Key Concept Links (Ethics/Creativity)
HR’s role is to achieve business objective through the effective use of an organization's workers —> increasing the productivity of its employees
Many ethical decisions at play in all aspects of Human Resources Management (HRM)
For Example:
New technology replaces expensive labor with cost-efficient capital —> people become redundant
How do you ethically manage reducing your workforce without impacting overall company culture or employee morale?
Should employers allow workers to have tattoos? Is it appropriate for teachers in schools to have visible tattoos? Should there be a law about exposing tattoos in the workplace?
Should employment laws be enforced across the globe to prevent discrimination against race, gender, marital status, age, religion, and sexual orientation? Why or why not?
Is it ethical for senior executives to receive end-of-year bonuses that are more than double their employees’ annual salary?
Is it more acceptable for companies to hire more part-time and flexi-time workers in order to lower their production costs?
Should a business deliberately/intentionally hire a culturally diverse workforce? Why or why not?
A creative workforce and culture of creativity can give a business competitive edges
Airbnb has become the world’s largest property rentals company, but it doesn’t own any properties
Amazon.com has transformed the (online) retail industry, putting lots of traditional retailers out of business in the process
Google Maps and mobile technologies have wiped out the demand for satellite navigation devices
iTunes and Spotify have revolutionized the music industry
Netflix is the world's largest provider of movies, but it doesn’t own any cinemas of its own
Tesla’s innovatively designed products have sparked huge interests in al electric vehicles
Uber, the world’s largest taxi operator, doesn’t own any taxis
How do these examples impact the role of HRM?
Spark the creativity and innovation of workers
Chapter 7 - Intro to HRM
Human resource planning
Talent management
Recruiting and retaining
Training and development
Reward and performance management
Employee relations
Employee welfare
Human resource compliance
Analyzing and forecasting the ….that will be required by the organization to achieve its objectives
Number of workers
Skills of those workers
Getting the right # of people, with the right skills, experiences, and competencies in the right jobs at the right cost
Used for immediate needs (such as replacing workers who go on maternity leave, enter retirement, or suddenly dismissed
Used to support the strategic plan of the organization (e.g. expansion of the business in new locations and… )
The 1) number of workers 2) skills of the workers required over a future period of time
Check on the skills and qualifications of all existing employees
Starting point for HR planning
Forecast of number of Employees
How can you appropriately forecast
Demand for firm’s product
Productivity level
Business objectives
Labor laws
Turnovers and absenteeism
Forecast of Skills Requires
Pace of Technology
Flexible/Multi skilled staff
Measure the rate at which employees are leaving an organization
Measured by ( # of employees leaving in 1 year/average number of employees) x 100
Demographic change
Natural population growth/decline
More variety in skills → specialization
Opportunity for recruitment
Price of labor
Could lead to higher unemployment rates
Net migration – immigration/emigration
High qualified workers from other countries
Workers will work for a lower pay
Aging population
Older population have more experience in the workforce
Could be reaching retirement age
Extent to which workers are willing and able to move to different jobs requiring different skills
Helps a country achieve economic efficiency
Helps keeps structural unemployment low
Extent to which worker are willing and able to move geographical regions to take up new jobs
Can lead to overcrowding and poor living conditions in towns and cities
A flexible way of working that allows employees to fit their working hours around their individual needs to allow for other commitments outside of work
A labor market characterized by the widespread use of short term contracts; are freelance work rather than jobs with permanent contracts
Size
Larger firms need more involved HR planning
Strategic Direction
Is growth is priority, HR planning will need to account for more workers
Organizational Structure
Clear structures aids in planning for ease of viewing vacancies and redundancies
Finances
Understanding funding for attracting workers
Motivation in the Workplace
High motivation = high
Corporate culture
Relocation
Change of ownership (example: take over)
Change of senior management
New working practices and employment contracts
Changes in technology and the workplace skills required
Fear of the unknown ( change = uncertainty)
Fear of failure (new skills & abilities that may be beyond individual capabilities)
Self-interest losing something of value (i.e job status or security)
Misinformation: false beliefs about the need for change (not properly communicated to workers )
Low tolerance; lack of trust
Inertia (change requires considerable effort)
The continuous adoption of business strategies and structures in response to changing internal pressures or external forces
Can be either
evolutionary/incremental change (occurs slowly over time → electric vehicles)
dramatic/revolutionary change (pandemic operations)
Planning, implementing, controlling, and review the movement of an organization from its current state to a new one
Technological innovation (new products & processes)
Macro-economic changes (i.e fiscal policy, interest rates, fluctuations in business cycle)
Takeover by another business
Managers must first consider the below before enacting change:
Where are we now and why is change necessary?
New vision and objectives
Ensure resources are in place to enable change to happen
Plan the timing of the change
Involve workers in the plan for change and its implementation
Communicate (advance and enough → want employees to be informed)
Introduce initial changes that bring quick results
Focus on training (assess the skills that your employees have and the skills that they need)
Sell the benefits (bring back to how the workers will also reap the benefits)
Always remember the effects on individuals (the quicker that you can provide things that can help workers in the transition process)
Check on how individuals are coping and remember to support them
Management vs. Leadership?
How do you lead change instead of manage it?
Shake an organization out of complacency and away from resistance to change
Motivate staff at all levels
Acceptance of change as part of culture
Visible support to all senior managers
A person assigned to support and drive a project forward and who explains the benefits of change and assists and sports the team input from different specialists
Created by an organization to address a problem that requires input from different specialists
Establish a sense of urgency
Create an effective project team to lead
Develop a vision and strategy for change
Communicate this change vision
Empower people to take action
Generate short-term gains
Consolidate gains
Build change into culture of organization
Chapter 8 - Organizational Sturcture
Chapter 9 - Leadership and Management
Chapter 10 - Motivation and Demotivation
Chapter 12 - Communication