HR Lecture 2 (Oct. 26)
Stewart, Ch. 1: Challenges of HRM
- This chapter sets the stage for material to follow
- The pattern is:
o HR processes and activities
o Discussion of line and staff
o Strategic HRM
- Perhaps the key question here is related to what makes the practice of HRM problematic?
What is HRM?
Processes and Activities
- Organization, work, job design
- Planning – forecast of number of employees needed now or in the future
- Recruitment and selection – choosing the best employees from pool of applicants
- Training and development – training is bottom-line oriented (specific tasks); development is
education for future unknown needs, e.g. being taught to think critically
- Performance management – connect predicted performance to actual performance; feedback
- Compensation – amount of pay, raises, type of incentives
- OHS – e.g. hazardous material training
- Ee and labour relations – e.g. Western faculty was on strike last year; collective agreement
ended and bargaining was settled
Specific example: RCMP
- Canada’s national police force
- Transparent about their selection process if you were an applicant
o Organization and job design: what do regular and civilian members do? Rank and file
and civilian specialists?
o Recruitment and selection: what tests do you have to take to apply to the RCMP?
Physical test specifications
o Training and development: what do recruits learn about use of force at the Depot in
Regina, and how do they learn it? Do it on a real person??
How might these activities be related?
- Consider recruitment and selection in relation to training and development
- Imagine a meeting of managers from these functions at an automotive assembly plant
- The T&D manager suggests that the cut-off scores on the selection test should be raised,
because to many new ee’s are failing training - Because costs are incurred if hired employees have to be thrown out when course performance
- Scatterplot of course performance versus test performance – vertical line is set as a minimum
for test performance (selection), horizontal line is set as minimum for course performance
(training and development)
- Error: three people scored past test performance minimum, but did not pass course
performance – false positive error
- Two people scored below test performance minimum, but were not selection! They could’ve
done well in course performance though – false negative error
- T&D manager wants selection manager to raise test performance line to the right – false
positive errors would go down, but false negative errors would increase
- Error rates are balanced right now; one can only be improved at the expense of another
- Strategy is important – if there is a shortage of labour, everyone that we let go goes to
competitors; if there is an oversupply of labour, we probably want less false positives
- In the workplace, false positive errors have more attention because you have to live with them!
False negatives go away and you don’t see them again
Why do we care about HRM?
- Bad HRM practice destroys productive capacity
- What is the cumulative effect on society?
- Demands from the public as workforce grows more diverse (discrimination, pay equity…)
- Any other reasons?
o All ees experience the effect of HRM
o What are the links from HRM to competitive advantage?
o Bundles of high performance linked to competitive advantage??
Line and staff
- This is originally a military distinction: line officers lead troops in the field, staff o