RSM LECTURE 3 Strategic Human Resource Management Notes

Strategic Human Resource Management (SHRM) and Personal Development

Topic: Strategic Human Resource Management (SHRM) and Personal Development
Focus areas:
- SHRM aims to align human resource activities with the overall goals of the organization.
- Personal development as a key component of SHRM: reflect on what you have done since the first class for your own development.
Case example referenced:
- Google Case: Introduction to SHRM; Work environment and practices at Google used as a practical illustration of SHRM concepts.
Questions to consider (implied from the slide):
- What can personal development look like in the context of SHRM?
- How do organizational practices at a company like Google illustrate SHRM principles?

Google's SHRM and Work Environment

Visit to Google HQ (Toronto) and the Google Work Environment:
Prompt questions:
Is Google’s working environment a key contributor to their success?
- Covers basic needs: prepared meals free employees’ mental space → focus on important tasks.
- Incentives to stay longer: free breakfast, lunch, other perks encourage extended office time.
- Recreational areas (billiards, games) → encourage breaks, creativity, and community-building.
- Supports collaboration, innovation, and employee retention.
- What potential drawbacks might accompany their approach?
- High costs: providing meals and amenities is expensive.
- Distractions: stimulating environment can reduce focus; discipline harder to enforce.
- COVID reduced in-person interaction → less effective collaboration.
- Hard to measure cause and effect: performance may be due to talented hires rather than environment.
- Autonomy makes monitoring productivity and mistakes difficult.
- Unclear if rewards focus on input (effort/time) or output (results).
- Budget cuts can make differences in perks noticeable → impact morale. (spam v. filet mignon)

Notable perks at Google:

Free food and lunches
Billiards and games
Google Help Center

SHRM Explained: The Pattern of Planned Human Resource Deployments and Activities
Definition:
- Planned HR activities to achieve organizational goals.
- Align HR strategy with overall business strategy.

HRM Responsibilities: PEIA
- Planning: anticipate talent needs, define roles.
- Implementation: recruit, train, deploy effectively.
- Evaluation: monitor performance, assess outcomes.
- Alignment: ensure HR supports organizational objectives.
Disney Example:
- Employees trained to be happy → brand image.
- Training refines desired traits; hire for innate qualities (patience, friendliness, empathy).
- Emotional intelligence: respond to kids appropriately.
- Traits you can’t teach: bad attitude, lack of patience/friendliness.
- Example: Shepherd hired for patience → good guest care.
Key Skills / Takeaways:
- Delegation: hire right people, keep right people.
- MGT100 Case Example:
  - Managing TAs → emails, test prep, admin, research/case prep.
  - Assign tasks efficiently (e.g., Case Competition to one person).
- Effective delegation + right hires = smoother operations & alignment with goals.

HR Practices: Recruitment, Appraisal, Compensation

Recruitment and Selection
- Recruiting techniques evolve with technology; internet recruitment is quick, efficient, and inexpensive.
- Large pool of candidates via online platforms (e.g., monster.ca).
- Use of social networking sites for reaching candidates.
- Legal requirements in recruitment and selection; noncompliance risks: litigation, bad publicity, poor morale.
- Cost considerations: recruiting and hiring is costly for employers.
- Some employers use employment tests (e.g., mechanical, computer, language skills).
- Canada Human Rights Commission considerations in hiring processes.
Performance Appraisal
- Definition: Evaluation of and feedback on an employee’s job performance.
- Effective performance reviews:
  - Conducted several times a year.
  - Linked to organizational goals.
  - Based on objective measures.
  - Conducted as a two-way conversation.
- Peer reviews: some firms assess performance of co-workers.
- 360-degree performance review: feedback from a panel including co-workers, supervisors, team members, subordinates, and sometimes customers.
Performance Appraisals and Balanced Scorecard (as a framework):
- Dimensions include Financial, Customer, Internal Process, Learning and Growth.
- Metrics may cover: efficiency improvements, cycle time, training provided, conferences attended, new customers, customer satisfaction, profitability, sales.
Compensation
- Five factors influencing compensation decisions:
 - What competing companies are paying ( $)</li><li>Government regulation</li><li>The cost of living</li><li>Company profits</li><li>Employee productivity</li></ul></li><li>Definitions:<ul><li>Salary: pay on a periodic basis (e.g.,$ weekly $,$ monthly).
 - Wage: pay based on hourly rate or the amount of work accomplished.
 - Compensation: the total amount employees are paid in money and benefits.

