1-6 Current Business Topics Impacting HRM Flashcards
Why should businesses continuously monitor competitive trends and issues?
Because these trends and issues impact HRM systems, practices, and policies.
What are the current business topics impacting HRM that should be continuously monitored?
Global economy
Changes in business sectors and firms
Technology
Quality management
Human capital
Demographics
What is the foundation of the Canadian economy?
The Canadian economy is primarily built on exports, including natural resources like oil, gas, mining, and forestry.
What percentage of the Canadian economy is affected by international competition?
Estimates suggest that 70–80% of the Canadian economy is affected by international competition.
How does globalization impact Canadian businesses?
Canadian businesses face competition from companies worldwide, and trade agreements allow for freer movement of goods and services, increasing global competition.
What are the HRM challenges when operating in a different country?
HRM must:
address legal, political, and cultural differences,
identify capable expatriate managers,
design training programs,
adjust compensation plans,
and customize performance management practices.
Why is participating in the global economy vital for Canadian organizations?
Global participation allows Canadian companies to expand their market presence, remain competitive, and achieve business success in a connected world.
What are the primary sectors driving the Canadian economy?
Housing,
consumer spending,
and exports, particularly oil and minerals.
Why is increasing exports important for Canada’s economic growth?
Strengthened exports help drive real economic growth, especially post–COVID-19, reducing dependency on domestic consumer spending.
What percentage of Canada’s oil exports go to the United States?
98% of Canada’s oil exports are sent to the United States.
What challenges do Canadian oil and gas exports face?
Environmental concerns,
public resistance to pipelines,
and political opposition, such as President Biden’s stance on the Keystone XL pipeline.
Why are small and medium-sized businesses important to the Canadian economy?
They serve as the lifeblood of a healthy economy and contribute significantly to local and national growth.
What HRM adjustments are required due to changes in business sectors and firms?
Organizations must re-evaluate HR systems, practices, and policies, with a focus on managing costs like labour.
What are some methods companies use to manage labour costs?
Downsizing, outsourcing, and hiring independent contractors.
What is “survivor syndrome” in the context of downsizing?
It refers to the psychological impact on employees who remain after layoffs, emphasizing the need to treat all employees with respect and provide support.
What is outsourcing, and why do companies use it?
Outsourcing involves hiring external individuals or firms to perform tasks, increasing flexibility and lowering administrative costs.
What factors should a company consider before outsourcing?
The tasks to outsource,
evaluation criteria for service providers,
risks involved,
and mitigation strategies.
What is an independent contractor, and how does it differ from an employee?
An independent contractor is hired for specific tasks and has flexibility in work hours, location, and methods, but is not subject to mandatory employment deductions.
Why is proper classification of workers important for Canadian businesses?
Misclassification can result in unpaid taxes, penalties, interest, and damage to the organization’s employment brand.
What factors does the Canada Revenue Agency consider when determining a worker’s classification?
Control over work,
ownership of tools,
risk of profit or loss,
and integration into the organization’s business.
How can misclassifying workers as independent contractors harm a company?
It can lead to unpaid taxes, penalties, and reputational damage to the company’s employment brand.
How has technology enabled organizations to improve operations?
By enhancing processes, reducing costs, improving quality, and enabling data storage, access, and control for both production and administrative tasks.
How has technology impacted the traditional brick-and-mortar business model?
It has transformed how businesses operate, leading to the rise of online-only companies and the adoption of e-commerce strategies.
How has technology affected HRM practices?
It has shifted HRM from administrative tasks to technology-driven systems, including
online job applications,
intranet resources,
and cloud computing.
What is the role of cloud computing in HRM?
Cloud computing enables more agile organizations, better business outcomes, and reduces the need for in-house IT employees.
What is telecommuting, and how does it change traditional work models?
Telecommuting allows employees to work remotely from home or other locations, with flexible schedules enabled by technology.
How did COVID-19 accelerate changes in work arrangements?
It led to the widespread adoption of hybrid work models, where employees split time between working from home and on-site.
What permanent changes in HRM are expected due to technology and the pandemic?
Amendments to HRM systems, practices, and policies to support flexible and remote work arrangements.
What is the goal of quality management in organizations?
To meet customer expectations by focusing on** quality, innovation, variety, and responsiveness**, and aligning processes with customer needs.
What management philosophy pioneered the focus on quality 60 years ago?
Total Quality Management (TQM), which emphasizes understanding customer needs, employee involvement, fact-based decision-making, and continuous improvement.
What is Six Sigma, and how does it differ from traditional quality management efforts?
