HURS6001 Introduction to Human Resource Management Agenda ► Introductions ► Administrative Items ► Course Outline ► Grades Breakdown & Exam Info ► Strategic Importance of HR Management ► Chapter 1 Administrative Items ► OWL ► Textbook: Schwind, H.F., Das, H., & Wagar, T. H. Canadian Human Resource Management: A Strategic Approach, Edition 13 (12 works too) Grade Breakdown ► Assignment #1 - 15% ► Assignment #2 - 15% ► Midterm - 30% ► Final Exam - 30% ► Participation - 10% (online forums/class discussions) Midterm ► Multiple Choice ► Short Answer ► Proctored online exams via Zoom ► Midterm - February 12th - any time that day Chapter 1 Strategic Human Resource Management Objectives ► Discuss the objectives of human resource management ► Identify steps in strategic management of human resources ► Explain how human resource departments are organized and function ► Discuss the role of human resource professionals in today’s organization According to Storey (1995), HRM is a distinctive approach to employment management that seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an integrated array of cultural, structural, and personnel techniques. What is Human Resource Management? ► HRM is the leadership and management of people within an organization using systems, methods, processes, and procedures that identify, select, motivate, and enable employees to achieve outcomes individually and collectively that enhance their contribution to the organization’s goals. ► Supports and enables organizations to meet short and long-term economic, social, and environmental goals What is HRM? ► History of HRM in organizations ► Administrative ► What is the objective? Strategic ► In your own words…what is “strategic human resources management”? ► Linked to the strategic needs of an organization ► Corporate, business, & functional levels ► HR strategies and tactics must be mutually consistent ► HR strategies need to be consistent with organizational priorities ► Each HR practice should generate value for the organization A Model of Strategic HRM – 5 Steps Step 1: Organizational Mission, Goals & Strategy Analysis ► The organization’s overall mission and goals guide the human resources needed to fulfil the mission and goals ► Goals such as productivity, organizational growth, employee satisfaction, efficiency, and ability to adapt will help to identify HR strategies 3 generic business strategies: ► Cost Leadership strategy ► ► Differentiation strategy ► ► Aims to gain competitive advantage through lower costs, e.g. seek efficiency and use tight controls Focuses on creating a distinctive or unique product e.g. innovative design Focus strategy ► Concentrates on segment of the market A Model of Strategic HRM – 5 Steps Step 2: Environmental Scan ⮚ Continuous monitoring of economic, technological, demographic, and cultural forces ⮚ The major forces: ⮚ Economic ⮚ Technological ⮚ Demographic ⮚ Cultural ⮚ Legal Four Critical Economic Forces Economic cycles ► How has our economy impacted human resources over the last number of years? ► Canadian economy goes through boom and bust cycles ► Often linked to other economies ► During recessionary periods, HR faces challenges ► Layoffs, wage concessions, lower morale ► During boom cycles, HR must consider ► How to recruit and develop talent (competition) Global trade ► International trade has always been a crucial issue ► Canada ranks high among exporting nations ► Canadian jobs and economic prosperity depend upon international trade Four Critical Economic Forces Productivity improvement ► Productivity ► Ratio of an organization’s outputs to its inputs ► Productivity improvement is essential for long-term success ► HR professionals contribute to improved productivity ► To meet productivity ratios, HR must use: ► Outsourcing, outplacement, part-time workers, etc. ► Are there challenges with these? Global competitiveness ► U.S. productivity levels outpace Canada ► Canada’s ability to innovate and create wealth has not kept pace with other countries ► Canada holds only 2% of the world’s patents ► U.S. and Japan hold 60% Three Critical Technological Forces Flexible Work Design ► ► Unprecedented degree of technology ► Changed the way we work, play, study, and entertain ourselves ► Access to information has affected the way organizations conduct business Technology has brought flexibility 🡪 when and where work is carried out e.g. telecommuting Connectivity ► Knowledge management ► Process of capturing organizational knowledge and making it available for sharing and building new knowledge ► Intranets and integrated information systems help store and access information quickly and accurately ► Internet has a profound impact on HR activities (social media, etc.) Automation ► ► Organizations automate to: ► Increase speed ► Provide better service to customers ► Increase predictability in operations ► Achieve higher standards of quality ► Increase flexibility May use robots to replace boring or hazardous jobs Five Critical Demographic Forces Gender Balance Generational Shift Aging Population Knowledge Workers Educational Attainment Gender Balance ► In 2017 47% of the workforce was women ► Women accounted for 70% of employment growth in the last 20 years ► Raises importance of: ► Child care ► Work-family balance ► Dual career families ► Employment equity Knowledge workers ► What is a “knowledge worker”? ► Shift from primary and extractive industries to service, technical, and professional jobs ► Knowledge workers have been the fastest growing type of workers ► Need to attract, retain and retrain Educational Attainment ► Increases are expected to continue ► In 2016, 54% of Canadians aged 25 to 44 were post-secondary graduates. ► Over 28% of Canadians aged 25 or above hold a university degree of better. ► But 48% of Canadians aged 16 or over fall below adequate levels of literacy ► 17% of women and 19% of men drop out of school before graduating high school. Generational Shift ► Baby Boomers, Generation X, Generation Y, and Generation Next (Gen Z) are qualitatively different workers ► Need to understand that people have different expectations from their workplaces ► Generational diversity creates an interpersonal dynamic for all leaders Aging population ► ► Average age of the workforce is increasing ► Impending “old age crisis” ► Aging population Pressure for: ► Expanded retirement benefits ► Variable work schedules ► Coordination of benefits ► Retraining programs Cultural Forces ► ► Diversity ► Canadian society is a cultural mosaic ► Canada encourages maintaining unique culture and heritage vs. U.S. “melting pot” Ethics ► Ethical conduct of business is becoming an increasingly important issue ► Managers should understand ethical perspectives and consider ethical implications A Model of Strategic HRM – 5 Steps Analysis of Organizational Character and Culture ► Human resource strategies should be formulated only after a careful look at the organization’s structure ► Employees, objectives, technology, size, age, unions, policies, successes, failures ► Structure reflects the past and shapes the future ► Each organization has a unique culture ► Core beliefs and assumptions that are widely shared by all organizational members A Model of Strategic HRM – 5 Steps Choice and Implementation of HR Strategies ► There should be a clear line of sight between HR strategy and corporate goals ► HR must continuously focus on 5 groups of activities: ► Planning Human Resources ► Attracting Human Resources ► Placing, Developing, & Evaluating Human Resources ► Motivating Employees ► Maintaining High Performance A Model of Strategic HRM – 5 Steps Review and Evaluation of Human Resource Strategies ► Strategies should be examined periodically in consideration of changing factors e.g. technology, environment, etc. ► HR Audit ► ► Holistic examination of the HR policies, practices, and systems of a firm HR departments must focus on looking to the future i.e. proactive The Organization of HRM ► ► HR Department in a small organization ► Separate HR department emerges when HR activities becomes a burden ► Often emerges as a small department or individual reporting to a middle-level manager Large HR Department ► As the organization grows, the HR department usually grows in impact/complexity ► Specialists are added ► Vice President title