Human Resource Management Lecture notes Full term PDF

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Human Resource Management 200

Chapter 1: Strategic Human Resource Management What is HR Management?  Human Resource Management The leadership and management of people within an organization using systems, methods, processes and procedures that enable employees to optimize their performance and in turn their contribution to the organization and its goals  Organizational Goals An organizations short/long term goals that human resource management aims to support and enable

Strategic Human  Processes of integrating strategic needs of an organization (large scale, future oriented)  Practices to support the organizations overall mission, strategies and performance  Proactive HR Management A human resource management approach where in decision makers anticipate problems or challenges both inside/outside the organizations and take action before they impact the organization  Reactive HR Management A HR management approach where in decision makers respond to problems or challenges as they arise rather than anticipate them

Understanding Strategic HR Management Process  Mission Statement Statement outlining the purpose, long-term objectives and activities the organization will pursue and the course for the future  Cost Leadership Strategy Strategy to gain competitive advantage through lower costs of operations and lower prices for products  Differentiation Strategy

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Strategy to gain competitive advantage by creating a distinct product or offering a unique service  Focus Strategy Strategy to gain a competitive advantage by focusing on the needs of a specific segment of the total market  Economic Forces o Include global trade forces and the force to increase one’s own competitiveness and productivity levels o Global Trade: Canada ranks high in exports o Productivity: refers to the ratio of an organizations outputs (goods) to its inputs (people)  Technological Force Technology influences organizations and the way people work. Often it can affect an entire industry.  Mechanization: The shift toward converting work that traditionally done by hand to being completed by mechanical/electrical devices o Increased predictability and reliability o Higher standards of quality o Flexibility  Demographic Forces o Demographic Changes:  Changes in the demographics of the labour (ex. education levels/age) o Aging Population  Low birthrate  Longer life expectancy  65+ age group will expand o Education Attainment  Highest level of education of workers o Knowledge Workers (fastest growing type)  Members of occupations generating, processing, analyzing, or synthesizing ideas + information (like scientists)  Generational Shift o Generation X (Nexus)  Born between 1966 – 1980  Not adverse to hard work  Premium on work – life balance  Active decision makers  “command and control” o Generation Y

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Born after generation X Now enter workforce and favours technology

o Cultural Forces  Challenges facing a firm’s decision maker’s b/c of cultural differences among employees or changes in core cultural / social values occurring at the larger societal level o Cultural Mosaic  Canadian ideal of encouraging each ethnic, racial, and social group to maintain its own cultural heritage, forming a national mosaic of different cultures  Organizational Character The product of an organizations features – people, objectives, technology, size, age, unions, policies, successes, and failures.  Organizational Culture The core beliefs and assumptions that are widely shared by all organizational members  Human Resource Audit Examination of the HR policies, practices and systems of a firm to eliminate deficiencies an improve ways to achieve goals o Employee satisfaction o Managerial compliance o Strategy alignment  Staff Authority: authority to advise, not direct  Line Authority: authority to make decisions about production, performance and people  Functional Authority: allows staff to make decisions instead of managers

Today’s Human Resource Management Professional  Master of HR Management Tools o Should be familiar with staffing, training, compensation planning, performance appraisal and planning etc.  Change Mastery o HR professionals should be able to bring change in the organization  Personal Credibility o Should be trustworthy, ethical, courageous  Certified Human Resource Professional (CHRP) HR Practitioner, formally accredited to practice (only thing needed to practice) 1. The Strategic HR Management Model 2. Planning Human Resources 3. Attracting Human Resources

