Management and Organizational Studies 1021A/B Final: HRM FINAL EXAM - STUDY GUIDE 2012

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
Paul Cruz

STUDY GUIDE FOR MOS HRM EXAM 2012 YOURE SO FUCKED CUZ THIS SHIT IS HARD CHAPTER 1 Chapter 1: HRM Challenges and the Legal Context – Textbook notes Human Resources Management (HRM): integrated set of processes, programs and systems in an organization that focuses on the effective deployment and development of its employees. HRMActivities 1.Organizational work and job/role design - who is best at job and why? 2.Planning - right skills at the right time and place 3.Recruitment and selection - who what where 4.Training and developments 5.performance management - performance evaluations, measurement 6.compensation - pay and benefits to employees 7.occupational health & safety - workplace conditions 8.employee and labour relations - office politics and relations Emerging fields in HRM: 1. Organizational development and learning (extension of training and development) 2. High-performance work groups/teams (job design) 3. Flexible work arrangements 4. HRIS – human resource information systems Role of Line Manager: To directly interact with the employees and be responsible for the effective contribution of those employees to the organization. LineAuthority : Being directly responsible for the product or service. Role of the HR professional: To assist and provide advice to the line manager so he can fully understand the impact of his actions on the organization, and to equip the line manager with the best people practices so the organization can be successful and maintain a competitive advantage through its people. Globalization: Moving local or regional business into global marketplace In organizations with an HR unit, HR managers assume a greater role in top-management-planning and decision-making. Current Business Challenges HRM Challenges of Globalization: -Competition is now global - Canada is largely dependent on exports -HRM must address geographic, cultural, legal issues involved in doing business in other countries HRM Challenges of Survival of Firms: Due to bad economy, firms forced to lower labour costs by: 1. downsizing and laying off workers 2. outsourcing jobs to cheaper workers 3. Employee Leasing Downsizing: Planned elimination of jobs Outsourcing: Hiring someone outside the company or bringing in a company to perform tasks that could be done internally Employee Leasing: Employees are let go and then hired by a leasing company that contracts back with the original company. Human Resources Information System (HRIS):Atechnology system that provides data for purposes of control and decision making. Impact of IT on HRM: 1.Operational impact - reduces cost, improves productivity, less admin work 2. Enhances services to managers and employees 3. Revolutionized our ability to access and use information 4. Redefines activities that HR undertakes Total Quality Management (TQM): Management philosophy that focuses on understanding customer needs, doing things right the first time, and striving for continuous improvement. Six Sigma: Process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. Can guide a business toward innovative solutions by saving money which can be invested in innovated ideas.Also used to deal with internal customers. Catches mistakes before they happen. ISO 9000: Worldwide approach to quality management standards that can cover both product design and product delivery. ISO 14000: Standards program that focuses on standards for environmental management. Benchmarking: Looking at the "best practices" in other companies to assess whether something could be used in their organization to improve performance. BaldrigeAward for Performance Excellence :Award that looks at excellence from a systems perspective with detailed criteria in the areas of leadership; strategic planning; customer focus; measurement and knowledge management, etc. Opportunities from Environmental efforts: 1. Demand for cleaner energy - solar and hydro power 2. Jobs are created such as environmental engineers. 3. New industries created such as geothermal industry. Human Capital: The individual's knowledge, skills, and abilities that have economic value to an organization. Core Competencies: Acombination of knowledge, skills and characteristics to effectively perform a role in an organization. Talent Management: Leveraging competencies to achieve high organizational performance and then measuring these competencies against company goals Attributes of Baby Boomer gen: Workaholics, competitive, optimistic, respond well to hierarchy Attributes of Gen X: Skeptical, independent, tech-savvy, career oriented, less comfortable with hierarchy Attributes of Gen Y: Candid about participating in the workforce, want to take on responsibility quickly and are highly educated, multitaskers Attributes of Veterans: Hard workers, respectful, duty before fun, rule-abiding Dependent Care: being caregivers to aging parents. Personal Information Protection and Electronic DocumentsAct (PIPEDA): federal law that deals with the collection, use and disclosure of personal information. Corporate Strategies: Company-wide and focus on overall objectives such as long-term survival and growth. Includes: - Restructuring Strategy: Corporate Strategy to ensure long-term survival, includes