Flexible Work, Employee Separation & Downsizing

Flexible Benefits
- Many companies offer flexible time-off policies instead of fixed holidays, vacation, and sick days.
- Employees can use paid time off (PTO) as they wish.
- Flexible benefits are expensive for employers but provide options (medical, dental, vision, life, disability insurance).
Flexible Work Arrangements
- Flextime: employees set their own hours within firm constraints.
- Compressed workweek: same total hours in fewer days.
- Job sharing: two or more employees share the duties of one job.
- Home-based work: telecommuting from home.
- Implication: 70 $% of Generation Y professionals value work-life balance (as a proxy for flexibility).</li></ul></li><li>Monitoring Work From Home Activity</li><li>Performance Appraisal: Evaluation of and feedback on an employee’s job performance</li></ul><ul><li>Effective performance reviews:</li><li>Take place several times a year</li><li>Are linked to organizational goals</li><li>Are based on objective measures</li><li>Take place in the form of a two-way conversation</li><li>Some firms conduct peer reviews (assess performance of coworkers)</li><li>May conduct a 360-degree performance review, a process that gathers feedback from a review panel that includes co-workers, supervisors, team members, subordinates, and sometimes customers</li></ul>Balanced Scorecard: Looks beyond financial achievements of an employee<img src="https://knowt-user-attachments.s3.amazonaws.com/e9214d20-5703-43b0-aa5e-d2a794fa68eb.png">Why do we look at all aspects instead of only financial?If you focus on financial - you’re only looking at short-termIf you focus on other things - you’re seeing how it will affect you in the longer term<ul><li>Employee SeparationVoluntary turnover: employees leave to start their own business, join other firms, or retire.<ul><li>Exit interviews to understand reasons for leaving.</li><li>Importance of retaining top performers for organizational success.</li><li>Is our good talent going to leave because the others left?Involuntary turnover: terminations due to poor performance, unethical behavior, or downsizing.</li><li>Legal considerations require careful documentation of termination reasons.</li><li>Team Dynamics affected</li></ul></li><li>Downsizing and Outsourcing<ul><li>Downsizing: reducing headcount by eliminating jobs.</li><li>Negative effects: heightened anxiety, health problems, lost productivity among remaining staff; expensive severance; potential negative domino effects on the local economy.</li><li>Outsourcing: using external vendors to produce goods or deliver services previously handled in-house.</li><li>Rationale: save costs and remain flexible by outsourcing non-core functions.</li><li>Reality vs. theory: outsourcing might not always deliver expected benefits.</li><li>Motivating Employees (next section builds on motivation foundations)</li></ul></li></ul>Should there be a Cap/Ceiling on Executive Compensation?Yes – Arguments for a Cap:<ul><li>Ethical concerns: fairness compared to other employees (employment/pay equity).</li><li>Encourages responsible use of company funds.</li><li>Promotes long-term thinking and sustainable growth.</li><li>Builds societal trust in the business; avoids negative public perception (“doesn’t look good”).</li></ul>No – Arguments Against a Cap:<ul><li>Capitalist principle: reward based on value contributed.</li><li>Limits talent pool: top talent may go elsewhere if pay is capped.</li><li>Could restrict company growth and profile.</li><li>Brain drain: skilled executives may migrate to companies offering higher compensation.</li></ul>Talent Pool in this context:<ul><li>The range of qualified, experienced executives available for hire.</li><li>High executive pay helps attract and retain top talent; capping pay may shrink this pool.</li></ul><h5>Employee Motivation Theories</h5><ul><li>Core idea: Motivation and Morale<ul><li>Motivation starts with good employee morale (positive attitude toward employer and job).</li><li>High morale occurs when employees feel valued, heard, and empowered to contribute their best work.</li><li>Poor morale manifests as absenteeism, voluntary turnover, and lack of motivation.