Commerce 2BC3
Human Resource Management
and Labour Relations
Dr. Teal McAteer
l
Winter 2010
DeGroote School of Business
McMaster University
1
Commerce 2BC3
Intro to Human Resource Management
Week 1
_________________________________
Dr. Teal McAteer
DeGroote School of Business
McMaster University
2
Announcements
• Complete and hand in Group Information Sheet
• For section changes, go to the Academic
Programs Office (1st floor of DSB)
• See text website:
– www.mcgrawhill.ca/college/schwind
– check preface of text
• Includes:
– Multiple choice quizzes for each chapter
– List of relevant HR webpages
• E.g., HRPAO, HRDC, Ontario Ministry of Labour, etc.
3
Week Overview / Objectives
• Introduction to HRM and its functions
• Challenges facing Canadian organizations
– Exercise – Discussion re: challenges
• Strategic HRM
4
What is HRM?
• HRM – functional definition
– “Is a set of interrelated functions and processes
whose goal is to attract, socialize, motivate, maintain,
and retain an organization’s employees” (Belcourt et
al., 2002)
• HRM – goal-based definition
– “aims to improve the productive contribution of
individuals while simultaneously attempting to attain
other societal and individual employee objectives”
(Schwind et al., 2007)
• HRM serves 3 primary constituencies:
– The organization
– Society
– Individual employees
5
HRM Organizational Objectives
• Primary objective of HRM is to contribute
to organizational effectiveness
• HRM is not an end in itself
– Its role is to help the organization achieve its
primary objectives
– E.g., through selection, training, H&S Mg’t
• Influenced by many factors
– Industry characteristics, organization’s
product or service, organization’s competitive
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strategy, etc.
HRM Societal Objectives
• HRM must be socially responsible
– Meet the needs and challenges of society
– Narrowly - legal compliance
– Broadly - concern with human rights, social
responsibility, etc.
• Can be challenging when social concerns
conflict with organizational goals
– Examples??
7
HRM Employee Objectives
• Assist employees in achieving personal
goals
– Short-term performance goals and long-term
career goals
• Can be challenging to balance individual
and organizational goals
– E.g., when training results in employees
developing skills that are attractive to other
organizations
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The HRM Professional
• Major competencies:
– Business mastery
• Strategy, financial realities, customer orientation
– Mastery of HRM tools
• Staffing, training, compensation, etc.
– Change mastery
– Personal credibility
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The HRM Professional
• CHRP
– Certified Human Resources Professional
designation
– Requirements
• Academic – coursework, etc.
• Comprehensive exam
• 3 years of relevant experience
– See www.hrpao.org
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Challenges facing Canadian
Organizations
1.
2.
3.
4.
5.
Economic
Technological
Demographic
Cultural
Legal
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Economic Challenges
• 2 related challenges:
– Global trade – international trade and
competition with other markets
– Need for productivity Improvement
• More output with equal (or less) input
• HR Implications
– Need to contribute to international
competence of workers (via training, etc.)
– Potential workforce reductions – can result in
job insecurity and negative effects on workers12
Technological Challenges
• Technology affects how work gets done
– Computerization – increased flexibility
– Automation – some hazardous/repetitive jobs
being automated
• HR Implications
– Workers need to possess competencies
related to technology
– Job losses (layoffs, etc.) due to technology
– Changes in how HR activities get done
• E.g., internet recruiting
13
Demographic Challenges
• Increasing # of women in the workforce
– Account for 70% of the employment growth in
Canada over last 20 years
– Implications: Employment equity, child care,
flexible work, etc.
• Change in the types of work
– Shift toward “knowledge” workers
– Implications: different skill and training needs
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Demographic Challenges
• Educational attainment of workers
– Higher education levels coupled with high illiteracy
rates
– Implications: productivity, safety
• Aging workforce
– Growing % of workforce is in higher age categories
– Implications: retirement, job design, re-training,
benefits, work schedules, etc.