liquidation,divestitures,turnaround situations, bankruptcy -Divestitures: The action or process of selling off subsidiary business interests or investments. (Type of Restructuring strategy) - Growth Strategy: Strategy where organizations can grow incrementally (by adding new products), by expanding internationally, mergers, acquisitions. Business Strategy: Strategy that focuses on one line of business and is concerned with the questions, "How should we compete?" Ways a business can compete: 1. By being a low-cost provider (mcdonalds) 2. By trying to differentiate its products in a way that will attract a large number of buyers 3. by being a best cost provider through giving more value for the money 4. by focusing on a niche market based on lower cost to a select group of customers 5. by offering a niche product or service customized to the tastes of a very narrow market segment. Strategic Human Resources Management: Identifying key HR processes and linking those to the overall business strategy. CHAPTER 1 LECTURE NOTES Human Resources Lecture 1 Opening Statements 1. Employers and Employees are constantly at odds. 2. Each party wants the opposite of the other. If given a choice, employers would employ machines over humans. - eg. Employers want to pay less, employees want to get paid more. Finding Fair and equitable compensation is key. 3. If given a choice, humans would choose to get rid of machines and do the work themselves “There is no such thing as job security” - Economic factors, everyone is competing with each other (others might offer employers more value than you) economic forces drive demand which drives business which drives employment employees want: 1. challenging work – work that actually mkes a difference 2. personal growth – want skills to grow and develop 3. work/life balance – work hard play hard, family life 4. positive environment – not a stressful or negative environment (breeds contempt and political mindset) 5. honesty – want a manager who is approachable and open, that tells them the truth, open communication and of employers want in employees: 1. strong work ethic – employee that is willing to work hard 2. dependable and responsible – punctuality, do what there are supposed to do, responsible 3. positive attitude – initiative and motivation to get work done. Motivates others, enthusiastic 4. adaptable – maintain flexibility in an ever changing workplace 5. honest – work integrity 6. self-motivated – require little supervision and direction 7. motivated to grow & learn – interested in keeping up with new developments and knowledge 8. strong self-confidence – recognize skills and strengths and utilize them 9. professional behavior 10. loyal – loyal to the company Difficulty about working in this age – generation differences between employer and employees. Human Resources Management: “integrated set of processes, programs and systems in an organization that focuses on the effective deployment and development of its employees” – not working independently but all together - how to use your employees! -allocating skills and personalities to meet demands Marketing drives HRM: HRM finds out what human assets are needed to execute sales/marketing programs. Major Processes and Activities: – Organizational work and job/role design – who is best at job and why? – Planning – right skills at the right time and place – Recruitment and selection – who what where – Training and developments performance management – performance evaluations, measurement – compensation – value proposition – occupational health & safety – workplace conditions – employee and labour relations – office politics Why is HRM important? – Bad HRM practices – destroy productive capacities, demotivate staff – demands from the public as workforce grows more diverse – discrimination, pay equity – All employees experience the effects of HRM – HRM leads to competitive advantages Major HR Challenges: – Globalization – people from different cultures, how can a company go “global” – Utilization of staff given ever changing industry dynamics/requirements – technology – is an enabler but changes peoples behavior, eg. People are distracted, or may become too reliant, lack of thinking, dependent on technology – corporate social responsibility – different perspective and way of problem solving – how to maximize the HUMAN resource? - talent management, knowledge building Good question at interview: What steps do you take to develop employees careers, enhance productivity and employee experience Business strategy – Strategy = choice of direction and resulting actions – Corporate strategy concerns the big questions, like restructure or grow – Business strategy focuses on one line of business and answers Porter's question: How can we compete? Key Points: – HRM is an important functional area of a company and only 1 of the components that make up a company. – you can have the greatest idea in the world and the best product but if you cant assemble, motivate and direct staff to be inline with where the business needs to go you might as well give up! – Just like other “assets”, people are resources that provide huge value and must be cultivated, harnessed and motivated – employees need to deliver value have realistic expectations based on understand the environment in which the business is operating. CHAPTER 1 RANDOM GUEST SPEAKER NOTES Linda Jack – Career Counselor at UWO: Best Career Choices: 1. Interests – group vs solitary work environment, action oriented? 