Mid-Term I Notes | HRM | Chapters 2, 3, and 4

Chapter 2: Strategy & HR Planning

Strategic Planning: procedures for making decisions about the organization’s long-term goals & strategies

HR planning: process of anticipating & providing for the movement of people into, within, and out of an organization.

Strategic HRM: combines strategy formulation & implementation. Looks at types & number of people available, resource allocation decisions. Six steps to SHRM process:

1. Mission: basic purpose of the organizations, its scope of operations, and core values related to decisions of organization.

Strategic Vision: is a statement about where the company is going and what it can become in the future. Core Values: are strong and underlying beliefs and principles that the company uses as a foundation for its decisions.

2. Environmental analysis/scanning a. Economic factors: general, regional, global conditionsb. Industry & competitive trends: new processes, services, & innovations

(1) Competitive environment includes the firm’s customers, rival firms, new entrants, substitutes, and suppliers

(2) There should be a focus on customer value, how they will provide it, will influence the skills and behaviour needed from employees.

(3) Supply of labour – influences hiring plansc. Technological changes: info tech & automation d. Gov’t legislative issues: laws & administrative rulingse. Social concerns: child care & educational prioritiesf. Demographic & labor market trends: age, composition, literacy, & immigration

3. Internal Analysis culture, capabilities, compositiono Culture – determined through cultural audit - VABE = values, beliefs,

expectations. Can be discovered through interviews & questionnaires. Is the organization seniority based or merit based? (gov’t = seniority) Cooperative or competitive? Feel empowered to interact with managers>

leadership style? o Core capabilities: integrated knowledge sets in an organization that distinguishes

it from its competitors and deliver value to customers. 3 main core capabilities: people, processes, & systems People: rare, hard to imitate, low cost or provides something unique,

organizedo Composition: who to employ internally, externally, contract, how to manage &

what skills they needo Forecasting: A critical element of planning

1. Forecast the demand for labour

a. Consider absenteeism/turnover, technology, growth, and financial resources.

b. Uses trend analysis (organizational index like sales), managerial estimates (opinions of supervisors, managers, experts), and Delphi technique (soliciting and summarizing judgments of a pre-selected group of people).

2. Forecast the supply of laboura. Considers unemployment rate, government policies,

education of workforceb. Uses succession planning (identifying, tracking, and

developing key people for executive positions), replacement charts (list of current jobholders and people who potential replacements if an opening occurs), and management inventories

3. Balancing supply & demanda. Shortage – recruitment – full-time, part-time, recalls b. Surplus – reductions – layoff, attrition, termination

Formulating Strategyo Corporate Strategy focuses on the markets they will compete in - growth &

diversification, mergers & acquisitions, strategic alliances & joint ventureso Business strategy focuses on value creation - low cost = compete on

productivity & efficiency. Differentiation = compete on value added.o Functional strategy ensuring alignment. Vertical fit/alignment = what

employees are doing, strategy, Horizontal fit/alignment = fit of HR functions with each other.

4. Strategy implementationo Taking Action: Reconciling supply & demando Balancing supply & demand considerations o Organizational downsizing, outsourcing, offshoringo Making layoff decisions

5. Evaluation & Assessment o Benchmarking: process of comparing the organization’s processes and practices

to those of other companies. Goal is to uncover gaps. o Human capital metrics different aspects of workforceo HR metrics performance of HR functiono Compare to companies similar to you, but also industry leaders

Chapter 2 Question Bank QS and Answers

1. Describe how HR planning is integrated with strategic planning.

Through strategic planning, organizations set major objectives and develop plans to achieve those objectives. HRP provides a set of inputs that determine what is or is likely to be possible, given the number of available people, training needs, and other people-related issues. HR strategies and action plans are developed according to the overall strategic goals that evolve from the strategy formulation process. During the strategy implementation phase, HRP must make

resource allocation decisions, and implement policy, practices, and training that support the decisions and outcomes of the strategic planning process.

2. Describe the three key elements of the HRP model.

The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting supply, and (3) balancing supply and demand considerations.

Forecasting demand involves estimating in advance the number and type of people needed to meet organizational objectives. It may involve a quantitative approach using statistical analysis and mathematical models or a qualitative approach focusing on employee performance and promotability.

