Course Check-up

1. Course Check-up • HRM today plus JP article (Seven Practices)

2. Case Presentations • Present the Case – Gentleman’s Threes • Class work on the Case – • Step 1 – Core Elements (short summary of main factors in the case) • Step 2 – Critical Issue (one sentence) • Step 3 – Relevant Theories that will help you to answer the problem • Step 4 – Options (3) – possible solutions • Step 5 – Supported Argument for the “Best” one

3. Gentleman’s Three • Must “cut” $20M from budget • Staff layoffs • Performance review system seems to be a problem. (1) Above average (2) All 3s • What to do? • VP HR Nils Ekdahl • CFO Anita Fierst • Michael Milanese (previous VP HR)

4. Seven Practices of Successful OrganizationsJeffrey Pfeffer • Employee Security • Selective Hiring • Self-managed teams • Comparatively high compensation • Extensive training • Reduced status distinctions • Extensive sharing of information

5. Employment Security • Employment Security Policy • more careful / leaner hiring • Avoid “Dumbsizing” • buying high selling low (IT industry) • doing their job (Bank - loans officers) • Fire when necessary

6. Selective Hiring • High number of applicants • Screen for cultural fit and attitude • What are important skills • Several rounds to scrutinize • Involve senior people • Assess the results and performance

7. Self-Managed Teams • Research = they work! • Why? • peer-control • pooled ideas • decrease administrative overhead

8. High CompensationContingent on Performance • Relationship between money paid and attracting right workforce • Can take other forms than just a pay-cheque (i.e. employee ownership or profit sharing)

9. Training • Affords flexible production • Competitive Advantage • NA / Japan differences reflects differences in “time horizon” for holding on to employees

10. Reduce Status Differences • Make all organizational members feel important • How - symbolically • “associates” • How - figuratively • parking • dining hall • offices • freeze salaries

11. Share Information • ‘Open Book’ management • Shows organizational members that they are trusted • People must know what is happening to make changes • (but fears that information will leak out to competitors is troublesome)

12. Summary 7 Practices • Difficult to do them in a staged approach - jump in! • Some will take longer to work (training)

13. Chapter 10 - HRM The role of HRM • Recruitment – employment decisions • Retention – working conditions, compensation • Rouse – motivate employees, intrinsic rewards • Redevelop – employee training and development

14. Toward a New HRM Model

15. Recent Developments • Profit / Customer focus – companies became more focused on generating shareholder value, and they looked to HR departments to take more long-term, profit oriented perspective; HR is a source of competitive advantage • New Technology – new technology allowed outsourcing of many activities and handling many administrative aspects of HR electronically; firms focus more on “core competencies”

16. Recent Developments • Diversity – HR were asked to reconcile the social demand that employment practices be open and inclusive with respect to diverse cultures and lifestyles and the need for high-performing, employees • Globalization – Global trade and global capital mobility increased dramatically in the last two decades of the 20th century

17. Recent Developments • Deregulation – has resulted in declining unionization and wages in industries

18. Lessons Learned • Profit calls the tune – profit is the invisible hand that guides and shapes all aspects of company’s HR practices • Strategic – the more that labour issues have the potential for impacting the bottom line, the more that top management will start to look at HR from a strategic perspective

19. Lessons Learned • Contingency – HR practices that work well for one company or in one situation may be an embarrassing failure in another (don’t just follow the leader) – it depends on your organization’s strategy (low cost producer vs. differentiator) • Alignment - management must adopt a holistic, systems view of HR and mix and match HR practices so they interact with each other to maximize overall performance • Human Resources are people – every person wants to be treated with respect and fairness

20. Staff planning Benefit planning Retirement planning Compliance Payroll Benefit Admin. Retirement Admin. Employee records Relocation Admin. Performance enhancement Employee relations Labour negotiations Employee development Managerial development Recruitment Employee assistance programs Recruitment Information Processing Strategic Typology of HRM Important To Execs High Strategic value Low Important to Employees Transactional Type of HR activity Relationship

21. Core Elements of The New Model • Flexible job design • Teamwork • Quality circles • Job rotation • Worker training and development • Pay-for-performance compensation • Employment (in)security • Employee involvement in decision making

22. Two Work Systems Old New

23. Next Day Chapter 12: Individual Behaviour Read and Prepare Case on Webpage • One pager: Answer following the 5 steps • Step 1 – Core Elements (short summary of main factors in the case) • Step 2 – Critical Issue (one sentence) • Step 3 – Relevant Theories that will help you to answer the problem • Step 4 – Options (3) – possible solutions • Step 5 – Supported Argument for the “Best” one