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Midterm

First Mid-term Notes

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Department
Administrative Studies
Course
ADMS 2600
Professor
Wai Ming Ho
Semester
Fall

Description
Managing Human Resources Chapter 1 – Human Resource Management: The process of managing human talent to achieve an organization's objectives – Human Capital: The knowledge, skills and capabilities of individuals that have economic value to an organization – The real strategic advantage for an organizations is high quality HRM system (selection and training) – To build human capital in organizations managers must continue to develop superior knowledge, skills, and experience withing their workforces and retain and promote top performers Competitive Challenges in the work force – Responding strategically to changes in the marketplace – Given the pace of commerce, organizations can rarely stand still. Competition is global and innovation is continuous, being able to adapt has become the key to survival – HR Managers and Business Strategy – Executives know that HR professionals can help them improve not only a company's bottom line by streamlining employment costs but also the top line by forecasting labour trends, designing new way to acquire and utilize employees, measuring effectiveness and helping managers enter new markets – Six Sigma: Aset of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement – Reengineering: The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed – Downsizing: The planned elimination of jobs – Outsourcing: Hiring someone outside the company to perform business processes that were previously done within the firm – Change Management: Change management is a systematic way of bringing about and managing both organizational and individual changes. This requires executives and managers to envision the future, communicate this vision to employees, set clear expectations for performance, and develop the capability to execute by reorganizing people and reallocating assets – Link the change to the business strategy – Show how the change creates quantifiable benefits – Engage key employees, customers, and their suppliers early when making a change – Make an investment in implementing and sustaining change – Reactive Change: Change that occurs after external forces have already affected performance – Proactive Change: Change initiated to take advantage of targeted opportunities – Competing, Recruiting, and Staffing Globally – When managers say going global issues arise that HR deals with such as different cultures, employment laws and business practices. – Responsible for implementing training programs globally and enhancing managers understanding of other cultures and practices – Setting andAchieving Corporate Social Responsibility – Corporate Social Responsibility: The responsibility of the firm to act in the best interests of the people and communities affected by its activities – Companies are learning that being socially responsible both domestically and abroad can avoid law suits and help bring in higher earnings – Sustainability is closely related to corporate social responsibility Advancing HRM with Technology – Collaborative Software: Allows workers anywhere anytime to interface and share information with one another electronically – Companies are hiring firms such as Social Intelligence, which combs through Facebook, LinkedIn, Twitter etc. To create reports about the “real you” – Knowledge workers: Workers whose responsibilities goes beyond the physical execution of work to include planning, decision making, and problem solving – HRIS has been a potent weapon for lowering administrative costs, increasing productivity, speeding up response times, improving decision making, and tracking a company's talent – Impact 1: Operational (automating routine activities, alleviating burdens, reducing costs, Self service systems, automated pay rolls etc) – Impact 2: Relational (connecting people and HR data, can search for talent internal and external by skill set) – Impact 3: Transformational (changing the way HR processes are designed and executed, set development goals of it's employees and see how well they are meeting them, helps create a unified business) – The best way to identify what HRIS is best suited for you is to evaluate your biggest “headaches” or the most time consuming tasks and choose an application that can have the strongest impact on the firm's financial measures – HR managers should then calculate the costs based on average salaries or HR hours that could be saved by using an HRIS along with the hours of increased productivity – Upside to an HRIS is that HR personnel can focus more effectively on the firm's strategic direction instead of routine tasks – Another upside is the systems ability to share information with departmental managers would have then use that information to create better production practices and cost control solution – HR managers are now requiring their application providers to provide them with software to meet certain goals, including lowering a company's total spending on employee health care and improving customer service – P&G's system contains 135,000 employees worldwide for promotion purposes at the country, business category, and regional levels and contains employees' career histories and capabilities, as well as their education, community affiliations, and development need, and tracks the diversity of candidates – Firms do a better job of fostering talent when there is commitment, involvement, and accountability by a company's supervisor's to do rather then have it owned by HR Containing costs while retaining top talent and maximizing profit – Downsizing – Downsizing is no longer being regarded as a short-term fix when times are tough, it is now