)
r = 0,5
r=0
It can vary between

-1 and +1
Is used to determine
validity, reliability
and objectivity
X
r = 0,9
r = -0,5
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Validity
Person
Test
Criterion
78
72
67
68
44
51
89
83
Criterion
(e.E. Performance)
Validity describes the extent to which results of

an assessment method relate to what it is
supposed to measure
Prediction (e.E. Test-Score)
Criterion-Validty
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Reliability and Objectivity

Reliability
The extent to which a predictor
repeatedly produces the same
results over time
Objectivity
Multiple rater independently
produce the same results in
terms of execution, analysis
and interpretation
Person
1. Test
2. Test
Person
Assessor 1
Assessor 2
78
72
78
72
67
68
67
68
44
51
44
51
89
83
89
83
Test Retest Reliability
Interrater-Reliability
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Key Terms
Candidate Selection - Hiring Risk - Job versus Position Job Architecture - Job Family - Job Analysis - Critical
Incident Technique - Job Description - Dejobbing - This-isnot-my-Job-Mindest - Applicant - Stereotyping - Primacy
Effect - Halo-Effect - Recruiting Funnel - Pre-Selection Biografic Questionnaire - Reference Check - Background
Investigation - Graphology - Heuristics - Resum Personality - Personality Test - Social Desirability - MyersBriggs Type Indicator - Ability Test - Intelligence Test Standard Deviation - Projective Tests - Online Testing Adaptive Item Presentation - Job Interview - Assessment
Center - In-Tray Test - Role Play - Correlation - Validity Reliability - Objectivity
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensatio
Compensatio
nn &
& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What is equity?
Which components make up total reward and
based on which factors are these components
determined?
Under which conditions does money impact
motivation for performance?
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Equity
Reward
Distributive Equity
Ones performance
reward relation
compared to others
Equity
B
Procedural Equity
Do procedures to
determine
compensation lead to
fair results?
Performance/
Contribution to company success
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Factors determining Compensation
Responsibility
Strategic
Relevance
Performance
Qualification
Market
Company
Success
Cost of Living
Civil
Status
Tenure
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Total Reward
Total Reward
Total Compensation
Base Pay
Variable Pay
Individual/
Group
Organisation
Salary
Piece Rate
Wages
One-time
Bonus
Profit
Sharing
Target Bonus
Commission
Stock
Ownership
Stock
Options
Non-financial
Reward
Benefits
Insurances
Appreciation
Contacts
Pension
Privileges
Services
Title

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Development of a Base Pay System
Job Analysis
Job Evaluation
Pay Survey
Pay Policies
Pay Structures
Job
Appointment
Individual Pay
Implementation,
Communication,
Monitoring
According: Mathis & Jackson: Human Resource Management. South-Western.

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Compensable Factors Hay System
Knowledge
Functional Expertise
Managerial Skills
Human Relation
Environment
Challenge
Freedom to act
Impact on end results
Magnitude
Dyn.
Problem Solving
Accountability
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Job Evaluation
Example Consulting Company
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Market Line
Market Pay
Average Salaries in the Market
Benchmark-Jobs
Market
Line
Benchmark jobs are Jobs

at other companies with
similar duties,
requirements etc.
Market line represents
relationship between job
value and market pay
Computing market line
by using statistical
regression analysis
Job Value
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Base Pay Structure

Job Grade
Market Line
Based on Job Value
8
7
6
5
3
2
1
Pay Rate ()
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Opportunities and Threats of Job Evaluation and

Base Pay Structures
Opportunities
Threats
Common foundation for

compensation-related
decisions
Significant bureaucracy
during implementation
Job-related distributive and

procedural equity
Transparency of
decisions
Active elaboration of job
values and contribution to
companys success
Acceptance of all
stakeholders involved
Requires clear job
definitions
Reduces flexibility of
decisions
May reduce innovation and
employee engagement
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Compensation of Business Graduates

in Germany
Entry-Level (Graduates)
Professional Experience
Median
Median
50%
Source: Personalmarkt, 2006
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One-Time Bonuses
A one-time bonus is a one-time payment that
does not become part of the employees base
pay
Can be used to reward employees for
contributing new ideas, coping with critical
challenges, acquiring new skills
Bonuses usually recognize performance of both
the employer and the company
Bonuses provide great flexibility in rewarding
valued behaviours at particular situations
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Employee Recognition System

Every employee can acknowledge special
performance of his/her colleagues with a gift
Based on his/her own budget (% of base pay)
To operate the system there is an internal kind of
gift-plattform in the intranet
The value of gifts totally received by an employee
can serve as a basis for performance appraisal
Its a rarely used approach but its popularity
increases
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Piece-Rate System and Commission
Piece-Rate System
Commission
Daily Wage
Salary
variable
variable
fix
Daily Performance
fix
Revenue
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Target Bonus
Employee and supervisor

agree on both individual
targets and relation between
target achievement and target
bonus
Employees can choose from
different options reflecting
different risk preferences
Primarily used for managers
and senior employees
Target Bonus
(%)
140
120
100
80
60
60
80
100
120
140
Target Achievement (%)
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Objective Setting Scheme
Objective
Point
Value
Achievement
Point Value
Achievement
Organize CEBIT Fair attendance.

Generate 100 leads + follow-up
10
130%
13
Successfully integrate 3 new

hired colleagues by end of the
year
10
90%
New corporate website relaunch.

400 clicks per day by end of the
year
25
105%
26
45
48
100%
107.2%
Target Bonus in
5.000
5.361
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Does Money motivate? The Candle-Problem
Dan Pink: The puzzle of motivation

http://www.ted.com/talks/dan_pink_on_motivation.html
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Pay for Organizational Performance

Profit Sharing
Proportions of organizational profits are distributed
among employees according to their base pay
Employee Stock Ownership

Giving employees stock ownership of the organization or
the right to acquire stocks at a price below market.
Employees must keep stocks for a specific period of time
Employee Stock Options

The right to buy (exercise) a certain number of stocks at
a specific price
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Employee Stock Options

Example
Stock price
13
10
Option
6
4
0
Time
t
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Types of Benefits
Security
Unemployment
compensation
Life insurance
Disability insurance
Early retirement options
Disability retirement benefits
Pension Plans
Health
Health Care Insurance
Sabbatical
Free tennis courts, fitness
centre usage
Medical care
Psychiatric counselling
Financial
Interest-free building loan
Company credits
Financial counselling
Offerings
Company car
Private cell phone, laptop
usage
Free lunch
Cafeteria and food services
Child Care; Company
Kindergarten
Cost advantages for
company products
Company accommodation
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Deferred Compensation
Tax-deductible Pension
Cash
Employer
Pension
Employee
Compensation
1.000.000
1.000.000
Social Security
+ 200.000
- 210.000
Pay Tax
Result
Employee
1.000.000
1.000.000
1.000.000
1.000.000
200.000
500.000
- 290.000
1.200.000
Benefit
Employer
500.000
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Reasons why Companies offer Benefits

Benefits protect employees and their dependents
from financial risks associated with illness,
disability, and unemployment
Most benefits are not taxed. For this reason, they
might represent a more valuable reward to
employees than an equivalent cash payment
Benefits may contribute to attracting, motivating
and retaining human resources
Some benefits add value to the employee without
additional costs for the employer. As such,
benefits might serve as substitutes for financial
compensation
Some benefits are required by law
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Flexible Benefits (Cafeteria System)

Flexible Benefit Plan
A plan that allows employees to select the benefits they
prefer from groups of benefits established by the employer
Reasons for using Flex Plans

Perceived value of benefits depend on employees age,
family status etc.
By tailoring the right benefit package employees gain
maximum value without additional costs on employers side
Flex plan increases employees awareness of the costs and
value of benefits offered
Problems with Flexible Plans
Inappropriate benefits package choices

Adverse use of specific benefits by higher-risk employees
Administrative and communication efforts
Benefit requests are hard to predict
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Key Terms
Equity - Factors Driving Individual Compensation - Total
Reward
Rewards
(Non-)Monetary
-
Compensable
Total
Rewards
Compensation
Factor
Point
(Non-)Financial
Job
Evaluation
Method
Benchmark
Study/Pay Survey - Benchmark Job - Market Line - Pay

Structure - Pay Range - Pay Grade - Median - Piecework Commission - Bonuses - Target Bonus - Intrinsic versus
extrinsic Motivation - Profit Sharing - Employee Stock
Ownership - Employee Stock Option - Benefits - Deferred
Compensation - Flexible Benefits
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What can be learned through training?
In which coporate fields are training courses
typically used?
How can a training-event be designed and
devloped in order to meet predefined learning
objectives?
How to ensure employees transfer what they
have learned during training into real life?
How do modern media and working conditions
influence the way people learn in a company?
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What can be learned how?

