Why HRM matters - Chap 1 Flashcards
HRM
an integrated set of systems, practices, and policies, in an organization that focuses on effectively deploying and developing its employees.
- having the right people, in the right places, at the right time.
the term human resources
implies that people are as crucial to the success of a business as other resources, such as money, materials, machinery, and information.
what are HRM systems, practices, and policies
- promoting employee health and safety
- planning for recruiting, and selecting employees
- orienting, training, and developing employees
- managing employee performance
- rewarding and recognizing employees
- knowing employee and employer rights
- understanding labour relations
- learning about international HRM
Why is studying Human Resource Management (HRM) important for future employees, managers, and business owners?
It equips managers and employees with knowledge of rights, systems, practices, and policies that build a skilled, motivated workforce.
Effective HRM addresses individual employee needs, fosters engagement, and emphasizes the value and purpose of work. This leads to organizational success and contributes to a prosperous society.
Poor HRM can result in disengagement and decreased productivity.
the role of the manager
- they are the link between the employee and org
- responsible for implementing various HRM systems, practices, and policies and HR professionals ensure that they have the right to knowledge, tools and resources to do so effectively.
the role of HR professional
- they recruit and pay people approrpately
- to help equip the manager with the best people practices so that the organization can be successful.
- can be an employee advocate by listening to employee concerns and ensuring the organization is aware and responding to those needs
- HR professionals must be able to help employees handle change so that their organization can build and maintain a competitive advantage through its people.
the ongoing partnership
BOTH management and HR share similar responsibilities such as managing people.
Hr helps and supports, but managers still make decisions.
Companies typically bring in H HR experts when they reach 75-100 employees in which they can be hired as independent but managers still handle most HR tasks with support as needed.
Current Business Topics Impacting HRM
- global economy
- changes in business sectors and firms
- technology
- quality management
- demographics
global economy
ex. of why it is important: canadian economy is built on the exports of natural resources, such as oil, gas, mining, and forestry
- globalization is a key factor as it allows the movement of local or regional business into a global market place.
- 70 - 80% of canadian economy is affected by international competition.
- global agreements and free trade are essential
Globalization on HRM
- HRM practices need to address different legal, political, and cultural requirements within this new location.
- ex. pay schemes need to be fair across diff geographic regions and their cost of living (just adapting to cultural business practices WTV).
Changes in Business sectors and firms
Changes force companies to adjust HR systems to stay effective and manage labour costs a major expense.
Common strategies include:
Downsizing (reducing staff to cut costs)
Outsourcing (hiring external providers for tasks)
Independent contractors (hired temporarily, not full employees)
Key considerations
- Downsizing must be ethical (communicate early,
- support remaining staff “survivor syndrome” (attention needs to be paid too those people who will still be employed as to departing employees.)
- Outsourcing improves flexibility but must be
evaluated carefully
- Contractors offer flexibility but may lack commitment
Example: Sears Canada faced backlash for how it treated employees during closure, while Target Canada ensured fair severance.
ex. of sears dilemma
Sears Canada closed in 2018 after 65+ years in business. which was Controlled by a U.S. hedge fund since 2005, which prioritized shareholder payouts over company reinvestment.
Pension plan became underfunded, and retirees lost benefits.
18,000 retirees faced major losses and their pensions dropped to ~80 cents on the dollar.
Many elderly former workers were forced back into the workforce. Raised ethical concerns about how companies treat employees during closures.
technology
- before was for processing/admin and is now used in HRM practices
Ex. Applying for a job online
- telecommuting, conducting work activities away from the office (at home) through the use of tech.
quality of management
- meeting the customers’ expectations and providing excellent customer service (often separating the winners from the losers)
- done through approaches such as
- six sigma, a process used to translate customer needs into a set of optimal tasks performed in concert with one another (ex. through the measurement of data analysis - catching mistakes before they occur)
- lean, an organizational system of improvements that maximize customer value and minimize waste ex. pioneered by Toyota in which they look at the flow of production not just individuals).
- benchmarking, finding the best practices in other orgs that can be brought into a company to enhance performance
human capital
the value that employees provide to an organization through their knowledge, skills, and abilities. (managers are key in helping the orgs maintain and develop its human capital).
the effect of human capital
Studies have consistently demonstrated that firms with a focus on building and enhancing human capital demonstrate higher profitability and stronger overall organizational performance
in relation to HC, what is talent management
- leveraging competencies (the whole right people right job) in order to achieve organization performance
this includes
- providing strong leadership
- providing opportunities for professional and personal development
- helping employees work better
- communicating all the time
- allowing employees to perform powerfully
- ensuring that rewards and recognition is appropriate
demographics
- diversity of employee backgrounds: By 2036, 34% of Canada’s workforce will be foreign-born, with significant immigration from Asia and the Middle East. Efforts like TRIEC help immigrants access job opportunities.
- multiple generations in the workforce: requiring organizations to manage diverse needs.
- skills and labour shortage: expected due to an aging workforce and fewer new entrants, which impacts industries like mining.
- gender distrubution: Women make up 47.4% of the workforce, with challenges related to advancement, equal pay, and the impact of the “she-cession.”
- rising levels of education: More Canadians are graduating, but gaps persist, especially among Indigenous people and low-skilled workers.
how are companies responding to the workplace shift
Companies are responding in a number of ways to this demographic shift.
More attention is being paid to the corporate culture and ensuring that staff fit well with the culture and values of the organization.
“culture”- consistent and observable pattern of behaviours in orgs.
employee expectations
- employee rights, Laws grant rights to equal employment, union representation, a safe work environment, minimum conditions (hours, wages, etc.), and privacy (e.g., PIPEDA).
- business ethics, Focus on ethical behavior is growing, with consequences for violations (e.g., racial profiling cases). Companies need whistleblower policies, ethics training, and to address ethics with millennials.
- fulfiling work, Employees seek self-expression and fulfillment over wealth, expecting a supportive, inclusive work culture. Mentoring improves job satisfaction.
- work-life balance, family-friendly options (flexible schedules, daycare, teleworking) are growing, especially as more workers balance work with caregiving for children and aging parents. The gig economy rises with part-time and contract jobs, prompting flexible work designs.
The distinction between corporate strategy and business strategy
Corporate Strategy: Focuses on company-wide decisions about what business to be in and long-term survival and growth (e.g., restructuring or growth through mergers).
Business Strategy: Focuses on how to compete within a specific line of business, aiming for a competitive advantage (e.g., low-cost, differentiation, niche market).
human resources management strategy
identifying key HRM systems, practices, and policies and linking them to the overall business strategy.
the link between business strategy and HRM strategy.
Business strategy involves the formulation of a company’s mission, goals, and action plans
- Part of any business strategy is to be competitive; to be competitive, an organization needs to think about its people as part of its “competitive advantage”
- HRM strategy focuses on linking and aligning the
- HRM systems, practices, and policies to the business strategy
- HRM systems, practices, and policies will reflect a particular organizational strategy, such as growth
main goals of HRM
Influence employee behaviours, attitudes, and performance; align with business strategy; contribute to competitive advantage
