BU354 - Final Exam - Textbook Chapter Notes

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Published on 27 Nov 2012
Chapter 1: The Strategic Role of Human Resource Management
Human Resource Management (HRM) is the management of people in organizations to drive successful organizational
performance and achievement of the organization‘s strategic goals. HR professionals must manage the workforce by
attracting, retaining, and engaging talent.
Human Capital is the knowledge, education, training, skills, and expertise of an organization‘s workforce.
*Effective HR practices are related to better organizational performance.
Human Resource Management Responsibilities
Operational Responsibilities are where HR professionals hire and maintain employees and also manage
o Outsourcing is the practice of contracting with outside vendors to handle specified functions on a
permanent basis.
o These services include:
o analyzing jobs
o planning future workforce requirements
o selecting employees
o orienting and training employees
o managing compensation and reward plans
o communicating with employees (including counseling and disciplining)
Strategic Responsibilities is where HR professionals are focused on ensuring that the organization is staffed
with the most effective human capital to achieve its strategic goals.
o Strategy the company‘s plan for how it will balance its internal strengths and weaknesses with external
opportunities and threats in order to maintain a competitive advantage
o increasingly, the HR department is being viewed as an equal partner in strategic planning process
o HR specialists are expected to be change agents
o Role in Formulating Strategy
Environmental Scanning involves identifying and analyzing external opportunities and threats
that may be crucial to the organization‘s success.
*Details regarding a successful incentive plan being used by a competitor, impending labour shortages, and
information about pending legislative changes are examples.
o Role in Executing Strategy
Strategy execution is typically the area where HR makes the biggest strategic contribution (i.e.
downsizing, flattening the hierarchy, redesigning jobs, etc.)
HR Professionals and line managers have a significant impact on employee turnover,
engagement and engagement so it is important that there is employee recognition,
developmental programs, and career-oriented performance appraisals.
o Measuring the Value of HR: Metrics
Need metrics to measure the effectiveness of HRM procedures by measuring results
Balanced Scorecard is a measurement system that translates an organization‘s strategy
into a comprehensive set of performance measures.
Environmental Influences on HRM
Must monitor the environment on an ongoing basis, assess the impact of any changes, and be proactive in responding to
External Environmental Influences
Economic Conditions: affect demand and supply for products and services and in turn has an effect on the
numbers and types of employees required as well as a company‘s ability to pay for wages or benefits.
o Productivity the ratio of an organization‘s output (goods and services) to its inputs (people, capital,
energy, and materials)
o Must be able to produce more outputs with the same or lesser input levels as productivity rates drop in
i. Employment Levels
ii. Productivity Levels
iii. Growth of the service sector
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o Primary sector agriculture, fishing and trapping, forestry, and mining; represent 4% of jobs
o Secondary sector manufacturing and construction; represent 19% of jobs
o Tertiary or service sector public administrating, personal and business services, finance, trade, public
utilities, and transportation/communications; represents 77% of jobs
Workforce Issues
o Increasing workforce diversity by age, race, gender, sexual orientation, disabilities, generational and
demographic differences as there will be less workers taking over the jobs of the baby boomers;
education and functional illiteracy; non-standard contingent workers.
Technology: lines between family and work are blurred; concerns about data, accuracy and privacy arise
Government: considerable variation between jurisdictions exist; EI and CPP apply to all jurisdictions; ensuring
policies and practices comply with new and changing laws
Globalization: refers to the emergence of a single global market for most products and services; HR
professionals need to familiarize themselves with the employment legislations and manage ethical dilemmas;
firms extend business operations abroad; increased international competition
Environmental Concerns: interest in environmental issues is motivating companies to be accountable for their
o sustainability
o climate change
o global warming
o pollution and carbon footprint
o extinction of wildlife species
o ecosystem fragility
o other related issues are increasingly important to people around the world
Internal Environmental Influences
Organizational Culture: the core values, beliefs, and assumptions that are widely shared by members of an
organization; has a great impact on employer branding, recruitment, retention, and productivity.
