Human Resources Chapter 1 Notes.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
Kevin Thompson

Chapter 1 notes Introduction -the world is in the middle of its most severe economic downturn since the Great Depression almost 80 yrs ago -> this time period is now being called “the Great Recession” (global economic contraction) 1. What is human resources management? HRM: an integrated set of processes, programs, and systems in an organization that focuses on the effective deployment and development of its employees Employee: contract workers, people from other organizations who are working on a project, etc Human resources: implies that ppl are as important to the success of any biz as other resources are, such as money, materials, machinery, and info 2. What are the HRM processes and activities? 1. Organizational, work, job design -determining what tasks need to be done, in what order, w/ what skills, and how individual tasks fit together in work units 2. Planning -ensuring that people in the organization are the right ppl w/ the right skills at the right time in the right place 3. Recruitment and selection -sourcing, attracting, hiring the ppl w/ the necessary skills and background 4. Training and development -providing the resources to assist employees in developing the necessary knowledge and skills to do their job today and in the future 5. Performance mngt -ensuring that there are appropriate mechanisms in place to provide feedback to employees on a regular basis 6. Compensation (pay and benefits) -developing and administering pay and benefits programs that will attract and retain employees 7. Occupational health and safety -ensuring that the safety and health of employees are maintained 8. Employee and labour relations -ensuring that there are +ve and constructive relations b/w the employees and their supervisors or managers and/or union representatives HRIS: human resource information (and mngt) systems 3. Why study HRM? -the line manager and supervisor is the key link b/w the employee and the organization *focus on individual needs of the employees 4. The partnership of line managers and HR professionals Role of the line manager -managing people depends on effective supervisors and line managers -it is through the effective leadership of the line manager or supervisor that the talent or “intellectual capital” of the organization is enhanced -line managers: directly interacts w/ the employees and is responsible for the effective contribution of those employees to the organization/ supervisor and manager “line authority”: being directly responsible for the product or service Chapter 1 notes -recent research: employees tend to trust info from their direct managers more than other managers and that these same direct managers have a huge influence on the reasons employees stay w/ the firm -HR professionals: “staff” – people who help and support the line manager/ “functional authority”: they have the legitimate authority in HR areas, such as recruitment strategies or developing organizational programs, to recognize employees Role of the HR professional -HR professionals need sound biz knowledge, good problem-solving and influence skills, and personal credibility (trust and the ability to build personal relationships) -primary role: help equip the line manager w/ the best ppl practices so that the organization can be successful -recruiting and training, policy formulation and implementation in such areas as workplace harassment, healthy work environments, and change management, listening to employee concerns->ensuring that the organization is aware of and responding to those concerns -HR professionals develop an overall recruitment approach to attract individuals w/ key skill sets-> then the line manager selects the best person from the pool of applicants -Dave Ulrich: says HR professional must focus on delivering value to the various stakeholders in any organization – the line managers, the investors, and the employees -HR professionals must be able to integrate biz skills, HR skills and skills in helping employees handle change so that their organization can build and maintain a competitive adv thru its ppl The ongoing partnership *successful organizations are those that equip their line managers w/ a thorough understanding of good HRM practices – either thru having an HR unit or retaining expertise when needed -the key is to find ways to develop and utilize the talents of employees so that they reach their greatest potential -HR professionals: provide guidance and assistance as internal consultants to the line manager or to help design and deliver programs and services to better equip employees, supervisors, and managers to contribute to organizational success 5. Current business challenges Challenge 1: global economy -the Canadian economy is primarily built on exports (natural resources: oil, gas, mining, and forestry) -many Canadian companies have been involved in the global markets for years Impact of globalization Globalization: moving local or regional business into global marketplace -trade agreements that allow a freer flow of goods and services mean that competitors may be located anywhere around the world Challenge 2: survival of firms and business sectors -oil, gas, mining, manufacturing sector -> prices drop significantly Managing costs Downsizing: the planned elimination of jobs *companies for a number of years have had pressures to lower costs and improve productivity to maximize efficiency -current economic concern: a labour shortage as the Canadian economy recovers and therefore some companies are being particularly careful about how they reduce or eliminate work -over the years, the general approach was an “across-the-board” reduction or eliminating individuals based on performance Chapter 1 notes However, it can take 6-18 months for a company to realize the savings from job cuts (thru studies) *attempting to minimize the impact on individuals while dealing w/ the current financial realities is in the longer term best interests of the organization and the people -during these times (recessions, after some employees laid off), it’s important to have the CEO speak directly w/ employees, answer questions, and be honest -social networking sites (Twitter, Facebook) -> have forced some organizations to be more