Training
Knowledge
Competence
Talent
Develop
Experience
Intelligence
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Corporate Fields where Training Courses are used

Unique Training Needs
Training as part of a
large-scale change
initiative
E.g. IT-implementation,
cultural change
Customized training
addressing special
development needs for
teams and individuals
E.g. sales training
Planned,
strategically
decided
Demanded
Regular training for

specific target groups
E.g. newly-appointed
managers, new hires
Training for employees

offered on demand at
high volume
E.g. group conflict training
Standard Training Needs

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Content of a typical Training Catalogue
Languages
Office
Packages
Business
Administration
Accounting
Labor Law
Communication
Leading
People
Conflict
management
Coping with
Stress
Doing
Interviews
Project
management
Working
techniques
Facilitation/Pr
esentation
Time
management
Sales
technique
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Increasing Productivity through Employee

Onboarding
Productivity
With Onboarding
Benefit
Without Onboarding
First Weeks in a new Job
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Training Course Development
Needs Analysis
Target Group
Learning Needs
Relevant situations
Design
Content and learning objectives

Methods and media
Costs und budgets
Operation
Trainer
Duration, Schedule
Infrastructure
Evaluation
Evaluation
Optimization
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You dont know what you dont know
Conscious
Knowing
incompetence
Explicit
Capabilities
Unconscious
Unconscious
Incompetence
Implicit
Competence
Weak
Capabilities
Strong
Capabilities
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Needs Assessment Methods

Structured interviews
on individual or group
level
Self-administered
assessment tools
(e.g. tests)
Ratings from peers,
supervisors,
subordinates
Critical Incidents
Techniques
Participated or nonparticipated observation
Off-site needs
assessment workshops
Professional auditing by
(external) experts
Shadowing, diaries,
Coaching
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Training Approaches
Along the Job
Assistance
Substitute
Into the Job

Education
New Hire Integration
Trainee Programs
On the Job
Job Rotation
Coaching; Mentoring
Project Work
Out of the Job

Outplacement,
Retirement
Near the Job

Task Forces
Work Groups
Off the Job
Congresses
Outdoor-Training
Off-side-Training
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Advantages of On-the-job versus Off-the-job

-Training
On-the-Job
Off-the-Job
Natural and job-related
Expertise and experience of

training conductor
Lower costs of development

measure
Immediate application of
newly acquired knowledge
Immediate Feedback
Opportunity to monitor
development advances
Professional learning
environment
Focus on training, limited
job-related disruptions
Networking among
participants out of different
functions and countries
Motivation to learn
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Training Methods
Dynamic
Coaching
Group work
with indiv.
presentation
Role Play
Exercises for
Individuals
Facilitated
group
discussion
Case Studies
in Groups
Literature
Standard
Presentation
Blended Learning
Individual
Business
Simulation
Group
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Course Schedule
Example: Project Management Course
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136
Levels of Training Evaluation

according to Kirkpatrick
Reaction
What are the immediate

reactions of the participants
after the training?
Questionnaire
Learning
Have the participants

acquired knowledge as it was
intended?
Tests,
Examination
Behaviour
Did the training lead to

changing behavior at the
participants daily work?
Observation,
Evaluation
Results
Did the training impact

achievements of
organizational goals?
Performance
Indicators
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Learning Transfer
Participants
Cognitive abilities
Learning-motivation
Readiness to learn
Training
Training Quality
Trainer, Media, Structure,
Methods, Material, Environment
Learning
Transfer
Relevance of content
Work Environment
Support by
colleagues/manager
Opportunity to apply
Feedback
According: Baldwin, T.T., & Ford, K.J. (1988). Transfer of training: A review and
directions for future research. Personnel Psychology, 41, 63-105.
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138
Formal versus informal Learning
20%
80%
80%
Formal Learning
Learning in an institutionalized
context, dedicated to learn (e. g.
courses, training-programs)
Informal Learning
Learning happens selforganized and often as a
positive side-effect of daily work
20%
Budget
Effect
Source: Cross, J. (2006). Informal Learning: Rediscovering the Natural Pathways That Inspire
Innovation and Performance. San Francisco/CA: John Wiley.
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139
Managers as Teachers
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140
Learning on Demand
Expert Forums
Wiki, Blogs
YouTube
Tutorials
Communities
of Practice
Peers
Literature
Off-the-Job
Training
iTunes U
Conferences
Direct
Manager
Yellow
Pages
Simulations
Yammer
Education
Social Expert
Communites
Podcasts
Micro-Blogging
Source: Trost, A. & Jenewein, T.

(Hrsg., 2011). Personalentwicklung
2.0. Kln: Wolters Kluwer.
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141
YouTube Tutorials
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Communities of Practice
Group of employees with similar professional
interests, background or duties
Informally organized meetings during workinghours
Exchange of best practices and ideas to
autonomously chosen topics
Exist independently of organization and
hierarchies results will not be reported to
management
Engagement of external speakers and experts
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Principals of informal Learning

Learning content is easily produced, shared and
found via Web 2.0 (e.g. YouTube)
Flexible and problem-related usage of content
(Learning-on-Demand instead of Learningjust-in-case)
Learning from others (peers) through Social
Media und Communities of Practice
Room and infrastructures allow self-directed
learning and knowledge exchange
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Knowledge Management Challenges
Knowledge Retention
Knowledge
Identification
Knowledge Transfer
How can the employees

knowledge be retained
inside the company even
when employees leave it?
How can a company and

its employees know what
the (other) employees
know?
How can the knowledge of

one employee be
transferred to another
employee?
?
!
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145
Collect-Approach via Knowledge Database
!
Document
Search for
Expertise
Document
Knowledge
Database
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Connect-Approach via Yellow Pages, Wikis, ...
Personal
exchange
?
Reference to
expertice
Search for
experts
Yellow Pages,
Wikis, Forums ...
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Key Terms
Training & Development - Knowledge versus Competence Strandard Training Catalogue - New Hire Onboarding Training Needs Analysis - Off-the-Job Training - On-theJob-Training - Blended Learning - Training Evaluation Learning Transfer - Formal versus informal Learning Learning on Demand - YouTube Tutorial - Communities of
Practice - Wiki - Podcast - Mobile Learning - Knowledge
Management
Collect-
versus
Connect-Approach
Knowledge Database - Yellow Pages
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
How can companies ensure that they have
successors ready for key positions at any time?
Which methods and criteria are typically used to
identify talent inside a companies?
What are required conditions for employees to
leverage their talent as part of their long-term
career?
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Leadership-Development at McDonalds
German Perspective
Global
GLDP
ELDP
Europe
Global Leadership
Development Program
Senior Executives
European Leadership
Development Program
Top-Executives
ODP
West
Operations
Development Program
Senior Superiors
YLDP
Germany
Young Leaders
Development Program
Junior Management Talents
RMDC
Restaurant ManagerDevelopment Center

Restaurant Management
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Classic Approach of Talent Development

Succession
Planning
Performance
Management
Stretch Role
Assignment
Talent Review
Competency
Model
Training
Off-the-Job
Potential
Assessment
Source: Trost, A. & Jenewein, T.

(Hrsg., 2011). Personalentwicklung
2.0. Kln: Wolters Kluwer.
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Competence
Competence
Experience
Knowledge
Learned ability to successfully solve

problems or cope with given
challenges
Action-related knowledge acquired
through repeated solution of practical
problems
Cognitive understanding of aspects
and how they relate to each other
Predisposition
Cognitive and physical abilities

determined through genetiv
predispositions (DNA)
Personality
Stable predisposition to demonstrate

similar behavioral patterns in similar
situations
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ABB Leadership Competency Model
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Development Needs Identification
Position
Senior Specialist CRM
Job
Senior Specialist
1 2 3 4 5
Employee
Garth McGrath
1 2 3 4 5
1 2 3 4 5
Creativity
Creativity
Creativity
Teamwork
Teamwork
Teamwork
Presentation
Presentation
Presentation
Project Mgmt
Project Mgmt
Project Mgmt
Mobility
Mobility
Mobility
SAP R/3
SAP R/3
English
English
Development Needs
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Limitations of Competency Model Usage

Depending on a given situation a
competence might be a strength or a
weakness what matters is the right balance
Having a certain competence does not
necessarily mean that the person in question
actually uses it
Similar challenges can be met through
different sets of competencies (internal
compensation)
It matters how competencies are given in an
entire team. Not everybody must have same
competencies (external Compensation)
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Performance Management Cycle

Superior Objectives
Performance
Appraisal
Objective
Setting
In an annual cycle employee

and their immediate supervisor
agree on objectives both in
terms of performance and
development
Individual objectives derive
from superior objectives
In a backwards perspective
achievements/performance of
the employee will be reviewed
The annual meeting between
employee and supervisor is
called appraisal interview
Mid-Year Review
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Purpose of Performance Management

Cascading strategic objectives from upper
hierarchical level to the bottom line
Alignment and focus of individual and team
performance with overall target
Clarity about mutual expectations within an employeemanager relationship
Continuous learning and constant improvement of
performance through feedback and target-oriented
people development
Foundation for numerous key processes in human
resource management such as compensation, people
development, succession planning (horizontal
integration)
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Performance Management Form
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159
Behaviorally anchored Rating Scale (BARS)

Example Teamwork
Level 1
Level 2
Level 3
Level 4
Contributes willingly towards

the accomplishment of
goals of ones own team,
doing his or her share of the
work.
Takes responsibility for

team activities that stretch
beyond own functional
area.
Builds support and

enthusiasm for the
accomplishment of team
goals.
Builds highly productive

teams from highly diverse
disciplines, cultures or
organizations.
Demonstrates respect for

the opinions and ideas of
others.
Solicits the input of team

members and
encourages their
participation.
Uses the agendas and

perspectives of others to
establish mutually
beneficial objectives.
Does not remain silent or

withhold differing opinions in
team settings.
Ensures participation of
others who are affected
by plans or actions.
Takes responsibility for the

accomplishment of team
goals.
Creates commitment to and

enthusiasm for the
accomplishment of
challenging objectives
across diverse teams.
Is willing to accept
compromises to progress
toward the achievement of
group goals.
Puts teams agenda and

the good of the whole
ahead of personal needs.
Removes obstacles that

get in the way of team
success.
Finds areas of agreement

when working with
conflicting individuals or
groups.
Gives recognition and

credit to people who have
contributed to team
success.
Helps others to solve

work problems and
achieve team objectives.
Takes specific steps to

keep morale and levels of
performance high during
times of intense work
pressure.
Follows through on
commitments made to other
team members.
Keeps people informed and
up to date.
Masterfully integrates people

and resources to achieve
high levels of synergy.
Resolves dysfunctional
conflict within or among
teams to ensure business
success.
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Overall Performance Ranking Scale

