Chapter 1 Notes Continued

HR Management Key Functions

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- All the functions are closely integrated with eachother

A Model of Strategic HR management

- Strategic HRM:​ means that HRM should support the organization goals and should be
aligned with its strategy
 -
- Five Steps:
- 1. Organizational Mission, Goals, and Strategy Analysis
- 2. Environmental Scan
- 3. Analysis of Organizational Character and Culture
- 4. Choice and Implementation of Human Resource Strategies
- 5. Review, Education and Audit of Human Resource Strategies

Model of Strategic HRM

Organizational Mission, Goals, and Strategy Analysis

- Mission statement:​ a statement outlining the purpose and long term objectives of the
organization
- Organizational strategies:​ the actions an organization takes to achieve its long-term
business goals
- They arise from the company's mission statements
- There are three main kinds of strategies:
- Cost Leadership strategy:​ gain competitive advantages through lower costs of
operations and lower prices for products
 - Differentiation:​ the ability to offer unique or distinctive products and services that
can command a premium price
- Focus strategy:​ concentrates on a specific market or buyer group

Environmental Scan
- Economic​ – economic cycles, global trade, productivity / innovation improvement
- Technological​ – flexible work design, automation
- Automation could reduce the amount of workers needed
- Technology may limit social interactions
- Demographic ​– gender balance, knowledge workers, education, aging population,
generations
- The canadian workforce is almost 50% females and 50% males
- Cultural​ – diversity, ethics
- Diverse workplaces promote innovation
- Government/Legal​ – employment equity, employment standards act, human rights

Analysis of Organizational Character and Culture

- Organization character
- product of an organization’s features – people objectives, technology, size, age, unions,
policies, successes, failures
- Organizational culture
- Core beliefs and assumptions that are widely shared by all organizational members

Choice and Implementation of HR Strategies

- Job design & human resource planning
- Attracting talent – recruitment, selection, diversity
- Developing and evaluating employees – orientation, training, performance management
- Compensation
- Health & safety
- Employee relations

Review, Evaluation and Audit of HR Strategies

- This strategies must constantly be reviewed due to changing work environments
- Employee outcomes
- Satisfaction, productivity, engagement, motivation etc.
- HR outcomes
- Legal compliance, turnover rates, competency development, etc.
- Organizational outcomes
- Performance, growth, customer satisfaction, etc., where HR activities are
implicated

Options for HR Strategies

- Start with organizational strategy, then create HR strategy
 - This is a top down approach
- Start with HR competencies, then craft corporate strategies based on these
competencies
- This is a bottom up approach
- Do both

The Service Role of the HR Department

- Staff authority:​ HR departments are service departments
- Authority to advise, not direct
- Line authority: ​Possessed by managers of operating departments (i.e., authority to make
decisions)
- Functional authority:​ HR department may be provided authority to make decisions (e.g.,
deciding type of benefits)