used as a tool by companies to adjust to globalization, technology and a firm's business direction – Advocates of a no-layoff policy say lay offs may backfire after taking into account hidden costs such as: – Severance and rehiring costs – Accrued vacation and sick-day payouts – Potential law suits from aggrieved workers – Loss of institutional memory and trust in management – Lack of staffers when the economy rebounds – Survivors who are risk averse, paranoid and political – Companies that avoid downsizing say they important benefits from such policies: – Afiercely loyal more productive workforce – Higher customer satisfaction – Readiness to snap back with the economy – Arecruiting edge – Workers who are not afraid to innovate, knowing their jobs are safe – To approach downsizing some companies have made special efforts to reassign and retrain employees for new positions e.x. Rogers – Aphilosophy of employees and assets, as intellectual capital – Furloughing Furloughing: Asituation in which an organization ask or requires employees to take time off for either no pay or reduced pay – Furloughing is creative ways to maintain talent within the company and not losing them to competitors e.x. Cisco, Texas Instruments,Accenture – Furloughing has draw backs like not cutting costs as significantly as downsizing, or employees who are retained have more work and feel resentful and product and service quality suffer as a result of the higher workloads and can also effect a companys recruiting efforts – Outsourcing – Employment relationship between companies and employee has shifted from relationship based to transaction based – Part-time work/contracted work has become very popular – Companies hire accounting firms, advertising firms or law firms to reduce their over head cost – Outsourcing has been spurred on by executives who want to focus their organization's activities on what they do best – Offshoring – Offshoring: The business practice of sending jobs to other countries – Study by Hewitt associates states you can save 40 – 60 percent on labour costs by offshoring – Hidden costs can sometimes chew up financial gains from offshoring including finding foreign vendors, productivity lost during transition, domestic lay off costs, language difficulties, international regulatory challenges and political or economical instability – The key is for top executives, finance departments an offshore firms to work in conjunction with their companies HR departments – Nearshoring: The process of moving jobs cloer to one's home country e.x. Rising labour costs in China are now making it attractive for NorthAmerican firms to offshore to Mexico and CentralAmerica – this can provide firms with a competitive advantage by allowing them to serve there customers faster – Homeshoring is outsourcing jobs to independent contractors who work out of their homes e.x. Call center jobs – HR managers have to work together with firms to minimize problems, define and communicate transition plans, minimize the number of unknowns, and help employees identify their employment options – Employee Leasing – Employee Leasing: The process of dismissing employees who are then hired by a leasing company (which handles all HR related activities) and contracting with that company to lease back the employees – PEO' take over the management of a smaller company's HR tasks and becomes a coemployer for a fee – PEO's can provide benefits that smaller companies cannot afford – PEO's offer employees flextime, job sharing, part-time employment, consulting arrangements, seasonal work and on call work – The value of employee leasing lies in sharing employment cost's with the PEO while maintaining a working relationship with it's employee's – Productivity Enhancement – Downsizing, Furloughing, outsourcing, employee leasing can be disappointing if managers use them as simple solutions to complex problems – Employee productivity is the result of a combination of employees abilities, motivation, working environment and the technology they use to work – Many companies are finding that providing work flexibility is a good way to improve the productivity and motivation of valuable employee's especially when giving them larger benefit packages is not an option Responding to the Demographic and diversity Challenges of the workforce – Demographic changes – Affect the work force of the employer – The Diversity/Immigration Challenge – Minorities are increasing relative to the population, and lack of diversity could undercut competitiveness – It is vital to increase their efforts to recruit and train a more diverse workforce as they realise immigrants are not only critical to their survival but also allow them to better attract and serve a larger customer base – Age distribution of Employee's – 5 million people are 65 and over and expected to double over 10 years (Canada's total population 35 million as of 2012) – Companies have taken steps to attract older workers due to the giant gap loss of workers that will incur because of the number of baby boomers reaching retirement age – When you think about the savings you have in training costs, transition costs and recruitment costs you save alot more on that then for the over 50 workers – Generation Y technology savy people are experiencing greater competition for advancement from others the same age – Generation X babies saw their parents get downsized so they value job security but are unlikely to be wed to one employer. They prefer challenging work then repetitive work and dislike supervisor's looking over their shoulders – How to mesh all the generations? – Gender distribution of the workforce – Women make up nearly half the workforce of Canada – The economy and job market are critical to HR operations – HR analyzes how visible minorities and women have increased there