Rating
Definition
5.0
Exceptional performance rarely achieved. Marked by precedent-setting results beyond the scope of the
position. Demonstrates the highest standards of performance excellence relative to individuals with
comparable levels of responsibility
4.5
Consistently exceeds all position requirements and expectations. Accomplishements are highly valued
and may be well beyond the scope of the position. Demonstrates higher standards of performance
excellence relative to individuals with comparable levels of responsibility.
4.0
Consistently exceeds most position requirements and expectations. Accomplishements are often
noteworthy. Overall performance is consistently above levels of quality and quantity relative to
individuals with comparable levels of responsibility.
3.5
Exceeds some position requirements and expectations. Successfully accomplishes all objectives.
Overall performance matches levels of quality and quantity relative to individuals with comparable levels
of responsibility.
3.0
Meets position requirements and expectations. Accomplishes most or all objectives. Some aspects of
overall performance may require additional development or improvement to match levels of quality and
quantity relative to individuals with comparable levels of responsibility.
2.5
Falls below performance standards and expectations of the job. Demonstrates one or more
performance deficiencies that hinder acceptable performance relative to individuals with comparable
levels of responsibility
Does not meet minimum requirements in critical aspects of the job and has numerous performance
1.0-2.0 deficiencies that prevent success at Microsoft.
Source: Bartlett, C. A. (2001). Microsoft. Competing on Talent (A). Harvard Business School.
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What if ...
employee and manager talk
about relevant aspects on a
daily basis anyhow?
employee and manager dont
usually to talk to each other
throughout the year?
problems should have been
adressed once they occurred?
the suppervisor struggles with
giving honest feedback?
superior objectives are not as
clear as they should be?
the benefits of the appraisal
interview are nor seen by
either the employee or the
manager?
the manager primarily acts
like a coach and not like a
judge?
there is already a natural

relationship between manager
and employee built on trust
and respect?
at daily work the manager has
limited insights into
employees performance
The manager has limited
understanding of the
employees professional
work?
objectives dynamically change
in the course of a yearly
period?
the employee doesnt fully
trust his/her manager?
Recommended: Trost, A. (2011). Wozu noch
Mitarbeitergesprche?
http://www.harvardbusinessmanager.de/blogs/artikel/
a-809396.html
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Performance simplified
Freedom
allow
Capability
can
Motivation
want
Time, Budget
Knowledge
Added Value
Tools
Experience
Challenge
Material
Predisposition
Appreciation
Colleagues
Health
Self-Actualization
Organization
Resilience
Purpose
Autonomy
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Learning-Curve
Performance Level
Maximum
Potential
Age
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Potential Criteria
Performance
In the past did the
employee demonstrate an
extraordinary growth in
his/her ability to meet
challenges?
Motivation
Personality
Based on his/her
character will the
employee have a chance
to be seen as a role
model by others?
Is the employee eager

and hungry to take over
more responsibility
relevant to the entire
organization?
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Performance Potential Grid
A1
High
C1
Potential
Performance
Improvement
Measures
Plan next move

Provide extra
coaching
A2
Apply multiple
development and
retention measures
A3
Identify next
development
opportunity
B
Low
C2
Keep in Place
Manage Out
Low
Performance
High
Source: Michaels. E, Handfield-Jones, H., & Axelrod, B. (2001). The War for
Talent. Boston/Mass.: Harvard Business School Press.
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Talent Review Structure
L1
Leadership Team
L2
HR Business Partner
L3
L4
High Potential
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360-Degree-Feedback
Direct
Supervisor
A focus person is evaluated

from different perspectives
(outside perception)
A focus person evaluates
him/herself (self perception)
Peers
Focusperson
Subordinate
Evaluation happens
anonymously, in written by
using standardized and
Customers
structured methods (e.g.
questionnaire)
The focus person gets a
personal report to be
discussed with his/her direct
supervisor or a coach
Purpose is to determine a
focus persons development
needs
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Careers as Managers versus Expert
More responsibility for people

and budgets
Career moves up the
hierarchical ladder
More task complexity

Deepen professional
knowledge within a narrowlydefined field
No responsibility for people
Internal consultant for top-level
executives
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Dual Career Path/Ladders

Management
Expert
Executive
Fellow
Division Head
Senior
Consultant
Comparable salary based

on a corresponding base
pay structure
Consultant
Comparable value of
privileges (e.g. company
car)
Department Head
Teamlead
Junior Expert
Employee without leadership responsibilies
Active involvement in
decision processes on
comparable level
Comparable social
acknowledgement (e.g.
title)
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A Study about what matters in long-term

Development
Job Assignments
1 Promote high performers quickly
2 Build skills to boost career prospects
3 Fast rotation and advancement
4 Roles with P&L responsibility
5 Special project opportunities
6 On-the-job training
Coaching Feedback
7 Told my strengths and weaknesses
8 360feedback
9 Candid, insightful feedback
10 Informal coaching from boss
Mentoring
11 Great mentor
12 Great senior role models
13 Mentoring advice on development
Training
14 Traditional classroom training
Source: Michaels, E; Handfield-Jones, H; Axelrod, B. 2001,

The war for talent, Boston, Harvard Business School Press.
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People who develop their Talent ...

trully love what they do
know their real potential
have a vision about their
future position
jump into cold water
actively build strong
networks
sell themselves
are disciplined most of
the time
got the opportunity to do

what they can do best
trust in a strong mentor
are lucky
prefer to work with thoses
who compensate their
weaknesses
get trained
showed early successes
are well known
prefer to work with Aplayer
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Talent Development Measures
Through Experience
From Others
Through Training
Challenging
tasks/projects
(Stretch Jobs)
Mentoring
Off-the-Job-Training
Career Coaching
Being a Trainer
Job Rotation
360-DegreeFeedback
Literature
Internal Talent
Markets
Learn Forums
Action Learning
Action Learning
70%
20%
10%
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Mentoring
Benefits for the Mentor
Building future supporter
Learning from the bottom-line
Professional insights across borders
Appreciation
Benefits for the Mentee

Access to networks and roles
Professional feedback
Confidence
Trust
Commitment
Role Model
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Career Coaching
What are your talents?
What are your biggest

strengths and
weaknesses?
What could be you

next, realistic careermove?
Who could support your future

career development?
To achieve your goals,

which additional
experience could help?
Which working
conditions are
important to you?
What do you really

like to do?
What is your ultimate

career goal?
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Stretch Jobs
Stretch Jobs
HiPo
Which job is
appropriate?
What can be
learned?
Who fits
the job?
Acceptable
turnover risk
Professionally
Mobility
Visibility
Social and
professional
variety
Responsibility
Pressure
(Finance, HR, Marketing,

Sales,)
Intercultural
Sensitivity
Leadership,
Management
Strategy
Career
preferences
Development
needs
Private Situation
Mentor
Languages
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Action Learning
Definition of strategic
learning projects &
sponsors
... On top management level. Projects work for

diverse teams and as good learning opportunities
Identification and
preparation of participant
Schedule, logistics, information about the

program and its structure, professional
preparation
Program operation
Combination of training, workshops, project work

and mentoring
Project evaluation
... by experts, active involvement of responsible

line representatives and external consultants
Follow-up/
project implementation
... once project ideas are seen as promising and

doable. Relevant functions take over
responsibility
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Action Learning Program Operation
Mentoring
Project
Final Presentation
Project
Project
Training & Workshop
Project
Project
Training & Workshop
Project
Project
Project
Training & Workshop
Training & Workshop
Kickoff
Project
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Internal Talent-Market
Talents
Jobs & Projects
Rules
Experiences
Projects
Expectations
Preferences
References
Requirements
Challenges
Objectives
Conditions
Notice Period
Roles and views
Compensation
HR Consultant
Source: Trost, A. & Frosch, M. (2011). Interne Talentmrkte. In A. Trost & T.

Jenewein (Hrsg.) Personalentwicklung 2.0, S. 283-301. Kln: Wolters Kluwer.
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Key Terms
Leadership
Competence
Development
-
Competency
Talentmanagement
Model
Job
Profile
Performance Management - Cascading - Objective Setting Performance Appraisal - Behaviorally Anchored Rating
Scale - Talent Review - Learning Curve - Potential - Talent Performance Potential Grid - 360-Degree-Feedback - Dual
Career Ladder - Career Path - Mentoring - Coaching Career Counselling - Stretch Job - Action Learning Internal Talent Market
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What characterizes modern work and what will
be the future of work?
In this particular context how do work-lifebalance and working hours matter?
Can employee surveys help to improve working
conditions?
How can a company strategically strengthen its
employer attractiveness?
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Traditional Worktime Recording
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183
76% of all good Ideas are generated outside the

original Workspace
Vacation, Travel
13%
Spare time,
Sport 9%
Misc. 1%
At
Workplace 4%
In interesting
Meetings 6%
Nature,
hiking 28%
In boring
Meetings 10%
Breaks 3%
Using creativity
techniques 1%
Business travel/
Way to office 11%
At home,
watching TV,
Hobby, etc. 14%
Source: Fglistaller, KMU-Magazin Nr.7/2005
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Flexible Working Structures
Flexible
Working Hours
Flexible
Locations
Flexible Organization
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Dimensions of a Working Hours Model

Distribution
Time
Volume
08-09
09-10
10-11
11-12
12-01
Duration/
Position
02-03
03-04
04-05
Flexibility
05-06
06-07
Mo
Tu
We
Th
Fr
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Relevant Factors determine Working Hours Model
Industry/
Country
Labour
Law
Job
Requirements
Working
Hours
Model
Individual
Preferences
Employees,
Values
Leadership
Culture
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Working Hours Approaches
high
Trust-based Working Hours

