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Lecture 1

COMMERCE 4BM3 Lecture Notes - Lecture 1: Holt Renfrew, Information Overload, Giant Tiger


Department
Commerce
Course Code
COMMERCE 4BM3
Professor
Frances Tuer
Lecture
1

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Week 1: Intro to Strategic Human Resource
Management
What is strategic HRM?
Interrelated HR philosophies, policies and practices that facilitate the attainment
of organizational strategy.
Strategic management of people through HR programs and polices helps to
ensure positive organizational outcomes, such as:
oLow turnover/ retain employees
oAttract talent
oTeam morale
oProductivity and motivation
oNet income and low cost
Decision science (like finance) versus administrative support function (like
accounting)
o- We closely manage our financial capital, therefore human capital
becomes increasingly important as the same as money.
Human capital issues high on CEO agenda
oWhat is human capital?
Located in your people mobile, they can take it and go. They
choose to go, or stay.
75% of respondents from Canadian organizations believe HR is more influential
than 5 years ago
oWhat might explain this change?
HRM Theory
Organizational Behaviour has a strong theoretical underpinning BUT
“HRM is seen as atheoretical 非非非非 and problem-driven” (Belcourt et al., 2013)
3 key theories that link HR to firm performance
1. RESOURCE-BASED VIEW OF THE FIRM (RBV)
Resources that are valuable, rare, difficult to imitate or substitute contribute to
sustained competitive advantage (Barney, 1991)
oIn regards to people with these characteristics organizations talk about
being in a “talent war”
HR’s role is to develop a system that will facilitate and stimulate innovative
thinking process
High Performance Work Practices/Systems (Huselid, 1995; Jiang et al., 2012)
oWhat are HPWS?
oWhy do they contribute to firm performance?
Real-Life Example: High Performance Work Practices (Huselid, 1995)
o13 items
o968 firms
Formal information sharing program Formal grievance system
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Formal job analysis Pre-employment selection testing (Both)
Internal recruitment/ promotion Compensation linked to performance
appraisals
Regular attitude surveys Formal performance appraisals
Employee participation programs Promotion rules that match
strategy/culture
Monetary incentive plans (Both) Qualified applicants for frequently hired
positions
Annual hours of training (per employee) □ Decrease turnover
□ Increase sales
Result?
oOne standard deviation (SD) increase in HPWPs (set) 
7.05% decrease in employee turnover
$ 27,044 more in sales (per employee basis)
$ 18, 641 more in market value (per employee basis)
$ 3,814 more in profits (per employee basis)
Since then:
oExploration for WHY/HOW these practices make a difference
oRecent meta-analysis (Jiang, Lepak, Hu, & Baer, 2012)
See handout for key exhibit
oKey points
HPWP can be grouped into 3 categories
Impact flows through a number of mediating variables
Stats question: What’s a mediator?
Categorize them:
oSkill-enhancing practices include:
Comprehensive 非 非 recruitment, rigorous 非 非 selection, extensive
training
oMotivation-enhancing practices include:
Developmental performance management, competitive
compensation, incentives/rewards, extensive benefits, promotion,
career development, and job security
oOpportunity-enhancing practices include:
Flexible job design, work teams, employee involvement in org.
decision making, information sharing programs
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