Welcome to MGHA12!
Human Resource Management
Professor Samantha Montgomery
Fall 2025
IC 208
1
Land Acknowledgment
• I wish to acknowledge this land on which the
University of Toronto operates. For thousands
of years, it has been the traditional land of the
Huron -Wendat, the Seneca, and the
Mississauga's of the Credit. Today, this
meeting place is still the home to many
Indigenous people from across Turtle Island
and we are grateful to have the opportunity to
work on this land.
Agenda
Introductions
Review Syllabus
About HRM at UTSC
Review Chapter 1
Group Activity
Review Chapter 2
Group Activity
Questions and Announcements
Copyright © 2023 by Cengage Canada
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About the Instructor
(according to LinkedIn)
• Samantha Montgomery, PhD (she/her)
About the Instructor
(according to X, the platform formerly
known as Twitter)
About the Instructor
(according to other random photos you can
find on the internet)
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What does this all have to do with Human
Resource Management (HRM)?
• Potential employers can see what you put on the
internet!
• HRM is a broad range of activities that center the
people in organizations, including:
− Identification, Recruitment & selection of talent
− Developing leaders & strategic planning
− Retaining talent through competitive salaries and
benefits
− Responding to external dynamics (e.g. politics,
economics, pandemics; etc.)
− Labour Relations & Collective Bargaining
Getting to know each other
• How many of you are first year students?
• How many of you were born in Canada?
• How many of you are HR majors?
• How many of you have had a job before?
• Was it paid?
• Were you in a union?
• Were there employer policies/a Collectively Bargained
Agreement (CBA) that you reviewed?
• How many of you have supervised someone before?
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About the Course
(According to the Syllabus)
Component
Mid-term Exam
Individual Assignments
Group Assignment
Participation
Final Exam
Weight/Value
25%
15%
15%
10%
35%
Relevant Date(s):
October 7
See course schedule
See course schedule
Every class
TBD
Most up-to-date version of syllabus available on Quercus
STUDYING HRM @ UTSC
•
Completing a B.B.A. with a specialist in HRM will make you qualified to work in any area of HRM, to take a graduate degree in HRM,
and to obtain CHRP certification (after completing CHRP exam) required by many organizations for upper-level HR positions.
MANAGEMENT COURSES NEEDED FOR CHRP:
•
Human Resources Management (MGHA12): A foundational course in the principles and practices of HR management.
•
Organizational Behaviour (MGHB02): Focuses on understanding individual & group behavior within organizations.
•
Financial and Management Accounting (MGAB01): Provides knowledge of financial & management accounting principles.
•
Human Resource Planning (MGHD27): Covers the process of forecasting & planning for an organization's future HR needs.
•
Occupational Health & Safety (MGHD24): Addresses the legal & practical aspects of workplace health & safety.
•
Training and Development (MGHD26): Deals with designing, delivering, & evaluating training programs.
•
Industrial/Labour Relations (MGHC53): Focuses on the relations between employers & employees, including unions & collective
bargaining.
•
Recruitment and Selection (MGHD25): Covers the processes of attracting, selecting, & hiring qualified candidates.
•
Compensation (MGHD28): Deals with designing & administering employee compensation & benefits packages.
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CHAPTER 1
The World of
Human Resources
Management
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Learning Outcomes – 1
LO1-1 Describe the strategic importance of human
resources management (HRM) and the
rewarding career opportunities it offers.
LO 1-2 Explain how good human resources practices
can help a firm gain a sustainable competitive
advantage and how COVID-19 may impact
this relationship.
LO 1-3 Describe how technology can improve how
people perform their work and how they are
managed.
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Learning Outcomes – 2
LO 1-4 Explain the dual goals human resources managers
have in terms of increasing productivity and
controlling costs.
LO 1-5 Discuss how firms can leverage employee
differences to their strategic advantage and how
educational and cultural changes in the workforce
are affecting how human resources managers
engage employees.
LO 1-6 Provide examples of the roles and competencies
of today’s human resources professionals.
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1-1a What Is Human Resources
Management?
• Human resources
management (HRM)
− The process of
managing human talent
to achieve an
organization’s
objectives
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1-1b Why Study Human Resources
Management?
• Work with people to help solve organizational issues.
• Attract top-notch people to come to work with you and
your firm.
• Determine the right people to hire so your team and
company are a success.
• Help and coach people so they become top performers.
• Make pay and reward decisions that may influence
people’s lives.
