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HRM2005

HR Planning Class #1

Get Acquainted 1
Please PRINT on index card:
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6.

Your official registered name with George Brown College The name you like to be called Your work background Your educational background Two things you would like to learn in this course Anything you would like me to know about you

Agenda
Course outline, evaluation, schedule Instructor policies Get acquainted Types of strategy Strategy & HRM Class #2

HRM2005 Course Description


Understand principles and practices to make HRM decisions (e.g., number & type of staff, type of HR policies, kinds of HR practices) Examine relationship between org strategy and HRM processes Understand HR implications of expansion, downsizing, operating international, etc.

HRM2005 Course Outcomes


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Describe approaches to link HR strategy with corporate strategy. Forecast staff supply and demand. Demonstrate how organization can maximize benefits of a diverse workforce & effective succession plan. Describe corporate orientations and implications for HR processes. Explain why HR activities need to be measured and evaluated Discuss emerging issues influencing the field of HR planning.

Resources
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2. 3.

Text Belcourt, M. and McBey, K. (2010). Strategic human resources planning. Toronto: Nelson. Publishers web-site GBC library
a. b.

Stacks & journals On-line data bases

4. 5.

Professor +

Assessment
Assessment Tool Group exercises Group presentation Midterm exam HR Planning report Final exam 6 assessment tools Week Due week 4 and 5 6 9 10 15 % of Final Grade 20% 10% 25% 20% 25% 100%

Feedback
Feedback on your progress: 1 week turnaround on exercises 2 weeks turnaround for exams & report End of class for presentation Rubric & comments for report & presentation Scantron forms + written comments for exams + Feedback on my instruction and the course: Formal and informal Verbal Written

Class Schedule
See course outline for schedule

Instructor Policies
Class  Start and end times  Breaks  Cell phones, blackberries, etc.  Student preparation for class Student Assistance  Office hours: Mondays 1-2 and Thursdays 11-12 or by appointment (SJA 213A)  E-mail Assessment  No makeup exams or assignments  Penalties: Late assignments 10% per day; incorrect numbers for group assignments 50% reduction  Academic integrity

Todays Objectives


Outline how effective HR planning contributes to overall business plan Analyze internal and external challenges that influence org & HR strategy devt & implementation Assess impact of other functional areas on HR planning process

Lecture Outline

Organizational strategy & strategic HRM Strategy: Organizational context


 

Corporate and business strategy Organizational strategy typologies

HRM practices & system Partnership focus Demonstrating HRM effectiveness

Strategic HR Management
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Vertical integration understanding the organization and its context Horizontal integration creating coherent HRM systems Partnership HR Professionals work cooperatively with line managers and nonmanagement employees Demonstrate HRM effectiveness show how HRM systems affect organizational performance

Strategy
Corporate  The formulation of organizational mission, goals, objectives and action plans for an entire organization Business  As above but for one division or unit of an organization

Common Strategies
1. 2.

Maintenance Restructuring
   

Turnaround - increase the viability of an organization Divestiture - sale or removal of a business Liquidation - termination of a business and the sale of its assets Bankruptcy

Common Strategies
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Growth
Increase products and/or services Change the distribution networks; use technology Seek new customers or markets by expanding internationally Purchase another organization Combine resources with another organization and become one

 

Strategy Typologies


 

Porters competitive model


Miles & Snows organizational types BCGs portfolio matrix

Porters Competitive Strategies

BCG Portfolio Matrix Analysis


High Market Growth % Low

High

Low Market Share

Miles & Snow - 4 Strategic Types


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Defender Mature company in mature industry Protects market position through efficient production, strong control mechanisms, continuity & reliability Prospector Seeks opportunities to exploit, create new markets, develop new products and services Core skills in R&D, marketing Broad range of technologies & product types Analyzer Excels in delivery of new products and services but avoids excessive risks Seeks to outperform other companies on basis of quality improvement Concentrates on limited range of products and technologies Reactor Company has little control over external environment Lacks ability to adapt to competition Poor internal control mechanisms, no systematic design or plans

HRM Practices
Organization design Work design/ job formulation Entry & exit: recruitment, promotion, terminations Selection Managing performance Compensation Socialization, training, development