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4. Placing, Developing, and Evaluating HR 5. Motivating Human Resources 6. Maintaining High Performance 7. HR Management in a Global Context L – E – S Spectrum o Legal – Ethical – Social  Do we do things because the law tells us to, the employer or the society? Canadian Employees shifting from o Primary industries – to – service, technical, professional jobs Human Resource Planning o Analysis of the HR requirements of an organization Strategy o How do you know you have the qualifications? o PEST = political – economic – social – tact  Wages / look outside the box / attitudes o Employability Skills Include:  Basic academic skills  Personal management skills  Teamwork WARMED HR o W – Wellness (health insurance, compensations) o A – Attraction + Selection (who is fit for the job?) o R – Rewards (commission) o M – Motivated (internal – how do we externally motivate?) o E – Execution (review, does it get done?) o D – Development (how much are we investing?) Human Resource Business Partner (HRBP) o Organizational awareness o Trusted relationships Core Job Characteristics o Variety – requires the ability to use different skills to perform a job o Task Identity – requires completion of a whole/identifiable piece of work o Autonomy – individual experiences freedom, discretion and independence in doing the job o Task Significance = the extent to which a job affects the lives of others inside / outside the organization o Feedback – employee receives direct and clear info about the effectiveness of their job performance

Chapter 2: Job Analysis and Design  Job Analysis o Study of a job to discover its specifications, skill requirements – for wage setting, recruitment, training, or job-design purposes Job = group of related duties Position = collection of tasks completed by an individual

Steps in the Job Analysis Process 3 Phases in Job Analysis 1. Preparation 2. Collection of Job Information 3. Use of Job Information for Improvement

 Sources of Job Data o Nonhuman  

Existing job descriptions Equipment design blueprints

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Equipment maintenance manuals Internet research Professional goals

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Work colleagues Subordinates Customers

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o Human Sources:   

Job incumbents Supervisors Job experts

 Job Analysis Questionnaires o Collects information about jobs o Uncovers:  Identifications  Duties / responsibilities  Performance standards  Human characteristics / working conditions

 Occupational Information Network (O-NET)

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 Generic questionnaires for specific domains of job information

 Fleischmann Job Analysis System (F-JAS)  Used mainly in the US market  Well researched job analysis method based on a list of 52 cognitive, psychomotor, physical and sensory abilities  Position Analysis Questionnaire (PAQ)  Applied to all jobs  Emphasizes: outputs, inputs, relationships

 Interviews Collecting job/performance related information by face-to-face meeting, standardized checklist of questions o (disadvantage = slow/expensive)

 Focus Groups o Face-to-face meeting with 5-7 jobholders/experts  Employee Logs o Where employees are required to record their jobs/actions in a journal for data  Observation o Collecting job/performance related information by direct observation  Combination o Use of 2 or more job analysis techniques (ex. interview and observation)

Job Description  Job Description o Recognized list of functions, tasks, accountabilities, working conditions, and competencies for a particular occupation  Explains duties, working conditions, etc.  Job Identity o Includes job title, job location, job code, job grade  Job Code o A code that uses numbers/letters to provide a quick summary of the job and its content

 National Occupation Classification (NOC)

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o An occupational classification created by the federal government, using skill level and skill types of jobs  Working Conditions o Includes physical environment, hours hazards, travel requirements etc.

Job Specifications / Performance Standards  Job Specification o A written statement that explains what a job demands of jobholder and the human skills / factors required  Job Performance Standards o Work performance expected from an employee on a certain job

Competency Models  Competency o Skill / knowledge / ability / behaviour = successful job performance  Competency Model o 10-15 competencies required for a job  Competency Matrix o List of the level of each competency required for each of a number of jobs

Job Design  Job Design o Identification of job duties, characteristics, competencies and sequences taking into consideration technology, workforce, organization character, and environment o Efficiency: maximize output with minimal input  Workflow o Balance between jobs in an organization to perform/produce goods or services efficiently  Autonomy o Concept of assuming responsibility for actions o Freedom to control one’s response to the environment o Jobs that give workers authority to make decision  Variety o Jobs where the worker has/can use different skills to prevent boredom  Task Identity o Feeling of responsibility/pride that results from doing an entire piece of work, not just a small piece of it