• Establish the strategic direction your firm should take.
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1-1c Human Capital and HRM
• Human capital: Knowledge, skills, and capabilities
of individuals that have economic value to an
organization
− Intangible
− Cannot be managed the way organizations
manage jobs, products, and technologies
• Organizations must find ways to better use the
knowledge of their workers.
− Managers of all types must carry out the specific
activities for a company to effectively do so.
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Figure 1.1
Overall Framework for Human Resources
Management
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1-2 Competitive Issues and
Human Resources Management
• Responding strategically to crisis, changes, and
disruptions in the local and global marketplace
• Competing, recruiting, and staffing globally
• Setting and achieving corporate social responsibility
and sustainability goals
• Advancing HRM with technology
• Containing costs while retaining top talent and
maximizing productivity
• Adapting to employee differences and diversity for
strategic advantage
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 1
• COVID-19 and HRM
− COVID-19 resulted in one of the most extreme
organizational transformations in the past
century.
− It has highlighted the pressing need for a feeling
of community and common objectives.
• HR managers and business strategies
− HR managers need an intimate understanding of
their firms’ competitive business operations and
strategies.
− “No change means chance”
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 2
• Human resources managers need to
understand the following:
− Six Sigma
− Reengineering
− Downsizing
− Outsourcing
− Change management
− Reactive changes
− Proactive changes
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 3
• Six Sigma
− A set of principles and practices whose core
ideas include understanding customer needs,
doing things right the first time, and striving for
continuous improvement
• Reengineering
− The fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in cost, quality, service, and
speed
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 4
• Downsizing
− Planned elimination of jobs (reducing “head
count”)
• Outsourcing
− Contracting out work that was formerly done by
employees
• A common denominator of these strategies is that
they require companies to engage in change
management
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 5
• Change management
− Systematic way of bringing about and managing
both organizational changes and changes on the
individual level
Team members
collaborate in a
hybrid meeting post–
COVID-19.
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1-2a Responding Strategically to Crisis,
Changes, and Disruptions in the Local and
Global Marketplace – 6
• Good HR managers know that they can be key
players when it comes to driving the business
strategies of their organizations to make changes.
• Reactive changes
− Changes that occur after external forces have
already affected performance
• Proactive changes
− Changes initiated to take advantage of targeted
opportunities
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1-2b Competing, Recruiting, and
Staffing Globally
• Globalization: The trend toward opening up foreign
markets to international trade and investment
− Approximately 65 percent of Canada’s economy is
affected by international competition.
− China could surpass the United States to become
the largest economy in the world by 2041, and India
could be the third largest.
• How globalization affects HRM
− Need to balance a complicated set of issues related
to different geographies, including different
cultures, employment laws, and business practices
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1-2c Setting and Achieving Corporate
Social Responsibility and Sustainability
Goals
• HR’s responsibilities include the development and
implementation of corporate citizenship throughout the
organization, including good environmental management
• Corporate social responsibility
− The responsibility of the firm to act in the best interests of
the people and communities affected by its activities
• Sustainability
− Closely related to corporate social responsibility
− Doing business in a way that does as little harm to the
environment and depletes as few natural resources as
possible
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1-3 Advancing HRM with Technology
• Computer networks and “cloud computing”
− Unlimited amounts of data can be stored,
retrieved, and used in a wide variety of ways
• Collaborative software: Allows workers anywhere,
anytime, to interface and share information with
one another electronically, and has changed how
and where people and companies do business
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1-3a Knowledge Workers, Virtual Learning,
Automation, and Artificial Intelligence – 1
• Knowledge workers
− Workers whose responsibilities extend beyond
the physical execution of work to include
planning, decision making, and problem solving
• Virtual learning
• Video conferencing platforms
− Zoom, Webex, Teams, and Hangouts
− COVID-19 broke down barriers and expedited the
transformation process
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1-3a Knowledge Workers, Virtual Learning,
Automation, and Artificial Intelligence – 2
• Automation and artificial intelligence
− Automation is affecting not only blue collar and
routine jobs, but others as well.
− On gig work platforms such as Uber and
Lyft, algorithms are essential to allocate,
monitor, and reward gig work.