Flexible Annual
Working Time
Flextime
Working Time
Autonomy
Job-Sharing
Flexible weekly
Working Hours
Part-Time
Work
German
Kurzarbeit
Early
Retirement
Long-Term
Accounts
Fixed Working Hours

low
Day
.. Week.. Month .. Year ..
Life
Timely Reference
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Work-Life-Balance
Imagine life as a game in which you are
juggling five balls in the air. They are Work,
Family, Health, Friends and Spirit and youre
keeping all of these in the air. You will soon
understand that Work is a rubber ball. If you
drop it, it will bounce back. But the other four
balls Family, Health, Friends and Spirit are
made of glass. If you drop one of these; they
will be irrevocably scuffed, marked, nicked,
damaged or even shattered. They will never be
the same. You must understand that and strive
for it. Work efficiently during office hours and
leave on time. Give the required time to your
family, friends and have proper rest. Value has
a value only if its value is valued.
Brian G. Dyson
Former CEO of Coca Cola
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Individual Life Plans
10
20
30
40
50
60
70
80
Age
Learning
Work
Private
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HRM
Private
Work
Phases of Life
Learn
Grow
Decide
Lead
Share
First
professional
experiences,
occupational
orientation
Growing
responsibility,
career, talent
development
Management
responsibility,
autonomy, new
orientation
Leading
organizations,
experience,
networks
Coaching,
Mentoring,
close to
retirements
Single, relation,
autonomy, party
Marriage,
familiy planning,
kids
Family, divorce,
own home,
purchasing
power
Prosperity,
grown-up
children, aging
parents
Autonomy,
health,
prosperity,
Handicap
Flexible working
hours,
...
Succession
planning,
change
management,
...
Coaching,
mentoring,
health
management,
...
Onboarding,
trainee
programs,
..
Talent
development,
...
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Home Office (Telework)
Pros
Cons
Reduced cost to the

company
Tax advantages for the
employee*
Worktime flexibility
Work-Life-Balance
Higher productivity at
individual tasks
Limited separation of
private life and work
Limited social, informal
connection to colleagues
Risk of private
disruptions
Availability might not be
transparent
* Depending on local tax law
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Distance and Communication

Face-to-face
Communication
often
never
low
Distance
long
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Spaces and Structures relate to each other
Source: DEGW
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Non-territorial Workspace, Hoteling,

Rooms to concentrate or communicate
Source: DEGW
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Survey Feedback & Organization Development
Planning
Implementation
Survey
Action
Planning
Analysis
Feedback
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Conduct of a traditional Employee Survey
Project Planning &

Setup
Feedback/Commun
ication
Prestudy
Analysis &
Reporting
Action Planning
Survey
Development
Survey
Administration
Implementation
Prior
Communication
Preparation
Evaluation
Survey
Follow-Up
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Survey Development
Topics
Indicator
Questions
Adjustment
Pretest
Operation & Evaluation
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Q12 (Gallup)
1. I know what is expected of
me at work
7. At work, my opinions seem

to count
2. I have the materials and

equipment I need to do my
work right
8. The mission/purpose of my
company makes me feel my
job is important
3. At work, I have the

opportunity to do what I do
best every day
9. My associates (fellow
employees) are committed to
4. In the last seven days, I have

received recognition and
praise for doing good work
5. My supervisor, or someone
at work, seems to care about
me as a person
6. There is someone at work
who encourages my
development
doing quality work

10. I have a best friend at work
11. In the last six months,
someone at work has talked
to me about my progress
12. This last year, I have had
opportunities at work to learn
and grow
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A Typical Way to Present Results
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Survey Results (Example)

Tasks and Duties
Work Environment
Empowerment
Colleagues
Direct Supervisor
Communication
Work Flexibility
Work-Life-Balance
Compensation
Region South-West (32

Employees) is part of
Germany (186 Employees)
1 = Best possible result
5 = worst possible result
Benefits
Commitment
Career Development
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Ways to interpret Survey Results
Absolut
Relative
Longitudinal
Target
Comparing items
based on the
absolute results
Comparing results
with internal and
external
Benchmarks
Comparing results
with thoses of
previous surveys
Comparing results
with targets set in
advance to the
survey
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Follow-up Process
All employees get all results of the survey even
when results are negative
Feedback of results follows a top-down approach
from to top-management to every single team
All teams get their own results compared to the
results of the superior organisational units
All units on all levels are encouraged to work with
their results and come up with related action plans
Issues which lay beyond an organizational units
responsibility will be passed on to the unit on the
next level
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Shortcomings of traditional Employee Survey

Approaches
Surveys are isolated events not integrated into
regular leadership processes
Not every topic is relevant for everybody on every
hierarchy level
Objectives are defined after the survey has been
conducted based on survey results. But, surveys
cant change priorities
Required budgets for improvement activities are
not defined. Therefore planned actions lead to
minimal impact
Comparison with benchmarks means taking
the mediocre as standard
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204
Relevance of Results depend on Targets
Survey
Potential
Target
Potential
Target
Survey
According: Trost, A. & Hagmeister, A. (2005). Mitarbeiterbefragung als Instrument

strategischer Unternehmensfhrung. In W. Bungard & I. Jns (Hrsg.),
Feedbackinstrumente im Unternehmen (S. 197-208). Wiesbaden: Gabler.
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Positioning different Feedback Instruments

Instrument
Who
What
Why
For whom
Traditional
Employee Survey
(Survey Feedback)
All Employees
Job
Satisfaction
Improvement,
Involvement
Employees,
Manager,
Management
Theme-oriented
Employee Survey
Selected
Employees
Selected topics
Status
Monitoring,
Feedback
Management
Pulse Survey
Random
Sample
Strategy
commitment,
capabilities
Monitoring
strategy
execution
Management
360-DegreeFeedback,
Management
Evaluation
Employees,
Manager,
Peers,
Customers
Management
behavior,
competence
Development
Manager,
Management
Selection
Management, HR
Internal Customer
Survey
Internal
Customers
Service quality
Service
improvement
Internal Service
Provider
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Traditional Employee Survey versus Pulse Survey

Traditional
Employee Survey
Content
Pulse Survey
Factors driving employees

satisfaction and
performance
Employees, Manager,
Management
Content is relevant to the

companys competitive
position
Management
Follow-Up
Units on all levels are

encouraged to work with
results and draw conclusions
Results are natural part of topmanagement agenda and

decision making
Objectives
Objectives are set after the

survey
Objectives are set in advance

of the survey
Cycle
Every 1-5 years
1-12 times/year
Customer
Participants All employees
Random Sample
High-Potentials
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Employer A
As a key component of our employer-of-choice strategy,

we communicate to potential employees that this is a
great place to work. We offer a positive work climate,
rich career-opportunities and competitive benefitpackages. We are proud that we have won a number of
awards and rank high in most of currently existing
employer-rankings. As a result, our applications are up
and turnover is down across the firm.
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Employer B
The last thing we want to be is an employer of choice.

All that does is dramatically increase the number of
unqualified or marginal applicants, which increase both
the probability of selection errors and cost-per-hire. Our
strategy is to hire choice employees or to seek the
market-place by having them self-selected even before
they apply. We want all applicants to understand that
this is a demanding, high-performing organization. To
achieve this, we try to communicate in every possible
interaction that this is a place that values talent and
exceptional effort. For those employees, we provide
exceptional rewards and career opportunities. We
cannot be everything to everyone, and we do not want
to be.
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Improving Employer Attractiveness
Potential
Target Group
Preferences
Areas to
improve
realistic
relevant
Competitors
strengths
D
E
special
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Key Terms
Worktime Recording - Flexible Working Structures Working Hours Model - Working Time Autonomy - TrustBased Working Hours - Flextime - Part-time Work - German
Kurzarbeit - Long-term Accounts - Job-Sharing - Work-LifeBalance - Homeoffice (Telework) - Age-oriented Personnel
Policy - Hoteling - Non-territorial Workspace - Employee
Survey - Survey Feedback - Organizational Development Gallup's Q12 - Follow-up Processes - Pulse Survey Employer Attractiveness
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What is relevant and voluntary turnover and what
are related turnover costs?
How can the risk of voluntary turnover be
estimated?
How and why do employees leave voluntarily?
What are major components of a retention
strategy?
Which measures help to effectively retain talent?
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Common Views
People who join for money leave for money
People join companies and leave bosses
You dont need to care about retention if you do
well with all the rest
Employees are free, which is fine
At the end of the day retention is all about
leadership
Losing an employee leads to costs 1-2 times of
his/her annual salary
The strongest are the first to leave the company
Happy employees prefer to stay
To a certain extent turnover is good
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Turnover
Turnover
Involuntary Turnover
The process in which

employees leave the
organization and have to be
replaced
Voluntary Turnover
Turnover initiated by
employees against the wish
of the company
Turnover initiated by the

organization (often among
people who would prefer to
stay)
Early Turnover
Voluntary Turnover during
the first few weeks/months
of employment
Turnover Rate
Number of Employees leaving the Company in a Year
Number of Employees at Midyear
100%
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Turnover-Performance-Relation
Turnover
Average
Low
Middle
High
Performance
According to: William and Livingstone (1994). Another look at the
relationship between performacne and voluntary turnover.
Academy of Management Journal, 37, 269-298.
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Differentiated Turnover Rate
High Performer/
High-Potentials
Others
Non-Key-Functions
Key
Functions
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217
Turnover Cost
Training
Onboarding
Hiring
Visible (Direct) Cost
Selection
Marketing
Vacancy
Lost
Productivity of
Other Employees
Separation
Hidden (Indirect) Cost
Lost
Productivity of
Other Employees
Lost
Productivity of
Vacant Position
Lost
Productivity of
Other Employees
Learning
Curve of
New Hire
Lost
Productivity
of Incumbant
Pre-Departure
Employee Leaves
Vacancy
Introduction
New Employee
Hired
New Employee
Fully Effective
Source: Corporate Leadership Council (1998). Employee Retention. Washington: The Corporate Executive Board.
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Fictitious Cost Estimation
Annual Salary
of an employee
60.000
Cost per Hire

