CH_1_THE_CHALLENGES_OF_HRM.docx

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 1021A/B
Professor
Prof
Semester
Fall

Description
CH 1 THE CHALLENGES OF HRM Human resource management (HRM): integrated set of processes, programs, and systems in an organization that focuses on effective deployment and development of its employees. What are the HRM processes and activities? 1. Organizational, work, and job design • Determine what tasks need to be done, in what order, with what skills, how individual tasks fit together in work unit 2. Planning • Ensure people in organization are right people with right skills at right time in right place 3. Recruitment and selection • Sourcing, attracting, and hiring people with necessary skills and background 4. Training and development • Provide resources to assist employees in developing necessary knowledge and skills to do their job today and in future 5. Performance management • Ensure there are appropriate mechanism in place to provide feedback to employees on regular basis 6. Compensation (pay and benefit) • Develop and administer pay and benefits programs that will attract and retain employees 7. Occupational health and safety • Ensure safety and health of employees are maintained 8. Employee and labour relations • Ensure there are positive and constructive relations between employees and their supervisors or managers and/or union representative Above are traditional areas, a number of areas are emerging as field of HR grows and responds to concerns of both employees and employers: 1. organizational development and learning (extension of training and development) 2. high-performance work groups or teams (extension of training and development) 3. flexible work arrangements (ways to engage employees and address demographic issues) 4. HRIS—human resource information (and management) systems WHY STUDY HUMAN RESOURCES MANAGEMENT? • To work with people in organization, important to understand human behaviour and be knowledgeable about various systems and practices available to effectively use as well as build a skilled, knowledgeable, and motivated workforce. • Managers must aware of economic, technological, social and legal issues that help or hinder their ability to achieve organizational success • Line manager/supervisor is key link between employee and organization, therefore manager must have thorough knowledge and understanding of contemporary HRM and how these practices influence output of organization • Increasing attention given to individual needs of employees • Employees and public at large are demanding employers demonstrate greater social responsibility in managing their people o Discrimination against women, visible minorities, physically & mentally challenged, elderly with respect to hiring, training, advancement, compensation o Comparable pay for dissimilar work, high cost of health benefits, daycare for children of employees, and alternative work schedules THE PARTNERSHIP OF LINE MANAGERS AND HR PROFESSIONALS Role of Line Managers • It is line manager who directly interacts with employees and is responsible for effective contribution of those employees to organization • Employees tend to trust info from direct managers more than other managers and same direct managers have huge influence on reasons employees stay with organization • Supervisor/manager has “line authority” o Being directly responsible for product or service • HR professionals are typically “staff”—people who help and support line manager o Has functional authority—legitimate authority in HR areas, eg. Recruitment strategies or developing organizational programs, to recognize employees o Today no longer have total functional authority and are expected to provide advice and guidance to the line  When there might be a situation that could have very serious consequences for organization, HR professional expected to provide advice in a strong and influential way ensuring that line manger understands the impact on organization prior to taking action Role of HR Professional • Increasingly becoming more professional and are being trained with common bodies of knowledge and information • Need sound business knowledge, good problem-solving and influence skills, and personal credibility (trust and ability to build personal relationships) • Primary role: help equip line manger with best people practices so that organization can be successful • Provide service activities, eg. Recruiting and training • Active in advocate formulation and implementation in areas like workplace harassment, healthy work environments, and change management • Employee advocate by listening to employee concerns and ensuring that organization is aware of and responding to those concerns o Eg. HR professional develop overall recruitment approach to attract individuals with key skill sets. This approach generate pool of applicants with required skills, line manger actually select best person from this pool • Dave Ulrich states that an HR professional must focus on delivering value to various stakeholders in organization —line managers, investors, and employees • HR professionals must able to integrate business skills, HR skills, and skills in helping employees handle change so their organization can build maintain a competitive advantage through its people Ongoing Partnership • Successful organizations are there to equip their line managers with thorough understanding of good HRM practices—either through having an HR unit or retaining expertise when needed o Have HR unit  HR professionals provide guidance and assistance as internal consultants to line manager or to help design and deliver programs and service to better equip employees, supervisors, and managers to contribute to organizational success  HR managers assume greater role in top-management planning and decision making, reflects growing awareness among executive that HRM can make important contributions to success of an organization  Critical role in facilitating success of managers by leveraging best practices across organization  Recent study conducted by Watson Wyatt Worldwide indicated integrated approach to compensation and employee learning and development not only enable organizations to retain their top performers, but the financial performance of organization also increased Current business challenges Organizations, such as Conference Board of Canada, Society for Human Resource Management, Human Resource Planning Society, conduct ongoing studies of most important competitive trends and issues facing firms • Global economy • Survival of firms and business sectors • Technology and quality • Environment and climate change • Developing human capital and talent management • Demographic and employee concerns 1. Global Economy • Canadian economy primarily built on exports Canadian companies have been involved in global markets for years • Most dramatic changes for Canadian company in global marketplace is Nortel Networks o Trading $124.50/share in 2000; bankrupt in Feb. 2009 and June 2009 delisted from S&P/TSX Impact of Globalization • Globalization: moving local or regional business into global marketplace • 70-80% of Canadian economy today is affected by international competition • to remain competitive, managers must ensure they manage human resources in most productive , efficient, and effective way possible Effect of globalization on HRM • balance complicated set of issues related to different geographies, cultures, laws, and business practices 2 Survival of Firms and Business Sectors • Alberta faced significant shortfall in oil and gas: $147.50/barrel in July 2008 to $35/barrel in February 2009 • Value of company also impacted: decline in stock market • Bank syst
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