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BU354 (259)
Chapter 1

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Department
Business
Course
BU354
Professor
Steve Risavy
Semester
Fall

Description
Chapter 1: The Strategic Role of Human Resources Management Introduction to HRM Human Resources Management (HRM) • Managing people in organizations to produce the workforce competencies and behaviours required to achieve the operation’s strategic goals • Managing human capital: knowledge, education, training, skills, expertise • Responsible for ensuring the organization attracts, retains and engages the diverse talent required to meet operational and performance commitments made to customers and shareholders • It involves formulating and implementing HRM systems that are aligned with the organization’s strategy in order to produce a workforce with the competencies and behaviours that are required to achieve the organizations strategic objective s • Evidence of strong relationship between recruiting efficiency and organizational performance o Companies that fill vacancies faster reduce the disruption and lost productivity associated with turnover • HRM problem currently in Canada is that three out of every ten senior executive positions have no identified potential successors Measuring the Value of HRM Effective HR practices are related to better organizational performance • Measures need to reflect the quality of people and the effectiveness of HRM initiatives that build workforce capability o They also provide critical information that can be linked to organizational outcome • Bottom line is that effective human capital practices drive business outcomes more than business outcomes lead to good HR practices Balanced scorecard measurement system translates organizational strategy into a comprehensive set of performance measures – this scorecard shows turnovers and successes among the employees • Balances long-term and short-term actions and balances measure of success relating to financial results, customers, internal business processes and human capital management Human Capital Index based on: • Recruiting excellence • Clear rewards and accountability • Collegial and flexible workplaces • Communications integrity • Prudent use of resources HRM Responsibilities: Operational/Administrative • Objective: HR professionals hire and maintain employees and then manage employee separation • (responsibilities may be outsourced) o Outsourcing involves contracting with outside vendors to handle specified business functions on a permanent basis • serving as administrative experts and employee champions • managing human capital lifecycle (selection, assimilation, development) o selection and assimilation into the organization, development and capabilities while working in the organization and transition out of the organization • consulting and offering advice • formulating policies and procedures and providing services • these can all be achieved by separating people into an HR group that can solely focus on these issues HRM Responsibilities: Strategic • Objective: HR is focused on ensuring that the organization is staffed with the most effective human capital to achieve its strategic goals • serving as strategic partners and change agents o involves developing the company’s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage • Role in formulating strategy o environmental scanning – which involves identifying and analyzing external opportunities and threats that may be crucial to the organization’s success o also supplies information regarding the company’s internal strengths and weaknesses • Role in strategy execution o This is the area where HR makes the biggest strategic contribution o HR specialists are expected to be change agents who lead the organization and its employees through organizational change  Making the enterprise more responsive to product/service innovations  Flattening the pyramid, empowering employees and organizing around teams – all help respond quickly to customers needs and competitors challenges o leading change, customer service, lowering labour costs, building employee engagement (emotional and intellectual involvement of employees in their work) o strategy has to be specific to that country o lower labour costs by introducing strategy to reduce turnover, absenteeism and the rate of incidence of occupational illnesses and injuries o employee engagement is the emotional and intellectual involvement of employees in their work  they drive desired organizational outcomes, they go beyond what is required, understand and share the values and the goals of the organization, enjoy collegial relationships, have opportunities for growth, trust their leaders and regard the success of the organization as their success -operational focuses more on following policies where as strategic is more on making policies -strategic involves knowing how to maximize individual success to make the organization successful Internal Environmental Influences • Organizational Culture o core values, beliefs and assumptions o shared by members of an organization o culture is often conveyed through an organization’s mission statement, as well as through stories, myths, symbols and ceremonies o having a positive culture earns critical acclaim and has a positive impact on recruitment, retention and productivity o it also communicates what the organization “stands for”, provides employees with a sense of direction, shapes employee attitudes about themselves/organization/their roles, creates a sense of identity/orderliness/consistency, and fosters employee loyalty and commitment • Organizational Climate (explains how misbehavior can escalate) o Refers to the prevailing atmosphere or “internal weather” o its impact on employees o major factors influencing the climate are managements leadership style, HR policies and practices, and amount and style of organizational communication o the type of power that exists is generally reflected in the level of employee motivation, job satisfaction, performance and productivity • Management Practices o These practices have changes considerable from the traditional bureaucratic structure with many levels of management being replaced by flatter organizational forms using cross-functional teams and improved communication o Empowerment  Providing workers with the skills and authority to make decisions that would traditionally be made by managers o boundaryless organizations emerging  a structure in which relationships are formed with customers, suppliers, and/or competitors, to pool resources for mutual benefits or encourage cooperation in an uncertain environment External Environmental Influences: Economic Conditions • unemployment levels o during down turns firms reduce pay/benefits in order to retain workers o other employers are forced to downsize by offering early retirement, early leave programs, or by laying off and terminating employees • productivity levels o productivity is the ratio of an organization’s output (goods and services) to its inputs (people, capital, energy and materials) o Canada’s relatively low productivity growth rate is of concern, because of increasingly global competition o We need to find ways to produce more outputs with current input levels • growth of the service sector o primary sector – agriculture, fishing, trapping, forestry and mining have decreased and now represent only 4% of jobs o secondary sector – manufacturing and construction has also decreased to 20 percent of jobs o tertiary or service sector – public administration, personal and business services, finance, trade, public utilities, and transportation/communication all now dominate the Canadian economy External Environmental Influences: Labour Market Issues • labour union movement (more for women than for men) o a labour union is an officially recogniz
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