Forecasting supply determines if there are sufficient numbers and types of employees available to staff anticipated openings. Sources of supply can be external or internal.

HR planning should strive for a proper balance between the emphasis places on demand considerations and that placed on supply considerations. Demand considerations are based on the forecast of trends in business activity. Supply considerations involve the determination of where and how candidates with the required qualifications are to be found to fill vacancies.

3. Identify and briefly describe three strategies that managers frequently use to cope with a labour shortage.

(1) Overtime – asking employees to work extra hours – is a strategy used by most firms during peak periods.

(2) Part-time employees – to increase flexibility in scheduling and reducing payroll costs, and to cover the absences of regular, full-time employees.

(3) Temporary employees – are typically used for short-term assignments, vacation fill-ins, for peak work periods, or to cover for employees taking sick leave, pregnancy leave, and so forth.

4. What are the advantages and disadvantages of using attrition as a downsizing strategy?

The primary advantage of using attrition (combined with a hiring freeze) is the ability to control and predict compensation expenses that go beyond the salaries and benefits redeemed from departing employees. When the organization does not replace departing employees, the reduction in recruitment, orientation and training, office space costs, and so forth, can result in substantial savings.

However, the disadvantages of attrition are significant. Current employees may be overburdened with the work of departing employees; their skills may not match the skill sets of the departed workers; and no new skills or ideas are infiltrating the organization. In addition, the organization is unable to control who leaves and who stays, which may result in valuable employees leaving, while less needed ones remain. Attrition also poses the disadvantage of taking a long time, compared to processes that can be accomplished rapidly, such as layoffs.

Chapter 3: Equity and Diversity in HR

Important to:- Understand the legal environment of a country- Limit potential liability, want to underline shared responsibility between employee and

employer, doing the right thing. - Be aware of consequences like negative publicity

Employment equity – 2 main goals:- Redress past discrimination- Prevent future discrimination

Designated groups (4)- Women, aboriginal people, people with disabilities, visible minorities. - They make up 60% of the population in Canada, and yet do not represent 60% of the

workforce, especially in the higher levels.

Legal Framework. - Canadian Charter of Rights & Freedoms- Canadian Human Rights Act (CHRA)- Provincial laws- 14 jurisdictions in Canada – 10 provinces, 3 territories, + federal- 90% of all employment law is enforced by the provinces. 10% federal crown

corporations, civil service, agencies, transportation, banking, communications- Standard legislation & human rights legislation- Exemption to discrimination: Bona Fide Occupational Qualification/Requirement

(BFOQ/BFOR) = a justifiable reason for discrimination based on business reasons of safety on effectiveness. Basically needs to be a requirement of the job.

- Concept: reasonable accommodations. Adjustments in job content & working conditions that an employer is expected to make in order to accommodate a person protected by human rights provisions

Enforcement of provincial human rights laws:- Fill a written complaint- Investigation & submission of report- If complaint is sustained, settlement- If no agreement, then a tribunal.

Pay equity: it is illegal to discriminate on the basis of job content. Equal pay for work of equal value. Inputs = outputs. Value = effort, required skills, responsibility, working conditions. Canada HR Act

Pay equality: Equal pay for equal work

Employment Equity – an attempt by an organization to select talented employees from traditionally under tapped pools, prevent future discrimination, correct previous discrimination

Occupational segregation e.g. traditionally male/female jobs like being a nurse

Glass ceiling = invisible barrier for designated groups to advance to higher level positions compared to undesignated groups, organizational bias.

Implementation of employment equity in organizations:- Management commitment of assignment of accountable senior staff- Data collection and Analysis – stock data, flow data, self-identification form- Employment Systems Review – systemic discrimination, special measures, reasonable

accommodations- Establishment of a work plan > specific goals- Implementation- Evaluation, Monitoring, and Revision

Sexual Harassment: unwelcome advances, requests for sexual favours, & other verbal or physical conduct of a sexual nature in the working environment. Person may be in a position of power. Person may be able to withhold something or implement consequence. Managing Diversity: the optimization of an organization’s multicultural workforce in order to reach business objectives.