share of the labour market and how each group is represented in fast-growing and slow-growing occupations – Harnessing's a company's talent means being aware of characteristics common to emplyees while also managing these employees as individuals – It's not only tolerating or accommodating differences but also being able to use these differences to the organizations advantage – HR has to ask themselves What is it about experiences, mindsets, and talents or different groups of people that can be utilized in a strategic way – Adapting to educational and cultural shifts affecting the workforce – Education of the Workforce – As a result of skill gaps, businesses now spend millions of dollars on basic skills training for their employees – Cultural Changes – Culture is undergoing continual change and HR policies and procedures therefore must be adjusted to cope with this change – Employee Rights – Government has provided laws that have radically changed the rules of management of employees by granting them many specific rights – Concern for Privacy – PIPEDAa federal law that deals with the collection, use and disclosure of persona information – The Changing Nature of the Job – The number of self-employed is also increasing, accounting for 15 percent of employment and 75 percent of new job growth – non-standard jobs represent 30 percent of all employment – ChangingAttitudes toward Work – Many employees believe satisfaction in life comes from balancing there work and personal lives – People are also seeking ways of living that are less complicated but more meaningful – HRM has become more complex than when employees were concerned primarily with economic survival – Balancing Work and Family – Work organizations are finding it advantageous to provide employees with more family-friendly options (includes, flexible schedules, part-time work, job sharing, pregnancy leave, parental leave, assistance with family problems etc) – Some employers are using the four-day work weeks to lessen employee's commuting costs – Companies with programs like these calculate that accommodating personal needs is a great way of attracting top calibre talent – Families friendly companies have to balance the benefits they provide to families versus their single employees – Childless employees harbour resentment for employees with children who take advantage of these programs The Partnership of Line Managers And Human Resources – Line Managers: Non-HR managers who are responsible for overseeing the work of other employees – Successful organizations combine the experience of Line Managers and HR specialists to develop and utilize the talents of employees to their greatest potential – Responsibilities of the HR Manager – Advice and Counsel – serve as in-house consultant to supervisor's execs etc. – Service – Recruiting, Selecting, training, testing, planning. Managers must believe HR staff is there to improve productivity and requires skill in communication – Policy formulation and implementation – HR mangers generally propose and draft new policy revisions to address recurring problems or to prevent anticipated problems. HR managers may monitor performance of line departments and other staff departments to ensure conformity – Employee advocacy – Listening to employee's needs and advocating and representing their needs to managers to ensure alignment of interests between managers and employees – Competencies of the HR Manager – Business Mastery – HR professionals need to know the business of their organization thorughly which requires an understanding economically and financially of their firm and external relations with customers – HR Mastery – HR Professionals should develop expert knowledge in the areas of staffing, development, appraisals, rewards, team building and communication (behavioural science experts) – Change Mastery – Must be able to manage change processes so that the firms HR activities align with the companies business needs (interpersonal skills, innovation creativity etc) – Personal Credibility – Must establish personal credibility internally and externally and are forged by developing personal relationships Chapter 2 – Strategic Planning: Procedures for making decisions about the organization's long-term goals and strategies – Human Resource Planning (HRP): The process of anticipating and providing for the movement of people into, within, and out of an organization – Strategic Human Resources Planning (SHRP): The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Strategic Planning And HR Planning: Linking the Process – HRPrelates to Strategic planning in two ways one being strategic formulation (whether a firm has the types of number of people possible to implement strategy) and the other strategic implementation (Resource allocation, structure and human capital) STEP1: MISSION, VISION, VALUES – Mission statement: purpose of the organization – Strategic vision: Long-term objective of the company and its strategic intent – Core Values: The strong enduring beliefs and principles that the company uses as a foundation for it's decisions STEP2: ENVIRONMENTALANAYLYSIS – Environmental Scanning: Systemic monitoring of the major external forces – Economic – Industry – Technological – Government – Social – Demographic – Competitive Environment – Five Forces: – Customers (action and attitudes of employees - customer service), – New Entrants – New entrants can change the rules of the game which could fall on labour costs, productivity, skills required and work design e.x. West Jet – Substitutes – Firms may need to adjust their employee skills bases to keep up with changes in the industry – Rival Firms - Toys R' Us example - Had to use customer service and expertise to stay in competition with Walmart but did they have the number or kind of employees required to compete this