Chapter 1 Strategic human resource management What is human resources management
-Organization bring people together in a coordinated manner to accomplish goal or objectives that could otherwise not be accomplished by a single individual
-organization goal may be categorized into economics (eg.profit, shareholder value)social (eg ethical practices) , and environmental (eg. Reduction of carbon footprint) goals.
-for an organization to meet its goal all employees must engage in actions and behaviours that move the organization closer to its goals. If not the organization will fail.
*human resource management- is the leadership and management of people within an organization using systems, methods, processes and procedures that enable employees to achieve their own goals that in turn enhance the employee’s positive contribution to the organization to the organization and its goal.
-this helps the organization to achieve it primary objective
-if employee goal are ignored in the system then workers performance will go down, or they might leave the organization
*organization Goals- an organizations short and long term goals that human resource management aims to support and enable
-human resource department is a specialized group with a primary focus of ensuring the most effective use of human resource system by individual manager and the organization overall Strategic human resource management
-human resource management does not exist independently of a larger framework. The larger frame work is strategic human resource management. The strategy is like a game plan it
involves large scale, future oriented, integrated plans to achieve organizational goal an respond to uncertain and competitive environment facing the organization.
-strategy are formulated at three level, (corporate,)nvolving the entire organization,
( business)involving a major activity , business or division in a large multi business organization; and functional involving managers of different activities services )eg finance marketing, or geographical areas.
-strategic human resource management is systematically linked to the strategic need of an organization and aims to integrate human resource management strategies and systems to support the organization overall mission, strategies, and success while meeting the needs of employees and other stakeholders.
-human resources tactics are methods , procedures, or systems employed by human resource managers to achieve specific strategies
-human resources startegies and tactics should be mutually consistent and that they reflect the larger organizational mission and strategy.
-strategic human resource management often enables an organization to anticipate a challenge or problem and address it before it impact the organization.
*Proactive human resource management-a human resource managemtn approach wherein decision makers anticipate problems or challenges and take action before it impact the organization.
*reactive human resource management-a human resource management approach where in decision makers respond to problems or challenges rather than anticipate them.
-this involves 6 steps
Step 1) environmental scan
-some environmental forces can be economic, technological, political, social, demographic,legal, cultural, or nature.
-major forces facing Canadian organization can be grouped under economic, technological, demographic, cultural, and legal.
*economic forces – economic factors facing Canadian business today including global trade forces and the forces to increase ones own competitiveness and productivity levels.
First force of economic forces is economic cycle. Capitalist economies go thourgh boom and bust cycles.
Economic forces(global trade)- international trade has always been critical to canadas
prosperity and growth. Canda has a good trading system, we trade a lot compared to our small population. Canadian jobs and economic prosperity depends on our international trade more than ever. Canadian organization are expanding over seas to capture new market opportunities. Economic force(productivity) is the ratio of a firms outputs(goods and services)divided by it inputs(people, capital, materials, energy) productivity increase as they find new ways to use fewer resoucrese to product its outputs. Productivity optimization is essential for long run success. By doing this managers can save reduce cost, save resoucrces and enhance profits. In turn they can provide better pay benefits and working conditions.
-Outsourcing, contract workers or cotingent workers can be used to increase productivity Economic forces(global competitiveness) to improve its competitiveness, innovation on two fronts, namely people management and technology are a mush
More effective knowledge managemtn- is the procees of capturing organizational knowledge and making it available for sharking and building new knowledge-has been another outcome of digital information systems.
Technological force: automation- is the automatically controlled operation of a process, system or equipment by mechanical or electronic devices. Organizations tend to be automated for speed reliability or flexibility.
Demographic forces knowledge workers-members of occupations generating, processing analysing or synthesizing ideas and information like scientist and management consultants. Knowledge workers are the fastest growing type of workers in Canada.
Demographics forces(educational attainment)-is the highest educational level attained by an individual worker employee group or population.
Demographic force(aging population) Old age crises referes to the social(health care) and oraganzational(new workplace ergonomics )challenges caused by aging of population.
Cultural force( diversity) is the challenges facing a firms decision makers because of cultural differences among employees or changes in core cultural or social values occurring at the lager societal levels.as cultural value change HR discovers new challenges.
Cultural force(ethics) –there is a great demad for etical conduct of business. Unethical practices (creative accounting,insider treading, securitites fraud, excessive payments) companies now institute a code of ethics or code of conduct for their employees.
Step 3
Organizational character is the product of all of an organztions features people, objectives. Technology, size, age, unions, polivies, successes, and failures. Managerial philosophy also influences the ytpe of organization structure and the hr departments rold witin the firm.
Step 4 analysis of organizational strategies
Step 6 review, evaluation, and audit of human resource strategies Human resource practices must be examined periodically .
Human resource audit- an examination of the human resource policies, practives and systems of a firm(or division) to eliminate deficiencies and improve ways to achieve goals.
Preparing for the future- HR department also should look to the future in order to be more proactive, this requires hr manager and employees to develop future orientations.must scan their professional and social environment for clues about the future.
Service role of the human resource department
*staff authority- authority to advise but not to direct other
*line authority-authority to make decision about production performance and people
*functional authority –authority that allows staff experts to make decisions and take actions normally reserved for line mangers.