</li></ul></li><li>Maslow’s Hierarchy of Needs (5 levels)<ul><li>Needs arranged in a hierarchy; satisfying one need leads to a higher-order need emerging. (cannot move up in hierarchy until every need below it is met)</li><li>Hierarchy levels (from bottom to top):<ul><li>Physiological needs</li><li>Safety needs</li><li>Social (belongingness) needs</li><li>Esteem needs</li><li>Self-actualization needs</li></ul></li><li>Key principle: lower-order needs must be satisfied before higher-order needs influence behaviour.</li></ul></li><li>Maslow vs. Herzberg<ul><li>Maslow’s hierarchy forms the basis for understanding needs-driven motivation.</li><li>Hygiene factors (Herzberg): factors that can cause dissatisfaction if missing but do not motivate if present alone. Examples: salary, job security, working conditions, status, interpersonal relations, supervision, company policies.</li><li>Motivator factors (Herzberg): factors that can lead to higher motivation and job satisfaction if present: job responsibilities, achievement, recognition, growth opportunities.</li></ul></li><li>Expectancy Theory and Equity Theory<ul><li>Expectancy theory: individuals evaluate the likelihood that their efforts will lead to desired results and the value they place on those results. (you can get a promotion if you come INTO work!)\</li><li>Equity theory: perception of fair and equitable treatment relative to others.  - perform in line to how well you are treated or compensated as an employee, example:(COVID live lectures based on time zone, want to give students a good experience - not lectures at 2am) </li></ul></li><li></li></ul><h5>Management Attitudes & Workforce Trends</h5><ul><li>Managers’ Attitudes and Motivation (Douglas McGregor, Theory X and Theory Y; Theory Z by Ouchi)<ul><li>Theory X: assumes employees dislike work; need coercion, need to be managed; money and job security are primary motivators (Maslow’s lower-order needs).</li><li>Theory Y: assumes people like work and seek greater responsibility; self-control and self-direction are motivators (Maslow’s higher-order needs).</li><li>Theory Z: emphasizes worker involvement as the key to higher productivity and improved quality of work life.</li></ul></li><li>Self-Determination Theory<ul><li>Relatedness: feeling connected to others; sense of belonging.</li><li>Autonomy: having a choice; being able to be yourself.</li><li>Competence: feeling effective at one’s activities.</li></ul></li><li>Current Trends in a Changing Workforce: Millennials and Generation Z<ul><li>Autonomy:$ 63 $% would switch to a job with flextime</li><li>Relatedness:$ 65 $% prefer face-to-face meetings with managers</li><li>Competence: feeling effective at activities</li><li>Growth:$ 80 $% view emphasis on personal growth as the most important quality of company culture</li></ul></li><li>The Future of Remote Work: The Hybrid Model<ul><li>Questions to consider:Case Study: The Future of Remote WorkQ: What advantages and disadvantages do businesses face with a hybrid work model compared to fully remote or fully in-office setups? Advantages:<ul><li>Cost-effective: less office space → reduced rent.</li><li>Supports older workers with child/parent care → improves satisfaction, attracts talent.</li><li>Environmental benefits: less commuting.</li><li>Higher employee satisfaction → higher productivity.</li><li>Some employees work better from home.</li></ul>Disadvantages:<ul><li>“Out of sight, out of mind”: employees may be overlooked for promotions.</li><li>Communication delays; company culture may suffer.</li><li>Productivity can be inconsistent.</li></ul><div data-type="horizontalRule"><hr></div>Q: How might remote work affect employees' mental health and relationship building with coworkers?<ul><li>Risks: loneliness, isolation, poor mental health, decreased motivation.</li><li>Younger employees: need mentorship, social interaction, and career growth opportunities.</li></ul><div data-type="horizontalRule"><hr></div>Q: What strategies could companies implement to mitigate feelings of isolation in primarily remote teams?<ul><li>Virtual social events, icebreakers, team-building activities.</li><li>Encourage occasional in-person collaboration.</li><li>Difficult to fully replicate informal social interactions remotely.</li></ul><div data-type="horizontalRule"><hr></div>Q: Why might remote workers be less likely to be promoted?