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1-3b Influence of Technology on HRM – 1
• Human resources information system (HRIS)
− A computerized system that provides current
and accurate data for purposes of control and
decision making
• Impact of HRIS:
− Operational
− Relational
− Transformational
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1-3b Influence of Technology on HRM – 2
• Operational
− Automating routine activities, alleviating
administrative burdens, reducing costs, and
improving productivity; “self-service” access to
information
• Relational
− Using software to recruit, screen, and pretest
applicants online
• Transformational
− Changing the way HR processes are designed and
executed; setting developmental goals
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1-3b Influence of Technology on HRM – 3
• Workforce (HR) analytics
− The process of gathering and analyzing data to
improve a firm’s human resources management
− Big data is useful for recruitment and selection
and a variety of other reasons such as
performance appraisal and management,
training and development, and assessment of
organizational climate and culture.
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1-4 Containing Costs While Retaining Top
Talent and Maximizing Productivity
• Organizations take many approaches to lowering
labour-related costs:
− Downsizing
− Furloughing
− Outsourcing
− Offshoring
− Employee leasing
− Productivity enhancements
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1-4a Managing the Size of the
Workforce – 1
• Downsizing
− Widespread throughout North America
− Virtually every major corporation has undergone
some cycle of downsizing.
− Beginning in the 1990s, the layoffs began to
encompass white collar workers in greater
numbers in knowledge-intensive industries.
− Amid COVID-19, many industries have had to
resort to downsizing.
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1-4a Managing the Size of the
Workforce – 2
• Hidden costs of layoffs include:
− Severance and rehiring costs
− Accrued vacation and sick-day payouts
− Pension and benefit payoffs
− Potential lawsuits from aggrieved workers
− Loss of institutional memory and trust in
management
− Lack of staffers when the economy rebounds
− Survivors who are risk averse, paranoid, and
political
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1-4a Managing the Size of the
Workforce – 3
• Benefits of a no-layoff policy include:
− Fiercely loyal, more productive workforce
− Higher customer satisfaction
− Readiness to snap back with the economy
− Recruiting edge
− Workers who are not afraid to innovate,
knowing that their jobs are safe
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1-4a Managing the Size of the
Workforce – 4
• Furloughing
− An alternative to downsizing
− A situation in which an organization asks or
requires employees to take time off for either
no pay or reduced pay
− Gained widespread use since the COVID-19
crisis started
− Can hurt a company’s recruiting efforts when
the public discovers it has resorted to such a
measure
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1-4a Managing the Size of the
Workforce – 5
• Outsourcing:
− Employment relationship between companies
and employees has shifted from relationship
based to transaction based
− One of the most prominent HR trends
• Offshoring (or “global sourcing”): Sending jobs to
other countries
• Nearshoring: Moving jobs closer to one’s home
country
• Homeshoring: Moving jobs to work-from-home
domestic independent contractors
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1-4a Managing the Size of the
Workforce – 6
• After an unsafe
factory collapsed,
killing textile workers
in Bangladesh,
approximately 70
retailers, mostly
European, signed an
agreement to inspect
factories they
offshore work to and
finance safety
upgrades for them.
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1-4a Managing the Size of the
Workforce – 7
• An alternative to downsizing, outsourcing,
offshoring, and furloughing is employee leasing:
− The process of dismissing employees who are
then hired by a leasing company (which handles
all HR-related activities) and contracting with
that company to lease back the employees
• Productivity enhancements:
− Providing work flexibility is a good way to
improve the productivity and motivation of
valuable employees.
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1-5 Adapting to Employee Differences
and Diversity for Strategic Advantage
• One of the major challenges facing managers in
Canada is adapting to the country's demographic
changes.
• Significant challenges due to demographic changes
in Canada:
− Diversity and immigration
− Age distribution of the workforce
− Gender distribution of the workforce
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1-5a Demographic and Diversity
Challenges of the Workforce – 1
• Diversity and immigration
− In 2022, Canada was home to over 8 million
permanent residents, constituting slightly over 20
percent of the entire Canadian population. This is
the largest proportion among G7 nations.
− Asia, including the Middle East, was the
predominant continent of origin for recent
immigrants to Canada, accounting for 62 percent of
all newcomers.
− India emerged as the top country of birth for almost
one in five recent immigrants, making up 18.6
percent.
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Figure 1.2
Top 10 Ethnic Origins in Canada, 2021
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1-5a Demographic and Diversity
Challenges of the Workforce – 2
• Age distribution
− Imbalance in the age
distribution of the
labour force is having a
significant effect.
− Large portions of
workforces are nearing
retirement.