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 Feedback o Information that helps evaluate success / failure  Task Significance o Knowing that the wok being done is important to either the organization or outsiders

Job Specialization  Job Rotation o Moving employees around to encourage variety and so they learn new skills  Job Enlargement o Adding more tasks to a job to increase the cycle and draw on the wider range of employee skills  Job Enrichment o Adding more responsibilities to a job o Increases responsibility and control o Plan, do, control  Environmental Considerations o Influence of the external environment on job design  Includes:  Employee ability  Availability  Social expectations  Social Expectations o Larger societies expectations about: job challenge, working conditions and quality of work  Work Practices o Set ways of performing work in an organization  Work Force o Work flow in an organization is strongly influences by the nature of the product / service  Job Characteristics Model o High autonomy o Variety o Task identity

o Task significance o Feedback

 Disadvantages of using Questionnaires to Collect Job Data: o Less accuracy o Misunderstood questions  Intent of Data Collection in Job Analysis

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o Incomplete questions o Low response rates

o Collect relevant and accurate information about jobs and factors determining job success

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Chapter 3: Human Resource Planning Relationship of Human Resource Planning to Strategic Planning  Human Resource Planning (HRP) o Used to determine future HR requirements by anticipating future business demands o Determining current availability of HR o Making decisions on being affective

 5 Levels of Planning Activities 1 – 5 (Basic to Robust) o Level 1: Demand for Resources  Not engaged in any planning, training = afterthought o Level 2: Supply of Resources  Engage in some long-term planning, but minimal HR o Level 3: Develop HR Objectives  Moderate planning activities, long-term forecasts, 4-5 years planning o Level 4/5: Establish Evaluation (FINAL STEP)  Advanced sophistication, long-term planning, core + key HR priority  Human Resource Planning Process Steps 1. Forecast Demand for Resources 2. Assess Internal and External Supply of Resources 3. Develop HR Objectives 4. Design and Implement HRM Programs 5. Establish Program Evaluation

 Forecasts o Estimates of future resource needs and changes o Turnover: departure of employees from an organization (ex. termination) o Budgets and Revenue Forecasts  Budget increase/decrease are highly significant as a short-run influence on HR needs

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o Forecasting Techniques for Estimating HR Demand

expert informal/instant decisions formal expert survey Delphi technique

Trend extrapolation indexation statistical analysis

Other budget/planning analysis new-venture analysis computer models

 Nominal Group Technique (NGT) o Focused group discussion where members meet in person, write down ideas and share them o All new thoughts are recorded  Delphi Technique o Soliciting of predictions about specified future events from a panel of experts

Trend Projection Forecasts  Extrapolation o Extending past rates of change into the future  Indexation o Method of estimating future employment needs by matching employment growth with a second value  Other Forecasting Methods o Budget and Planning Analysis o New-Venture Analysis o Computer – Based Simulation and Predictive Models Staffing Table: lists future employment needs for each type of job

The Supply of Human Resources  Human Resource Audits o Summarize the employee’s knowledge skills, abilities, generating skills, management and leadership inventories o Skills Inventory:  Summaries of worker’s skills and abilities o Management / Leadership Inventory  Comprehensive reports of available management capabilities in the organization  # of employees

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 types of employees supervised  total budget managed  management training received o Replacement Charts  Visual representatives of who will replace whom in the event of a job opening

Transition Matrices and Markov Analysis  Markov Analysis o Simple method of predicting the internal supply of HR in the future o Useful where employees move from one job to another, regularly o Useful where jobs do not fluctuate rapidly due to external (technological) / internal (strategic) change  Forecast of firm’s future HR supplies, using traditional probability matrices  Transition Matrices o Describe the probabilities of how quickly a job position turns over and what an incumbent employee may do over a forecast period of time  Labour Market Analysis o Study of a firm’s labour market to evaluate the present / future availability of different types of worker  Canadian Occupational Projection System (COPS) o Provides up to 10-year projection of Canadian economy and HR needs