• More part-time, contract, contingent workers
– Accounts for about 15% of all employment
– Implications: more flexibility for organizations but
raises issues of pay inequity, reduced employee
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Cultural (Values) Challenges
Text refers to 3 examples:
• Attitudes toward work
– Different expectations re: work and leisure
– People want more flexibility, holiday time, etc.
• Ethnic diversity
– Immigration from numerous countries
– Potential for conflicts of values, etc. but also
opportunity to learn, expand
• Attitudes toward government
– Negative attitudes toward those in power – effects
employment relationships
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Legal Challenges
• Numerous laws influence organizational
(and HR) activities
– Employment equity
– Human rights laws
– Charter of rights and freedoms
– Safety legislation
– Minimum Wage Acts
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Exercise: Group Discussion
• Choose two of the challenges facing HR
managers (pp. 6-23 of text):
– Economic
– Demographic
– Technological
– Cultural
• Exercise: What are the HR implications
of those challenges?
– (e.g. implication of increased women in the
workforce is increased need for flexible
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work arrangements)
• Challenges illustrate the need
for a strategic approach to
managing organizations…
19
Strategic HRM
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Common Misconceptions about HR
• HR is primarily an administrative function
• HR has little strategic importance and
does not represent a potential source of
an organization’s competitive advantage
• HR is a “cost centre” – its activities add to
an organization’s expenses/costs but not
to revenue generation
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Overcoming these
Misconceptions
• HR can – and indeed should – play a key
role in an organization’s strategy
• There is increasing evidence that HR
activities are associated with various
indicators of organizational performance
(e.g., ROI, profitability, stock prices)
• $ put toward HR systems and activities
should be viewed as investment rather
than simply cost
22
What is Strategic HRM?
• Strategic HRM
–Integration of HRM systems to the
overall mission, strategy, and
success of the firm, while meeting
the needs of employees and other
stakeholders
–The intentional use of HR systems
to help an organization gain
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Guiding Logic of SHRM
• “HRM practices must develop employees’
skills, knowledge, and motivation such that
employees behave in ways that are
instrumental to the implementation of a
particular strategy” (Bowen & Ostroff, 2004)
• Contingency Perspective
– Effectiveness of HRM system depends on
contextual factors such as industry type, firm
size, etc.
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Steps in Strategic HRM
1. Environmental Analysis
2. Organizational Mission and Goals
Analysis
3. Analysis of Organizational Strengths and
Culture
4. Analysis of Organizational Strategies
5. Choice and Implementation of HR
Strategies
6. Review and Evaluation of HR Strategies 25
Aligning HR and Organizational
Strategy
• Use Porter’s strategies for illustration
• Cost Leadership
– Tight cost control, production efficiency, products
designed for ease of manufacture, intense
supervision of labour
• Differentiation
– Emphasis on marketing, product engineering, R&D,
quality, technological innovation
• Focus
– Combination of cost leadership and differentiation
directed a market segment
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Example of Aligning HR
and Organizational Strategy
• Cost Leadership
– Tight cost control
– Production efficiency
– Products designed for
ease of manufacture
– Intense supervision of
labour
• HR Strategies
– Clear job descriptions
– Detailed work planning
– Emphasis on technical
skills
– Job-specific training
– Job-based pay
– Performance
evaluations for control
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Example of Aligning HR
and Organizational Strategy
• Differentiation
– Emphasis on
marketing
– Product engineering
– R&D
– Focus on quality
– Technological
innovation
– Highly skilled labour
• HR Strategies
– Emphasis on
innovation & flexibility
– Broad job classes
– Loose work planning
– Focus on recruitment,
careful selection
– Team-based training
– Individual (skill)-based
pay
– Performance
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evaluations for
Outcomes of Strategic HRM
• “When you align HR with organizational
strategy, you’ll see growth in commitment,
improved financial results, and find
yourself better able to attract and retain
the right people.”
» (Paine, 1999)
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Questions / Comments
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