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 ()

      • Government regulation

      • The cost of living

      • Company profits

      • Employee productivity

    • Definitions:

      • 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).

  • Monitoring Work From Home Activity

  • Performance Appraisal: Evaluation of and feedback on an employee’s job performance

  • Effective performance reviews:

  • Take place several times a year

  • Are linked to organizational goals

  • Are based on objective measures

  • Take place in the form of a two-way conversation

  • Some firms conduct peer reviews (assess performance of coworkers)

  • 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

Balanced Scorecard: Looks beyond financial achievements of an employee

Why do we look at all aspects instead of only financial?

If you focus on financial - you’re only looking at short-term

If you focus on other things - you’re seeing how it will affect you in the longer term

  • Employee Separation

    Voluntary turnover: employees leave to start their own business, join other firms, or retire.

    • Exit interviews to understand reasons for leaving.

    • Importance of retaining top performers for organizational success.

    • Is our good talent going to leave because the others left?

      Involuntary turnover: terminations due to poor performance, unethical behavior, or downsizing.

    • Legal considerations require careful documentation of termination reasons.

    • Team Dynamics affected

  • Downsizing and Outsourcing

    • Downsizing: reducing headcount by eliminating jobs.

    • Negative effects: heightened anxiety, health problems, lost productivity among remaining staff; expensive severance; potential negative domino effects on the local economy.

    • Outsourcing: using external vendors to produce goods or deliver services previously handled in-house.

    • Rationale: save costs and remain flexible by outsourcing non-core functions.

    • Reality vs. theory: outsourcing might not always deliver expected benefits.

    • Motivating Employees (next section builds on motivation foundations)

Should there be a Cap/Ceiling on Executive Compensation?

Yes – Arguments for a Cap:

  • Ethical concerns: fairness compared to other employees (employment/pay equity).

  • Encourages responsible use of company funds.

  • Promotes long-term thinking and sustainable growth.

  • Builds societal trust in the business; avoids negative public perception (“doesn’t look good”).

No – Arguments Against a Cap:

  • Capitalist principle: reward based on value contributed.

  • Limits talent pool: top talent may go elsewhere if pay is capped.

  • Could restrict company growth and profile.

  • Brain drain: skilled executives may migrate to companies offering higher compensation.

Talent Pool in this context:

  • The range of qualified, experienced executives available for hire.

  • High executive pay helps attract and retain top talent; capping pay may shrink this pool.

Employee Motivation Theories

  • Core idea: Motivation and Morale

    • Motivation starts with good employee morale (positive attitude toward employer and job).

    • High morale occurs when employees feel valued, heard, and empowered to contribute their best work.

    • Poor morale manifests as absenteeism, voluntary turnover, and lack of motivation.

  • Maslow’s Hierarchy of Needs (5 levels)

    • 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)

    • Hierarchy levels (from bottom to top):

      • Physiological needs

      • Safety needs

      • Social (belongingness) needs

      • Esteem needs

      • Self-actualization needs

    • Key principle: lower-order needs must be satisfied before higher-order needs influence behaviour.

  • Maslow vs. Herzberg

    • Maslow’s hierarchy forms the basis for understanding needs-driven motivation.

    • 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.

    • Motivator factors (Herzberg): factors that can lead to higher motivation and job satisfaction if present: job responsibilities, achievement, recognition, growth opportunities.

  • Expectancy Theory and Equity Theory

    • 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!)\

    • 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)


Management Attitudes & Workforce Trends

  • Managers’ Attitudes and Motivation (Douglas McGregor, Theory X and Theory Y; Theory Z by Ouchi)

    • Theory X: assumes employees dislike work; need coercion, need to be managed; money and job security are primary motivators (Maslow’s lower-order needs).

    • Theory Y: assumes people like work and seek greater responsibility; self-control and self-direction are motivators (Maslow’s higher-order needs).

    • Theory Z: emphasizes worker involvement as the key to higher productivity and improved quality of work life.