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1-5a Demographic and Diversity
Challenges of the Workforce – 3
• Gender distribution
− Women make up nearly half of the workforce in
Canada, and the educational attainment of
women is increasing relative to men.
− Many organizations struggle to sufficiently
attend to the needs and issues that transgender
and gender-nonconforming people face.
− Initiatives should address and improve the
conditions for LGBTQIA+ people.
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1-5b Educational Shifts Affecting the
Workforce
• According to the 2016 Census, more than half (54.0
percent) of Canadians aged 25–64 had either
college or university qualifications, up from 48.3
percent in 2006.
• It is important to note, however, that whereas the
complexity of jobs is increasing significantly, the
skills gap is huge and widening. More than 3 million
Canadians (aged 16–65) have problems reading
printed material.
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1-5c Cultural and Societal Changes
Affecting the Workforce
• Cultural and societal changes affecting the
workforce
− Employee rights
− Privacy concerns
− The changing nature of the job
− Changing attitudes toward work
− Balancing work and family
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Figure 1.3
Factors Related to the
Best and Worst Places to Work
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1-6 The Role HR Managers Play and
Their Partnership with Other Managers
• Successful organizations combine the experience of
line managers with the expertise of HR specialists
to develop and use the talents of employees to
their greatest potential.
• Line managers are non-HR managers who are
responsible for overseeing the work of other
employees.
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1-6a Responsibilities of
the HR Manager
• The major activities for which an HR manager is
typically responsible are:
− Strategic advice and counsel
− Service
− Policy formulation and implementation
− Employee advocacy
− Business mastery
− HR mastery
− Change mastery
− Personal credibility
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1-6b Competencies of
the HR Manager
• The HRM profession is currently experiencing
changes, both in Canada and globally.
• There is a need for HR professionals to become
more accountable to those they serve.
• Good HR managers help their organizations build a
sustained competitive advantage.
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Figure 1.4
SHRM Competency Model
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Activity:
Challenges in Organizations Today
• Which of the following issues do you think will have the most significant impact
on your working life? What strategies should organizations employ in order to
address the challenges posed by the issue you chose?
− Responding strategically to crisis, changes, and disruptions in the local and
global marketplace
− Competing, recruiting, and staffing globally
− Setting and achieving corporate social responsibility and sustainability goals
− Advancing HRM with technology
− Containing costs while retaining top talent and maximizing productivity
− Adapting to employee differences and diversity for strategic advantage
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CHAPTER 2
Strategy and Human
Resources Planning
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Learning Outcomes – 1
LO 2-1 Explain how human resources planning and a
firm’s mission, vision, and values are integrally
linked to its strategy and firm performance, and
the role of high performance work systems
(HPWS).
LO 2-2 Define and differentiate between the concepts of
mission, vision, and core values in the context of
strategic planning, and identify the unique
characteristics and functions of each concept.
LO 2-3 Understand how an organization’s external
environment influences its strategic planning.
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Learning Outcomes – 2
LO 2-4 Understand why it is important for an
organization to do an internal resource
analysis.
LO 2-5 Explain the linkages between competitive
strategies and human resources.
LO 2-6 Understand what is required for a firm to
successfully implement a strategy and assess
its effectiveness.
LO 2-7 Describe how firms evaluate their strategies
and human resources implementation.
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2-1a The Link between HRM and
Strategic Management
• Strategic planning
− Procedures for making decisions about the
organization’s long-term goals and strategies
• Human resources planning (HRP)
− The process of anticipating and providing for the
movement of people into, within, and out of an
organization
• Strategic human resources management (SHRM)
− The pattern of human resources deployments
and activities that enable an organization to
achieve its strategic goals
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2-1b High-Performance
Work Systems
• Human resource practices that have been proven to
increase employee and organizational performance
− First subsystem – involving employees by creating
awareness about the organization’s vision
− Second subsystem – acquiring and developing
talent
− Third subsystem – encompassing employee
empowerment
− Fourth subsystem – aligning leaders so that leaders
can support the growth and evolution of the
organization
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2-1c Strategic Planning and HRP:
Linking the Processes
• Strategy formulation – providing input as to what is possible
given the types and numbers of people available
• Strategy implementation – making resource allocation
decisions, including decisions related to structure,
processes, and human capital
• The integration of HRP and strategic planning tends to be
most effective when there is a reciprocal relationship
between the two processes, which occurs when a firm’s top
management team recognizes that strategic planning
decisions affect—and are affected by—HR concerns.
