Chapter 1 Flashcards
The Strategic Role of Human Resources Management (159 cards)
1
Q
What does HRM stand for?
A
Human Resource Management
2
Q
What are some general examples of HRM activities
A
Hiring, training, appraising, compensating, and developing employees
3
Q
Is HRM it’s own separate function?
A
Yes, usually accompanied with its own human resources or HR manager
4
Q
What is an organization?
A
A group consisting of people with formally assigned roles who work together to achieve the organization’s goals.
5
Q
What is a manager?
A
Someone who is responsible for accomplishing the organization’s goals and who does so by managing the efforts of the organization’s
people.
6
Q
Who is often responsible for the completion of management functions?
A
Formal managers, leaders, and entrepreneurs
7
Q
What is the management process?
A
Involves completion of the five basic functions in an organization: planning, organizing, staffing, leading, and controlling.
8
Q
What is human resources management?
A
The management of people/ employees in organizations to drive successful organizational performance and achievement of the organization’s strategic goals
9
Q
What does the mutual gains model indicate on HRM
A
Activities, processes, and procedures should benefit both organization and its employees
10
Q
What are HR professionals responsible for?
A
Ensuring organization attracts, retains, and engages diverse talents needed to meet operational and performance commitments
Primary responsibility for managing workforce to improve organization’s performance and strategic achieve goals
11
Q
What is an HR professional’s job?
A
Ensure the organization
- finds and hires the best individuals available
- develops their talents
- create productive work environment
- continually build and monitor workforce
12
Q
Concept of HRM can be summarized as….
A
-What
-How
-Why
of labour and talent management in org
Understanding WHAT practices help regulate employees (e.g., recruitment, compen-sation, performance management, training, etc.)
Clarity HOW these practices or systems impact employee, team, business unit, and company-level
attitudes, behaviours, and outcomes
Considers WHY specific HR practices needed for each unique business setting
13
Q
Name the HRM systems
A
- Job analysis (Important)
- Workforce planning
- Recruitment (Important)
- Selection (Important)
- Training & development (Important)
- Performance management (Important)
- Compensation & rewards
- Employee & labour relations
14
Q
How does HRM formulate and implement HRM systems?
A
Pick one that aligns with organization’s strategy to ensure that the workforce has the competencies and behaviours required to achieve the organization’s strategic objectives.
Important that strategy aligns with company’s strategic plan
15
Q
How does a company’s competitive environment and internal strengths
or weaknesses impact the company’s strategic situation
A
- By impacting the company’s strategic situation, the strategic situation impacts the strategic plan like a chain effect.
Ex:
- From the top of the firm down to front-line employees, organizational goals are viewed as a chain/hierarchy of goals. Organizational leaders set long-term or strategic goals (such as “double sales revenue to $16million in fiscal year 2025”). The top management team then sets goals for the units that flow from, and make sense in accomplishing the leader’s goals. Then their subordinates set goals, and so on down the chain. (LOOK AT FIGURE 1.1)
16
Q
Is HRM static or dynamic?
A
Dynamic
World of HRM continues to evolve.
- Government initiatives in employment, equity, training,
and employment legislation changes often
- Organizations adopt new practices and competition for talent change
-Labour force demographic
-Impact of labour mobility (between companies and between
countries)
Therefore it’s important to stay up-to-date
17
Q
What is a strategic plan?
A
The company’s plan for how
it will match its internal
strengths and weaknesses with
external opportunities and
threats in order to maintain a
competitive advantage.
18
Q
How are strategic plans made?
A
Strategic planner asks “Where are we now as a business, and where do we want to be?” then formulates a strategic plan to help guide company to the desired destination
19
Q
Examples of strategic planning
A
- Grocery store decides to offer grocery delivery or online orders
-Apple branches out into selling watches
20
Q
What is a business model?
A
A company’s method for making money in the current business environment.
21
Q
What are the functions of a business model?
A
Pin points:
- Who the company serves
- What product or service it provides
- What differentiates it
- It’s competitive advantage
- How it provides its product or service
- Most important: how it makes money
22
Q
Example of business model being used
A
Business model assessing how Google makes money will find they don’t make money by requiring people to pay for searches but rather by offering targeted paid advertisements based on what people are searching for
23
Q
What is a strategy?