way (staffing training, performance management, compensation aligned with this strategy) – Suppliers – Labour function directly affects strategic planning and HRP External Suppliers – Factors that effect Labour Supply: Demographic changes in the workforce, Population, National and regional economics, education level of the workforce, demand for specific employee skills, population mobility, and governmental policies – Labour force trends illustrate an importance of monitoring demographic changes as a part of environmental scanning – Statistics Canada and Human Resources Development Canada publish many studies on labour force as does provincial governments – Offshore consulting firms can be a good course of labour trends in other countries such as IBM or Accenture – Radical labour trend changes affect operational issues (Changes in labour supply directly affect hiring plans e.x. Retiring baby boomers as implication for replacement and recruitment policies) and strategic issues (Labour supply can limit the number of strategies available to a firm e.x. High-growth firm looking to expand) ; HRP has to focus on both STEP3: INTERNAL ANALYSIS – The advantage of physical assets are being supplanted by intangible assets – The Three C's: Capabilities, Composition, and Culture – Capabilities: People as a Strategic Resource – Key to a firm's success is based on establishing a set of core capabilities – Core Capabilities: Bundles of people, processes and systems that distinguish itself an organization from it's competitors and deliver value to customers e.x. Mcdonald's core capabilities in management and efficiency – Core capabilities tend to be limited in number but provide long-term basis for technology innovation, product development, and service delivery – People are a key resource that underlies a firm's core capabilities it's why number of companies are designing more tailored plans for employee's – Asustained competition advantage will achieved by organizations if they are able to meet the following criteria: – The resources must be valuable: Companies are using various methods to motivate and spark employee creativity – The resources must be rare: People are a source of competitive advantage when there knowledge, skills, and abilities are not equally available to competitors. e.x. Companies foster their best talents through training programs – The resources must be difficult to imitate: People are a source of competitive advantage when there work cannot be duplicated e.x. Disney, SouthwestAirlines and Starbucks are known for creating a unique culture that gets the most from employees (through teamwork) – The resources must be organized: People are a source of competitive advantage when their talents can be combined and deployed to work on new assignments at a moments notice – Composition: The Human CapitalArchitecture – Composition is that managers need to determine whether people are available, internally or externally, to execute an organization's strategy – Employment relationships and HR practices differ depending on where the employees land in the matrix – Strategic Knowledge workers: This group of employees tends to have a unique skills that are directly related to the strategic plan of an organization and are hard to replace. Companies tend to make long-term commitments to these employees, investing in their continuous training and development – Core Employees: This group has quite valuable skills but are not quite unique or difficult to replace. Because these skills are quite transferable and are easily taken to another firm managers frequently tend to invest less time and resources into these employees and focus on paying them for the short term performance achievements – Supporting Workers: These employees have skills that are of less strategic value and are contracted from external agencies. Employment relationships tend to be more transaction based – Partners and Complimentary Skills: These employees have skills that are unique but not directly related to the companies core strategy (lawyers consultants etc). Due to there skills being unique companies tend to establish long term alliances and nurture an on going relationship – Culture: Values,Assumptions, Beliefs, and Expectations (VABEs) – CulturalAudits – Audits of the culture and quality of work life in an organization – consist of surveys and interviews to measure how employees feel on a number of critical issues – Leaders who target VABEs are more effective then those who simply focus on workers behaviour or thought processes – Knowing that corporate culture is a competitive advantage, firms have began to engage in value based hiring – Value based hiring – The process of outlining the behaviours that exemplify a firm's corporate culture and then hiring people who are a fit for them Forecasting:Acritical element of planning – Forcasting poorly or not for casting e.x. Job vancies left unfilled lead to loss in effiency, time and sales | Unnecessary job lay offs and their implements on the mind set of employees and their career opportunities – Good Forecasting by managers help them ensure that they have the right number and right kinds of people in the right places at the right times. – ForecastingAFirms Demand for Employees – An organizations demands will ultimately determine which technique is used – QuantitativeApproach: An approach that uses math or statistics techniques. e.x. Trend analysis a quantitative approach to forecasting labour demand based on an organizational index such as sales. – 1) Select a business factor e.x. Sales – 2) Plot a historical trend of the business factor in relation to employees and the ratio of the two will provide a labour productivity ratio – 3) Compute the productivty ratio for at least the past five
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