Chapter 1 - Basic Concepts Flashcards
strategic plan
The company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.
evidence-based HRM
Use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resources management proposals, decisions, practices, and conclusions.
human resources management (HRM)
The management of people in organizations to drive successful organizational performance and achievement of the organization’s strategic goals.
secondary sector
Jobs in manufacturing and construction.
globalization
The emergence** of a **single global market for most products and services.
manager
Someone who is responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.
digital dashboard
Presents the manager with desktop graphs and charts, a computerized picture of where the company stands on all those metrics from the HR scorecard process.
management process
The five basic functions of planning, organizing, staffing, leading, and controlling.
POSLC
outsourcing
The practice of contracting with outside vendors to handle specified business functions on a permanent basis.
tertiary or service sector
Jobs in public administration, personal and business services, finance, trade, public utilities, and transportation/ communications.
empowerment
Providing workers with the skills and authority to make decisions that would traditionally be made by managers.
managing
To perform five basic functions: planning, organizing, staffing, leading, and controlling.
PLanning
Organizing
Staffing
Leading
Controlling
contingent/non-standard workers
Workers who do not have regular full-time employment status.
organizational climate
The prevailing atmosphere that exists in an organization and its impact on employees .
primary sector
Jobs in a_griculture, fishing and trapping, forestry, and mining._
certification
Recognition for having met certain professional standards.
human capital
The knowledge, education, training, skills, and expertise of an organization’s workforce.
organization
A group consisting of people with formally assigned roles who work together to achieve the organization’s goals.
metrics
Statistics used to measure activities and results.
organizational culture
The core values, beliefs, and assumptions that are widely shared by members of an organization.
productivity
The ratio of an organization’s outputs** (goods and services) **to** its **inputs (people, capital, energy, and materials).
balanced scorecard
A measurement system that translates an organization’s strategy into a comprehensive set of performance measures.
strategic management
The process of identifying and executing the organization’s strategic plan by matching the company’s capabilities with the demands of its environment.
strategy map
A strategic planning tool that shows the “big picture” of how each department’s performance contributes to achieving the company’s overall strategic goals.
strategy
A course of action the company can pursue to achieve its strategic aims.
1.1. Define what human resources management is and analyze how it relates to the management process.
Management is a process of planning, organizing, staffing, leading, and controlling organizational resources. HRM refers to the management of people in organizations. Strategic HRM involves linking HRM with strategic goals and objectives to improve business performance. Increasingly, HR professionals are becoming strategic partners in strategy formulation and execution.
1.2. Describe the value of HR expertise to non-HR managers and entrepreneurs.
Activities of employee management, empowerment, training, and guidance are often shared between managers in the organization (executive and line managers) and HR professionals. Therefore, line managers, executives, and HR managers are all influential in and influenced by effective human resources management.
1.3. Explain how HRM has changed over recent years to include a higher-level advisory role.
Human resources activities involve using the best-available evidence in making decisions about the human resources management practices that the organization is focused on. This includes the ability to collect, interpret and communicate relevant metrics while aligning decisions, policies, and practices to the organizational strategy. Tools used to achieve this include the strategy map, the HR scorecard, and the digital dashboard
1.4. Identify tools to help make evidence-based HRM decisions.
Evidence-based human resources management means using the best available evidence in making decisions (from actual measurements, existing data, or research studies) about human resources management practices. Tools include the strategic map, balanced scorecard, and digital dashboard.
1.5. Describe the core HR competencies and professionalism of the HRM function.
There are professional designations in Canada that may be influential in building expertise and careers in management or human resources management. However, more specific designations are important to indicate specialized skillsets
1.6. Discuss the internal and external environmental factors affecting human resources management policies and practices, and explain their impact.
A number of external factors have an impact on HRM, including economic factors, labour market issues, technology, government, globalization, and environmental concerns. Internal factors impacting HRM include organizational culture, organizational climate, and management practices.
Who implements HR activities?
HR professionals > Formulate policies, procedures > Legal compliance > Internal consultant/change agent > Attract, engage, retain talented employees > Supporting employees Managers > E.g., Inform HR about the competencies needed to > implement the organization’s strategy Employees > E.g., Help select and train coworkers, provide feedback, manage their own careers
Everyone = HR, Managers, Employees
What are 8 HR activities?
Legal compliance Job analysis Recruitment Selection Training and development Performance management and compensation Health and safety Supporting employees Disciplining employees Strategic HRM
Legal compliance
Job analysis
Recruitment
Selection
Health and Safety
Performance management
Compensation and Benefits
Statregic HRM
What is “fit” in relation to HR?
HR activities are interrelated and must fit together HR activities should also fit with company strategy HR activities must also fit with environment
Examples Compensation and training fit Compensation (rewarding a certain behaviour), train a different behaviour Management style fit and skills of team
A practice must fit with culture E.g., reward behaviour that is leads to company success E.g., technological change, population trends
What are external HR influences?
External influences: Economic conditions Labour market issues Technology Government Globalization Environmental concerns
Economic Factors
Environmental Factors
Government
Technology
Labour Market
Globalization
What are internal HR influences?
Internal influences Company culture and climate (beliefs, atmosphere of organization) Management practices (e.g., empowering the worker vs bureaucratic organization)
Organizational Climate = the prevaiing atmostphere of an org and how it impacts employees
Organizational Culture = Core values and beliefs
Management practices = felxible, bureaucratic
What are administrative HR roles?
Administrative (most common outsourced functions) EAP Pension / retirement planning Benefits Administration Training Payroll Services
retirement benefit planning
payroll services
administration training
What are operational HR roles?
Operational Role Requires HR Professionals to identify and implement needed programs and policies Tactical in nature, i.e. legislative compliance / job application processing Sometimes creates conflict between HR and front-line managers Employee advocate – making the company a better place to work
What is strategic HR management?
links the HR functions to the strategic objectives of the organization.
For instance, HR Managers will ensure that compensation is equitable in comparison to what is occurring with their competitors. Practicing strategic hr provides a competitive advantage to an organization. Furthermore, organizations use HR metrics (specific measures) that are tied to performance indicators
What is Human capital?
Human capital (AKA) intellectual capital is not the employees themselves but rather what these employees bring to the organization in terms of knowledge, skills, life experiences, motivation, etc. Aside from Human Capital, which is described as an asset to the organization, organizations also manage their physical, i.e. Buildings and infrastructure, financial and intangible i.e. Patents, information systems, etc. assets.
How is a sustainable competitive HR advantage formed?
Core Employees Who Are a Source of Added Value mix with Employees Who Are Rare to Using HRM to Gain Sustainable Competitive Advantage to be Inimitable. Example: A Culture That Can’t Be Copied
Core value employees + Rare employees = inimitable and competetive advantage.
How can workers be identified by quadrants?
A B C D
Example for quadrant c (contract workers – transactional relationship) Example for quadrant D (traditional employees – market-based relationship) Example for quadrant B ( knowledge workers – key employee group – organization commits substantial resources to these individuals)