2. Values – what is important to you. 3. Skills – strong communicator?Analytical thinker? Group presenter? What are you good at? 4. Personality – extrovert vs introvert, personality test? Resume Tips: – Be clear and simple – Don't tell everything you've ever done – Don't start points with “I” – Dont include personal information such as age race marital or health status – Not too dense – No fancy fonts or color – Consistency Qualifications Sought by Employers – Team building – critical thinking – experience – communications – high energy level – leadership – initiative – self knowledge – responsibility – organization – creativity – ability to take direction – problem solving – interpersonal skills – flexibility Getting to the Yes pile 1. Job description described in the ad should be reflected in your resume 2. Requirements or qualifications in ad should be reflected in your cover letter. Recruiter will spend about 8 seconds on resume, getting rid of about 150 out of 200 on the first look Save it as a pdf, easily open-able. Make sure grammar or spelling is perfect. Look at cover letters only once resumes meet all qualifications. Experience: Any experience is great experience. Volunteering, shadowing, internships, study abroad Biggest advice: Start early! Do the research! Don't wait till last minute! CHAPTER 2 TEXTBOOK NOTES Chapter 4 – Human Resource Planning, Recruitment, and Selection Human Resource Planning: Process that the people required to run the company are being used as effectively as possible, where and when they are needed, in order to accomplish the organization's goals. Succession Planning: Developing leaders for the future who have the competencies necessary that can keep pace with the direction of the organization. Facts about the Canadian labour force: – Workforce is aging – Manufacturing sector is shrinking, fewer jobs in that industry – About 21% of workforce is born in another country – Labour shortages predicted in retail, construction and health sectors – 34% are self-employed or part-time employed. Medium to Large organizations -> More systematic HR planning Small entrepreneurial organizations - > HR planning based on short-term basis. HR Planning approaches: 1. Forecasting – anticipating the demand for employees – Quantitative approaches: Trend Analysis – Using an organizational index to forecast such as sales or units of production of previous years to make projections. – Qualitative approaches: Management Forecasts – opinions and judgements of supervisors or managers and others that are knowledgeable about the organization's future employment needs. 2. Analyzing both internal and external supply of employees – Internal: Staffing tables – Graphic representations of organizational jobs along with the numbers of employees currently occupying those jobs and future employment needs. – Internal: MarkovAnalysis – Method for tracking the pattern of employee movements through various jobs using the percentages and numbers of employees who remain in each job from one year to the next, as well as the proportions of promoted, demoted, transferred and leave the organization. – Skills inventory/mix: Identify core competences/skills necessary for organizational success in employees eg. Education/experience of staff members. Objective of HR planning: to achieve a usable balance between the demand and supply of employees, this is usually also a function of the economic environment at the time. 1. Forecast demand for labour 2. Determine supply of labour – external and internally 3. Identify the gap between demand and supply 4. Develop action plans to eliminate the gap ◦ If oversupply –Attrition(natural departure of employees), leave of absences(without pay), job sharing, reduce hours/pay ◦ If shortage – Hire full/part time employees, lease employees, use overtime, retention strategies. Recruitment: process of locating and encouraging potential applicants to apply for jobs. 1. Planning for staffing needs 2. Identification of current or future job openings 3. getting individual job information – description and specifications 4. determining recruitment method – internal or external 5. creating pool of potential qualified applicants *Challenge is to continue recruitment process even during difficult economic times, focus on retention more than recruitment. Branding: to have a uniform image come into prospective and existing employees minds when the company name is mentioned. Internal Recruiting: Advantages: – Promoting rewards and encourages employees – Promoting makes use of people who already know the organization – Promoting makes other employees want to receive the same promotion so they work harder – Transfers protect employees from layoff and broaden job experiences – Eliminates orientation and training costs of recruitment – Transferees performance record is a more accurate predictor of success than outside applicants. Methods of finding Internal Candidates: Human Resource Information Systems: Database screening of current workforce and skill sets to locate suitable candidates. Succession Planning: identifying, developing and tracking key employees for future promotions. Internal Job posting: method of advertising about job openings within a