Chapter 1- Strategic Importance of Human Resource
Wednesday, February 20, 2013 5:10 PM
Challenges Facing Canadian Organizations
Canadian corporationsface a number of challenges today.
Canadian business faces three critical economicchallenges:
1) Surviving a recessionarycycle
2) Facing the global trade challenge
3) Meeting of productivity improvement
1) Surviving a RecessionaryCycle
HRM face special challenges during a recessionaryperiod.
-Carry out the unpleasant task of planning, communicatingand implementing employee
-Job insecurity associated with recession causes erosion of employeetrust in management
2) Facing the Global Challenge
40% of Canada's GDP is exports
-Canada ranks high among exporting nations
-Canadian jobs depend on international trades
-Canadian organizations are opening new plants and expanding activities in foreign countries
that are closer to their customersor where labour is cheaper
-Canada's highly skilled, multicultural workface has given the country a competitiveadvantages in
deal with other countries and cultures, anticipating their needs and concerns, and proactively
responding to them
-Emergence of several low cost trading nations such as Thailand, China, has caused Canada
to lose market shares in traditional strongholds such as pulp and paper, cotton, steel
-US has been improving its productivity at a fast pace
Four of five strategies most commonlyidentified by business executives are HR related
1) Improving workface performance
2) attracting and retaining skilled staff
3) Changing leadership and management behaviours
4) Changing organizational culture and employeeattitudes
3) Meeting the Challenge of ProductivityImprovement
Productivity:refers to the ratio of an organization's outputs to its inputs (capital, materials, and
-increases as an organization finds new ways to use fewer resources to produce its output
-Reduce costs, save scared resources, enhance profits
-Improve better pay, benefits, and working conditions
-HRM contribute to improve productivitydirectly by finding better, more efficient ways to
meet their objectivesand indriectly by improving the quality of work life for employees -Since US is outpacing Canada, Canadian living standards has been decreasing. Productivityneeds
One strategy is getting increasingly popular to cut costs is outsourcing (contracting tasks to outside
agencies or persons). This reduces the number of workers on payroll.
Outsourcing has major implications for HRM. Reduced employeemorale caused by job insecurity
is an issue.
Outplacement-assisting employeesto find jobs with other employers
4) Technological Challenges
Technologyinfluences organizations and the way people work.
-Allowing the processing of vast amounts of data at great speeds, enabling organizations to
improveefficiency, responsiveness, and flexibility in operations
ProcessingLarge Volumes of Information on a timely basis: Part of the appeal of computers
is that they make it possible to process and provide large amounts of data to managers
Flexible Work Design and Telecommuting: Computers bring flexibility into when and where
the work is carried out
Telecommunicatinghas found to cut employeestress and boost worker productivitywhile
-telecommunicating-paid labour performedat employee'shome, full-time or part-
time with assistance of PCs, modems,and fax
Information Sharing and Knowledge Management: Computersalso enable organizations to
manage their operations innovatively,often reducing costs or capitalizing on new
More effectiveknowledge management has been another outcomeof computerized
-Knowledge management -process of capturing organizational knowledge and
making it available for sharing and building new knowledge
-Results in faster, multiway of communication,nontraditional marketing strategies, improved
quality control, and more online inventory control
-Requires HR practices in areas of hiring, compensation,training, performanceevaluation,
-Pushed for speed
-Increase predictability in operations, and to achieve higher standards of quality in productions
-Allows flexibility in operations
-DemographicChanges- changes in demographics of the labour force that occur slowly and are
usually know in advance
-Occur slowly and can be predicted in most instances
Trend 1: Increasing Number of Women in the Workforce
-Women have also left traditional, non-professional occupations and now work in
management,law, engineering and medical fields
-Women accounted for 70% of total employmentgrowth in Canda in the last two decades
Trend 2: Shift Toward Knowledge Workers
-Shift from employmentin primary and extractiveindustries to service, technical and professional
-Service industry such as education, health care, tourism, trade and public administration -Service industry such as education, health care, tourism, trade and public administration
make significant contributions to our national wealth today
-All services combined is about 75% of GDP
Workforcecan be divided into two groups
Data workers: Members of occupations that use, transmit or manipulate symbolic
information created by knowledge workers
Knowledge Workers: membersof occupations generating, processing, analyzing or
synthesizing ideas and information
Trend 3: Educational Attainment of Workers
Educational Attainment- Highest educational level attained by an individual worker, employee
