Human Resource Management Study Notes

Chapter One: Human Resource Management

LO 1-1: Discuss the roles and activities of a company's human resource management function (Page 4).
LO 1-2: Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability (Page 16).
LO 1-3: Discuss how human resource management affects a company's balanced scorecard (Page 30).
LO 1-4: Discuss what companies should do to compete in the global marketplace (Page 45).
LO 1-5: Identify how artificial intelligence and robotics are influencing human resource management (Page 49).
LO 1-6: Describe how automation using artificial intelligence and robotics has the potential to change jobs (Page 50).
LO 1-7: Discuss human resource management practices that support high performance work systems (Page 55).
LO 1-8: Provide a brief description of human resource management practices (Page 55).

JM Smucker is well-known for its jams, jellies, and peanut butter, among other consumer products.
Corporate Headquarters: Located in Oroville, Northeastern Ohio, housing approximately 1,300 employees out of approximately 6,000 worldwide.
Notable Product: Uncrustables - frozen crustless sandwiches with diverse fillings.
Return to Work Policies: Many organizations, including Meta and Amazon, faced backlash from employees regarding return to work policies.

The Chief People Officer at Smucker faced the paradox of implementing a return to work policy requiring onsite work from employees who previously worked successfully from home.
Importance of Relationships: Executives at Smucker emphasized that employee relationships are pivotal to the business's success.

Executives proposed that employees work onsite 50% of their time but later rejected that in favor of a less rigid approach.
The adopted plan allows employees to work onsite 25% of the time (6 days per month) during core weeks.
Core Weeks Schedule: Published yearly to aid in planning for employees who may have to travel to Oroville.
Employees living far away now commute or may stay overnight during core weeks (examples include commutes from cities like Cleveland, Cincinnati, and even San Francisco).

HR challenges related to the hybrid work policy include tax withholding based on employee location, maintaining company culture, employee development, and engagement.

CEO Mark Smucker committed to reviewing and adjusting work arrangements as necessary, foreseeing the persistence of hybrid models due to technological adaptability.

Human Resource Management (HRM) encompasses policies and practices that influence employees' behavior, attitudes, and performance.
Context: Competitiveness refers to maintaining and gaining market share linked to stakeholder needs (shareholders, customers, employees, community).
Effective HRM practices include work analysis, HR planning, recruitment, selection, training, performance management, and employee relations.

Key Practices Include:
- Analyzing and designing work.
- Determining human resource needs (HR planning).
- Attracting potential employees (recruiting).
- Employee selection.
- Training and development.
- Compensation structure.
- Performance management.
- Employee relations.

Budgeting: Average HR teams allocate $2,524 per employee annually, with key areas including:
- Recruiting: $425 per employee
- Compensation and benefits: $213 per employee
- Training and development: $188 per employee
Staffing Ratios: Particularly relevant in skilled industries; general ratio is 1 HR staff per 57 employees.
HR Staffing Impact: Employee turnover is influenced by HR staff levels, where too many specialists may confuse employees.
Future Trends: As technology offloads administrative tasks, HR administration personnel may decline.
Current Expenses: HR costs are 0.74% of revenue, the lowest among corporate support functions, showing future growth potential because of HR’s strategic importance.

Examples of innovative HR strategies from various companies that enhance employee relations and organizational culture include:
- Humor in Onboarding: Hipercom fosters relationships through stand-up comedy training for new employees, attributed to lower turnover rates.

HR often collaborates with operations, finance, etc., influencing staffing, training, and performance management.
The nature of HR responsibilities varies widely, depending on company size, workforce characteristics, and management priorities.

The traditional role of HRM is being replaced by strategic roles as HR functions invest more in talent management and less in administration.
Transitioning to a shared service model allows HR functions such as expertise centers, service centers, and business partners to improve efficiency and engagement.

Advancements in technology pave the way for self-service portals that allow employees to manage HR-related inquiries independently.
The effectiveness of such systems can highly enhance managerial confidence and decision-making based on data-driven insights.

Definition: Outsourcing involves delegating HR functions to external companies to enhance service quality and reduce costs.
- Common outsourced areas include benefits administration, payroll, and employee training programs (e.g., ManTech partnering with Skillsoft for digital training).

Definition: Evidence-based HR uses analytics to evaluate HR practices' effectiveness and their bottom-line impact:
- Companies like Google and Merck have successfully implemented analytics to improve recruitment and talent retention.
- Emphasis on leveraging big data to inform strategic decisions regarding talent management and organizational growth.

The evolving nature of HRM suggests that its significance in aligning business strategy with human capital management is paramount for competitive advantage.
Companies must continually assess the effectiveness and strategic alignment of HRM to adapt to workforce changes and market demands.

To maintain competitive advantage, organizations must ensure the right talent is engaged in key roles focused on achieving the execution of business strategies and enhancing stakeholder value.