- Business reasons: better utilization of talent, increases marketplace understanding, enhanced creativity, increased quality of team problem solving, greater understanding in leadership positions.

- Employment equity = mandatory, diversity management is not.

Chapter 3 Question Bank QS and Answers

1. What are some of the disadvantages in employment faced by the four designated groups in Canada?

There are four designated groups in Canada that have not received equitable treatment in employment: women, Aboriginal peoples, people with disabilities, and visible minorities.

Women tend to be concentrated in occupations that are accorded lower status and pay

Many Aboriginal workers are concentrated in low-paying, unstable employment.

The unemployment rate for employable people with disabilities is much higher than the national unemployment rate. People with disabilities face attitudinal barriers, physical demands that are unrelated to actual job requirements, and inadequate access to technical and human support systems that would make productive employment possible.

Visible minority groups vary in their labour force profiles; however, studies have shown that Latin Americans and Southeast Asians experience lower-than-average incomes, higher rates of unemployment, and reduced access to job interviews, even when they have the same qualifications as other candidates. Culturally biased aptitude tests, lack of recognition of foreign

credentials, and excessively high language requirements pose systematic barriers for visible minority groups.

2. What are the steps involved in filing and investigating a human rights complaint?

Individuals under federal jurisdiction have the right to file a complaint with the Canadian Human Rights Commission (CHRC) if they feel they have been discriminated against on any of the prohibited grounds. The complaint must first complete a written report describing the discriminatory action. A CHRC representative reviews the facts and determines if the claim is legitimate. Once a complaint has been accepted by the CHRC, an investigator is assigned to the case in order to gather more facts, from both the complainant and the accused. The investigator submits a report to the CHRC, recommending a finding of either substantial or non-substantiation of the allegation. If the allegation is substantiated, a settlement may be arranged in the course of the investigation. If the parties are unable to reach agreement, a human rights tribunal consisting of up to three members may be appointed to further investigate the complaint. If the tribunal finds that a discriminatory practice did take place, it may order the person or organization responsible to compensate the victim. Any person who obstructs an investigation or a tribunal, or fails to comply with the terms of a settlement, can be find and/or jailed.

Provincial human rights laws are enforced in a very similar manner. Individuals who feel they have been discriminated against on any of the prohibited grounds file a written complaint with the applicable human rights commission, which then investigates the claim. The majority of cases are resolved at the investigation stage. If agreement cannot be reached, the case is presented to the province’s human rights commission. The members of the commission study the evidence and then submit a report to the minister in charge of administering the human rights legislation. The minister may appoint an independent board of inquiry, which has similar powers to a federal tribunal. Failure to comply with the remedies prescribed by the board of inquiry may result in prosecution in provincial court.

3. What can employees do to deter sexual harassment?

Employers must develop an effective sexual harassment policy if they wish to deter sexual harassment. The policy should be clear and comprehensive, publicizing to all organizational members that sexual harassment will not be tolerated. Supervisors and managers should be trained to understand human rights legislative requirements and their role in providing an environment free from harassment. A formal complaint procedure should be established that allows employees to report harassment occurrences without fear of retaliation. All charges should be investigated immediately and, if warranted, discipline should be administered. Cases should be followed up to ensure a satisfactory resolution of the problem.

Chapter 4: Job Analysis & Work Design

Job Analysis: bedrock of HR. Way of dissecting jobs into tasks and duties so you know who to assign/reward. When you disqualify have to be able to explain criteria and defend.

Job Description: a statement of the tasks, duties, & responsibilities of a job to be performed.

Job Specification: a statement of the needed knowledge, skills, & abilities (KSAs) of the person who is to perform the job. Relationship of job requirements & HRM functions:

Strategic HR planning assesses whether organisation has right human resources and jobs to fulfill strategy

Recruitment: job specification must be determined on basis of skills needed

Selection: job description must clearly state tasks & duties of position to be filleda. Training development: organisation must determine how much space for discrepancies

between needs & KSAs of new hires. b. Performance appraisal: must be benchmarked against requirements of job descriptions.c. Compensation mgmt.: worth of job based on KSAs in job specificationd. Legal compliance: vague & unrelated criteria for above opens room for charges of job

discrimination.

