Chapter 1- Strategic Human Resource Management Flashcards
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
The Interconnectivity of Human Resource Management Activities
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Strategic Human Resource Management
The process of integrating the strategic needs of an organization into the choice of HR systems and practices to support the overall mission, strategies, and performance
The choice of HR tools will depend on what the organization is trying to achieve
HR activities must align with and contribute to the organization’s strategies
Each HR practice should generate value for the organization
A Model of Strategic HRM
Five Steps
1. Organizational Mission, Goals, and Strategy Analysis
2. Environmental Scan
3. Analysis of Organizational Character and Culture
4. Choice and Implementation of Human Resource Strategies
5. Review, Education and Audit of Human Resource Strategies
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Step 1: Organizational Mission, Goals, and Strategy Analysis
Mission statement
-Statement outlining the purpose, long-term objectives, and activities the organization will pursue and the course for thefuture
Three generic business strategies:
-Cost leadership strategy
-Differentiation strategy
-Focus strategy
Step 2: Environmental Scan
Continuous monitoring of economic, technological, demographic, and cultural forces
The major forces:
Economic
Technological
Demographic
Socio-Cultural
Legal
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Four Critical Economic Forces
- Economic cycles
-Refers to the periodic fluctuations in economic activity.
-Includes phases of expansion, peak, contraction, and trough. - Global trade
-Involves the exchange of goods and services across international borders.
-Influenced by trade agreements, tariffs, and geopolitical factors. - Productivity and Innovation Improvement
-Focus on enhancing efficiency, output, and introducing new technologies.
-Key drivers for economic growth and competitiveness. - Knowledge Workers
-Employees whose primary contribution to the organization is knowledge-based.
-Dependent on intellectual capabilities, creativity, and expertise.
Economic Force: Economic Cycles
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
Economic Force: Global Trade
International trade has always been crucial to Canada’s prosperity and growth
Canada ranks high among exporting nations
Canadian jobs and economic prosperity depend upon international trade
How Competitive is Canada Compared to Other Nations?
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Economic Force: Productivity and Innovation Improvement
Productivity: Ratio of an organization’s outputs to its inputs
Productivity improvement is essential for long-term success
For over a decade, U.S. productivity has been consistently outpacing Canada
Without innovation, productivity differences tend to increase
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Economic Force: Knowledge Workers
Extractive industries (e.g., mining and fishing) have decreased
Industries relying on knowledge workers (e.g., education, health care, tourism, trade, public administration) have increased
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Three Critical Technological Forces
- Flexible Work Design
- Connectivity
- Automation
Technological Force: Flexible Work Design
Connectivity influences organizations and the way people work
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)
Technological Force: 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 networking sites, video-sharing, etc.
Technological Force: Automation
Organizations automate to:
-Increase speed
-Provide better service
-Increase flexibility
-Increase predictability in operations
-Achieve higher standards of quality
May use robots to replace boring or hazardous jobs