HRM200 Lecture Notes - Lecture 1: Bring Your Own Device, Absenteeism, Outsourcing

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Chapter 1: The Strategic Role of Human Resources
Chapter Summary
HRM is about the management of people in organizations to drive successful
organizational performance and achievement of the organizations strategic goals
The HR professional makes sure that the organization has the best workers
(human capital) in place.
This involves formulating and implementing HR practices and systems that are
aligned with organizational strategy.
HR practices contribute to the development of embedded knowledge of a firm's
culture, history, processes, and context, which are hard to copy by competitors.
Just as organizations require financial capital to operate successfully, they must
also acquire, grow, and effectively use the human capital of workers (knowledge,
education, training, skills, and expertise).
As the field has changed over time, the expectations of an HR professional have
also changed over time.
According to a 2011 study, five critical pieces of knowledge for today's HR
professionals are business acumen, employment law and legislation, talent
management, broad HR knowledge, and employee labour-relations knowledge.
Learning Outcomes
By the end of this part, you should be able to:
define human resources management,
analyze the strategic significance of human resources management,
describe the two categories of activities required of HR managers,
discuss the internal and external environmental factors affecting human
resources management policies and practices and explain their impact,
describe the three stages in the evolution of HRM, and
explain how HRM has taken on the characteristics of a profession.
Human Capital: the knowledge, education, training, skills, and expertise of an
organizations workforce.
Effective HR practices are related to better organizational performance
Three HR practices
oProfit sharing, results-oriented performance appraisal, and employment
oAll have strong relationships with important accounting measures of
performance (return on assets and return on equity)
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History of HRM
Scientific Management: the process of scientifically analyzing manufacturing processes,
reducing production costs, and compensating employees based on their performance
Human Resource Movement: a management philosophy focusing on concern for people
and productivity
Phase 1:
oEarly 1900s, HRM called personnel administration
oMinor role or non existent role
oResponsible for hiring and firing
oRan payroll department
oAdministered benefits
oEnsuring that procedures were followed
Phase 2:
oScientific management movement gained momentum
oOperational efficiency increased but wage increases did not keep up
oCausing workers to distrust management
oIncrease in unionization led to personnel departments serving as the
primary contact for union representatives
oFollowing depression of 1930s various pieces of legislation were enacted
oMinimum wage act
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oUnemployment insurance program
oProtection of workers’ right to belong to unions
o1940’s and 1950’s personnel managers were also involved in dealing with
the impact of the human relations movement
oOrientation performance appraisal and employee relations responsibilities
were added to their job
Phase 3:
oGovernments legislation passed during 1960, 70’s and 80’s
Affected human rights, working conditions and health and safety
oPersonnel departments expanded dramatically
oProvide expertise in areas like compensation, recruitment and training but
in an expanded capacity
oOutsourcing: the practice of contracting with outside vendors to handle
specified business functions on a permanent basis
Pension and benefits administration, recruitment, management
development and training, have become increasingly common
Phase 4:
oCurrent phase
oEvolved to helping organizations achieve its strategic objectives
oEvery line manager has responsibilities related to employees
oHuman capital life cycle:
selection and assimilation into the organization,
development of capabilities while working in the organization,
and transition out of the organization
ofive critical pieces of knowledge required by HR professionals today
business acumen
understanding of employment law and legislation
talent management
broad HR knowledge
employee-labour relations knowledge
Credible Activist: a core HR competency is that of being both credible (respected,
listened to, trusted) and active (takes a position, challenges assumptions).
Culture and Change Steward: the ability to appreciate, help shape, and articulate an
organizations corporate culture includes understanding, guiding, and reacting to both
internal and external stakeholder expectations.
Employee Engagement: the emotional and intellectual involvement of employees in
their work, such as intensity, focus, and involvement in his or her job and organization.
In today's HRM there are new competencies. These areas of knowledge are reflected in
the six new roles associated with HR competency and new activities.
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