  • Self-Determination Theory

    • Relatedness: feeling connected to others; sense of belonging.

    • Autonomy: having a choice; being able to be yourself.

    • Competence: feeling effective at one’s activities.

  • Current Trends in a Changing Workforce: Millennials and Generation Z

    • Autonomy: 63% would switch to a job with flextime

    • Relatedness: 65% prefer face-to-face meetings with managers

    • Competence: feeling effective at activities

    • Growth: 80% view emphasis on personal growth as the most important quality of company culture

  • The Future of Remote Work: The Hybrid Model

    • Questions to consider:

      Case Study: The Future of Remote Work

      Q: What advantages and disadvantages do businesses face with a hybrid work model compared to fully remote or fully in-office setups?
      Advantages:

      • Cost-effective: less office space → reduced rent.

      • Supports older workers with child/parent care → improves satisfaction, attracts talent.

      • Environmental benefits: less commuting.

      • Higher employee satisfaction → higher productivity.

      • Some employees work better from home.

      Disadvantages:

      • “Out of sight, out of mind”: employees may be overlooked for promotions.

      • Communication delays; company culture may suffer.

      • Productivity can be inconsistent.

      Q: How might remote work affect employees' mental health and relationship building with coworkers?

      • Risks: loneliness, isolation, poor mental health, decreased motivation.

      • Younger employees: need mentorship, social interaction, and career growth opportunities.

      Q: What strategies could companies implement to mitigate feelings of isolation in primarily remote teams?

      • Virtual social events, icebreakers, team-building activities.

      • Encourage occasional in-person collaboration.

      • Difficult to fully replicate informal social interactions remotely.

      Q: Why might remote workers be less likely to be promoted?

      • Limited visibility to leadership → fewer networking opportunities.

      • Perception of lower engagement (Zoom vs. in-person).

      • In-person presence signals ambition and active participation.

      • Some discussions/decisions happen face-to-face, missed remotely.

      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?

      • Younger workers (20s):

        • Value mentorship, career growth, and social interaction.

        • Fewer personal responsibilities → prefer in-person work.

      • Older workers (30s-40s):

        • More personal responsibilities → prefer flexibility of home.

        • Experienced → need less guidance, value convenience.

        • Health considerations may favor remote work.

    • Q: What might be the long-term outlook of employees working from home?

      • Continued adoption of hybrid models likely.

      • Flexibility will remain highly valued, especially for older employees.

      • Companies need strategies to maintain engagement, culture, and career development.

HR Objectives, Training & Development

  • Questions for Self-Study on the Future of Work

    • Human resource management: attracting, developing, and retaining employees to meet organizational objectives.

    • Three main objectives:

      • Job Search: providing qualified, well-trained employees for the organization.

      • Work Performance: maximizing employee effectiveness in the organization.

      • Employee Needs: satisfying individual needs through monetary compensation, benefits, advancement opportunities, and job satisfaction.

  • HR: The People Behind the People

    • SHRM and Strategic Management perspective: aligning people strategy with competitive strategy.

  • Strategic Management Process (for analyzing competition, setting goals, action plans, resource allocation)

  • Orientation, Training, and Evaluation

    • Newly-hired employees typically complete an orientation program.

    • Communications during orientation: inform about policies, employee manuals, describe benefits/programs.

    • Training approaches:

      • Classroom and computer-based training.

      • On-the-job training.

      • Management development.

Employee Benefits & Job Design

  • Employee Benefits

    • Additional compensation beyond salary: vacation, retirement plans, profit-sharing, health insurance, gym memberships, child/elder care, tuition reimbursement.

    • Can comprise up to roughly 30% of total compensation.

    • Some benefits are legally required:

      • Canada Pension Plan

      • Unemployment insurance

      • Workers’ compensation programs

  • Job Design and Motivation

    • Job enlargement: expanding responsibilities by increasing tasks and variety.

    • Job enrichment: expanding duties to empower decision-making and skill development for career growth.

