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Unformatted text preview: Introduction to the Employment Relationship
COMM392: Managing Employment Relationship 103/104 Fall 2009 Yoshio Yanadori Announcements Check all course exam dates and report exam conflict Midterm: October 21st 6:308:00pm Email (firstname.lastname@example.org) by this Thursday (September 17th) Your information, please Email me (email@example.com) Subject line: COMM392103 (or 104): [your name]
My full name What you'd like to be called My preferred email address An interesting fact about myself Past employment experience (please briefly explain) Past management and/or union experience (please briefly explain) Have you been treated unfairly at work? (please briefly explain) Any expectations? 1. 2. 3. 4. 5. 6. 7. 8. Announcements Textbook reserved at DL Library Class liaison Printing PPT slides? Objectives Review: Understand who performs organizational HRM activities Understand who does what Explore how business strategy and HRM are related Explore the factors that influence organizational HRM activities Understand the potential contributions of HRM practices to organizations' effort to gain a competitive advantage (Chapter 2) Identify the interests of managers and employees using case studies Review: Who is Responsible for HRM Activities? "Staff" HRM function (= HR department) Set policies and standards Advise line managers on workplace issues Ensure compliance Provide services (e.g., keeping HR records, orientation, pay administration, etc.) Authority is derived from specialized knowledge Line managers Implement policies (e.g., determine who to hire, conduct performance evaluation, exercise discipline) Direction and control of employees Review: HR Staff & Line Managers HR staff HR managers/specialists in HR Department
Set policies and standards Line managers Make and circulate recruitment ads Decide selection procedure Determine standard pay policies (e.g., range, components, available benefits) Develop performance evaluation procedure Develop grievance procedure Department/section/factory managers
Implement policies Conduct selection interview* Decide to whom to make an offer Negotiate and decide how much to pay to each employee within the standard set by HR Department Conduct performance evaluation/performance evaluation interview Apply discipline * HR staff may be involved in the selection interview Strategic HRM Employees are critical resources Impact of HRM practices on organizational effectiveness Research shows that HR systems affect: Not just headcounts firm's market value probability of new venture survival firm's shareholders' return HR Practices Employee behavior Org. effectiveness Corporate Strategy & HRM Role in executing corporate strategy HRM supports corporate strategy Top management team (TMT) decides corporate strategy HRM is developed considering what employee behavior is required to successfully execute the strategy Strategy HRM Role in formulating corporate strategy HR managers are involved in the strategy formation process HR may drive corporate strategy HR managers provide TMT with the information on the strengths and weaknesses of the firm's human resources (= employees) In an extreme case, corporate strategy may leverage the strengths of its human resources Strategy HRM Environmental Influences on HRM (Textbook, pages 717) Internal factors Organizational culture & climate Organization structure Emerging management practices Hierarchical vs. flat Corporate strategy Internal factors External factors External factors Employee empowerment Labor market HRM Demographic trends Economic conditions, industry trends, labor unions Age, education, ethnic diversity Technological advance Employment standards, labor relations, workplace health Technology Government legislation Globalization Putting People First (Chapter 2) Key point: HR strategies as solution for boosting profits, shareholders' value, and in some cases, company survival Evidence A one standard deviation increase in the use of high performance work practices (HPWP) leads to a US$18,000 increase in stock market value per employee HPWP as an ideal set/bundle of HRM practices IPO companies placing higher value on people strategies are more likely to survive, all other variables being equal Seven Best Practices
1. Employment security Southwest Airlines CEO: Layoffs remove all the good work of strategic recruitment. "They put strategic assets on the street for the competition to employ" When an employee leaves her firm, her skill and knowledge also leave Improve employee trust 1. Selective hiring Recruitment: generating a large applicant pool Selection based on critical skills and knowledge Emphasize the skills and knowledge that are difficult to train (will discuss later) Seven Best Practices
1. Selfmanaged teams and decentralization The more responsibility, the higher motivation and greater productivity increases Costs lowered as management overhead is reduced 1. Comparatively high compensation contingent on organizational performance Competitive pay package attraction, retention, and motivation Labor cost = ($ spend on labor / output) Pay for performance 1. Extensive training Improve employee skill and knowledge Productivity gain Seven Best Practices
1. Reduction of status differences between managers and line workers Symbolically language, physical environment Substantive means reducing wage inequality 1. Sharing information Sharing key information such as financial performance, business plans, etc. Looks easy? A oneineight chance [(1/2)3] 1/2 will buy in this model 1/2 will make a comprehensive change Seven practices as a package 1/2 can be persistent It takes time for the positive effects to appear Exercise: Interests of Employers & Employees Working in groups of 34 students, identify the two parties' interests Party #1: 3rd year BCOM student (accounting major) applying for a part time position as a teller at a Vancouver branch of the largest credit union in Canada Party #2: Supervising manager of the branch Demand for financial services at the branch has grown exponentially It is very busy and currently understaffed For example... BCOM student fair wage Manager control compensation cost Trendy's Restaurant Questions Work in groups
1. 2. What are the interests of Sue, Ron, and Mike? (i.e., what do they want to achieve/avoid in this case?) What would you do if you were Mike? Next Class Legal Regulation of ER 1: Wrongful dismissal Textbook Chapter 3, pages 4849 (Introduction to Legal Environment) Textbook Chapter 10, pages 303306 (The employment Contract; Constructive Dismissal) NO NEED to bring SRP Strongly encouraged to come to class as I will be covering the issue that is not fully explained in your textbook (i.e., wrongful dismissal) * ...
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- Fall '09