Onboarding (off-the-job)
Loss of Motivation
(former employee)
Assumptions
6.000
10% of annual salary
12.000
20% of annual salary
7.500
50% less performance in the last 3

months of employment
Productivity Losses
(colleagues)
10.000
10% less performance of 5 colleagues

(similar salary) during 4 months
Performance deficit
(new employee)
15.000
50% less performance in the first 6

months of employment
Opportunity Costs
10.000
No value creation for 2 months due to

vacant position
60.500
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219
Turnover Cost
Tunover cost ranges as a percentage of annual salary
0
50
100
150
200
250
300
350
400
450
Entry Level
Service/Production Workers
Skilled Hourly
Range
Clerical/Administrative
Professional
Technical
Engineers
Specialists
Supervisor/Team Leader
Middle Managers
Source: Managing Talent Retention: An ROI Approach
by Jack J. Phillips and Lisa Edwards (2008)
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Individual Risk Analysis
major
Garth McGrath
Keneth Keith Carlson

Mark Myer
John Shark
Kelley Clark
Impact
Tom Scott
Paul Paulson
Rock Stewart
Susan Power
Linda Anderson
Russ Rothen
Pete Peters
minimal
possible
Likelihood
of Turnover
Paul Cummings
likely
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Individual Indicator of Intention to Leave
Sudden performance drop

Frequent short-term absence
Reduced social interaction and isolation
Frequent complaints
Glorify other companies
Reduced willingness to take over responsibility
Pessimism about future perspective
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Top-Management View on Retention
Source: The Economist Intelligence Unit 2008

(Responses of 1.000 executives around the
globe). Die Originalfrage lautete: Which of the
following factors are most likely to hinder your
companys ability to retain talented employees
over the next three years? Select up to three
(Answers in %)
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Marienthal. The Sociography of an Unemployed

Community. Jahoda (1933)
Source: Archiv fr die Geschichte der Soziologie in sterreich

Source: Jahoda, M., Lazarsfeld, P. F, Zeisel, H. (1933). Die Arbeitslosen von Marienthal. Ein
soziographischer Versuch ber die Wirkungen langandauernder Arbeitslosigkeit. Hirzel.
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The Psychological Contract

Employer provides
Employee provides
Salary
Performance
Benefits
Creativity
Social contacts
Capabilities
Tasks
Knowledge
Training
Talent
Image
Energy
Identity
Time
Security
Health
Values
Social Networks
Perspective
Customers
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Relative Job Evaluation
Relevance
better
Copmany Image
Perspective
high
Location
W-L-B
middle
Difference
Tasks
alternative Job
compared to
current Job
Salary
low
Boss
Peers
Security
similar/
worse
low
Certainty
high
of Value of alternative Jobs
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Rational Decison Making

Value (V)
Vchange
Vact
Valt
Current
Job
Alternative
Job
Intention to Leave
= Valt Vact - Vchange
Cost of
Change
Intention
to Leave
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Turnover Decision Style
high
Solution
Strategy
Elaboration
low Escape
current
Situation
Job-Hopping
future
Situation
Driver
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Exit-Interview
Example: Intel
What was the main reason that you decided

to leave?
Is your new position in a different line of work
than the one you where in while at Intel?
How would you characterize your new
employer?
Would you say your new employer is better
than Intel, about the same as Intel, or not as
good as Intel in terms of:
How would you descibe your relationship with
your manager while you where at Intel?
How would you describe your experience with
Intel?
If a friend approached you and told you
he/she was looking for a similar position at
Intel, how likely would you be recommend
Intel?
Any other comments about Intel or you new
position?
Pay
Benefits
Location
Working Conditions
Job Security
Career Opportunities
Product Quality
Co-workers
Company Leadership
Company Image
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Multiple Regression Analysis

Salary
X1
W/L-Balance
X2
Perspective
X3
Peers
X4
Training
X5
Tasks
X6
Security
X7
Intention
to Leave
Y = 0 + 1X1 + 2X2 + 3X3 + 4X4 + 5X5 + 6X6 + 7X7 +

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Components of a Retention Strategy

What is the relevant internal target group?
Target Group
E.g. particular Units, Jobs, Countries, (Key) Functions,

High-Potentials, Managers
What are related turnover costs?

Problem
General and differentiated? Which kinds of costs are

generated?
Why do employees leave the company?

Causes
What are the internal and external factors and reasons for
leaving?
Anticipating turnover and related impact

Risks
How big is the likelihood of employees leaving the company

and what are related consequences?
How can employees be retained?

Measures
Which options are there to effectively retain employees?
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Where is the Problem?
Employees with a strong intention to leave

Employees without intention to leave
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Levels of a Retention Strategy
Causes
Organization
Employee Survey
Exit-Interview
Regression Analysis
Risks
Differentiated
Turnover Rate
Measures
Improving Employer
Attractiveness
E.g. Internal Talent Market,
Flexible Working Hours
Development,
Selection, Coaching,
Replacement,
Objective Setting
Manager
Management
Evaluation
Current and previous

Turnover Rate
Employee
Performance
Management,
Turnover Decision
Styles
New projects, new

Individual Risk
Analysis, Performance tasks and colleagues,
salary adjustmenet,
Management
Intention to Leave
more flexibility
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Key Terms
Turnover
Rate
(differentiated)
Voluntary
versus
involuntary Turnover - Visible/hidden Turnover Costs Opportunity Costs - Individual Turnover Risk - Turnover
Risk Analysis - Intention to leave - Relative Job Evaluation Marienthal-Study - Psychological Contract - Turnover
Decision Styles - Job-Hobbing - Exit Interview - Multiple
Regression Analysis - Employee Commitment - Retention
Management
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What is meant by a change and what are major
types of changes in organizations?
Why and how do changes often lead to
dysfunctional human reactions?
How can employees be led throgh changes by
applying change management measures?
Which conditions are required to effectively
manage change?
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Types of Changes in Organizationen
Restructuring
Reengineering
Mergers &
Acquisition
Strategy
Change
Cultural
Change
Changing
organizational
structures and
reporting lines
Changing
processes, the
way work is
done
Changing the
identities of
organizations
Changing
priorities,
ultimate
direction and
purposes
Changing
values,
attitudes and
behavior
+ =
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Organizational Structure
based on Functions of Products
Executive
Board
Executive
Board
Marketing
Production
Sales
PC
PC
PC
Printer
Printer
Functions
PC
Printer
Printer
Products
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Two Leadership Cultures

We want our people to behave
like adults. Thats why we treat
them that way. Each employee is
responsible for what he/she
decides. We believe in our
peoples own initiative to
contribute to our companys
success -- everybody at his/her
place. We do everything to avoid
static structures, order or control.
We simply dont need it.
People need structure and

guidance. Thats why our leaders
will never stop telling our
employees as clearly as possible
whats expected from them.
Control is better than trust.
Organizations need rules. And
rules always need somebody who
takes care for them. Nobody
wants to suffer from corporate
chaos.
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Human Response to disruptive Changes
Emotional
Response
Anger
Acceptance
active
Bargaining
Stability
Denial
Testing
Immobilization
Depression
passive
Time
According to: Kbler-Ross: On Death and Dying (1967)
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Resistance
Resistance is a natural human reaction to
disruptive events (fear of losing control)
Change is seen by different people differently
according to their individual frames of reference
Resistant employees are often seen as nonrationally thinking troublemakers
Resistance of informal opinion leaders are of
greater power than those of formal leaders
There is always a mixture of overt and hidden
resistance. Overt resistance should be a valuable
aspect of any change process
Active involvement is propably the best way to
deal with resistance
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Reactions to positive Changes, for which the

individual is responsible
Pessimism
Level of Tolerance
Informed Pessimism
Checking
Out (?)
Hopeful Realism
Informed Optimism
Uninformed
Optimism (Naivit)
Completion
Time
Source: Conner, D. R. (2006). Managing at the Speed of Change. Random House

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Why Transformation Efforts Fail

John Kotter, 1995
1. Establishing a Sense
of Urgency
5. Empowering broadbased Action
2. Creating the Guiding

Coalition
6. Generating
Short-Term Wins
3. Developing a Vision
and Strategy
7. Consolidating Gains &

Producing More Change
4. Communicating the
Change Vision
8. Anchoring New
Approaches in the
Culture
Source: Kotter, J. (1995). Leading Change: Why transformation efforts

fail. Harvard Business Review. March-April 1995, pp. 61-67.
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Sources of Complacency
Human nature, with its

capacity for denial,
especially if people are
already busy or stressed
The absence of a
major and visible
crisis
Too much happy talk

from senior
management
A kill-the-messengerof-bad-news, lowconfrontation culture
Too many
visible
resources
Complacency
Organizational structures
that focus employees on
narrow functional goals
Low overall
performance
standards
A lack of sufficient
performance feedback
from external sources
Internal measurement
systems that focus on
the wrong performance
indexes
According: Kotter. J. (1996): Leading Change. Harvard Business School Press