What is the purpose of OC?
o Communicating what the organization ―believes in‖ and ―stands for‖
o Providing employees with a sense of direction and expected behaviour (norms)
o Shaping employees‘ attitudes about themselves, the organization, and their roles
o Creating a sense of identity, orderliness, and consistency
o Fostering employee loyalty and commitment
Organizational Climate: refers to the prevailing atmosphere that exists in an organization and its impact on
employees. Influenced by management leadership style, HR policies, and amount and style of organizational
Empowerment: refers to providing workers with the skills and authority to make decisions that would traditionally
be made by managers.
A Brief History of HRM (not covering this)
Scientific Management: Concern for Production is the process of ―scientifically‖ analyzing manufacturing
processes, reducing production costs, and compensating employees based on performance theorized by
Frederick Taylor.
Human Relations Movement: Concern for People is a management philosophy based on the belief that the
attitudes and feelings of workers are important and deserve more attention; that the physical and social aspects of
the workplace have equal importance based on the Hawthorne Studies.
The Human Resources Movement: Concern for People and Productivity is a management philosophy
focusing on concern for people and productivity. Phase 1 HRM focused on hiring and firing, payroll, and
administering benefits. Phase 2 unionization, orientation, performance appraisals, and employee relations.
Phase 3 penalties emerged for failing to meet employment legislations. Phase 4 making strategic moves to
secure talent and retaining human capital.
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Growing Professionalism in HRM
Canadian Council of Human Resources Associations (CCHRA)
Certified Human Resources Professional (CHRP)
o common body of knowledge
o certification of members (CHRP)
o self-regulation
o code of ethics, social responsibility
The professionalization of HRM has created the need for a uniform code of ethics, as agreement to abide by the
code of ethics is one of the requirements of maintaining professional status. Codes do not tell employees what to
do, it is simply a guide for employees, and they use their own judgement in taking a course of action.
Social Responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacities, to
serve or protect the interests of groups other than themselves.
*Trends in HR:
Outsourcing HR and payroll functions
Talent shortage for promotion into senior positions, so HR is being taken into consideration when looking at strategy
Increasing globalization, increased competition
Women in the workforce
Chapter 2: The Changing Legal Emphasis
The Legal Framework for Employment Law in Canada
Companies with employees in different provinces/territories must monitor the legislations in each of those jurisdictions and
remain current as legislation changes. 14 jurisdictions: 10 provinces; 3 territories; Canada as a whole.
constitutional law - Charter of Rights and Freedoms
legislated Acts of Parliament - Income Tax Act…..
regulations (for legislated Acts) - rules to aid interpretation of laws
common law - judicial precedents
contract law - collective agreements/employment contracts
provincial/territorial employment laws govern 90% of Canadian workers
federal laws govern 10% of workers in federal civil service, Crown corporations and agencies, transportation,
banking and communications
Regulations are legally binding rules established by special regulatory bodies, such as the Ministry of Labour and Human
Rights Commissions, created to enforce compliance with the law and aid in its interpretation.
Employment/Labour Standards Legislation
Are laws present in every Canadian jurisdiction that establish minimum employee entitlements and set a limit on
the maximum number of hours of work permitted per day or week
Establish minimum employee entitlements pertaining to:
o wages, paid holidays and vacation
o maternity, parenting and adoption leaves
o bereavement and compassionate care leave
o termination notice and overtime pay
Set limit on maximum number of work hours permitted per day or week
Principle of equal pay for equal work
Equal Pay for Equal Work specifies that an employer cannot pay male and female employees differently if they
are performing the same or substantially similar work.
Legislation Protecting Human Rights
1. The Charter of Rights and Freedoms is a federal law enacted in 1982 that guarantees fundamental freedoms
to all Canadians. It applies to all levels of government and takes precedence over all other laws.
Guarantees fundamental freedoms to all Canadians
Equality rights - Section 15 guarantees the right to equal protection and equal benefit of the law without
discrimination (in particular without discrimination based on race, national or ethnic origin, colour, religion,
sex, age or mental or physical disability, sexual orientation)
2. Human Rights Legislation
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