<ul><li>Limited visibility to leadership → fewer networking opportunities.</li><li>Perception of lower engagement (Zoom vs. in-person).</li><li>In-person presence signals ambition and active participation.</li><li>Some discussions/decisions happen face-to-face, missed remotely.</li></ul><div data-type="horizontalRule"><hr></div>Q: Why do younger workers in their 20s tend to prefer in-person work while those in their 30s-40s prefer to work from home?<ul><li>Younger workers (20s):<ul><li>Value mentorship, career growth, and social interaction.</li><li>Fewer personal responsibilities → prefer in-person work.</li></ul></li><li>Older workers (30s-40s):<ul><li>More personal responsibilities → prefer flexibility of home.</li><li>Experienced → need less guidance, value convenience.</li><li>Health considerations may favor remote work.</li></ul></li></ul></li><li>Q: What might be the long-term outlook of employees working from home?<ul><li>Continued adoption of hybrid models likely.</li><li>Flexibility will remain highly valued, especially for older employees.</li><li>Companies need strategies to maintain engagement, culture, and career development.</li></ul></li></ul></li></ul><h5>HR Objectives, Training & Development</h5><ul><li>Questions for Self-Study on the Future of Work<ul><li>Human resource management: attracting, developing, and retaining employees to meet organizational objectives.</li><li>Three main objectives:<ul><li>Job Search: providing qualified, well-trained employees for the organization.</li><li>Work Performance: maximizing employee effectiveness in the organization.</li><li>Employee Needs: satisfying individual needs through monetary compensation, benefits, advancement opportunities, and job satisfaction.</li></ul></li></ul></li><li>HR: The People Behind the People<ul><li>SHRM and Strategic Management perspective: aligning people strategy with competitive strategy.</li></ul></li><li>Strategic Management Process (for analyzing competition, setting goals, action plans, resource allocation)</li><li>Orientation, Training, and Evaluation<ul><li>Newly-hired employees typically complete an orientation program.</li><li>Communications during orientation: inform about policies, employee manuals, describe benefits/programs.</li><li>Training approaches:<ul><li>Classroom and computer-based training.</li><li>On-the-job training.</li><li>Management development.</li></ul></li></ul></li></ul><h5>Employee Benefits & Job Design</h5><ul><li>Employee Benefits<ul><li>Additional compensation beyond salary: vacation, retirement plans, profit-sharing, health insurance, gym memberships, child/elder care, tuition reimbursement.</li><li>Can comprise up to roughly$ 30 $% of total compensation.</li><li>Some benefits are legally required:<ul><li>Canada Pension Plan</li><li>Unemployment insurance</li><li>Workers’ compensation programs</li></ul></li></ul></li><li>Job Design and Motivation<ul><li>Job enlargement: expanding responsibilities by increasing tasks and variety.</li><li>Job enrichment: expanding duties to empower decision-making and skill development for career growth.</li><li>Job rotation: moving employees between different jobs to broaden activity range.</li></ul></li><li>Four Forms of Incentive Compensation<ul><li>(Details may include performance-based pay, bonuses, profit sharing, stock options, etc. – not explicitly enumerated in the transcript but typically covered under incentive compensation.)</li></ul></li><li>Goal-Setting Theory<ul><li>A goal is a target or objective to achieve.</li><li>Core idea: people are motivated to the extent they accept specific, challenging goals and receive feedback on progress toward those goals.</li></ul></li><li>Management by Objectives (MBO)<ul><li>A structured approach to focus on achievable goals and optimize results based on available resources.</li><li>MBO principals:<ul><li>A series of related organizational goals and objectives.</li><li>Specific objectives for each person.</li><li>Participative decision-making.</li><li>A set time period to accomplish goals.</li><li>Performance evaluation and feedback.</li></ul></li></ul></li></ul><h5>Labour-Management Relations & Remote Work</h5><ul><li>Labour-Management Relations<ul><li>Labour union: workers organize to pursue goals in wages, hours, and working conditions.