Six Sigma is a statistical method for translating customer needs into tasks and making improvements through measurement and data analysis.
It prevents mistakes before they happen.
How does Lean differ from Six Sigma?
Lean focuses on maximizing customer value and minimizing waste across the entire production process, while Six Sigma is more focused on data-driven improvement of individual tasks.
What is benchmarking in quality management?
Benchmarking involves studying the best practices of other companies (competitors or not) to assess and improve an organization’s own processes and operations.
What role does HRM play in supporting quality management initiatives?
HRM:
helps balance employee needs and organizational requirements,
motivates employees,
and reinforces teamwork and performance management to align with quality goals.
How does performance management contribute to quality management?
It reinforces the importance of teamwork and high-quality work, helping employees align their performance with organizational quality standards.
What are total rewards, and how do they support quality management?
Total rewards include compensation, benefits, and recognition programs that keep employees motivated and focused on producing high-quality work.
What additional factors contribute to a company becoming excellent, aside from Six Sigma and Lean?
Aligning strategy and actions,
attracting and retaining the right people,
fostering collaboration and innovation,
and targeting the right customers.
What is human capital?
Human capital refers to the value employees provide to an organization through their knowledge, skills, and abilities, which have the greatest impact on an organization’s success.
What are the four categories of skills necessary for workplace innovation according to the Conference Board of Canada?
Creativity, problem-solving, and continuous improvement skills
Risk assessment and risk-taking skills
Relationship-building and communication skills
Implementation skills
What are examples of creativity, problem-solving, and continuous improvement skills?
Seeking different points of view, asking questions, putting forward ideas, and looking for surprising connections.
What are key risk assessment and risk-taking skills?
Being comfortable pursuing new opportunities,
assessing and managing risk,
and learning from experiences.
How do relationship-building and communication skills contribute to innovation?
By engaging others, building relationships inside and outside the organization, sharing information, and supporting others’ ideas.
What are examples of implementation skills in innovation?
Setting realistic goals,
using the right tools and technologies,
applying knowledge,
and being accountable.
How do managers help maintain and develop human capital?
By providing developmental assignments, encouraging flexible job duties, and fostering employee growth and learning.
What are core competencies in an organization?
Sets of knowledge capabilities, such as focusing on customers, that differentiate an organization from its competitors and add value for customers.
What is talent management?
Talent management involves leveraging organizational competencies by placing them in the right roles and measuring their impact against organizational goals.
What practices are essential for attracting, keeping, and engaging employees?
Providing strong leadership
Offering professional and personal development opportunities
Helping employees work better
Communicating at all levels
Ensuring rewards and recognition are appropriate
Why is employee engagement important for human capital?
Engaged employees work harder, are more productive, and have a positive attitude, which leads to satisfied customers and stronger organizational performance.
What key demographic factors impact HRM systems, practices, and policies?
Diversity of employee backgrounds
Multiple generations in the workforce
Skills and labour shortages
Gender distribution
Rising levels of education
By 2036, what percentage of the Canadian labour force is predicted to be foreign-born?
34%, with over 20% belonging to a minority group.
What is the role of partnerships like TRIEC in addressing diversity in the workforce?
TRIEC helps skilled immigrants access employment opportunities to contribute to Canada’s prosperity.
What is the trend in Canada’s working-age population?
The population is aging, with more individuals aged 55–64 than aged 15–24, leading to fewer new entrants to the workforce.
What are the four generations typically present in the workforce?
Baby Boomers (1946–1964)
Generation X (1965–1980)
Millennials/Generation Y (1981–1997)
Generation Z (Born after 1997)
What is a major concern regarding skills in the Canadian workforce?
There is a mismatch between the skills workers have and the skills employers need, leading to shortages in skilled workers.
Which industries are most affected by skills shortages in Canada?
Industries like mining, which will need over 100,000 skilled workers in the coming years.
What is the “she-cession,” and what caused it?
The “she-cession” refers to the significant job losses among women during COVID-19, lowering their labour force participation to its lowest level in three decades.
How has the educational attainment of the Canadian labour force changed over the years?
More than half of Canadians aged 25–64 now have college or university qualifications, with Indigenous peoples also making significant gains in postsecondary education.
Why is the rise in educational levels significant for employment?
It increases employability in skilled sectors while reducing opportunities for unskilled workers due to technology advancements.
What challenges do employers face with less-educated workers?
Some workers are functionally illiterate or innumerate, making it difficult for them to perform basic technical tasks.
What actions can employers take to address labour shortages and skills mismatches?
Provide mentoring for millennials
Adapt management styles to diverse workers
Utilize immigrant skills effectively
