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MHR 523 Lecture 1d.docx

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Human Resources
MHR 523
Al- Karim Samnani

MHR 523 Lecture 1 Human Resource Management  Many people are most likely to perform some sort of HRM at some point in their career (e.g. hiring, training, development etc.)  HRM is present in every business stream  Human resource functions include: Health & Safety, Recruitment, Meeting Legal Requirements etc.  People (human resources) are the common element in all social organizations  Successfully companies have a human resource department that keeps employees happy and their employee turnover rate low by offering employees with many perks (e.g. bowling alley, food, free health care). This in turn helps them drive performance. *Relate a topic to the five Human Resource Functions *Activities of Human Resource Departments 1. Attract and orient new employees 2. Compliance and Procedures 3. Effective Relationships 4. Effective Work Environment 5. Effective Compensation Systems Objectives of HRM 1. Societal Objectives:  corporate social responsibility  society may pass laws that limit the human resource decisions 2. Employee Objectives:  provide employees with challenging work  HR strategies should help employees achieve their personal goals. 3. Organizational Objectives:  Helping the organization achieve its primary organizational objectives  Resources are wasted when the human resource department is more or less sophisticated that the organizations demands.  A lot of leaders realize they need to manage people and resource better. HR provides these answers to businesses.  Contribute to organizational effectiveness  Business Partner: Helping the organization to achieve its primary objectives *Why has HRM experienced challenges getting a seat at the table?  In good companies they are already.  The world has changed from what it was 20 years ago.  Today’s market economy is based on knowledge workers.  HR has traditionally been looked at as an expense. During recession payroll is the first costs to be cut. People were unable to see how HR contributes to performance. *What can HRM do to become a business partner?  HR needs to show in numbers how they have influenced performance by analyzing performance of the company both before and after the implementation. *Strategic Human Resource Management: Short Answer  HRM must be systematically linked to the strategic needs of an organization  HRM FIT – New research o The fit between the organizational strategy and HR strategy (e.g. Walmart competes by offering low costs and low organizational strategy). o Low recruitment costs, low development and training costs, low shop floor employee compensation. Their HR strategy compliments their organizational strategy.  Integrating HRM strategies to achieve overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders  Better HRM can mean a better workplace for employees and leadership/shareholders!  Different strategies are often applied to different employee groups.  Strategies are formulated at three levels o Corporate: involving entire organization o Business: involving a major activity, business or division in a large multi-business organization o Functional: involving managers of different activities, services, or geographical areas Steps in Strategic Human Resource Management 1. Environmental Analysis  Identify environmental threats and opportunities  (e.g. Wal-mart realizing that people want low prices, they did some environmental analysis) 2. Organizational Mission & Goals Analysis  Mission statement used to specify what activities the organization intends to pursue 3. Analysis of Organizational Strengths & Culture  Organizational character: is the product of all of an organization’s features: its employees, age, policies, unions, failures.  Equifinality: there are usually many paths to any given objectives 4. Choice and Implementation of HR strategies  There are 3 generic strategies that a firm may pursue o Cost leadership (BIC pens) o Differentiation(Nikon, Calvin Klein) o Focus 5. Review and Evaluation of HR Strategies  5 major groups of activities in formulating strategies o Planning Human Resources  Determine demand and supply or human resources within firm  Facilitate employment and training o Attracting Human Resources  Recruiting and selecting workers  Meet all legal requirements (e.g. equal opportunity) o Placing, developing and evaluating human resources  Trained to perform effectively  Performance appraisals o Motivating employees  Provide compensation for good work  Some benefits are required (CPP) others are voluntary (dental) o Maintaining high performance  Ensure everyone is performing at high level or productivity  Good communication between employees and managers  Unions  Four types of strategies to meet unique needs of a organization a. Commitment strategy Forge a commonality of interest between organization and employee Heavy emphasis on training and development Compensation based on internal equity norms not market rates b. Compliance strategy Focus on achieving labour efficiencies through control over labour costs c. Paternalistic strategy Minimal degree of training Job rotation Based on senority d. Collaborative strategy Highly skilled contract labour hired on as-needed basis HRM- Small Organization(50 or less employees)  No HR required as owner/line manager can make HR decisions adequately.  If a separate HR department: o Emerges when HR activities would become a burden to other departments o Emerges as a small department and typically reports to a middle-level manager  Duties typically include: o Maintaining employee records o Recruiting  Evolution in small/medium organization – HR Administrator in HRM study HRM- Large Organization  HRM department becomes more important and complex  Separate Divisions (e.g. recruitment, payroll, training & development)  Specialized sub-departments correspond with major activities: o Employment o Compensation o Training and development etc.  Head of HRM department may become a vice president and report directly to the chief operating officer  Consulting – Global Surveys of People Mgmt.  Employees having to work long hours leaves less time for their families and social life. As HR how do you reward these people to keep them motivated? Service Role of HR Department  Staff Authority o Authority to advise, not direct managers in other departments  Line Authority o Possessed by managers of operating departments to make decisions about production, performance, and people o Operating departments allow managers to make decisions about production, pe
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