company through a common area or by email. Limitations: – Certain jobs may require specialized training and experiences from outside an organization. – Employee cloning: excessive reliance of internal recruiting may lead to employees with all the same ideas and methods – External recruiting brings in new ideas from other companies External Recruiting: Advantages: – Brings certain unique skills the company needs now – New ideas from other employers Disadvantages: – Lack of solid information about the person's performance on the job – Second-hand sources may not be as reliable eg. References. – Orientation and training will be necessary which comes with many costs. – Legislative requirements such as employment equity The labour market: area from which applicants are recruited. Sources of External recruiting: 1.Advertisements: – advantage of reaching a large audience of possible applicants – degree of selectivity can be achieved by using selected mediums directed at a target group such as using a professional journal/magazine 2.Internet: – Cheaper, faster and potentially more effectively – Company databases and job search websites eg. 3.Employment Agencies: – Executive search firms: “headhunters” that typically focus on senior-level and executive-level managerial positions and is paid by the firm looking to employ. eg. Hiring a CEO – Private agencies: specializing in serving a specific occupational area such as office staff or tech people who charges the employer money if they find a candidate who gets hired. – Temporary employment agencies: agencies that provide “temps” - temporary employees for short-term assignments or to help when managers cannot justify hiring a full-time employee, such as for vacation fill-ins or peak work periods. Easier to lay off temps when work lessens as there is no need to file employment insurance claims and temps usually do not receive benefits. However, the drawback of contract employees is that they have lower commitment to the company and may take confidential info to their next employer. 4.Educational Institutions: – source of young applicants with formal training but relatively little full-time work exerience 5.Open Houses and Job Fairs – where potential applicants are encouraged to visit the company and see what might be available. – Emergence of “virtual” career fairs. 6. Employee Referrals -Quality of employee-referred applicants is normally high as employees are hesitant to recommend individuals who might not perform well. - Commissions may be paid to employees when they make a successful referral. - Employees must ensure that with utilizing referrals they are not creating a situation of systematic discrimination. 7. Unsolicited Applications and resumes: - Method used by individuals to introduce themselves to organizations that are of interest to them. 8. Professional Organizations: - Many societies offer a placement service to members as one of their benefits. 9. Unions - Usually a principal source of applicants for blue-collar jobs eg. Welders, electricians. - Usually only if a company is unionized. 10. Recruitment for Diversity - Employers that fall under the federal employment equity legislation are expected to have a recruitment program that focuses on designated groups of minorities (including women). - Expectation that workforce distribution is representative of the canadian population. - Outreach programs to let minorities know about employment opportunities. Matching People and Jobs: Selection: process of choosing individuals who have relevant qualifications to fill existing or projected job openings. 1. Completion of application form or submission of resume 2. Initial screening/interviewing by HR person 3. Employment tests 4. Supervisory or team interview 5. Reference checks 6. Hiring Decision Reliability: the degree to which interviews,tests, and other selection procedures yield comparable data over time and alternative measures Validity: how well a test or selection procedure measures a person's attributes, indicator of the extent to which data from a procedure (eg. Interview) predicts job performance. Sources of Information about Job candidates: 1. Application forms and Resumes ◦ provides info about whether the applicant meets minimum requirements eg. Education ◦ Basis for questions the interviewer may ask ◦ offer sources for reference checks. ◦ Often exaggerated. 2. Employment Interview ◦ One-on-One: interview asks applicant questions face-to-face ◦ Panel/Group interview: Board of several interviews take turns asking the applicant questions. Useful to have team members on panel to ask in-depth questions. ◦ Telephone interview: done as first interview to reduce costs, sometimes an automated response system involving responding to questions via touching a keypad. ◦ Internet-based: online assessment tools, applicants less likely to engage in “impression management” in computerized interview. Structured Questions: established set of answers so applicant can be rated, provides a more consistent basis for evaluating candidates. Behavioural description interview: focuses on real work incidents, not hypothetical situations, and asks job applicants what they actually did in a given situation in the past. Situational question: Applicant is given a hypothetical incident and asked to respond, then evaluated against pre-established benchmark standards. Unstructured Questions: broad and open-ended and allows the candidate to talk freely with little interruption from interviewer.Also uses follow-up questions to allow applicant to elaborate. Guidelines for Employment interviewers 1. Establish an interview plan 2. Establish and maintain rapport – display genuine interest and listening carefully 3. Be an active listener – understand and comprehend applicant 4. Pay attention to nonverbal cues – facial expressions, gestures 5. Provide information as freely and honestly as possible – answer applicants questions fully. 