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Figure 2.1
Linking Strategic Planning
and Human Resources
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2-2 Step 1: Mission, Strategic Vision,
and Core Values
• Mission
− The basic purpose of the organization as well as its
scope of operations
• Strategic vision
− A statement about where the company is going and
what it can become in the future; clarifies the longterm direction of the company and its strategic
intent
• Core values
− The strong and enduring beliefs and principles that
the company uses as a foundation for its decisions
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2-3 Step 2: External Analysis
• Environmental scanning
− Systematic monitoring of the major external forces
influencing the organization
• The business environment
− Economic and ecological changes
− Technological changes
− Demographic changes
− Social changes
− Legal and regulatory changes
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2-3b Competitive Environment – 1
• Competitive
environment
− Customers
− Rival firms
− New entrants
− Substitutes
− Suppliers
− Stakeholders
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2-3b Competitive Environment – 2
• Stakeholders
− Key people and groups that have an interest in a
firm’s activities and that can either affect them or
be affected by them
• Primary stakeholders: investors, employees, customers,
suppliers, and creditors
• Secondary stakeholders: the community in which the
firm operates, the government, business groups, and
the media
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2-3c HR’s External Supply of Labour
• Labour-supply changes directly affect hiring plans in
the area where the organization is located or plans
to locate.
• HRP must consider the implications for recruitment
and replacement policies.
• Other factors: migration in and out of the area,
mobility of the population, firm’s demand for
specific skills, unemployment rates, educational
level of the workforce, government labour
regulations, etc.
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2-4 Step 3: Internal Analysis
• A growing number of
experts argue that the
key to a firm’s success is
based on establishing a
set of core capabilities.
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2-4a Core Capabilities
• Core capabilities
− Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers
• Can consist of a combination of three resources:
1. Processes
2. Systems (technologies)
3. People
• Value creation: What the firm adds to a product or service
by virtue of making it; the quantity of benefits provided by
the product or service once the costs of making it are
subtracted
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2-4b Sustaining a Competitive
Advantage through People
• Four criteria:
1. The resources must be valuable.
2. The resources must be rare.
3. The resources must be difficult to imitate.
4. The resources must be organized.
• Different skill groups in any given organization can
be classified according to the degree to which they
create strategic value and are unique to the
organization.
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Figure 2.4
Mapping Human Capital
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2-4c Corporate Culture
• Cultural audits: Audits of the culture and quality of
work life in an organization
− How is business conducted within your
organization?
− How do people communicate with one another?
− How are conflicts and crises resolved?
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2-4d Forecasting – 1
• Managers must continually forecast both the firm’s
future needs and its future capabilities to do an
effective job at strategic planning.
• Forecasting involves:
1. Forecasting the demand for labour
2. Forecasting the supply of labour
3. Balancing supply and demand considerations
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Figure 2.5
Model of HR Forecasting
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2-4d Forecasting – 2
• Forecasting a firm’s demand for employees
− Quantitative approach example
• Trend analysis: A quantitative approach to
forecasting labour demand based on an
organizational index such as sales
− Qualitative approach example
• Management forecasts: The opinions
(judgments) of supervisors, department
managers, experts, or others knowledgeable
about the organization’s future employment
needs
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2-4d Forecasting – 3
• Forecasting the supply of employees
− Staffing tables
• Graphic representations of all organizational
jobs, along with the numbers of employees
currently occupying those jobs and future
(monthly or yearly) employment
requirements
− Markov analysis
• A method for tracking the pattern of
employee movements through various jobs
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Figure 2.6
Hypothetical Markov Analysis for a Retail
Company
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2-4d Forecasting – 4
• Quality of fill: A metric designed to assess how well
new hires are performing on the job
• Skill inventories: Files of personnel education,
experience, interests, and skills that allow managers to
quickly match job openings with employee
backgrounds
• Replacement charts: Listings of current jobholders and
people who are potential replacements if an opening
occurs
• Succession planning: The process of identifying,
developing, and tracking key individuals for executive
positions
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Figure 2.7
An Executive Replacement Chart
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2-4e Assessing a Firm’s Human
Capital Readiness: Gap Analysis
• Human capital readiness
− Evaluating the availability of critical talent in a
company and comparing it to the firm’s supply
− Any difference between the quantity and quality
of employees required versus the quantity and
quality of employees available represents a gap
that needs to be closed.
− Figure 2.8 shows how PharmaCo, a specialty
chemical manufacturing company, approaches
its assessment of human capital readiness.