 Supply Indicators o Internal  Human Resource Audits  Skill inventories  Management inventories  Replacement charts/summaries  Transition matrices and Markov Analysis o External  Labour market analysis  Community attitudes  Demographic trends  Headcount Reduction o Layoff – temporary withdraw o Leave without pay o Termination

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o Incentives for voluntary separation  Outplacement o Assisting employees to find jobs with other employers

Attrition Strategies  Attrition o Loss of employees due to voluntary departures o Normal separation of employees o Resignation, retirement, death  Ex. Early / Phased Retirement  Job Sharing / Job Splitting o A plan whereby available work is spread among all workers in a group to reduce the extent of layoffs  Not being laid off  Give employees more free time  Phased Retirement o Older worker reduces # of hours worked but continues to share their experience  Part-Time Employees o People working fewer than required hours for categorization as full-time workers and who are ineligible for many supplementary benefits offered by employees

Strategies to Manage Shortages of Employees  Labour Shortage o Insufficient supply of qualified workers  Full-Time Employees o Work 37.5-40 hours / week  Contract (Contingent) Worker o Not part of the regular workforce (freelancer) o Governed under contract law o Provides goods/services under a contract  Consultant o Professionals who provide expert advice  Outsourcing o Contracting tasks to outside agencies / persons o Saves money, better quality o Decision made by executives, not HR planners (also called offshoring) o Contracting with a 3rd party organization  Work Arrangement

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o Refers to a firm’s use of work hours, schedules and location to ensure that the goals of an organization and the needs of the employees are met  Overtime o Rather than hiring employees to relieve labour shortage, organizations will offer overtime  Consequences: high stress, fatigue, accident / wastage rates  Flexible Retirements o Also called retiree-return programs o These programs allow retirees to work after they have left and allows them to have significant flexibility in terms of their job  Float and Transfer o Employees have to be cross-trained o Flexible policy, where full-time resources can be transferred when needed  Ex. Job Rotation

Program Measurement and Evaluation  People Equity o How organizations measure and manage their human capital to maximize its value

Human Resource Information Systems  HRIS (HR Information System) o Gathers, analyzes, summarizes and reports important data for formulating and implementing strategies by HR specialists o HRIS Functions:    

Applicant/recruitmen t tracking Training and development Performance management Employment equity info

o Key Considerations for HRIS  Size of the organization  What info needs to be captured  The volume of info transmitted  The firm’s objectives  Managerial decision needs

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Time and attendance Benefits / pension Labour relations Performance Health / safety Compensation Career planning

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The importance of reporting capability Technical capabilities Available resources

 Enterprise – Wide System o Link an organizations entire software application environment into a single enterprise solution  Employee Self Service (ESS)  Allows employees to access and view their own records and make changes  Manager Self Service (MSS)  Managers are able to access employee records, view and add relevant info, such as an employee rating  Predictive Analysis o Process of selecting, exploring, analyzing and modelling data to create better business outcomes  Talent Management o A systematic, identification, development, engagement/retention and deployment of those individuals with high potential who are particular value to the organization  More than a recruitment strategy

Human Resource Accounting  Human Resource Accounting (HRA) o Process to measure the present cost and value of human resources as well as their future worth to the organization  Tries to put a dollar on the human assets of an organization using cost and value models

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Chapter 4: Legal Requirements and Managing Diversity Government Impact  Regulations o Legally enforceable rules developed by governmental agencies to ensure compliance with laws that the agency administers

 The Charter of Rights and Freedoms o Federal law enacted in 1982, guaranteeing individuals rights and freedoms before the law  Ex. freedom of conscience and religion, freedom of thought, belief, opinion, freedom of association etc.  Section 15 – Equality Rights  Came into effect April 17, 1985  Delayed to allow federal/provincial government to create/change laws in compliance with the charter

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