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Stabilization
Involvement
Training &
Support
Communication
Change
Analysis
Change
Design
Setup &
Principles
Scope, Objectives
& Vision
HRM
Integration
Planning &
Control
Program
organization
Sponsorship/
Commitment
Initialization
Environment
Action Fields
Change Management Framework
Dilemmas require Guiding Principles
We don't do
things by
halves
Prevent
losses
Addressing
problems
80/20: Focus on
what really
matters
Avoid
additional
costs
We take along
all people
We avoid any
irritation
We avoid too
much noise
Speed matters
We endure
pain
Quality: doing
things right
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Change Analysis
Target Group
Situation
before
Situation
after
Chances/F
ears
Training
Needs
Risks
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Stakeholder-Analyse
Pain-Power-Analysis
strong
Opponent
A
B
Supporter
Promoter
Power
Influencer
Decider
Multiplier
C
Patient
weak
less
Impact
Pain
much
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Top Management Sponsorship/Commitment

Level of Support
Commitment
Investment
Sponsorship/
Commitment
Convincement
Acceptance
Acceptance
Understanding
Listening
Attention
No Idea
Time
Ignorance
According: Conner, D. R. (2006). Managing at the Speed of Change. Random House
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Roles
Program Organization
Target Group
Sponsor
Steering Group
SB
CA
FK
MA
Project Team
MA
Project Lead
CA
SB
Change
Agent
Consulting
Team
FK
CA
Project Lead
SB
SB
Partner
Sounding Board
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Roles in a Change Program 1/2

Sponsors
Have the power to sanction and legitimize change and
to make decisions about change
Create an environment that enables change to be
made on time and within budget
The sponsors make up the steering group
Change Agents
Responsible for making the change happen on an
operational local level
They directly deal with employees and managers,
who are impacted by the change (targets)
Target
The group who must actually change attitudes and
behaviour
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Roles in a Change Program 2/2

Project Team
Operationally drives the entire change program
The project team is led by the project leader, who is
responsible for the overall success of the program
The project team reports to the steering group
Sounding Board
Key-players with a good sense of the companys culture and
the actual mindset of the employees
Provide feedback to the project team about acceptance and
resistance on side of the target
External Advisors
Give advice to the project team from a neutral standpoint
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Corporate Communication Channels and

Activities
Available Media
Broschures
Posters
Videos, webcasts
PPT-Presentations
Intranet, Social Media

(with forums and
chatrooms)
Department Meetings
Individual employee
meetings
Interactive
One-direction
Employee Newspaper
E-Mail Newsletter
(Meassage from the CEO)
Intranet
(with F&Qs)
Town Hall Meeting
Open Space Events

Ask-the-CEO-Meetings
Workshops, Conferences
Hotline
Social Media
New Media
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253
Dimensions of a Communication Plan
When to inform?
Who will inform, send
the message (CEO,
Manager, Project
Leader)?
How will be informed,
which media will be
used?
What will be the

content, main
message?
Why is it relevant?
What should be
achieved with the
message?
Whom to inform,
which target group?
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254
Communication Plan
Example
When
Who
How
What
Why
Whom
March 1
CEO
Mail
Invitation to
Manager Meeting
Save the Date
All
Managers
March 12
All
Managers
Dept.
Meeting
Objectives of
Change
Announcement
Open Space
All
Employees
March 18
Project
Lead
Intranet
Agenda, Open
Space Schedule
Clarity about
Open Space
All
Employees
March 20
CEO
Mail
Manager role at
Open Space
Manager
Briefing
All
Managers
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Communication Dilemma
Early
Communication
Late
Communication
High
Need for Information
and Planning
Knowledge,
Certainty
Low
Time, Progress
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Involvement Strategies
high
Active Role
in the
Project
Individual
Measures
Intensity
Focus
Groups/Works
hops
Sounding
Board
Open Space
Social
Media
Employee
Survey
low
limited
Reach
broad
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257
Open Space Impressions
Haniel/Metro 2009
MLP 2012
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The Idea Factory

Brainstore
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Key Terms
Change
Change Management
Re-enigneering -
Restructuring - Product- versus functionoriented Organization

- Merger & Acquisition - Culture Change - Leadership Culture Strategic Change - Change Curve - Resistance (overt/hidden) Locus of Control - Informal Thought/Opinion Leader Uninformed optimism - Sense of Urgency - Quick (Short-term)
Win - Vision - Change Analysis - Change Management Principle
-
Stakeholder
Stakeholder
Analysis
Management
Sponsorship - Sponsor - Steering Committee - Change Agent Sounding Board - Communication - Communication Dilemma Communication Strategy - Training - Stakeholder Involvement Focus Group - Open Space Event
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What are central and local responsibilities in an
international HR organization?
How are responsibilities of an HR department
changing?
What are major roles/areas in a modern HR
organization?
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Global Organization
Headquarter
Regional Headquarter
Subsidiary
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263
Variety of International Organizations

International
Multinational
Headquarter as ethnocentric,
strategic and cultural center.
Resources are transferred from
Headquarter to local units.
Local differentiation as
guiding principle. Subsidiaries
act autonomously in order to
meet local need.
Global
Transnational
The world is seen as one single

market. Operations are
controlled centrally from the
corporate office in order to
achieve global integration.
For all relevant processes the

right balance between local
differentiation and global
integration is achieved .
Source: Bartlett, C.A. & Ghoshal, S. (2002). Managing Across Borders. Harvard Business School Press.
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Balance in a transnational Approach

global
Employer Branding
HR-IT
Executive
Compensation
Global
Integration
Career
website
Employee
Referral
Program
Talent
management
Office
Training
Campus
Recruiting
Candidate
Selection
Training
local
Local Differentiation
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From traditional to future HR
Strategy
Consulting
Support
Administration
Traditional HR
Future HR
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266
The 4 Ps of HR
Critical role in helping to

develop any business
strategy
Player
Partner
The protectors of company

policies and procedures
Police
Polite
HR professionals helping the business

lines solve their human issues
The politest people in the

company
Source: Les Hayman (2010). http://leshayman.wordpress.com/2010/08/26/hr-polite-to-police-to-partner-to-player/

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The Dave Ulrich HR Role Model
Strategic Partner
Change Agent
Defining and
executing strategy
Creating a renewed
organization
Administrative
Expert
Employee Champion
Building an efficient
infrastructure
People
Processes
Strategy
Increasing employee
commitment and
capability
Operation
Source: Ulrich, D (1997(: Human Resource Champions.
Harvard Business School Press.
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HR Business Partner Responsibilities

Provide HR consultation, policy interpretation,
and strategic planning to all levels of client
organization.
Manage HR projects and program
implementation for Public Policy, Law, &
Security and Strategy, Development, &
Planning organizations.
Responsible for providing Human Resources

support in the areas of ethics, compliance,
EEO, compensation planning, performance
management, talent management, headcount
management, leadership development,
staffing, absence management, employee
relations, and labor relations.
Ability to influence without direct authority.
Provide analysis of data and monitor HR
results through key metrics. Develop and
communicate status of key initiatives with HR
reports.
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Managing Queries
Intranet
Q&A
Call-Center,
HR Service
Center
(shared)
Virtual
Assistent
ESS
70 %
HR Director
Hotline
Yellow
Page
100%
HR Expert,
HR Business
Partner
20 %
30 %
5%
10 %
5%
5%
0%
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Decentralized Recruiting Organization

HR
Marketing
Definition of Target
Profile
Introduction
Application
management
Preselection
Unit
Job Offer
Preparation
Assessment
Application
Data Base
Job Offer
Negotiation
Applicant
HR
Marketing
Profile
Introduction
Job Offer
Preparation
Application
management
Unit
Preselection
Assessment
Application
Data Base
Job Offer
Negotiation
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Selecting Tasks to be handled by a Shared

Service Center
close
Assessment
Introduction
Job Offer
Negotiation
Job Offer
Preparation Preselection
Close to
Applicant
Application
management
HR
Marketing
Definition of
Target Profile
far
high
Standardization
low
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Integrated Recruiting Organization with

centralized e-Recruiting Technology
Profile
Introduction
Unit
Assessment
Job Offer Negotiation
Applicant
e-Recruiting
HR
marketing
Application
management
Shared
Recruiting
Center
PreSelection
Job Offer
Preparation
Profile
Introduction
Unit
Assessment
Job Offer Negotiation

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Three Pillar Model of modern HR-Organization

Central Coordination
Customers
Managers
HR Business Partner
Center of Expertise
near to business
company wide
Individual support of
managers on HRrelated topics
Dealing with complex HRrelated Issues
IT
Employees
Applicants
Shared Service Center

company wide
Hotline
ESS
Delivery of standardized and regularly

demanded services to all employees with
high volume (e.g. payroll)
MSS
Partner-/Supplier Management
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274
Offshore
Outsourcing
single-client
internal
Scope of Service Delivery
multi-client
Outsourcing, Onshoring, Offshoring
Onshore
Outsourcing
Onshoring
near/
home
Shared
Service
Center
Offshoring
close
far
Cultural/regional Distance
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Prioritizing Tasks to be outsourced
Strategic
Relevance
high
Employer Branding
(EVP)
Performance
Management
Top-Management
Placements
Specificity of
Requirements
high
TraineePrograms
middle
Expatriation
Recruiting for
Non-Key Functions
ExitInterviews
Payroll
low
Onboarding
MS Office Trainings
Pension
low
less
Internal Competence
more
compared to external service provider
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276
Reasons why Companies outsource
Focus
Quality
Costs
Flexibility
Focus on companys
core competencies
and on ultimate
purpose of the
organization
External service
providers are longterm experts in their
field and compete
against other service
providers
Leveraging
economies of scale,
competition against
other service
providers, purchasing
power of client
Demand for services

depends on actual
needs
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277
Key Terms
Global Integration - Local Differentiation - Global HR
Organization - International HR Organization - Multinational
HR Organization - Transnational HR Organization - HR
Target Role Model - HR Business Partner - Virtual Assistant
- Shared Service Center - Center of Expertise - Three Pillar
Model of modern HR Organization
Outsourcing -
Onshoring - Offshoring
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
What are major IT-solutions in HR?
What is the difference between expert-systems
and user-systems?
What are major functionalities of HR IT-solutions
in fields like recruiting or learning?
What are future trends in HR-IT?
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HR-Software Provider
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The Solution of Workday
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Expert-System
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283
Typical Solutions of Expert- and User-Systems
Employees*
Rare usage
Event-triggered
No training efforts
Experts (HR)
Frequent usage
Limited to intense
training efforts
Administration
Value Creation
Standardized processing
Automatization
Reliable results
Creative usage
Personal judgements
Fuzzy output
Master Data
Maintenance
Leave Request
Course Booking
Time Record
Skill-Maintenance
360-Degree-Feedback
Performance Appr.
Application
Online-Training
Payroll
Pre-Selection
Intern Talent Pools

Succession Planning
Training Admin.
Internal Mobility
Talent Review
Course Development
Interview planning
Job Posting
* Employees, Manager, Applicants etc.

