BUS 381 Chapter Notes - Chapter 1: Balanced Scorecard, Performance Appraisal, Baby Boomers

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Published on 14 Apr 2013
School
Simon Fraser University
Department
Business Administration
Course
BUS 381
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CHAPTER ONE: The Strategic Role of Human Resources Management
The Strategic Role of Human Resources Management
- Human Resources Management: Management of people in organizations.
- Responsible for ensuring organization attracts, retains, and engages diverse talent
required to meet operational and performance commitments made to customers and
shareholders
- Ensures organization finds and hires best individuals available, develops their talent,
creates a productive work environment, and continually builds and monitors these
human assets
- Involves formulating and implementing HRM systems (recruitment, performance
appraisal, compensation) aligned with organization’s strategy to ensure workforce has
competencies and behavior required to achieve organization strategic objectives.
Crucial that HR strategy is aligned with company’s strategic plan
- Human Capital: the knowledge, education, training, skills, and expertise of an organization’s
workforce
Human Resource Management Responsibilities
- 2 categories
- Operational: HR professionals hire and maintain employees and then manage employee
separations
HR staff needs to be administrative experts and employee champions
- Strategic: focused on ensuring organization is staffed with most effective human capital
to achieve strategic goal
HR staff needs to be strategic partners and change agents
- Operational Responsibilities
- Line managers have responsibilities related to employees as they move through the
stage of human-capital life cycle:
selection and assimilation into organization, development of capabilities while
working in organization, and transition out of the organization
- Responsibilities: analyzing jobs, planning future workforce requirements, selecting
employees, orienting and training employees, managing compensation and reward
plans, communicating with employees (counseling, disciplining), ensuring fair treatment,
appraising performance, ensuring employee health and safety, managing labour
relations and relationships with unions, handling complaints and grievances, and
ensuring compliance with legislation affecting workplace
- Outsourcing operational HR activities common, so that HR staff in organization can
focus on strategic HRM
- Strategic Responsibilities
- Strategy: company’s plan for how it will balance its internal strengths and weaknesses
with external opportunities and threats in order to maintain competitive advantage
- One of today’s most critical strategic business and HR challenge: building leadership
pipeline
Role in Formulating Strategy
- Environmental scanning: identifying and analyzing external opportunities and threats
that may be crucial to the organization’s success
- HR professionals add value to strategy formulation process by supplying information
regarding company’s internal strengths and weaknesses
Role in Executing Strategy
- Strategy execution is the area where HR makes the biggest strategic contribution
- Making enterprise more responsive to product/service innovations and technological
change is objective of many management strategies
- Ways that HRM can help organization respond quickly to customers’ needs and
competitors’ challenges: flattening the pyramid, empowering employees, and organizing
around teams
- Play a role in lowering labour costs strategies to reduce turnover, absenteeism, rate
of incidence of occupational illnesses and injuries
- Engaged employees drive desired organizational outcomes; strong positive relationship
between engagement and organizational performance
Measuring the Value of HR: Metrics
- Metrics: statistics used to measure activities and results
- Traditional operational measures: amount of activitiy and costs of the HR function
(number of job candidates interviews per month, cost per hire)
- Today’s measures reflect quality of people, effectiveness of HRM initiatives that build
workforce capability
- Balanced scorecard: measurement system that translates an organization’s strategy
into a comprehensive set of performance measures
Includes financial measures that tell results of actions already taken
Complements financial measures with operational measures of organizational,
business unit, 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 process, human capital
managemen
Environmental Influences on HRM
- External and internal environmental influences that are driving the strategic focus of HRM
External Environment Influences
- 5 major influences: economic conditions, labour market issues, government, technology,
globalization
- Economic Conditions
- Affect supply and demand for products and services
- Productivity : ratio of an organizations outputs (good and services) to its inputs (people,
capital, energy, and materials)
- Primary sector: Agriculture, fishing and trapping, forestry, mining 4%
- Secondary sector: Manufacturing and construction 19%
- Tertiary or service sector: Public administration, personal and business services, finance,
trade, public utilities, and transportation/communications 77%
- Workforce Issues
- Increasing workforce diversity
Diversity: attributes including demographic factors, values, cultural norms,
sexual orientation, etc
- Generational differences:
Traditionalists: born before 1946, grew up during WWII and Great Depression.
Tend to be quiet, loyal, self-sacrificing
Baby Boomers: born between 1946 & 1964, largest group in workforce. Grew up
in time of major optimism and change (moon landing, women’s movement).
Tend to be career-focused workaholics who experienced a lot of competition in
workplace, driven to succeed. Now aging and approaching retirement
Sandwich Generation: individuals with responsibility for rearing young
dependents as well as for assisting elderly relatives who are no longer capable
of functioning totally independently.
Generation X: smaller group tan Boomers, first technology-literate generation.
Tend to be independent and believe that security comes from transferability of
skills rather than corporate loyalty. Can provide “out-of-the-box” thinking that
can help companies deal with uncertainty. Flexible work-life arrangements and
continuous skill development valued by this generation
Generation Y: reputation for being over-involved parents. Techno-savvy,
comfortable with diversity, eager to make contribution, but also impatient and
action-oriented. Expect to change jobs frequently. New approaches to work and
career management required to keep group challenged
- Demographic Issues: Boomers beginning to retire, significantly fewer workers in
Generation X. Will create labour shortage because a large, experienced group is leaving
labour force and there will not be enough workers behind them to take over jobs. As
Gen Y are fully absorbed into labour force and gain experience, shortage will dissipate
- Employers have to compete for scarce Gen X talent and incoming Gen Y workers

Document Summary

Chapter one: the strategic role of human resources management. Human resources management: management of people in organizations. Responsible for ensuring organization attracts, retains, and engages diverse talent required to meet operational and performance commitments made to customers and shareholders. Ensures organization finds and hires best individuals available, develops their talent, creates a productive work environment, and continually builds and monitors these human assets. Involves formulating and implementing hrm systems (recruitment, performance appraisal, compensation) aligned with organization"s strategy to ensure workforce has competencies and behavior required to achieve organization strategic objectives. Crucial that hr strategy is aligned with company"s strategic plan. Human capital: the knowledge, education, training, skills, and expertise of an organization"s workforce. Operational: hr professionals hire and maintain employees and then manage employee separations. Hr staff needs to be administrative experts and employee champions. Strategic: focused on ensuring organization is staffed with most effective human capital to achieve strategic goal.