group, or population
-has been increasing in Canada
EmployeeSkills defined by the Corporate Council on Education
-basic academic skills- communication,thinking, learning
-personal management-positive attitudes and behaviours, accept responsibility
Trend 4: Employment of Older Workers
Old Age Crisis- Refers to the social (health care) and organizational (new workplace economics)
challenges caused by aging of population
Trend 5- More Part-Time, Contract, and Contingent Workers
-More contract workers - freelancers (self-employed,temporary)who are not part of the regular
-facing a firm's decision makers because of cultural differences among employeesor changes in
core cultural or social values occurring at the larger societal level
Work Related Attitudes
Attitudes toward work- variety of work-relatedassumptions and values include the role of work in
a person's life and the role of women and diverse groups in organizations
Gen X- Are not adverse to hard work, premium on work-life balance and like to be active
participants in decision making
Canadian firms instituting code of ethics for their employees
Cultural Mosaic- Canadian ideal of encouraging each ethnic, racial, and social group to maintain its
own cultural heritage, forming a national mosaic of different cultures
Attitudes Toward Governments
-basic assumptions about the role of governmentin business and society,including the
desirability of welfare state with key interventionistrole for the government
Objectives of Human Resource Management
HR managementaims to improve the productive contribution of individuals while simultaneously
attempting to attain other societal and individual employeeobjectives
HRD (Human Resource Department)carry out several commonactivities:
-assist the organization to attract the right quality and number of employees
-orient new employeesto the organization and place them in their job positions
HRM attempts to achieve three key objectives
-an organization's short- and long-term goals that the HR department aims to achieve
-help an organization to identify the right quality, type and number of employees
-resources are wasted when the HRD is moreor less sophisticated than the organization
-cost benefit-analysis and systematicprogram reviews are vital to achieve this gal
-social priorities that HR department targets while setting own objectivesand strategies
-Goals set by HR department to assist employeesto achieve personal goals that will enhance
their contribution to the organization
-HR strategies should assist employeesin achieving their personal goals, at least insofar as these
goals enhance the individual's contributions to the organization
Strategic Human Resource Management
-formed at three levels: corporate,business, functional
Strategic HRM- integrating HRM strategies and systemsto achieve overall mission, strategies, and
success of the firm while meeting needs of employeeand other stakeholders.
Steps in Strategic HRM
2) Organizational Mission and Goals Analysis:
Mission statement- Statementoutlining the purpose, long-term objectives,and activitiesthe
organization will pursue and the course for the future
3) Analysis of Organizational Strengths and Culture
Organization Character- product of all of an organization's features- people, objectives,
technology,size, unions, policies, successes, and failures
4) Analysis of Organizational Strategies
-Cost leadership- lower costs of operations and prices for products
-differentiation - distinct product
-focus - focusing on the needs of a specific segment of the total market
5) Choice and Implementationof HR Strategies
Focus on five major groups of activities
1) Planning HR
2) Attracting HR
3) Placing, Developing,and Evaluating HR
5) Maintain high performance
Service Role of the HR Department
Staff Authority- Authority to advise, but not to direct, others
Line Authority- authority to make decisions about production, performance and people
Functional Authority - Authority that allows staff experts to make decisions and take actions
normally reserved for line managers Chapter 12- Diversity Management
Saturday, February 23, 2013 3:20 PM
Old Boys' Network- set of informal relationships among male managers providing increased career
advancementopportunities for men and reinforcing a male culture
Glass Ceiling- Invisible, but real obstructions to career advancementof women and people of visible
minorities, resulting in frustration, career dissatisfaction and increased turnover
Workplace diversity- includes important human characteristicsthat influence employeevalues, their
perceptions of self and others, behaviours, and interpretationsof events
Core Dimensions of Diversity-age, ethnicity and culture, gender, race, religion, sexual orientation,
Secondary Dimensions of Diversity-education, status language, and income levels
Managing Diversity-ability to manage individual employeeswith different cultural values and lead
teams made up of diverse employees
-Includes all types of differences and not simply obvious ones
-organization culture and working environments
Strategic Importance of Diversity Management
-Importance of Human Capital
-Diversityas a CompetitiveAdvantage
-Paradigm Shift- shared mindset that reflects a fundamental way of thinking and understanding the
world around us. Fundamental chance in a paradigm.