    • Job rotation: moving employees between different jobs to broaden activity range.

  • Four Forms of Incentive Compensation

    • (Details may include performance-based pay, bonuses, profit sharing, stock options, etc. – not explicitly enumerated in the transcript but typically covered under incentive compensation.)

  • Goal-Setting Theory

    • A goal is a target or objective to achieve.

    • Core idea: people are motivated to the extent they accept specific, challenging goals and receive feedback on progress toward those goals.

  • Management by Objectives (MBO)

    • A structured approach to focus on achievable goals and optimize results based on available resources.

    • MBO principals:

      • A series of related organizational goals and objectives.

      • Specific objectives for each person.

      • Participative decision-making.

      • A set time period to accomplish goals.

      • Performance evaluation and feedback.

Labour-Management Relations & Remote Work

  • Labour-Management Relations

    • Labour union: workers organize to pursue goals in wages, hours, and working conditions.

    • Union presence at local, national, and international levels; in Canada, around 600{,}000 employees are represented by the Canadian Union of Public Employees (CUPE).

  • The Collective Bargaining Process

    • Collective bargaining: negotiations between management and union representatives.

    • Common issues: wages, work hours, benefits, union activities, grievance handling/arbitration, layoffs, employee rights and seniority.

  • Settling Labour-Management Disputes

    • Most negotiations end with a signed agreement without a work stoppage.

    • Mediation: settlement via an impartial third party.

    • Arbitration: a third party renders a legally binding decision.

  • Steps in the Grievance Procedure

    • (Not all steps are detailed in the transcript, but typically include filing, investigation, hearing, and arbitration as applicable.)

  • Competitive Tactics of Unions and Management

    • Union Tactics: strike, picketing, boycott.

    • Management Tactics: lockout.

  • The Future of Labour Unions

    • Membership and influence are declining due to a shift to information and service industries.

    • Public sector unions account for more than 70% of all employees today.

    • Unions may need greater flexibility to adapt to a global economy and diverse workforce.

    • Potential for prosperity for both management and union workers when collaboration improves.

  • Is Working from Home the New Normal? (Assigned readings)

    • Reading list includes articles from The Globe and Mail and Forbes discussing shifts in office footprints and productivity in work-at-home contexts.

The Future of the Office: Video & Reflection

  • The Economist video: What Will Happen To The Office?

  • Reflection prompts (from the slide):

    • Consider implications for office space, productivity, and employee well-being in a post-pandemic hybrid/remote workplace.

Overarching Themes & Key Insights

  • SHRM as a strategic function: HR practices are not isolated; they support organizational strategy through recruitment, development, retention, and performance management.

  • The role of technology: Internet recruiting, social media, online training, and remote work technology reshape HR processes and costs.

  • Balancing costs and value: Flexible benefits, telecommuting, and downsizing/outsourcing decisions impact morale, loyalty, and productivity.

  • Theoretical foundations of motivation:

    • Maslow, Herzberg, Expectancy, and Equity theories provide lenses to understand what motivates employees and how to design policies accordingly.

    • Self-Determination Theory adds social-contextual factors (relatedness, autonomy, competence).

  • Contemporary workforce considerations:

    • Generational differences (Millennials, Gen Z) influence preferences for autonomy, growth, and feedback.

    • The future of work increasingly blends remote and in-person work (hybrid models) with concerns about visibility, promotions, and social connection.

  • Labor relations landscape:

    • Unions and collective bargaining remain relevant, but the balance of power and the structure of workplaces are evolving in a global economy.

  • Ethical and practical implications:

    • Compliance with laws, fair treatment, transparency in performance evaluation, and equitable access to opportunities are central to SHRM success.

    • The impact of downsizing and outsourcing on local economies and employee morale requires careful management and communication.

  • Key formulas and numbers mentioned (for quick reference):

    • >70% of Generation Y professionals value work-life balance (Current trend data).

    • 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).