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Figure 2.8
Assessing a Firm’s Human Capital
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2-5 Step 4: Formulating Strategy
• Strategy formulation
− Moving from simple analysis to devising a
coherent course of action
• SWOT analysis
− A comparison of strengths, weaknesses,
opportunities, and threats for strategy
formulation purposes
− Using the strengths of the organization to
capitalize on opportunities, counteract threats,
and alleviate internal weaknesses
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2-5a Corporate Strategy
• A firm’s corporate strategy includes the markets in
which it will compete, against whom, and how.
• Some firms choose a concentration strategy that
focuses on only a limited portion of the industry.
• Growth and diversification
− Growth hinges on three related elements:
1. Increased employee productivity
2. A greater number of employees
3. Employees developing or acquiring new
skills
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2-5b Business Strategy – 1
• Low-cost strategy – means keeping your costs low
enough that you can offer an attractive price to
customers (relative to competitors)
− Critical success factors for this strategy focus on
efficiency, productivity, and minimizing waste.
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2-5b Business Strategy – 2
• Differentiation strategy
– provides something
unique and distinctive
to customers
• Often based on high
product quality,
innovative features,
speed to market, or
superior service
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2-5c Functional Strategy:
Ensuring Alignment
• Vertical fit/alignment
− Focuses on the connection between the
business objectives and the major initiatives in
HR
• Horizontal fit/alignment
− Aligning HR practices with one another
internally to establish a configuration that is
mutually reinforcing
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2-6 Step 5: Strategy Implementation
• HRM is instrumental to almost every aspect of
strategy implementation.
• Figure 2.10 shows the classic 7-S framework.
− “Hard S” category
• Strategy, structure, systems
− “Soft S” category
• Shared values, style, skills, staff
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Figure 2.10
The 7-S Model
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2-6a Taking Action:
Reconciling Supply and Demand – 1
• Organizations have many staffing options:
− Hiring full-time employees, having current
employees work overtime, recalling laid-off
workers, using temporary or contract
employees, and outsourcing or offshoring some
of their business processes
• Several options are available to employers when
dealing with surplus employees
− Layoffs, attrition, and termination
− Layoff decisions are usually based on seniority
and/or ability.
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2-6a Taking Action:
Reconciling Supply and Demand – 2
• Attrition: A natural departure of employees from
organizations through quits, retirements, and
deaths
• Hiring freeze: A practice whereby new workers are
not hired as planned or workers who have left the
organization are not replaced
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2-6a Taking Action:
Reconciling Supply and Demand – 3
• Termination: Practice initiated by an employer to
separate an employee from the organization
permanently
− Severance pay: A lump-sum payment given to
terminated employees by an employer at the
time of an employer-initiated termination
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2-7 Step 6:
Evaluation and Assessment
• Firms should define desired objectives and the metrics
to measure their achievement.
• Benchmarking:
− The process of measuring one’s own services and
practice against the recognized leaders to identify
areas for improvement
• Two categories of metrics:
1. Human capital metrics: Assess aspects of the
workforce
2. HR metrics: Assess the performance of the HR
function itself
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Figure 2.11:
An Example of an HR Dashboard
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2-7b Measuring a Firm’s
Strategic Alignment
• Balanced scorecard (BSC)
− A measurement framework that helps managers
translate strategic goals into operational
objectives
• The model has four related cells:
1. Financial
2. Customer
3. Processes
4. Learning
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Figure 2.12
Building the Metrics Model
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2-7c Ensuring Strategic Flexibility
for the Future
• Organizational capability
− The capacity of the organization to act and change
in pursuit of sustainable competitive advantage
• Flexibility can be achieved in two primary ways:
1. Coordination flexibility – occurs through rapid
reallocation of resources to new or changing
needs
2. Resource flexibility – results from having people
who can do many different things in different
ways
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Activity:
SWOT Analysis
• Using your educational institution as the example,
describe:
− The current strengths and weaknesses of the
institution
− The current opportunities and threats in the
post-secondary education sector
• Using your answers to the above, what should your
institution do in order to capitalize on external
opportunities, counteract external threats, and
alleviate internal weaknesses?
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Online Appendix 2A
Calculating Turnover
and Absenteeism
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2A-1 Employee Turnover Rates
• 2A-1a Computing the Turnover Rate
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2A-1 Employee Absenteeism Rates
• 2A-1d Computing Absenteeism Rates
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