-Organizational success is linked to standardization
-Diversityis a cost
-Rules and policies are to be shaped by senior executives
-Emphasis on "masculine" values of competitiveness,aggressiveness, and individually
-Change employeebehaviours and attitudes to suit the organization's culture
-Success is linked to individual's contribution
-Diversityis a competitiveadvantage
-Rules and policies are to be shaped to satisfy the customer and the employee
-Recognition that "feminine" values of openness, flexibility and relationship orientation are equally
important for organizational success
-Modify organizational culture to suit the needs of the employees
-Increase role of work teams
Steps in Diversity Management
1) Identify Ideal Future State
2) Analyze Present Systems and Procedures
Cultural Norms- Values and norms that determinebehaviours of individuals and groups in
3) Change Systems,Procedures,and Practices
Five factors are particularly critical
-Establishment of a DiversityCommittee -Establishment of a DiversityCommittee
-Education and Retraining
-Wide Communicationof Changes
-Evaluation of Results and Follow-up
-DiversityAudits- Audits to uncover underlying dimensions, causes,
interdependencies, and progress to date on diversity managementmatters
Current Industry Practices
-Training programs aimed at importing new skills to motivateand manage a diverse workforce
-Two types of training
-Awareness Training- training employeesto develop their understanding of the
need to manage and value diversity
-Skill-building training- training employeesin interpersonal skills to correctly
respond to cultural differences at the workplace
-programs encouraging members of disadvantaged groups to work with a senior manager who
acts like a friend and guide in achieving career success
-Alternative Work Arrangements
-Nontraditional work arrangements that provide more flexibility to employees,while meeting
-A form of on-the-job training in which young people learn a trade from an experience person
-Groups of employeeswho provide emotionalsupport to a new employeewho shares a
commonattribute with the group
-Formal protocols for internal communicationswithin an organization to eliminate gender,
racial, age, or other biases in communications Chapter 2- Job Analysis and Design
Thursday, February 21, 2013 3:21 PM
Decision making process – human resource department needs accurate information about a variety
of aspects of the job in question.
HR specialists discover the actual characteristics that presently exist in each job.
Job analysis is a systematicstudy of a job to discover its specifications,skill requirements,and so on,
for wage-setting, recruitment, training, or job-simplification purposes.
Jobs – core of every organization. They are to be designed well and done right
HR departmentmust have a clear understanding of the jobs found throughout the organization.
A job consists of a group of related activitiesand duties.
A collectionof tasks and responsibilities performed by an individual employeeis called a position.
Large organizations store informationon various jobs using human resource information system
(HRIS) – permits easy retrieval of relevant job details, also providing a variety of informationabout
the job, jobholders, and past performancestandards.
Phase 1: Preparation for Job Analysis
(three key activities performed within this stage)
Step 1: Familiarization with the Organization and its Jobs
Having an awareness of an organization’s objectives,strategies, structure, inputs (people, materials,
and procedures), and desired outcomes.
Unionized organizations – job analysis steps also have to meetvarious provisions of the collective
agreement b/w the managementand union
Studying industry and governmentreports about the jobs to be analyzed.
Step 2: Determine Users of Job Analysis Information
Job analysis may be done to eliminate discrimination against specific employeegroups or assist in
It aids other objectivessuch as identifying non-traditional career paths for employees.
Details collected during a job analysis are influenced by the objective of the study; hence it is crucial
to define the objectivesearly on.