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Screenshot Abwesenheitsmitteilung
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285
Applicant
Roles and Activities as Part of a RecruitingProcess ...
Recruiter
Application
Manager
Vacancy
Request
Related
Systems
Job Posting
Organisations
Management
PreSelection
PreSelection
OnlineJobboard
Work
Contract
Interview
Selection
Competence
Management
Onboarding
Payroll
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286
... and how they appear on the Screen

Cornerstone
SuccessFactors
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Learning Management System (e-Learning)
Learner
Portal
LMS
CMS
personalized &
intranet-based
Learning Management
System
Content Management
System
Qualifications
Role
Personalized
Training Offers
Learning History
Collaboration
Tests
Training
Administration
Learning
Strategies
Profile-Matching
Tests &
Certificates
Learning
Content
Generation
Embedding
external
Content
Formal
Standards
Analytics
Authorization
Authorization &
Accounting
Company
Information
External
Content
Literature
Databases
Relevant
Websites
Communities of
Practice
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288
Hype Cycle for Human Capital Management

Software (Gartner, 2012)
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289
Trends
Bring your
own Device
Employees use
their private and
most preferred
devices and
systems at work
(e.g. Handy, Laptop,
Mail-Systems)
Social
Mobile
Cloud
Big Data
Solutions support
collaboration and
communication at
work
Data usage and

maintenance
anywhere at
anytime.
Interfaces to
Social Media
Plattforms (e.g.
Availability of
systems on
smartphones and
tablets.
IT Resources
such as software,
storage space that
are delivered as a
services over a
network (internet)
Smart usage of
mostly
unstructurred, fast
changing data of
very high volume
LinkedIn, Xing)
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290
Key Terms
HR Information System - User-System - Expert System Usability - Employee Self Service (ESS) - Administration
versus Value Creation
e-Recruiting
Learning
Management System (LMS) - Mobile HR - Gartner Hype

Cycle - Bring your own Device - Cloud Computing - Big
Data
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HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
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Main Questions
How are both the role of the users and the
markets affected by Web 2.0 and social media?
What are practical examples of social media
usage in the field of HRM?
How can social media be implemented and what
are different types of social media usage?
What are relevant conditions for effective social
media implementation and usage?
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From Web 1.0 to Web 2.0
Web 1.0
Web 2.0
www....com
Publisher
Content
www....com
Consumer
Content
Prosumer
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294
Social Media
www....com
User profiles, Content & Relations
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295
Google PageRank versus Social Bookmarks
F
E
The more links refer to a

website the higher is its
Google PageRank
The Google-Algorithm
takes into account the
PageRank of the
referring sites
Social Bookmarking. The relative importance of a

website depends on the number of people who like it.
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Forresters seven overlapping Levels of

Social Technology Participation
2013
Source: http://empowered.forrester.com/tool_consumer.html
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297
Cluetrain Manifesto (1999)

Selected Theses (10 of 95)
Markets are conversations
In both internetworked
markets and among
intranetworked employees,
people are speaking to each
other in a powerful new way
Companies can now
communicate with their
markets directly. If they blow
it, it could be their last chance
To speak with a human voice,
companies must share the
concerns of their
communities.
We know some people from
your company. They're pretty
cool online ...
We are waking up and linking

to each other. We are
watching. But we are not
waiting
But first, they must belong to
a community
Markets do not want to talk to
flacks and hucksters. They
want to participate in the
conversations going on
behind the corporate firewall
You're too busy "doing
business" to answer our
email? Oh gosh, sorry, gee,
we'll come back later. Maybe.
There are no secrets ...
Source: Rick Levine, Christopher Locke, Doc Searls: Das Cluetrain Manifest. Econ Verlag 2002
Siehe auch: www.cluetrain.com/
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298
Social Media are faster and more targeted than

any traditional Media
Journalist
Editor
Medium
Incident
Journalist
Interview
Draft
Article
Reader
Follower
Follower
Time
Incident
Victim
Tweet
Time
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299
Democratization of
Human Resource Management?
Employers are evaluated by
current and former
employees and applicants
User share image-videos and
job ads the good and the
bad ones
Employees and candidates

decide whats good or bad
Teacher and learner become
the same -- users produce
and share knowledge content
Everybody can act as a

headhunter and earn
money
Users who share similar

interests communicate,
collaborate and learn in
virtual communities
Candidates are present in the

web and passively wait for
employers to approach them
Current and former

employees evaluate each
other
Interviewers, future
colleagues and managers are
googled by candidates
People share their thoughts

about strategic corporate
changes
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300
Social Media/Web 2.0 in Talent Acquisition

Employer
Branding
Outside
View
Career
Infos
JobPosting
Interaction
Talent
Search
Candidate
Retention
Blogs
Forums
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301
Social Media Roadmap
Targets
Listen
Do it
Check &
Develop
Target group
definition (whom
to reach)
Involve and
understand target
group
Definition & action

on Social Media
Activities
Constantly check
effects of social
media activities
Setting social
media objectives
(what to achieve)
Consider internal
conditions
Defining a social
media policy
Set priorities and

develop selected
social media
activities
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302
Cases
Four trainess in a regional bank regularly post
events and informal affairs on Facebook. To
plan their activities they run a weekly editorial
meeting. By doing so, the trainees try to reach
pupils and raise the pupil's interest in an
apprenticeship at the bank. Moreover they
already build some relations to future
potential trainees (Fans). The four trainess
received an iPhone for free, which they can
even use for private purposes. They defined a
social media policy by their own with
supervision from the bank.
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303
Cases
In an internationally operating accounting firm all employees were

encouraged to produce videos about their company. All videos
were then posted on an internal plattform where all employees
were asked to vote for the best ones, which then were presented
on YouTube. The ultimate objective of this initiative was to present
an authentic picture of the company to the outside world and to
attract potential candidates.
www.armintrost.de
304
Cases
Employees of an internationally operating company in the

telecommunication industry gave HR access to their LinkedInprofiles. Once there is an attractive applicant, his/her relation to
current employees is checked and -- if possible -- HR tries to seek
internal references. The ones who deliver references are then
asked to name further candidates in his/her social network who
might fit to the profile in question just as you would do in an
employee referral program.
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305
Cases
A german provider of financial software

got rid of the regular employee survey.
They ask their employees to rate the
company on kununu* instead. Each
quarter, all comments, traffic-indicators
and results are reported and discussed
by the executive board.
* www.kununu.com. Glassdoor is a similar website on an

international basis (www.glassdoor.com)
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306
Cases
On a simple, internal platform all employees of an internationally

operating company in the computer gaming industry are
encouraged to assign up to ten points to colleagues they
successfully worked with. The amount of points an employee gets
by the end of the year determines his/her variable pay.
www.armintrost.de
307
Cases
A german gymn-franchiser runs an employee manual in the form

of an internal wiki. This manual describes how to deal with typical
daily problems. All employees are free to include new rules, edit
existing ones and make comments. At the end the census among
the employees always decides upon what's valid or not. Only
what's currently written in the manual counts. The executive
board is not empowered to impact the content of this wiki. Once
the executive board intents to change something they must bring
in their succestions just like every employee can do.
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308
Cases
In a midsize insurance company employees

are encouraged to post succestions on an
internal plattform. All employees have the
same budget of 500 Euros which they can
assign to suggestions they prefer. The one
who brought in a suggestion always gets
10% of the total budget assigned to his/her
idea.
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309
Cases
At a globally leading car manufacturer 200 exclusively selected

employees write blogs about their daily work-life. These
employees are absolutely free in what they write and how they
write. The intention is to provide authentic and appealing insights
into the daily life of this company and to attract potential
candidates. The traffic of all blog entries is constantly tracked,
which enables the company to communicate a real-time rankinglist of all entries and bloggers. As a result all bloggers compete
against each other in reaching the top of the list.
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310
Cases
At a globally leading provider of HR-software both employees and

clients are encouraged to post product proposals on a dedicated
plattform, which in turn are commented and evaluated by
employees and clients. A core product planning committee then
prioritizes all proposals by taking into account all evaluations and
comments on a regular basis. Decisions are always
communicated on the same platform. Those clients, who are
engaged the most are invited to an annual client roundtable.
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311
Social Network Analysis
Nodes
Relations Density Centrality
Cliques Cluster (Community) Stars
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312
Ways of Social Media Usage

Uncontrolled passive
Communication
Some employees actively
use social media and
possibly communicate
work-related content
Central
Communication
Social media is seen as just
another channel to centrally
communicate official
content in a one-to-many
direction
Delegated
Communication
Internal target group
representatives are
privileged to communicate
work-related content within
clearly defined borders
www.armintrost.de
313
Ways of Social Media Usage