6. Use questions effectively. - questions should be phrased as objective as possible 7. Separate facts from inferences – record factual information, compare inferences with others 8. Recognize biases and stereotypes – eg. Viewing someone who is similar to you as more acceptable. 9. Control the course of the interview – must gather information required 10. Standardize the questions asked. - ask the same questions to all applicants. Halo effect - The tendency for an impression created in one area to influence opinion in another area. eg. Just because someone has good leadership, you think that hes good at everything else too. Central tendency effect – the tendency to consider all competencies as average even though some are excellent or poor. Employment Tests: objective and standardize way to assess a person's KSA's. Aptitude tests: measures of a person's capacity to learn or acquire skills. Achievement tests: measures of what a person knows or can do right now. Cognitive Ability Tests: measure mental capabilities such as general intelligence, verbal fluency etc. Good predictor of performance and ability to be trained. Personality and Interest Inventories: measure personal characteristics such as extroversion, agreeableness and openness to experience. Not recommended as personality tests may inadvertently discriminate against individuals who might actually perform well. Emotional Intelligence tests: measures emotional reasoning abilities – perceiving, understanding and regulating emotions. Physical Ability Tests: physically demanding and potentially dangerous jobs may require physical ability tests. Not to be confused with medical tests. eg. Firefighters. Job Sample Tests: require the applicant to perform tasks that are actually a part of the work required on the job. Substance Abuse Testing (drug and alcohol): while random drug testing is not allowed, a drug test can be conducted if it is job-related and affects the safety of the job. Reference checking: -effective question to ask past employers: “would you rehire this employee?” -can obtain valuable information about an applicant's character and habits. -Inadequate reference checking can contribute to high turnover, employee theft and white-collar crime. LECTURE 2 NOTES Google Video  Aculture where people can build things, achieve  Attracting the best possible employees and making work irresistible (fun, gyms, massages, food)  Expensive benefits, for employees to work all the time: keep your attention off of mundane things  Culture created in 2008  Casual wardrobe; Social, double offices  20,000 bright minds creating a variety of products: a phenomenon  “Most successful company in the world”: extraordinary profits (4 billion in 2008) as well as growth Search engine optimization – Google ranks every site in terms of its importance (page  rank) Simplicity, uncluttered clean   Fast, clean, easy experience  Plain blank look which proved to be an innovation  2/3 of internet searches done every day are done by Google  Employees who have been with the company since the very start becoming integral members of the organizational structure: Marisa Meyers (VP) (Keeper of Google’s look, branding) Yahoo had the opportunity to buy Google. Recently Yahoo hired Marisa Meyers as their CEO – gained access to her competitive knowledge Google holds unique cultural aspects – physical and cultural that reflect the geographical and demographic area in which they are operating Unique in the way they treat culture and express their dedication and motivation for their employees to be productive and innovative Does not represent the norm, environments Exceptional in how they treat employees Planning -Making decisions about what is important to our business, in line with strategic goals Ex: Driving somewhere without knowing where we are going -The workforce is changing dramatically – older workforce over 55 that cannot retire yet (fewer people to replace this section of the industry, economic reasons relating to saving for retirement, jobs being exported, labour shortages, working at higher capacity) LECTURE 2 NOTES -Idea of measurement of forecasting to take in resources outside of the first and making an assessment for the demand of labour -Looking at this situation internally to determine if we can meet this demand (ex sector growing or not) -What do we need in staffing to make our dreams possible -Develop a solution (ex: this amount of people with this must training) -Eliminate gaps by action plans, can include an oversupply. Labour has a cost Attrition – forced retirement, optional and attractive retirement package, restructuring by clearing out a layer of management -Getting rid of people in a positive way, finding that right balance between staff and the cost of that staff -Short term or temporary