chapter 1 - hr challenges (6 mc, 1 sa) Flashcards
what is HR
Activities that involve the acquisition, development and retention of employees
hr’s role in employee performance and motivation
Performance = Ability x Motivation
Motivation is not a personal trait, research suggests it varies based on the situation you find yourself in
What HR areas can help with the ability side?
- Training and development
- Workshops etc.
What HR areas can help with the motivation side?
- Incentives
- Rewards and recognition
- Working on work culture
Managers and supervisors really impact employee retention and engagement
- In some cases, more than compensation
competitive challenges and HR –> STRATEGIC AND GLOBAL CHALLENGES: 1. Competing, Recruiting, and Staffing Globally
Strategic and Global Challenges
1. Competing, recruiting, and staffing globally
2. Setting corporate social responsibility (CSR) and sustainability goals
3. Managing talent, or human capital
4. Managing change and being market responsive
- Competing, Recruiting, and Staffing Globally
Approximately 70 to 85 percent of the U.S. economy today is affected by international competition
The trend toward opening up foreign markets to international trade and investment
Good for business, can be a challenge for HR
(ON EXAM) - globalization and expatriates
Globalizations (cont.)
Issues for HR:
- Identifying capable expatriate managers/workers
- Developing foreign culture and work practice training programs
- Adjusting compensation plans for overseas work
- US companies overseas – follow American employment law or host country?
–> Civil Rights Act of 1991
- Depends on who the employee is…
- Expats can use US employment laws if they have had something to go wrong
- Can take it back to US courts
Expatriate – US citizen sent to work in operations in another country
One study found a high failure rate - #1 reason?
Spose and family’s inability to adjust
Solution: Must train family not just expat
competitive challenges and HR –> STRATEGIC AND GLOBAL CHALLENGES: 2. Setting Corporate Social Responsibility (CSR) and Sustainability Goals
Strategic and Global Challenges
1. Competing, recruiting, and staffing globally
2. Setting corporate social responsibility (CSR) and sustainability goals
3. Managing talent, or human capital
4. Managing change and being market responsive
- Setting Corporate Social Responsibility (CSR) and Sustainability Goals
CSR - The responsibility of the firm to act in the best interests of the people and communities affected by its activities.
Give time for possible volunteer work
Sustainability - a company’s ability to produce a good or service without damaging the environment or depleting a resource.
HR green initiatives?
Subsidies etc.
Implement new policies for files and printing
Encourage employees to go green
competitive challenges and HR –> STRATEGIC AND GLOBAL CHALLENGES: 3. Managing Talent, or “Human Capital”
Strategic and Global Challenges
1. Competing, recruiting, and staffing globally
2. Setting corporate social responsibility (CSR) and sustainability goals
3. Managing talent, or human capital
4. Managing change and being market responsive
- Managing Talent, or “Human Capital”
The economic value of employee’s knowledge, skills, and abilities
It is hard to put a “value” on the skills employees have (unlike physical capital that does get valued and put on the books) but skilled employees are mission critical to organizations
CEO Intel – “If you look at our semiconductors and melt them down for silicon, that’s a tiny fraction of our costs. The rest is intellect and mistakes.”
competitive challenges and HR –> STRATEGIC AND GLOBAL CHALLENGES: 4. Managing Change and Being Market Responsive
Strategic and Global Challenges
1. Competing, recruiting, and staffing globally
2. Setting corporate social responsibility (CSR) and sustainability goals
3. Managing talent, or human capital
4. Managing change and being market responsive
- Managing Change and Being Market Responsive
Problem – human nature is to actively resist change
Successful organizations are agile and can pivot quickly to compete in the market
Some reasons why change efforts fail:
Not establishing a sense of urgency
Lacking leaders who communicate the vision
Not systematically planning for and creating short-term “wins”
Acknowledging and rewarding
Not anchoring changes in the corporate culture
(ON EXAM) - managing human capital
- Managing Talent, or “Human Capital”
- The economic value of employee’s knowledge, skills, and abilities
- It is hard to put a “value” on the skills employees have (unlike physical capital that does get valued and put on the books) but skilled employees are mission critical to organizations
- CEO Intel – “If you look at our semiconductors and melt them down for silicon, that’s a tiny fraction of our costs. The rest is intellect and mistakes.”
Managing Human Capital (cont.)
- Organizations need to recognize the importance of the Knowledge, Skills, and Abilities (KSAs) of employees and help them to continually update their skill mix
- Need to continuously develop employees to be ready for what is next
- A important part of a manager’s job is to identify and develop their employees
- Develop those in lower positions than yours so they can move up the ladder with you
(ON EXAM) - managing change and why it might succeed or fail
- Managing Change and Being Market Responsive
- Problem – human nature is to actively resist change
- Successful organizations are agile and can pivot quickly to compete in the market
- Some reasons why change efforts fail:
- Not establishing a sense of urgency
- Lacking leaders who communicate the vision
- Not systematically planning for and creating short-term “wins”
- Acknowledging and rewarding
- Not anchoring changes in the corporate culture
- How can HR help to facilitate change?
- Help with communication so that employees understand their role in change
- Employee advocacy
cost containment efforts (3)
- downsizing
- outsourcing
- employee leasing
(ON EXAM) - Containing Costs while Maximizing Productivity - Downsizing
Downsizing
- The planned elimination of jobs
- Attrition (shaving down workforce), early retirements offers, layoffs
- First thing companies do typically is reducing workforce
EX: Tech sector during the pandemic over-hired and are now laying people off
(ON EXAM) - Containing Costs while Maximizing Productivity - Outsourcing
Outsourcing
- Contracting outside the organization to have work done that formerly was done by internal employees.
(ON EXAM) - Containing Costs while Maximizing Productivity - Employee Leasing
Employee Leasing
- The process of outsourcing the entire HR function to another organization (Professional Employer Organization; PEO)
- PEO performs various HR administration tasks, such as payroll and benefits administration, on behalf of a business
- PEOs can enable small to mid-sized businesses to provide their employees with access to better, more affordable benefits, labor and employment law compliance
hidden costs of a layoff
- Fewer people around with more work to do
- Severance and rehiring costs
- Severance isn’t required but is often provided because of company reputation and goodwill
- Usually comes with an agreement (stating you won’t sue if you take the offer for severance)
- Accrued vacation and sick day payouts
- Pension and benefit payoffs
- Potential lawsuits from aggrieved workers
- Loss of trust in management
- Lack of staffers when the economy rebounds
- Survivors who are risk-averse, paranoid, with low morale who are more likely to focus on their own needs rather than the organization’s
(ON EXAM) - benefits of a no-layoff policy
- A loyal, more productive workforce
- Higher customer satisfaction
- Readiness to snap back with the economy
No need to rehire people after economic/situational problems (ie: 9/11 or COVID-19) - A recruiting edge (i.e., large applicant pools)
People know about the no-layoff practice and see the company in a better light - Workers who aren’t afraid to innovate, knowing their jobs are safe