</li><li>Union presence at local, national, and international levels; in Canada, around$ 600{,}000 $employees are represented by the Canadian Union of Public Employees (CUPE).</li></ul></li><li>The Collective Bargaining Process<ul><li>Collective bargaining: negotiations between management and union representatives.</li><li>Common issues: wages, work hours, benefits, union activities, grievance handling/arbitration, layoffs, employee rights and seniority.</li></ul></li><li>Settling Labour-Management Disputes<ul><li>Most negotiations end with a signed agreement without a work stoppage.</li><li>Mediation: settlement via an impartial third party.</li><li>Arbitration: a third party renders a legally binding decision.</li></ul></li><li>Steps in the Grievance Procedure<ul><li>(Not all steps are detailed in the transcript, but typically include filing, investigation, hearing, and arbitration as applicable.)</li></ul></li><li>Competitive Tactics of Unions and Management<ul><li>Union Tactics: strike, picketing, boycott.</li><li>Management Tactics: lockout.</li></ul></li><li>The Future of Labour Unions<ul><li>Membership and influence are declining due to a shift to information and service industries.</li><li>Public sector unions account for more than$ 70 $% of all employees today.</li><li>Unions may need greater flexibility to adapt to a global economy and diverse workforce.</li><li>Potential for prosperity for both management and union workers when collaboration improves.</li></ul></li><li>Is Working from Home the New Normal? (Assigned readings)<ul><li>Reading list includes articles from The Globe and Mail and Forbes discussing shifts in office footprints and productivity in work-at-home contexts.</li></ul></li></ul><h5>The Future of the Office: Video & Reflection</h5><ul><li>The Economist video: What Will Happen To The Office?</li><li>Reflection prompts (from the slide):<ul><li>Consider implications for office space, productivity, and employee well-being in a post-pandemic hybrid/remote workplace.</li></ul></li></ul><h5>Overarching Themes & Key Insights</h5><ul><li>SHRM as a strategic function: HR practices are not isolated; they support organizational strategy through recruitment, development, retention, and performance management.</li><li>The role of technology: Internet recruiting, social media, online training, and remote work technology reshape HR processes and costs.</li><li>Balancing costs and value: Flexible benefits, telecommuting, and downsizing/outsourcing decisions impact morale, loyalty, and productivity.</li><li>Theoretical foundations of motivation:<ul><li>Maslow, Herzberg, Expectancy, and Equity theories provide lenses to understand what motivates employees and how to design policies accordingly.</li><li>Self-Determination Theory adds social-contextual factors (relatedness, autonomy, competence).</li></ul></li><li>Contemporary workforce considerations:<ul><li>Generational differences (Millennials, Gen Z) influence preferences for autonomy, growth, and feedback.</li><li>The future of work increasingly blends remote and in-person work (hybrid models) with concerns about visibility, promotions, and social connection.</li></ul></li><li>Labor relations landscape:<ul><li>Unions and collective bargaining remain relevant, but the balance of power and the structure of workplaces are evolving in a global economy.</li></ul></li><li>Ethical and practical implications:<ul><li>Compliance with laws, fair treatment, transparency in performance evaluation, and equitable access to opportunities are central to SHRM success.</li><li>The impact of downsizing and outsourcing on local economies and employee morale requires careful management and communication.</li></ul></li><li>Key formulas and numbers mentioned (for quick reference):<ul><li>>$ 70 $% of Generation Y professionals value work-life balance (Current trend data).</li><li>$ 600{,}000 Canadian employees represented by CUPE (Labour context).
- Growth emphasis in company culture: >80$$% prioritize personal growth (Growth metric in Gen Z/Millennial context).
- Legal and regulatory references: Canada Pension Plan, Unemployment Insurance, Workers’ Compensation (mandatory programs).