Job Analysis: the process of obtaining information about jobs by determining the duties, tasks, or activities of jobs.

o Should also include info on tools needed, environment & times to be done, with whom (alone or team), required performance level

o Process of job analysis - *see textbooko Onet – job databaseo Approaches to job analysis:

a. Position analysis questionnaire systemb. Critical incident methodc. Task inventory analysisd. Competency based analysis

Job Description: job duties, or essential functions section indicate responsibilities entailed & results to be accomplished + job specification section skills required to perform the job & physical demands of the job

- Problems with job descriptions: poorly written, vague terms, little guidance, not updates as job duties & specifications vary, they may violate the law by containing specifications not related to job success, can limit scope of activities of the job, reducing organisational flexibility

Job Design: an outgrowth of job analysis that improves jobs through technological & human considerations to enhance organization efficiency & employee job satisfaction.

Behavioural Concerns: the job enrichment model & job characteristics model: 2 methods designed to increase the job satisfaction of employees.

1. Job characteristics model – designing jobs to motivate employees. 2. Job enrichment – increasing level of difficulty & responsibility of job, increase

authority & control over outcomes, adding new tasks that require training & growth,

providing performance appraisal directly to individual employees, assigning specific tasks.

Flexible work schedules compressed work week, flextime, job sharing, telecommuting

Chapter 4 Question Bank QS and Answers

1. What is the role of job analysis in HRM, and how does it relate to other HRM functions?

Job analysis involves a systematic process of obtaining information about jobs to determine the duties, tasks, and activities involved in the job. This information is useful in a variety of HRM functions including recruitment, selection, training, development, performance appraisal, compensation, and labour relations.

Job analysis permits HR managers to identify job specifications or qualification required by the job. This information enables recruiters to target sources that are most likely to generate qualified candidates. It also allows HR managers to design appropriate selection programs.

Information provided by job analysis may identify discrepancies between the knowledge, skills, and abilities of the jobholder and the requirements contained in the specifications for the job. This can provide clues about training and development needs.

Job analysis reveals the requirements of a job and can serve as a basis for developing criteria to be used in performance evaluation and determining the relative worth of a job. Job descriptions generated by job analysis also allow the organization to identify those jobs subject to union jurisdiction.

2. What factors should be considered in job design?

Job design is concerned with structuring jobs to improve organizational efficiency and employee job satisfaction. Considerations should include (1) the organizational objectives the job was created to fulfill; (2) industrial engineering considerations, including ways to make the job technologically efficient; (3) ergonomic concerns, including worker’s physical and mental capabilities; and (4) employee contributions reflected in the participation of employees in making job improvements or enhanced operational decisions.

3. Discuss the job characteristics that motivate employees.

The job characteristics model proposed that three psychological states - (1) meaningfulness of work, (2) responsibility for work outcomes, and (3) knowledge of results – result in improved performance and motivation of workers. The five characteristics that produce these states are:Skill Variety: the degree to which a job entails a variety of activities and the use of different skills or talents by the jobholder.Task Identity: the degree to which the job requires the completion of a whole, identifiable piece of work.

Task Significance: the degree to which the job has an impact on the lives or work of other people. Autonomy: the degree to which the job provides freedom, independence, and discretion to the jobholder in scheduling and completing the work. Feedback: the degree to which the jobholder is given clear information about the effectiveness of his or her performance.

4. What are the advantages and disadvantages of flextime or flexible working hours?

Advantages of flextime or flexible working hours include:- Employers reduce some of the traditional causes of tardiness and absenteeism- Employees gain greater job satisfaction through the ability to adjust their work to

accommodate their lifestyle.- Employees can schedule their working hours for the time of day they are most

productive.- Traffic congestion may be reduced by variations in arrival and departure times.- Flexible schedules can be helpful in recruiting and retaining personnel.- They are invaluable to organizations that wish to improve service to customers or clients

by extending operating hours.

Disadvantages of flextime or flexible working hours include:- Flexible schedules are not suited to some jobs, such as those where specific workstations

must be staffed at all times. - They can create problems for managers in communicating with and instructing

employees.- They can force managers to extend their workweek to work directly with employees.