A
A course of action the company can pursue to achieve its strategic aims.
24
Q
How is a strategy developed?
A
Every org. has a strategy that can be formally developed or emerges from organizational activity
25
Other words for strategy?
- Mission
-Objective
- Goals
A.K.A what the business is doing
26
What is strategic management?
The process of identifying and
executing the organization’s
strategic plan by matching
the company’s capabilities
with the demands of its
environment.
27
What are a company's capabilities?
It's strengths and weaknesses
28
What are the demands of an environment?
A company's competitors, customers, and suppliers
29
What must employers do when designed HR policies and practices
They must understand the role of these policies and practices in achieving the companies' strategic goals
30
What is human capital?
The knowledge, education,
training, skills, and expertise of
an organization’s workforce.
31
Examples of human capital management
- Service occupations (consultants and lawyers) emphasize education and knowledge
- IT related (Google, Capgemini, Cognizant) demand high levels of human capital and employ many knowledge workers
- Traditional manufacturing jobs (assembly line workers) are increasingly high tech, bank tellers, retail clerks, bill collectors, mortgage processors, and package deliverers need level of technological sophistication they didn't need few years ago
32
What do human capital management have to do in order to be successful?
Strategic human capital management must link the organizational strategy and objectives with the employees’ sense of identity or purpose, their sense of community, and their intrinsic values
33
What do research studies show about effective HR practices?
Effective HR practices are related to better organizational performance
Organizational benefits: range from better team performance to increased employee empowerment that affects productivity of employees
34
What do resource based views say about effective HR practices
HR practices contribute to development of embedded knowledge of a firms:
- culture
- history
- processes
- context
which are non-imitable
35
What 3 HR practices have a statistically significant positive impact on important accounting measures of performance?
1. Profit sharing
2. Results-oriented performance appraisal
3. Employment security
have positive impact on accounting measures of performance (return on assets and return on equity)
36
What 3 high performance HR practices have a positive relationship with employee retention, productivity, and corporate financial performance (gross rate of return on capital)
- Comprehensive employee recruitment and selection procedures
- Incentive-based compensation and performance management systems
- Extensive employee involvement
and training
37
What is evidence-based HRM?
Use of data, facts, analytics,
scientific rigour, critical
evaluation, and critically
evaluated research/case
studies to support human
resources management
proposals, decisions, practices,
and conclusions.
A major contribution of HRM is making decisions based on it
38
What can evidence-based HRM simply be summarized as?
Using best available evidence in making decisions about the HRM practices that the company is focusing on
39
What are the three sources for evidence?
1. Actual measurements
2. Existing data
3. Research studies
40
Give an example of actual measurements
How did the trainees like this program?
41
Give an example of existing data
What happened to company profits after we installed this training program?
42
Give an example of research studies
What does the research literature conclude about the best way to ensure that trainees remember what they learn?
43
What are metrics?
Statistics used to measure activities and results.
44
True or false: HR professionals need to be able to measure the value and impact of their organization’s human capital and HRM practices
True, they can be measured using various metrics
45
Traditional operational measures vs. todays
Traditional: focused on the amount of activity and the costs of the HR func-tion (such as number of job candidates interviewed per month, cost per hire, etc.)
Todays: need to reflect the quality of people and the effectiveness of HRM
initiatives that build workforce capability
46
What type of information do new operational measures provide?
Critical information that can be linked to organizational outcomes:
- Productivity
- Product or service quality
- Sales
- Market share
- Profits.
47
Example of new operational measures and the information they provide?