Peripheral
Communication
All employees communicate
about daily informal affairs
and events within clearly
defined borders (rules)
Peripheral
Connection
Employees are encouraged
to network both internally
and externally and to
communicate informal and
work-related content
Strategic
Connection
Internal and external
networks are strategically
built and used
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314
Conditions determine the Type of Social Media

Usage
To what degree does the executive board impact
social media usage inside the company?
Which chances and risks are seen by the
executive board related to social media usage?
Is the company culture driven by openness and
trust?
Is there a natural affinity and activity towards
social media among the employees and the
companys social environment?
Are there any real opportunities related to social
media usage?
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315
Typical Content of Social Media Policies

Do not communicate any sensitive,
business-related information
Everyone is legally responsible for his/her
comments
Conflicts among employees should be
resolved off-line
If a member of the media contacts you
contact our public relation department
Respect copyrights
Be authentic and always demonstrate
respect, trust and honesty
www.armintrost.de
316
Key Terms
Web 2.0 - Prosumer - Social Media - Enterprise 2.0 - Google
PageRank - Social Bookmark - Forrester's Level - Cluetrain
Manifesto - Democratization - Shitstorm - Career Fanpage
(Facebook) - Kununu - Blog - LinkedIn/Xing - Tweet/Retweet
- Twitter - Social Media Roadmap - Wiki - Social Network
Analysis - Node - Relation - Density - Centrality - Clique Cluster (Community) - Star - Ways of Social Media Usage Social Media Policy
www.armintrost.de
317
HRM Landscape
HRStrategy &
Planning
Talent
Talent
Development
Development
Change
Change
Management
Management
Talent
Talent
Acquisition
Acquisition
Work
Work
Candidate
Candidate
Selection
Selection
HR
Organization
Learning
Learning
HR-IT
Retention
Retention
Compensation
Compensation
&& Benefits
Benefits
Social
Media
HR
Controlling
www.armintrost.de
318
Main Questions
Why and how are indicator systems used in HR
and what are typical examples?
How are indicators defined and implemented?
What is the added value of employees and how
can it be estimated?
Is it possible to estimate the ROI of large-scale
investments in Human Resource Management?
www.armintrost.de
319
Control Loop
Target
Target/Actual
Deviation
Corrective
Actions
Causes
Analysis
www.armintrost.de
320
Selected Indicators in HRM

HR Marketing & Recruiting
Training & Development
Retention
Employer ranking
Days of training/employee
Number of applications
High-Potential rate
Cost per hire
Average time on current

level (HiPos)
Tenure
Internal placement rate
Reasons for leaving
Time to fill
Early turnover (during
probation period)
Workforce/Organization
Turnover rate
(general, differentiated)
Employee commitment
Trainee rate
Compensation & Benefits
Performance & Productivity
Average age
Labor costs/total costs
Revenue/employee
Female/male ratio
Labor costs/employee
Women in leadership
positions (%)
Tariff employees (%)
Human Capital Value

Added (HCVA)
Compensation structure
Human Capital ROI
Span of control
Sick leaves/employee
Temporary contracts (%)
Bradford Factor (SxSxD)

Accidents/1000 employees
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321
Cost per Hire
Whats in, whats out?

Advertising costs
Candidate travel costs
Opportunity costs related

to involved line employees
Executive search retainer

and contingency fee
Costs of recruiting
infrastructure (e.g.
e-Recruiting)
Selection tools and

measures
Referral bonuses
Salary of employees
involved in recruiting
Costs for facilities of the
recruiting organization
Market Research
HR Marketing events
Sign-on-bonuses
Relocation costs
Onboarding costs
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322
Time to Fill
Start HR
Marketing/
Search
Workforce
Demand
Vacancy
Selection
Signed Job
Offer
First Day
at Work
End of
Onboarding
End of
Probation
Period
?
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323
Relevant Indicator Dimensions
What?
Which indicator will be used?
For whom?
Why?
Who is the customer

of the indicator?
To which objective does

the indicator relate?
How?
Which sources and methods are
used to calculate the indicator?
www.armintrost.de
324
Balanced Scorecard
Financials
Targets
KPI
Customer
Targets
Processes
KPI
Targets
KPI
Vision &
Strategy
People
Targets
KPI
Source: Robert Kaplan and David Norton, Strategic

Learning and the Balanced Scorecard, 1996
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325
Implementing an Indicator System

Example: Turnover Early Warning
Definition of Scope/Objectives
Analysis
Method Definition
Systematic analysis of turnover

causes and possible early
indicators
Definition of methods and tools

to track/measure turnover
drivers and predictors
Approach definition
Develpment of a model to
explain and predict turnover
behavior
Defining ways to analyse and

report data and results
Meeting with client/steering group

and project lead
Interviews with managers, former

employees, experts
Workshop with experts, clients

and HR managers
Evaluation
Operation
Implementation
Definition of client, objectives

and functions
Setting budgets, timeline and
project structure
Checking validity and

acceptance
Tracking data and report to

clients
Defining fields for

improvements
Data usage and related actions
Development and
implementation of indicator
system and related technical
infrastructure
Identification and training of
impacted employees (clients)
Validation study interviews with

client, user tracking
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326
Calculating the ROI of HR-related Investments
Whats the Problem?
What are the costs related

to the problem?
Whats the solution?
How much does the

solution cost?
Which improvements might be
achieved through the solution?
ROI
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327
Example
10 HiPos (20%) leave the company every year voluntarily
(average annual salary: 120.000 )
Problem
200%* 10 120.000 = 2.400.000
Costs
(* Cost per turnover as a percentage of annual salary)
Solution
All HiPos get a company car
Solution Costs
50 10.000 * = 500.000
(* annual costs per company car)
Improvements
Turnover reduction by 25% lead to reduced turnover costs

of 600.000
ROI
ROI = (600.000 - 500.000 )/500.000 100% = 20%
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328
Human Capital Value Added
Non-Human
Capital
Value Creation
Total Costs - Labor

Costs
Products
Revenue
Human Capital
Labor Costs
Human Capital
= Revenue (Total Costs Labor Costs)
Value Added
Source: Jac Fitz-Enz (2000). The ROI of Human Capital. Amacon.

www.armintrost.de
329
Value Added and Rentabiliy*

Dner Shop
Desig Office
1 FTE
1 FTE
Human
40
Revenue
NonHuman
220
Human
180
Revenue
220
160
NonHuman
20
Human Capital
Value Added/FTE
220-160
Human Capital
ROI (Rentability)
220-160
40
= 60
= 1,50
220-20
1
220-20
180
= 200
= 1,11
* in 1.000
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330
HCVA/Employee* in german DAX30-Companies

(2007)
Addidas
70
Metro
26
Allianz
136
RWE
132
Bayer
94
SAP
163
Daimler
97
Siemens
70
Henkel
69
TUI
29
Hypo Real Estate
556
Volkswagen
23
* In 1.000
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331
Performance Indicators
Example
Company
Performance
Revenue
200.000 k
Revenue/FTE
Employees
2.000 FTE
Profit/FTE
Total Costs
180.000 k
HCVA
Labor Costs
140.000 k
HCVA/FTE
Work days/Year
220
HCROI
100 k
10.000
160.000 k
80 k
114 %
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332
Added Value in Key Functions

compared to other Functions
Added Value
0,5
1,5
Key Functions
Other Functions
Performance
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333
Differentiated Added Value Calculation
C
10%
B
70%
A
20%
Key
Functions
FTE
Factor
10%
Per employee (1.000 ):
HCVA
Labor Costs
Benefit
69
80
- 11
HCVA
Labor Costs
Benefit
HCVA
Labor Costs
Benefit
208
120
88
Others
FTE
Factor
180
0,5
FTE
Factor
FTE
Factor
360
1,5
90%
HCVA
Labor Costs
Benefit
HCVA
Labor Costs
Benefit
20
1
35
60
-25
FTE
Factor
140
2
139
100
39
1.260
1
FTE
Factor
40
3
69
70
-1
HCVA
Labor Costs
Benefit
104
90
14
Source: Trost, A. & von Bothmer, L. (2010). Lohnende Rechenspiele In

Personalwirtschaft 07/2010 S. 22-24.
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334
Four simple Business Cases

To hire an A-Player in a key function one day faster
than before: 536 /day
To hire an A-Player instead of a B-Player into a key
function: 49.000 /year
To increase productivity of all (1.260) B-Players in
non-key functions by 1%: 869.400 /year
To convert a C-Player into a B-Player in a non-key
function: 15.000 /year
www.armintrost.de
335
Key Terms
Control Loop - HR Controlling - Indicator System Employer Ranking - Time to fill - Cost per Hire - Early
Turnover - Trainee Rate - Span of Control - Bradford Factor
- Indicator Dimensions - Balanced Scorecard - Return on
Investment (ROI) - Human Capital Value Added - Human
Capital ROI
www.armintrost.de
336

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HUMAN RESOURCE

Prof. Dr. Armin Trost

Human Resource Management

Prof. Dr. Armin Trost

Human Resource Management

From manual work to knowledge work

Source: Zukunftsinstitut (2008)

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Demographic Changes in Germany

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German global Trade

Source: Statistisches Bundesamt: www.destatis.de

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Web 2.0 User-generated Content

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Megatrends determine future Challenges in HRM

Acquire the right talents

Give the right rewards

Leverage employee potential

Retain and share knowledge

Manage strategic changes

Prof. Dr. Armin Trost

Use latest technologies

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All planned and controlled activities of an

Prof. Dr. Armin Trost

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Company Strategy HR Strategy

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Prof. Dr. Armin Trost

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Key- and Bottleneck-Functions

Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in

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In key functions there

Added value in key

Prof. Dr. Armin Trost

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Age Structure Analysis

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Factors determining Workforce Demand

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Quantitative Workforce Planning Methods