PSY 105 Chapter Notes - Chapter 1: Organizational Culture

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17 Apr 2012
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HRM Chapter 1 the strategic role of HRM
Management of people in organizations
Responsible for ensureing the organization attracts, retains and engages the divere
talent required to meet operational and performance commitments made to
customers and shareholders
Human capital: the knowledge, education, training, skills and expertise of an
organizations workforce
Strong HRM is driving company performance
Two categories
Operational/administrative: hire & maintain employees and manage employee
separations. HR staff = administrative experts and employee champions
Strategic: focused on ensuring that the organization is staffed with the most
effective human capital to achieve its strategic goals. HR Staff – strategic partners
and change agents
Operational Responsibilities
analyzing jobs
planning future workforce requirements
selecting employees
orienting and training employees
managing compensation and reward plans
communicating with employees (including counselling and disciplining)
more of these are being outsourced so HR professionals can focus on strategy
Strategic Responsibilities:
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
More HR professionals are spending their times to help organization achieve its
strategic objectives
More involved in both formulating and implementing organizational strategy
Ie. Senior positions achieve top performance ratings but second level executives
who will be successors do not match this performance level HR FIXES
Role in formulating strategy environmental scanning: identifying and
analyzing external opportunities and threats that may be crucial to the organizations
give competitive intelligence that may be useful as company makes strategic
plans (successful plan being used by a competitor, labour shortages etc)
INTERNAL strengths and weaknesses?
Role in executing strategies:
Biggests strategic contribution
Ie. Execution of downsizing and restructuring strategies through establishing
training and retraining programs
Expected to be change agents leading organization and its employees through
organizations change
flatten the pyramid, empower employees, and organizing around teams
help lower labour costs reduce turnover, absenteeism and rate of incidence
of occupational illness and injuries
employee engagement: emotional and intellectual involvement of employees
in their work, such as intensity and focus employees go beyond what is
expected, share and understand the goals of the organization strong positive
relationship between engagements nad organizational performance
Measuring the Value of HR: Metrics
the use of statistics/ metrics to measure the activities and results of HR are quite
todays measures need to reflect the quality of people and the effectiveness of HRM
provide info that can be linked to organizational outcomes ie. Productivity, service
quality, sales, market share etc.
balanced scorecard system: a measurement system that translates and
organizations strategy into a comprehensive set of performance measures
includes financial measures results of action already taken
operational measures of organizational,business unit or department success that will
drive future performance
balances long-term and short term actions and balances measures of success
relating to financial results, customers, internal business processes and human
capital management
Economic conditions
affect supply & demand # & types of employees required AND employers
ability to pay wages and provide benefits
healthy economy = demand increases hire more workers unemployment rate
falls competition for qualified employees increases more importance to
training and retention strategies
productivity: ratio of an organizations outputs (G&S) to its inputs (people, capital,
energy, materials)
primary sector: agriculture, fishing etc.
secondary: manufacturing and construction
tertiary/service sector: public administration, personal and business services,
finance, trade, public, utilities and transportations/communications
tertiary = dominant sector77% direct employee customer contact important
to effectively manage and motivate human resources
Workforce Issues
increase work force diversity
visible and ethnic minorities, women, aboriginal population, persons with
Generational differences:
traditionalists: senior group born before 1946; grew up in hard era (World
War); tend to be quiet, shy, loyal, self sacrificing; many have retired
baby boomers: born between 1946-1964; LARGEST group in workforce; tend
to be career focused and workaholics driven to succeed; aging and approaching
Sandwich generation: look after young generation and take care of older ones;
employers provide benefits ie. On site day care
Generation X: 1965-1980 ; baby busters. Divorce raters skyrocketed while
growing up; first technologically literate generation; independent and believe that
security comes from transferability of skills; provide out of the box thinking
Generation Y: 1965-1980 ; children of baby boomers; beginning to enter
workforce tend to be impatient and action orientation, change jobs frequently, new
approaches for retaining required.