% of first-choice job candidates accepting job offer indicates strength of organization's employment brand in the marketplace --> directly affects the quality of the workforce
48
In the context of environmental influences what are the 3 main things all managers (including HR responsible) must do to be effective
1. Must monitor environment on ongoing basis
2. Assess impact of any changes
3. Be proactive in responding to such challenges
49
What are the 6 major external environmental factors affecting HRM policies and practices
1. Labour market issues
2. Economic conditions
3. Technology
4. Government
5. Globalization
6. Environment
50
What are the 3 major internal environmental factors affecting HRM policies and practices
1. Organizational culture
2. Organizational climate
3. Management practices
51
Define the influence of labour market issues
Changes to the workforce composition, including protected groups (visible/ethnic minorities, women, Indigenous Peoples, people with disabilities), generational differences (traditionalists, baby boomers, Gen X, Gen Y, and Gen Z), and contingent workers
52
Define the influence of economic conditions
Affect supply and demand for products, impacting quantity and
quality of employees required, and ability to pay/give benefits
53
Define the influence of technology
Controlling data and privacy
54
Define the influence of the government
Abiding by provincial and national standards
55
Define the influence of globalization
Managing the workforce in an intense, hypercompetitive global economy
56
Define the influence of the environment
Managing sustainability and corporate social responsibility
57
Define the influence of organizational culture
Values, beliefs, and norms of
organizational members
58
Define the influence of organizational climate
The atmosphere’s impact on
employee motivation, job performance, and productivity
59
Define the influence of management practices
Organizational structure and
employee empowerment
60
How has the concept of diversity changed in recent years
Extends beyond traditional idea of demographics to a more historical, political, and socioeconomic understanding of society, including our workforce
Understanding that there are underrepresented or marginalized groups in many orgs and institutions
61
What is equity?
Equity refers to the fairness embedded in associated processes
62
What are the aims of equity goals?
Ensuring all employees have equal access to opportunities to succeed and grow in the organization
63
What is diversity?
The variations in group characteristics, which includes identity (e.g., ethnic background, age, gender, religion) as well as cognitive
skills and personality traits
A.K.A
The attributes that humans are likely to use to tell themselves, “that person is different from me."
64
What is inclusion?
An environment or organizational
climate where individuals feel respected, accepted, supported, and valued
65
True or false, Canada's workforce is among the most diverse in the world
True
66
What are the four protected groups in Canada?
1. Members of visible
minorities
2. Women
3. Indigenous Peoples
4. Persons with disabilities
67
Diversity is used broadly to describe differences in many aspects, what are other groups outside the protected four?
Gender identification, nationality, age, etc. are identified with the individual regardless of their place of employment
68
What were the insights from McKinsey & Company's business case for DEI in the workplace?
Firms ranked in highest quartile for gender diversity among their EXECUTIVE teams reported 25% increased likelyhood of securing above average profitability compared to the lowest quartile for gender diversity among executives.
69
What were the insights on ethnic and cultural diversity from McKinsey & Company's business case for DEI in the workplace?
The benefit is even more profound for organizations with ethnic and cultural diversity. Companies in the highest quartile for ethnic and cultural diversity secured 36% more profitability than those in the lowest quartile
70
Is hiring diverse talent, alone sufficient enough?
No, workplace experience, policies,
opportunities and other contextual factors determine whether people remain and thrive
71
How have the four designated groups been subjected to pervasive patterns of differential treatment by employers?
Evidenced in investigations by:
- Lower pay on average
- Occupational segregation
- Higher rates of unemployment
- Underemployment
- Concentration in low-status jobs with little potential for career growth
72
What is occupational segregation?
The existence of certain occupations that have traditionally been limited
to employees of a certain demographic characteristic (e.g., gender)
73
Give an example of occupational segregation
Majority of women work in small numbers of jobs such as nursing, teaching, sales, and secretarial/clerical work.
*Think "pink collar" jobs*
74
What is the intent of employment equity legislation?
To remove employment barriers and
promote equality for the members of the four designated groups
75
Where does the notion of generational differences come from?
The idea that groups share a common set of general social experiences based on the year they were born
76
How do generational differences impact approach to work and working life?
The different experiences faced by each generation shape each group's values and beliefs
(different values and beliefs impact work)
77
During what years will members of all five generations be in the workforce?
From 2021-2035
But few will be from the traditionalist generation
78
By what year is Generation X expected to outnumber baby boomers (make up highest percent of startup founders) in the workforce
2028
79
What will happen when there's more Gen X than baby boomers in the work force
Shift in management and leadership values and attitudes over the next few years
80
How are the generational differences between boomers and gen x going to be shown in the work place?
Boomers: competitive, achievement-oriented workers, value loyalty to the company, more willing to make personal sacrifices for success
Gen X: valuing work–life balance, preferring flexibility and informality, appreciating opportunities for personal and professional development
81
What are contingent/non-standard
workers?
Workers who do not fit the traditional definition of permanent, full-time
employment with the same employer on an indeterminate basis
82
How do companies use contingent/non standard workers?
