Textbook Notes (362,812)
Canada (158,056)
Commerce (379)
COMM 410 (22)

CH1 - The Strategic Role of HRM.doc

8 Pages
Unlock Document

University of British Columbia
COMM 410
Tom Knight

The Strategic Role of Human Resources Management Chapter 1 Variations in Employment Relationship • Before was known as master and servant relationship now it is known as employment at will. • employment relationship is the fact that the employer sets the terms and conditions of employment which are then accepted by employees – the alternative being to look for work elsewhere. Moreover, the employer sets rules of conduct and performance expectations which must be met by employees in order to continue being employed • one sided relationship- master and servant relationship is reasons why employees band together to form unions to engage in collective bargaining with employers to improve working conditions Human Resource Management • focuses aligning workforce management practices with business results • In practice, human resources management involves both managing the workforce in such areas as staffing, compensation and performance management and leading employees in ways that engage, motivate and encourage their development. • Use measurement tools such as the human resources information systems that must be tailor for the workforce needs as well as evaluation of the workforce itself. Strategic Human Resources • One of the most important concepts in the development of "strategic" human resources management is the notion that the people in an organization constitute "human capital" – assets that are at least as important as the physical and financial assets of an enterprise. • Don’t want to see employees as costs or costs of production, since if you buy new technology you will need to hire people to work the machines. • view of employees as assets rather than cost units and, while managing costs associated with employment carefully, view investments in training and education for the workforce as essential rather than optional. • In practice, human resources management is a function shared by "line" or operational managers and "staff" specialists in various aspects of human resources management Why Does HRM matter? • As has been stated, the people who make the products and deliver the services offered by an enterprise are truly the source of value and effectiveness of the organization • it is increasingly important that an employer be known as providing a good place to work in order to attract and retain good workers. 1 INTRODUCTION TO HUMAN RESOURCES MANAGEMENT -goal of HRM is to maximize employees’ contributions in order to achieve optimal productivity and effectiveness while simultaneously attaining individual objectives and societal objectives -value-adding source of competitive advantage -“strategic HR” indicates a role in the strategic planning process -is concern of all managers because meet their goals through the efforts of others -every supervisor and line manager has responsibilities related to a wide range of HRM activities -organizational size and complexity: factors in senior management’s decision to establish an HR department Human Resources Management Responsibilities: -primary role of the HR department is to ensure that the organization’s human resources are utilized effectively and managed in compliance with company policies and procedures, government legislation, and, in unionized settings, collective agreement(s) A) Serving as Consultant and Strategic Change Agent: -consultants to managers of other departments re: executive recruitment, job evaluation, outsourcing, etc. -outsourcing of specific HR functions and payroll enable corporate HR staff to focus on the strategic management of human resources -managing change -up to date information on current trends and new methods of solving problems to help the organization increase its efficiency and effectiveness -studies shown that employees are more committed to their jobs when their participation is valued and encouraged. B) Offering Advise: -familiar with employment legislation, HR policies and procedures, collective agreements, past practices, and the outcome of recent arbitration hearings and court decisions C) Formulating Policies and Procedures: -HR policies and procedures must be compatible with current economic conditions, collective bargaining trends, and applicable employment legislation -put into writing -readily accessible D) Providing Services: -e.g. maintenance of HR records; recruitment, selection, orientation, training, and development; performance management; compensation and benefits administration; employee counselling; and labour relations; and occupational health and safety E) Monitoring to Ensure Legal Compliance: -ensure compliance with employment legislation and with HR policies and procedures -collecting and analyzing recruitment, selection, and promotion data to monitor compliance with human rights and employment equity legislation 2 -assess salary and benefits data -accident investigation and grievance reports -absenteeism and turnover or accident rates STRATEGIC HR: THE IMPACT OF EFFECTIVE HRM PRACTICES ON THE BOTTOM LINE -HRM: asset through return on investment -help the company reach its strategic objectives -goal: seat in management table alongside decision makers -goal will be achieved by quantifying and harmonizing the human capital resources of the organization -HRM: positive effect on the bottom line if properly implemented and accompanied by a supportive company culture and climate -in addition to high-involvement HR practices, a complentary workplace culture and climate is required -characterized by participative decision-making and open communication -numbers: Human Capital Index (HCI) -30 key HR practices  5 categories  (1) recruiting excellence; (2) clear rewards and accountability; (3) collegial and flexible workplace; (4) communications integrity; (5) the imprudent use of resources -QUESTION: HRM drove financial performance or whether successful companies simply had more resources to put into HRM? -new research clearly favours superior human capital management as leading indicator of improved financial outcomes. -HR departments slow to adapt practices to capture and showcase their contribution -time pressures! ENVIRONMENTAL INFLUENCES ON HRM -internal organizational climate, culture, and management practices help shape HR policies  impact on the quality of candidates that ha firm can attract as well as its ability to retain desired workers Internal Environmental Influences: -Impact on its ability to meet objectives: 1) ORGANIZATIONAL CULTURE: purposes  (A) Communicating what the organization “believes in” and “stands for” (B) Providing employees with a sense of direction and expected behaviour (norms) 3 (C) Shaping employees’ attitudes about themselves, the organization, and their roles (D) Creating a sense of identity, orderliness, and consistency (E) Fostering employee loyalty and commitment -culture conveyed through organization’s mission statement, stories, myths, symbols, and ceremonies -positive culture has a positive impact on both retention and recruitment 2) ORGANIZATIONAL CLIMATE: -organizations have personalities -factors: management’s leadership style, HR policies and practices, amount and style of organizational communication -reflected in the level of employee motivation, job satisfaction, performance, and productivity and thus has a direct impact on organizational profits and/or ongoing viability. 3) NEW MANAGEMENT PRACTICES: -e.g. flatter organizational forms are replacing the traditional bureaucratic structure -boundaryless organization structures  relationships (typically joint ventures) are formed with customers, suppliers, and/or competitors to pool resources for mutual benefit or encourage co-operation in an uncertain environment External Environmental Influences: -to be effective, must monitor the environment on an ongoing basis; assess the impact of any changes; and be proactive A) Labour Market Issues: 1. Economic Conditions: -affect supply and demand -impact on the labour force  number and types of employees & wages -productivity improvement is essential for long-term success -Canada’s relatively low productivity growth rate and high labour costs are of grave concern, since competition with foreign companies has become increasingly important -must constantly monitor and track trends affecting supply and demand of human resources -labour market conditions should also be monitored 2. The Service Sector and the Concept of “Human Capital”: -employment trends changes -primary vs. secondary v
More Less

Related notes for COMM 410

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.