Summary Midterm 1

Midterm 1
Thursday, February 11, 2016 3:21 PM




Chapter 1
LG01 : Define Human Resources Management and
analyze the strategic significance of human
resources management.
Human Resources Management
- The management of people in organizations
- HRM involves formulating and implementing HRM systems such as
recruitment, performance, appraisal and compensation that are aligned
with the organization's strategic goals
Human Capital
- The knowledge, education, training, skills and expertise of an
organization's work force
- Can be used as a competitive advantage
Strategic Significance
- Research over the past 20 years has confirmed that HR practices are
related to better organizational performance
- Empowerment and extensive training results in increased productivity
- Resource based view
○ Human resource practices contribute to the development of
embedded knowledge of a firm's culture, history, processes, and
context, which are non-imitable
- Strategies
○ Profit Sharing
○ Results orientated Performance Appraisal
○ Employment Security
○ Have a strong relationship with ROI and ROE
- High performance HR practices
○ Comprehensive employee recruitment
○ Selection procedures
○ Incentive compensation
○ Performance management systems
○ Extensive employee involvement

, ○ Employment Security
○ Have a strong relationship with ROI and ROE
- High performance HR practices
○ Comprehensive employee recruitment
○ Selection procedures
○ Incentive compensation
○ Performance management systems
○ Extensive employee involvement
○ Training
○ Have a positive relationship with turnover, productivity, corporate
financial performance
Scientific Management
- Frederick Taylor
- The process of scientifically analyzing manufacturing processes, reducing
production costs, and compensating employees based on their
performance levels

Human Resources Movement
- A management philosophy focusing on concern for people and
productivity
- Phase 1
○ Early 1900's
○ HRM or Personnel administration played a very minor or non
existent role
○ Personnel administrators
§ Hiring & Firing
§ Manager of Payroll
§ Administered benefits
§ Ensuring procedures are being followed
- Phase 2
○ 1920's-1950's
○ Scientific management movement gained traction
○ Increased productivity
○ Low wages, distrust in management
○ Fostered the creation of unionization
○ First workplace legislation enacted
§ Minimum wage act
§ Unemployment Insurance
§ Protection of union rights
○ Additional Personnel Managers Duties
§ Legal compliance
§ Dealing with impact of human relations movement

, ○ First workplace legislation enacted
§ Minimum wage act
§ Unemployment Insurance
§ Protection of union rights
○ Additional Personnel Managers Duties
§ Legal compliance
§ Dealing with impact of human relations movement
§ Orientation
§ Performance appraisal
§ Employee relations
- Phase 3
○ 1960's - 1990's
○ Direct result of government legislation passed that affected
§ Human rights
§ Wages and benefits
§ Working conditions
§ Health and safety
§ Penalties
§ Role of personnel departments expanded dramatically
□ Expanded capacity in compensation, recruitment and
training
§ Technological advancements led to outsourcing in many
operation HR activities
○ Phase 4
§ 1990's - Present
§ HR departments role has evolved to that of helping their
organization reach their strategic goals
§ Activities have become ubiquitous
□ Every line manager has responsibilities related to
employees
§ 5 Critical pieces of knowledge required by HR professionals
□ Business acumen
□ Understanding of employment law
□ Talent management
□ Broad HR knowledge
□ Employee-labour relations knowledge
Ultrich Core Competencies
- Credible Activist
○ Credible
○ Respectable
○ Listened to
○ Trusted