To provide flexible, on-demand labour, without:
-Same guarantees for continued employment
-Employee development
-Benefits
that regular full-time employees are entitled to
83
According to data from the 2016 consensus, how many percentage of Canadians were self employed?
11.9%
Therefore majority of the labour force works for firms, which some workers have an employment relationship while others are contractual workers.
84
What is considered an employment relationship?
If a company exerts direct control over the work that is done, where it is done, how performance is evaluated, and other employment considerations
85
What is direct employment?
Individuals are hired and paid directly by the organizatio, work full-time, part-time, on call, or in limited term role with company independently exerting control over employment decisions
86
What is co-employment?
Company and a third party (e.g.,
temporary employment agency, professional organization) share directive control over employment decisions
87
What is contract work?
Company does not have direct control over the work that is done, where it is done, how performance is evaluated, and other employment considerations, but uses talent to complete specific or defined work tasks
88
Why is there a fracturing of the employment relationship with contracting?
There is no expectation of relationship continuance once the required tasks are completed.
89
What are the three major classifications of contract work?
1. Direct contracting (e.g., indepen-dent contractors, day labourers)
2. Subcontracting (e.g., vendor on
premise to complete specific work)
3. Gig workers (an arrangement between the person completing the
task, the customer, and an online intermediary platform)
90
What happens when the economy is healthy?
Demand for products and services increases (up), companies hire more workers (up)
Result: unemployment rates fall, resulting in more competition for qualified employees
Training and retention strategies increase \in importance
91
What happens when the economy the economy is bad?
Firms reduce pay and benefits to keep worker's jobs.
Others are forced to downsize by offering incentives (attractive early retirement and early leave programs) or by terminating or laying off employees
Unemployment rates rise and employers are overwhelmed with number of high-quality applicants when open spots are offered
92
What is productivity?
The ratio of an organization’s
outputs (goods and services)
to its inputs (people, capital,
energy, and materials)
93
Why is Canada's relatively low productivity growth rate of concern?
Because of increasing global competition
94
How can managers improve productivity?
Find ways to produce more output with current input levels or use fewer resources to maintain current output levels
95
True or false: in most organizations
today, productivity improvement is essential for long-term success
True
96
True or false: Employment trends in Canada have NOT been experiencing dramatic change
False
97
What is the primary sector?
Jobs in agriculture, fishing and
trapping, forestry, and mining.
98
What is the secondary sector?
Jobs in manufacturing and
construction
99
What is the tertiary/service sector?
Jobs in public administration, personal and business
services, finance, trade, public
utilities, and transportation/
communications
100
What employment trend changes has Canada experienced since 2021?
Primary sector now only represents 4% of jobs
Secondary sector - 17%
Tertiary/service sector- 79%
101
Why is effectively managing and motivating HR critical in the service sector?
All jobs involve the provision of services by employees to individual customers
102
What are examples of lesser-skilled jobs in the service sector?
- Housekeeping
- Food services
103
What are examples of service sector jobs in demand for highly knowledgeable employees?
- Programmers
- Accountants
- Physicians
104
What is a small business?
Business with 0-99 employees
105
What stats support the fact that Canada is a small business-oriented economy?
- 1.2 million small businesses (representing 97.9 percent of all businesses)
- Employment of 68.8 percent of the total private labour force (as of December 2019
- Only 3,000 large businesses (0.2% of all businesses)
- Employed 11.5 percent of the total private labour force
106
What is a large business?
Business with over 500 employees
107
Why are HRM practices in small businesses critical to developing and sustaining the firm’s competitive advantage?
- Each member of the business has a direct and marked impact on organizational success
- But most small buis don't have experience or training in HR
- HR systems in small businesses are different than in large orgs
- Growth-oriented small businesses likely have formalized HR practices
108
Why is teaching entrepreneurs about HR important?
Research shows strategic alignment
of HRM practices in small businesses= positive and direct impact on: productivity and organizational performance
109
What are the five main types of digital technology driving the transfer of functionality from HR professions to automation?
1. Mobile applications
2. Gaming
3. Cloud computing
4. Data Analytics
5. Talent analytics
110
What type of social media tools do employers use?
Twitter, Facebook, and LinkedIn
(rather than traditional employment agencies) to recruit new employees
111
Why are employers increasingly using mobile applications
To monitor employees’ locations and track workers’ progress
112
How are employers using (gaming) websites like Knack, Gild and True Office?