staff, extending employee extra-benefits, most expensive solution is to hire new long-term employees (not necessarily the first choice by companies, choose part-time because they cannot afford to have long-term ones) Sophisticated HR approaches to dramatic shifts in compositions of the labour force require that managers become more involved -Lack of planning can create financial and non-financing hardship including company unable to reach sales projections or restructuring (increase responsibility to certain employees, demotivates staff -Companies that get this balance right Culture: similar to sociocultural, beliefs, society that works there, a type and group of people that takes a life of its own Positive culture like at Google, where people are comfortable at their workplace and are chosen for a reason Dress code, if you believe a job should be formal you would not be a fit at Google Criticisms of Google model: refers to themselves as “geeks”, biased culture relating to universities or status as an engineer, culture is not in touch with the real world as they are so focused on their product, products that are marketed for their market and not necessarily the whole market, must look outside Recruitment: Bringing new people in -Realism of salary demands, academic achievement, persona initiative, ability to get along with other people, career goals, concerns for society and benefits, personal experience, extracurricular, oral and written expression, self-motivated (leadership) -Companies looking for employees that represent who they really are LECTURE 2 NOTES -Planning – researching and understanding what is out there -Getting individual job information – activities, objectives for the job (job description) -What exactly the employee is gong to do, what they are directly involved with -Expectations -Problem solving, decision process being overtaken -Engineers hiring at Google -Essentially you become code, database, sent around to a person in a company that you are closely fitted to (even same school) -That person will interview you -Tracking system- point by point basis -Internal references -To receive an understanding of their person, coincide with the description of the job Positive environment to positive results Vision – communicate it, offers a concrete idea of where the team is going Foster trust- actions and world, trustworthy, built on integrity Communication – make or break, open-door policy Be creative- encourage creativity, ideas are generated and sometimes better processes are created Focused goals- steps in order to reach the vision, sell it out for the team and ask ideas Growth and development – people typically want to learn to master new challenges, assist your employees in developing their goals and skills Express appreciation – feel valued and recognized Internal recruitment Promotions and rewards for past performance Makes use of people who already know the organization 0- cultivate, leverage that knowledge, perform job better for objectives Motivate other employees- something to aspire to Helps achieve diversity- based on culture Consistency of approaches to activities, philosophy of how to perform business activities, talent already in the industry is continued, vision for being – employees that follow that are extensions of that vision, the way the business operates Limitations: Specialized training is needed, bring in from outside Broad experience is needed, vast knowledge comes with job experience LECTURE 2 NOTES New ideas and perspectives to be brought in (myopic vs. non), contribute by making suggestions for change External recruiting Variety of experience, skills from different industries that are required right now How does the competition and customer fit in Agreement of confidentiality from Marisa moving to Google, but she takes her experiences she learned with the company to Yahoo Business-to –business relationship, stakeholders such as accountants, a team with a number of layers who knows your business (shipping agent) Warm market (while cold is people who never knew or had contact with) – people you have already dealt with in your business Disadvantages: More expensive, companies would rather look inside Fact-finding mission, not an interview. Find someone who wants to speak with you and who you would consider has great influence Selection Choosing the right person is critical – the correct skills, correct job, correct time VID: resume, diverse experience with work and life (done interesting things), soft skills (things you cannot put on a resume, such as problem solving or personal skills, Having a strong handshake), basic likeability, research what the company does, who works there, what is the culture (research and knowing about the company and who you are interviewing with), work ethic (show you will work hard, jobs, internships, products, take initiative and have willingness) Figure 4.3 Screening – different ways to selecting the core group that will help choose who we will hire Prospective employers looking at Facebook, social media before hiring Another resume, portrait of a potential hire, representing you and your values Equal weight to every candidates information – opportunity to discrimination not based on skill- set Job requirements Organizational culture, role and responsibilities to
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