Step 3: Identify Jobs to be Analyzed
Resource and time constraints often preclude organizations from conducting job analyses.
Targets of job analyses – jobs that are critical to the success of an organization; jobs that are difficult
to lean or perform; jobs in which the firm continuously hires new employees;or jobs that exclude
membersof the protectedclasses.
Should be analyzed if new technology or an altered environmentaffects how the job has been
Senior managementand all key supervisors of the firm should be consulted before selecting jobs for
the in-depth analysis.
Type, number, and geographical dispersion of the jobs selected for analysis also influence the choice
of data collected method.
Phase 2: Collection of Job Analysis Information
(three interrelated activities)
Step 4: Determine Sources of Job Data
Direct source of informationabout a job is the job incumbent, various other sources – both human Direct source of informationabout a job is the job incumbent, various other sources – both human
and nonhuman – may be used for this purpose.
Materials may be published within magazines provide informationabout how jobs are performed in
other organizations and settings – valuable establishing performance standards and benchmarks for
Internet is also a good source of information about different types of jobs.
Incumbents, supervisors, colleagues – most valid information.
Step 5: Data Collection Instrument Design
Studying jobs, analysts must make checklists called a job analysis schedule which seeks to collect
information about jobs in a uniform manner.
o Uncovering duties, responsibilities, human abilities, and performancestandards of the jobs
Information important when collecting from human sources and nonhuman sources
Use the same questionnaire on similar jobs.
Uniformity – hard to maintain in large organizations; analysts study similar jobs in different
departments, only a uniform questionnaire results in usable data.
Standardized forms of a job analysis attemptto measure the following items:
o Status and identification. Status - whether the job is exempt from overtimelaws.
Identification – information includes job title, division, and title of supervisor(s),and
sometimesa unique job identification number. – no information of this, relying on outdated
o Duties and responsibilities.Job analysis explains the purpose, accomplishmentand how the
job is performed. – additional questions are responsibility for decision making, controlling,
organizing, planning and other managementfunctions.
o Human characteristicsand working conditions. need to uncover the particular skills, abilities,
training, education, experience, and other characteristics that jobholders need. Working
environment– skills, training, knowledge and job design.
o Performance standards. Information about job standards, used to evaluate performance. –
collected on jobs with objectivestandards of performance.
o Functional job analysis (FJA). FJA classifies tasks using three functional scaled related to
people, data, and things. Each functional scale ranks behaviours according to complexity.
Indicates the level at which the employeeis operating for each of the three categories.
o Occupational Information Network (O*NET). U.S. department of labour used this to classify
jobs and job skills, but changing technology required a diff approach.
o Fleishman Job Analysis (F-JAS). A well-researched job analysis method based on a list of 52
cognitive, psychomotor,physical, and sensory abilities.
o Position AnalysisQuestionnaire (PAQ). Designed to apply to all types of jobs, offers an even
more quantitative and finely tuned description of jobs than the F-JAS.
o CriticalIncident Method (CIM). Duties and responsibilities are important aspects of a job
analysis, and the CIM is ideally suited for this purpose b/c it focuses on critical job
behaviours. – examples of behaviours to do the job effectivelyand the way and the means to
Step 6: Choice of Method for Data Collection
Interviews approach to collecting job-and performance-relatedinformationby a face-to-face
meeting with jobholder, typically using a standardized questionnaire.
o Jobholders and supervisors are interviewed.
o Talks with a limited number of workers than interviewssupervisors.
o Guidelines in conducting interviews:
Conducted with job incumbents and others who have knowledge of the job.
Interviewersestablish rapport with the intervieweebefore getting into the main theme.
Structured a checklist of questions
Respondent not performing routine duties – job incumbent should be asked to list all
Info collected be reviewed and verified by both the intervieweeand immediate
o Mailed Questionnaires. Surveying employeesusing a mailed questionnaire – standardized
questionnaires used to survey employeesto collect information about jobs, working
conditions, and other performance-relatedinformation.
o Employee Log. A thi