H600 Human Resource Management and Labour Relations Dr. Teal McAteer-Early Spring 2006 Michael G. DeGroote School of Business McMaster University

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H600Human Resource Management and Labour
Relations Dr. Teal McAteer-EarlySpring
2006Michael G. DeGroote School of
BusinessMcMaster University
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H600Intro to Human Resource ManagementWeek
1_________________________________

• Dr. Teal McAteer-Early
• Michael G. DeGroote School of Business
• McMaster University

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Announcements

• Complete and hand in Information Sheet
• See text website
• www.mcgrawhill.ca/college/schwind
• check preface of text
• Includes
• Multiple choice quizzes for each chapter
• List of relevant HR webpages
• E.g., HRPAO, HRDC, Ontario Ministry of Labour,
  etc.

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Week Overview / Objectives

• Introduction to HRM and its functions
• The Human Asset
• - OB to HR link (understanding the connection
  between individual behaviour, job performance and
  satisfaction
• - Individual Assignment requirements
• Challenges facing Canadian organizations
• Exercise Discussion re challenges
• Strategic HRM

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What is HRM?

• HRM functional definition
• Is a set of interrelated functions and processes
  whose goal is to attract, socialize, motivate,
  maintain, and retain an organizations employees
  (Belcourt et al., 2002)
• HRM goal-based definition
• aims to improve the productive contribution of
  individuals while simultaneously attempting to
  attain other societal and individual employee
  objectives (Schwind et al., 2002)
• HRM serves 3 primary constituencies
• The organization
• Society
• Individual employees

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HRM Organizational Objectives

• Primary objective of HRM is to contribute to
  organizational effectiveness
• HRM is not an end in itself
• Its role is to help the organization achieve its
  primary objectives
• E.g., through selection, training, managing HS
• Influenced by many factors
• Industry characteristics, organizations product
  or service, organizations competitive strategy,
  etc.

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HRM Societal Objectives

• HRM must be socially responsible
• Meet the needs and challenges of society
• Narrowly - legal compliance
• Broadly - concern with human rights, social
  responsibility, etc.
• Can be challenging when social concerns conflict
  with organizational goals
• Examples??

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HRM Employee Objectives

• Assist employees in achieving personal goals
• Short-term performance goals and long-term career
  goals
• Can be challenging to balance individual and
  organizational goals
• E.g., when training results in employees
  developing skills that are attractive to other
  organizations

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The HRM Professional

• Major competencies
• Business mastery
• Strategy, financial realities, customer
  orientation
• Mastery of HRM tools
• Staffing, training, compensation, etc.
• Change mastery
• Personal credibility

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The HRM Professional

• CHRP
• Certified Human Resources Professional
  designation
• Requirements
• Academic coursework, etc.
• Comprehensive exam
• 3 years of relevant experience
• See www.hrpao.org

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Challenges facing Canadian Organizations

• Economic
• Technological
• Demographic
• Cultural
• Legal

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Economic Challenges

• 2 related challenges
• Global trade international trade and
  competition with other markets
• Need for productivity Improvement
• More output with equal (or less) input
• HR Implications
• Need to contribute to international competence of
  workers (via training, etc.)
• Potential workforce reductions can result in
  job insecurity and negative effects on workers

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Technological Challenges

• Technology affects how work gets done
• Computerization increased flexibility
• Automation some hazardous/repetitive jobs being
  automated
• HR Implications
• Workers need to possess competencies related to
  technology
• Job losses (layoffs, etc.) due to technology
• Changes in how HR activities get done
• E.g., internet recruiting

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Demographic Challenges

• Increasing of women in the workforce
• Account for 70 of the employment growth in
  Canada over last 20 years
• Implications Employment equity, child care,
  flexible work, etc.
• Change in the types of work
• Shift toward knowledge workers
• Implications different skill and training needs