To add gaming features into training, performance appraisal, and recruiting so it can be fun and informative (think McDonalds training game)
113
How are employers using cloud computing?
Enable employers to monitor and report on things like team’s goal attainment and provide real-time evaluative feedback
114
How are employers using data analytics?
Using statistical techniques, algorithms, and problem solving to identify relationships among data to solve particular problems
Ex: (what are the ideal candidate’s traits, or how can I tell in advance which of my best employees is likely to quit?).
115
How are employers using talent analytics?
Talent analytics is when data analytics is applied to HRM
Revolutionizing how employers look for job candidates
116
Give an example of how talent analytics is revolutionizing how employers look for job candidates
Before: Hire based on school candidates attended, grades, and their references (thought that's all that mattered)
After talent analytics study: grammatically correct resume, completed degrees started?, successful in prior jobs, succeed with vague instructions)
117
How does technological change affect the nature of a job?
- Make working in and managing a dispersed workforce easier
- Allow people to work anywhere and anytime
118
What are the "workplaces of today" and what are some concerns?
Hotels, cafes and conference venues, as well as public areas of lounges and airports
Concern: line between work and family time has become blurred
119
What are some concerns surrounding new information techonologies? Give examples
Questions concerning data control, accuracy, the right to privacy, and ethics
Ex: Sophisticated computerized control systems used to monitor employee speed, accuracy, and efficiency
Monitoring email, voicemail, telephone conversations, and computer usage, and even monitor employee behaviour using video surveillance
120
Why does Canada's 14 jurisdictions make employment law so challenging?
1 federal plus the 10 provinces and 3 territories has their own legislations:
- Human rights
- Employment standards
- Labour relations
- Health and safety
- Workers’ compensation
121
How many percent of the workforce is under federal employment legislation?
10%:
Employees of the federal government and Crown corporations, chartered banks, airlines, national railways, and the Canadian Armed Forces
122
What are some laws/legislations that vary between provinces/territories?
- Minimum wage
- Overtime pay requirements
- Vacation entitlement
- Grounds protected under human rights legislation
123
What does it mean if a company has employees under more than one jurisdiction?
Different rules applying to different employees
124
What are certain laws that apply to all employers and employees across Canada?
Employment insurance and the Canada/Quebec Pension Plan
125
Give an example of how different political parties having different values impact the the workplace?
2019 election
Liberal party:
- Raise federal minimum wage to $15/hour
- Extend employment insurance sickness benefits
- Support benefits for seasonal workers
- Improve employee training
Conservative:
- Job creation for older workers - - improved
- Credential recognition for immigrants (including in Temporary Foreign Worker Program)
NDP:
- Raise federal minimum wage to $15/hour (similar to the Liberal Party) - Increase the employment insurance minimum payment
- Reduce requirements for eligibility
for employment insurance
- Launch of pilot program to investigate national level basic income
126
What is globalization?
The emergence of a single global market for most products and services
127
What does the growing integration of the world economy into a single
huge marketplace result in?
Increasing the intensity of competition and leading most organizations to expand their operations around the world
128
True or false: Are firms in other parts of the world using HR as a competitive advantage?
True
129
What are multinational corporations and are they increasing or decreasing in number?
Increasing, not just for cheap labour but to tap into new markets
Firms that conduct a large part of their business outside the country in which they are headquartered and
that locate a significant percentage of their physical facilities and HR in other countries
130
In 2016 the top 100 multinational enterprises (MNEs) in the world generated about how many percent of the global GDP
20%
131
In Canada, MNEs are responsible for what percent of all GDP and account for how many jobs?
50% of GDP and more than one in three corporate sector jobs
132
What are the three questions a company has to ask when they expand abroad?
- How does HR recruit, train, and develop teams that have members from different countries?
- How can HR reconcile differing career goals in MNEs?
- How does HR support and advocate for headquarter-–subsidiary relationships, power differences, and authority levels?
133
What are HR professionals responsible for when it comes to globalization?
- Familiarize employment
legislation in other countries
- Manage ethical dilemmas when labour standards are substantially different than those in Canada
134
What environmental concerns are becoming increasingly important to people around the world?