Continuum of HRM Practices Staffing Choices


Internal sources Narrow career paths Explicit selection criteria Closed hiring procedures Limited socialization External sources Broad career paths Implicit selection criteria Open hiring procedures Extensive socialization

Continuum of HR Practices Compensation Choices


Low base salaries Internal equity Few perks Standard, fixed package No incentives Short term incentives No employment security Hierarchical High base salaries External equity Many perks Flexible package Many incentives Long term incentives High employment security High participation

Continuum of HR Practices Training & Development


Short term goals Productivity emphasis Spontaneous, unplanned Individual focus Low participation Long term goals Quality of work emphasis Planned, systematic Group/team focus High participation

Continuum of HR Practices Performance Evaluation


Behavioural criteria Remedial purpose Low employee participation Short term criteria Individual criteria Results criteria Development purpose High employee participation Long term criteria Group/team criteria

Organizational Strategy, Employee Behaviours & Supporting HR Practices


Organizational strategy: Innovation Required employee behaviours: high degree of creative behaviour, longer-term focus, relatively high level of cooperative, interdependent behaviour, moderate concern for quality, moderate concern for quantity, greater degree of risk taking, high tolerance of ambiguity and unpredictability HR Practices: select highly skilled individuals, give employees more discretion, provide more resources for experimentation, appraise performance for long term consequences, allow failure

Organizational Strategy, Employee Behaviours & Supporting HR Practices Organizational strategy: Reduce costs Required employee behaviours: ? Supporting HR practices: ? Organizational strategy: Enhance quality
Required employee behaviours: ? Supporting HR practices: ?

HR & Organizational Strategy


When HR policies and practices are aligned with an organizations strategic objectives, the system is vertically integrated. Horizontal integration occurs when there is a cohesive system among HR policies and practices. Achieving both vertical and horizontal integration requires that HR professionals work in partnership with line managers, employees, and their representatives.

Measuring HRM Effectiveness


Strategic HRM is also measured there has been big shift in measuring the effectiveness of HR practices from technical HR standards towards measures of organizational effectiveness 1920 1975 HR professionals judged effectiveness 1975 2000 Accountants judged; financial criteria; techniques included utility analysis & cost accounting 1995 2010 Stakeholders judge; Balanced scorecard approach; balance financial measures with drivers of future organizational performance

HR Planning Process
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Understand the position of the HR function Analyze environmental factors that influence the organization Participate in development of corporate & business unit strategies and plans Assess relative strengths & weaknesses of organizations people practices Design HRM policies and practices that will increase the likelihood of achieving organizational goals Articulate measurement process

Environmental Scanning
Systematically monitoring the major factors influencing the organization from an HR planning perspective. Interest is in trends that might affect organizational strategies and therefore HR management philosophy, policies, and practices

Why Monitor the Environment?


Because: Organizations are tightly integrated with the environment The outside world is constantly changing The HR practitioner who understands the implications of the environmental changes for their organization can proactively develop programs to help their organization

Important Factors

Economy Labour market Local, provincial and federal politics Globalization

Society and culture Technology Demographics Legislation & regulations

Techniques
Scan identify early signals of changes in the environment Monitor systematically follow several key factors Forecast project the potential impact of change for the organization Assess make a judgment about the probability of each possible outcome

Sources of Good Information


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Media: a. Newspapers, business magazines, HR journals b. TV, radio, web news Professional associations a. Meetings & conferences b. Newsletters, e-mail, list serves Government a. Statistics Canada (e.g., reports + The Daily) b. Provincial and municipal economic development/labour market department information

Sources of Good Information


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Consultants a. HR specialty firms (e.g., Watson Wyatt, Hay, Mercer, etc.) b. Business advisory firms (e.g., Anderson, Boston Consulting, etc. Law firms (most organizations use a law firm for advice on employment & labour issues) Private researchers (e.g., The Conference Board of Canada, The Saratoga Institute)

Challenges

Isolating whats important for the organizations HR management practices Deciding what is critical Understanding how one trend can be influenced by a counter trend

Next Class
Reading: Text, chapters 1 & 2 (class #1) Text, chapters 3 & 6 (class #2) In class:  Forecasting process  Forecasting HR demand  Bring a calculator