Human Resources Chapter 1 Notes.pdf

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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  rig ht  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  s ound  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  conc erns   -­‐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  var ious  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   Chapter  1  notes   -­‐over  the  years,  the  general  approach  was  an   “across-­‐the-­‐board”  reduction  or  eliminating  individuals   based  on  performance   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  t he  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   (▯▯  ▯▯·∙▯▯·∙▯▯  ▯▯  ▯▯▯  ▯▯  ▯▯  ▯▯  ▯▯▯  ▯▯▯  ▯▯▯  ▯▯▯▯  ▯▯  ▯▯▯▯   ▯▯▯▯  ▯▯▯▯  ▯)   -­‐hiring  someone  outside  the  company  or  bringing  in  a  company  to  perform  tasks  that  could  be  done   internally   -­‐increasingly,  activities  such  as  maintenance,  security,  ca tering  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,  ev aluating  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  select ively  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  adv antage   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  kn owledge  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  provin ces   -­‐as  new  biz  opportunities  are  created,  it  also  means  that  new  jobs  and  careers  will  also  be  crea
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