- Sustainability,
- Climate change
- Global warming
- Pollution
- Carbon footprints
- Extinction of wildlife species
- Ecosystem fragility
- Other related issues
135
There is increasing evidence that interest in environmental issues is having what affect on employee's behaviours?
Motivating employees, and they are concerned about whether they work for environmentally responsible companies
136
How have companies like Fairmont Hotels making environmental stewardship a priority for over 25 years benefited them?
Developing reputation as an environ-mental leader and demonstrating corporate social responsibility= gained them market share, and been a strong employee retention tool
137
What is organizational culture?
The core values, beliefs, and assumptions that are widely shared by members of an organization
138
What is a value?
A basic belief about what is right or wrong, or about what a person or entity should or shouldn’t do. (“Honesty is the best policy”
would be a value.)
139
What does managing people and shaping their behaviour depend on? Give an example
Shaping the values they use as behavioural guides
Ex:
“honesty is the best policy", management's actions should reflect this value. Therefore they should think how to send signals to employees a.k.a create the right culture
140
How is culture conveyed?
- Organization’s mission statement
- Through stories
- Myths
- Symbols
- Ceremonies
141
What purposes does culture serve?
- Communicating what the organization believes in and stands for
- Providing employees with a sense of direction and expected behaviour (norms)
- Shaping employees’ attitudes about themselves, the organization, and their roles
- Creating a sense of identity, orderliness, and consistency
- Fostering employee loyalty and commitment
142
Give an example of how managers with HR responsibilities play an important role in creating and maintaining the type of organizational culture desired
- Organize recognition ceremonies for high-performing employees
- Be involved in decisions regarding symbols like a logo or the design of new company premises
143
Having a positive culture has a positive impact on:
- Employer branding
- Recruitment
- Retention
- Productivity
144
What is organizational climate:
The perceptions a company’s employees share about the firm’s psychological environment, in terms of dimensions such as concern
for employees’ well-being, supervisory behaviour, flexibility, appreciation, ethics, empowerment, political behaviours, and rewards
145
What are some examples of organizational climates?
- Friendly vs unfriendly
- Open vs secretive
- Rigid vs flexible
- Innovative vs stagnant
146
What are the major factors influencing an organization's climate?
- Management's leadership style
- HR policies and practices
- The amount and style of organizational communication
147
Type of climate that exists is generally reflected in:
- Level of employee motivation
- Job satisfaction
- Performance
- Productivity
148
True or false: HR professionals don't really play a key role in helping managers throughout the firm establish and maintain a positive organizational climate
False: they do play a key role
149
What do employers use to support employee relations efforts?
Attitude, morale, or climate surveys
150
How to employers use surveys (in the context of environmental climate)
To “take the pulse” of their employees’ attitudes toward a variety of organizational issues:
- Leadership
- Safety
- Role clarity
- Fairness
- Pay
Thereby get a sense of whether their employee relations need improvement
151
What is annual survey conducted by Google named "Googlegeist"?
Measures things such as employees’ willingness to leave.
152
What are some examples of survey questions from surveys that are available off the shelf?
“Overall, how satisfied are you with your supervisor?”
“Overall, how satisfied are you with your job?”
“Does doing your job well lead to
things like recognition and respect from those you work with?”
153
Give an example of how management practices have changed considerably over the past decade with many HRM implications?
Traditional bureaucratic structure:
many levels of management replaced by flatter organizational forms using
cross-functional teams and improved communication
154
What is a benefit of a flatter organizational structure?
Managers have more
people reporting to them in flat structure = cannot supervise their employees as closely = employee empowerment greatly increased
155
What is empowerment?
Providing workers with the skills and authority to make decisions that would traditionally be made by managers
156
How is two-way-communication helpful?
Helps management know what’s bothering employees
Soliciting complaints is vital for employers who want to short-circuit inequitable treatment and maintain positive employee relations
157
What are some two-way-communication tactics?
Hosting employee focus groups, making suggestion boxes available, and implementing telephone, messaging, and web-based hotlines
158
How to hotlines work?
Some use hotline providers to manage their hotlines. Vendor sets up the hotline for the employer; it receives employees’ comments and provides ongoing feedback to the employer about: employee concerns, and periodic summaries of comments and trends
159
How do managers informally check up on employees?
Open-door policies and “management by walking around”