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Demographic Challenges

• Educational attainment of workers
• Higher education levels coupled with high
  illiteracy rates
• Implications productivity, safety
• Aging workforce
• Growing of workforce is in higher age
  categories
• Implications retirement, job design,
  re-training, benefits, work schedules, etc.
• More part-time and contingent workers
• Accounts for about 15 of all employment
• Implications more flexibility for organizations
  but raises issues of pay inequity, reduced
  employee loyalty

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Cultural (Values) Challenges

• Text refers to 3 examples
• Attitudes toward work
• Different expectations re work and leisure
• People want more flexibility, holiday time, etc.
• Ethnic diversity
• Immigration from numerous countries
• Potential for conflicts of values, etc. but also
  opportunity to learn, expand
• Attitudes toward government
• Negative attitudes toward those in power
  effects employment relationships

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Legal Challenges

• Numerous laws influence organizational (and HR)
  activities
• Employment equity
• Human rights laws
• Charter of rights and freedoms
• Safety legislation

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Exercise Group Discussion

• Choose two of the challenges facing HR managers
  (pp. 5-23 of text)
• Economic
• Demographic
• Technological
• Cultural
• Exercise What are the HR implications of those
  challenges?
• (e.g. implication of increased women in the
  workforce is increased need for flexible work
  arrangements)

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• Challenges illustrate the need for a strategic
  approach to managing organizations

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Strategic HRM
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Common Misconceptions about HR

• HR is primarily an administrative function
• HR has little strategic importance and does not
  represent a potential source of an organizations
  competitive advantage
• HR is a cost centre its activities add to an
  organizations expenses/costs but not to revenue
  generation

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Overcoming these Misconceptions

• HR can and indeed should play a key role in
  an organizations strategy
• There is increasing evidence that HR activities
  are associated with various indicators of
  organizational performance (e.g., ROI,
  profitability, stock prices)
• put toward HR systems and activities should be
  viewed as investment rather than simply cost

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What is Strategic HRM?

• Strategic HRM
• Integration of HRM systems to the overall
  mission, strategy, and success of the firm, while
  meeting the needs of employees and other
  stakeholders
• The intentional use of HR systems to help an
  organization gain competitive advantage

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Guiding Logic of SHRM

• HRM practices must develop employees skills,
  knowledge, and motivation such that employees
  behave in ways that are instrumental to the
  implementation of a particular strategy (Bowen
  Ostroff, 2004)
• Contingency Perspective
• Effectiveness of HRM system depends on contextual
  factors such as industry type, firm size, etc.

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Steps in Strategic HRM

1. Environmental Analysis
2. Organizational Mission and Goals Analysis
3. Analysis of Organizational Strengths and Culture
4. Analysis of Organizational Strategies
5. Choice and Implementation of HR Strategies
6. Review and Evaluation of HR Strategies

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Aligning HR and Organizational Strategy

• Use Porters strategies for illustration
• Cost Leadership
• Tight cost control, production efficiency,
  products designed for ease of manufacture,
  intense supervision of labour
• Differentiation
• Emphasis on marketing, product engineering, RD,
  quality, technological innovation
• Focus
• Combination of cost leadership and
  differentiation directed a market segment

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Example of Aligning HR and Organizational
Strategy

• Cost Leadership
• Tight cost control
• Production efficiency
• Products designed for ease of manufacture
• Intense supervision of labour

• HR Strategies
• Clear job descriptions
• Detailed work planning
• Emphasis on technical skills
• Job-specific training
• Job-based pay
• Performance evaluations for control

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Example of Aligning HR and Organizational
Strategy

• Differentiation
• Emphasis on marketing
• Product engineering
• RD
• Focus on quality
• Technological innovation
• Highly skilled labour

• HR Strategies
• Emphasis on innovation and flexibility
• Broad job classes
• Loose work planning
• Focus on recruitment, careful selection
• Team-based training
• Individual (skill)-based pay
• Performance evaluations for development

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Outcomes of Strategic HRM

• When you align HR with organizational strategy,
  youll see growth in commitment, improved
  financial results, and find yourself better able
  to attract and retain the right people.
• (Paine, 1999)

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Questions / Comments