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
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
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
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)
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
Four types of strategies to meet unique needs of a organization
a. Commitment strategy
Forge a commonality of interest between organization
Heavy emphasis on training and development
Compensation based on internal equity norms not
b. Compliance strategy
Focus on achieving labour efficiencies through control
over labour costs
c. Paternalistic strategy
Minimal degree of training
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
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 Training and development etc.
Head of HRM department may become a vice president and report directly to the chief
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
o Authority to advise, not direct managers in other departments
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,