1 human resource management and labour relations (h600) ________________________ agata mirowska...
TRANSCRIPT
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Human Resource Management and Labour Relations (H600)
________________________Agata Mirowska
DeGroote School of BusinessMcMaster University
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Announcements
• For section changes, go to the Academic Programs Office (1st floor of DSB)
• 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
• I’m working on getting the course up on ELM
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Week Overview / Objectives
• Course introduction, requirements
• Introduction to HRM (definitions)
• 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 organization’s 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., 2007)
• HRM serves 3 primary constituencies:– The organization– Society– Individual employees
• HRM is not an end in itself
HumanHumanResourceResource
ManagementManagement
OrganizationalOrganizationalObjectivesObjectives
EmployeeEmployeeObjectivesObjectives
SocietalSocietalObjectivesObjectives
Objectives of HRM
to contribute to organizational effectiveness
legal compliance
human rights
long-term career goals
The HRM Professional
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Major competencies
Yeung, Brockbank, Ulrich (1994)
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The HRM Professional
• CHRP– Certified Human Resources Professional
designation– Requirements
• Academic – coursework, etc.• Comprehensive exam• Recertification every 3 years
– See www.hrpao.org
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Challenges facing Canadian Organizations
1. Economic
2. Technological
3. Demographic
4. Cultural
5. Legal
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Economic Challenges
• Related challenges:– Recessionary Cycles– 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, contract/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 (CI/CQ)– 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– Minimum Wage Acts
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Exercise: Group Discussion
• Choose two of the challenges facing HR managers (pp. 6-23 of text):– Economic– Demographic– Technological– Cultural
• Exercise: What are the HR implications of those challenges? – Specifically, how do the challenges affect
attracting, selecting, training, managing, and compensating employees (etc.)?
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• Challenges illustrate the need for a strategic approach to managing organizations…
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Strategic HRM
•HR is primarily an administrative function
•HR has little strategic importance and does not represent a potential source of an organization’s competitive advantage
•HR activities add to an organization’s expenses/costs but not to revenue generation
Common Misconceptions about HR
“HR people aren’t the sharpest tacks in the box”
“HR pursues efficiency in lieu of value”
“HR is not working for you”
“The corner office does not get HR”
Common Misconceptions about HR
Keith. H. Hammonds, “Why We Hate HR”, August 2005, FAST COMPANY.
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Overcoming these Misconceptions
• HR can – and indeed should – play a key role in an organization’s 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.
Steps in Strategic HRM
EnvironmentalEnvironmentalAnalysisAnalysis
EnvironmentalEnvironmentalAnalysisAnalysis
OrganizationalOrganizationalMission &Mission &
GoalsGoalsAnalysisAnalysis
OrganizationalOrganizationalMission &Mission &
GoalsGoalsAnalysisAnalysis
Analysis ofAnalysis ofOrganizationalOrganizational
Strengths &Strengths &CultureCulture
Analysis ofAnalysis ofOrganizationalOrganizational
Strengths &Strengths &CultureCulture
Analysis ofAnalysis ofOrganizationalOrganizational
StrategiesStrategies
Analysis ofAnalysis ofOrganizationalOrganizational
StrategiesStrategies
Choice &Choice &ImplementationImplementation
Of HROf HRStrategiesStrategies
Choice &Choice &ImplementationImplementation
Of HROf HRStrategiesStrategies
Review & Review & Evaluation of HR Evaluation of HR
StrategiesStrategies
Review & Review & Evaluation of HR Evaluation of HR
StrategiesStrategies
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Aligning HR and Organizational Strategy
• Use Porter’s 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, R&D, 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– R&D– 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
Wal-Mart vs. Costco• But, even firms using these strategies may
not use the same HR practices.
• Consider Costco and Wal-Mart (Sam’s Club, Wal-Mart’s warehouse retail stores)
• Both use “Cost leadership” strategies, but have different values and emphases– See August 2006 issue of Academy of Management
Perspectives
Facts about Wal-Mart’s Sam’s Club
• Wal-Mart business model / strategy:– “Always Low Prices. Always.”– “Save money. Live better.”
• Average hourly wage: $10.11
• Poor benefits
• Does not permit unions
Facts about Costco
• Costco business model / strategy:– Sell a limited number of items, keep costs down, rely
on high volume, pay workers well, have customers buy memberships, and aim for up-scale shoppers, especially small business owners
– And, don’t advertise
• Average hourly wage: $17
• Substantial benefits
• Permits unions
Wal-Mart vs. Costco• Wal-Mart:
– secures low prices by insisting on low costs from suppliers and paying workers low wages with few benefits.
– Turnover: 44% per year– Stock value over 5 years: minus 10%
• Costco• emphasizes its Code of Ethics in its everyday
business operations including respect for suppliers and employees
• Turnover: 17% per year• Stock value over 5 years: plus 55%
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Questions / Comments?