transparent and candid about downsizing so that bad things are NOT said about the company on personal blogs Outsourcing and employee leasing Outsourcing: contracting outside the organization for work that was formerly done by internal employees. The small-business owner saves money, time, and resources by outsourcing tasks such as accounting and payroll (자자 자자·자자·자자 자자 자자자 자자 자자 자자 자자자 자자자 자자자 자자자자 자자 자자자자 자자자자 자자자자 자) -hiring someone outside the company or bringing in a company to perform tasks that could be done internally -increasingly, activities such as maintenance, security, catering and payroll are being outsourced in order to increase the organization’s flexibility and to lower overhead costs -in economic uncertainty, considering outsourcing could be helpful in keeping the company going -as an alternative to layoffs and outsourcing, some companies are exploring the idea of employee leasing, where employees are let go and then hired by a leasing company that contracts back w/ the original company -more of contract workers, and part-time workers as a way to contain costs Challenge 3: Technology and quality E-commerce: use of the Internet to transact business has become so pervasive for both large and small companies -organizations are connected via computer-mediated relationships, and they are giving rise to a new generation of “virtual” workers who work from home, hotels, their cars, or wherever their work takes them Influence of technology in HRM Human resources information system (HRIS): a technology system that provides data for purposes of control and decision making -an HRIS provides data for purposes of control and decision making; moves beyond simply storing and retrieving info to include broader applications: producing reports, forecasting HR needs, assisting in strategic planning, career and promotion planning, evaluating HR policies and practices -used by the line manager and the HR practitioner to make the best decisions for the organization -IT (Information technology)allows firms to store and retrieve large amounts of information quickly and inexpensively -also enables them to rapidly and accurately combine and reconfigure data to create new info and institutionalize organizational knowledge -w/ IT networks, managers can communicate more easily and selectively w/ others -IT can be a potent weapon for lowering administrative costs, increasing productivity, speeding response times, improving decisions making, and enhancing service -IT can provide a data and communications platform that helps HR link and leverage the firm’s human capital to achieve a competitive advantage Chapter 1 notes IT influences HRM in 3 basic ways 1. Operational impact: automating routine activities, alleviating the administrative burden, reducing costs, improving productivity internal to the HR function itself -automating payroll processing, maintaining employee records, and administering benefits programs -biometric time clocks -> provide the highest level of security available 2. Enhancing services to line managers and employees: initially security was a big concern, particularly in relation to employees having access to their own info -> online security helps employees bypass HR and handle info about themselves directly Ex. Updating personal info such as change of address, accessing pay statements 3. Internet: create “virtual” worlds for training and development purposes/ transformational impact: redefine the activities that HR undertakes Don Tapscott: “the HR professional will change from simply executing HR processes and functions to being a leader for new models of talent and collaborative work” Quality -managers must meet customer requirements of quality, innovation, variety and responsiveness -“better, faster, cheaper” – these standards require organizations to constantly align their processes w/ customer needs -implications on HR: the requirement to hire staff that can work in teams, the necessity of having compensation systems that support quality objectives, and the need to have performance mngt systems that recognize the importance of customer satisfaction Total Quality Management: focuses on understanding customer needs (started 20 yrs ago) -strong correlation b/w quality and higher customer satisfaction Six Sigma: a process used to translate customer needs into a set of optimal tasks that are performed in concert w/ one another -a statistical method of translating a customer’s needs into separate tasks -can be used for internal organizational processes that deal w/ internal “customers” -it catches mistakes before they happen (this makes six sigma different from other quality efforts) ISO 9000: worldwide quality standards program -cover both product design and product delivery ISO 14000: focuses on standards for environmental mngt -companies go through a certification process to demonstrate that they have achieved certain quality standards Benchmarking: finding the best practices in other organizations that can be brought into a company to enhance performance -doesn’t matter whether they are competitors or not -HR programs: help balance two opposing forces (focus on continuous improvement + focus on customer needs) -managers play a key role in motivating employees to care about quality and helping the company foster a work environment that will allow employees to succeed in quality initiatives The Baldrige Award for Performance Excellence: another approach sponsored by the National Institute of Standards and Technology in the U.S. Chapter 1 notes -this award looks at excellence from a systems perspective w/ detailed criteria in the areas of leadership; strategic planning; customer focus; measurement and knowledge mngt, workforce focus; process mngt Challenge 4: Environment and climate change -the world population is increasing, natural resources are declining, and the climate is changing -Canada has benefitted greatly from oil and gas industry -> but change to that would cause dislocation to both the employees and gov’t revenues -potential opportunities for both hydro and solar power – creating new demand for cleaner energy -Canada has a long history of using hydroelectric energy in certain provinces -as new biz opportunities are created, it also means that new jobs and careers wil
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