BU354 Chapter Notes - Chapter 1: Baby Boomers, Collegehumor, Common Hardware Reference Platform
Chapter 1 – Strategic Human Resource Management
- One element that ties all aspects of the organization together are people.
oPeople are at the core of all social organization.
They create goals, innovations, and the accomplishments for which
organizations are praised.
People are resources, human resources, and without them the
organization wouldn’t exist.
- Sometimes human capital is an organizations greatest asset.
- Organizational success depends on paying careful attention to human resources.
oOrganizational strategies are dependant on the people brought together to
create them. In turn, the success of an organization relative to these strategies
are dependant on the practices used to lead the human resources.
What is Human Resource Management?
- Organizations bring people together in a coordinated manner to accomplish goals or
objectives that could not be accomplished by a single individual.
-Organizational Goal: an organizations short and long term goals that human resource
management aims to support and enable.
oOften categorized into economic, social and environmental goals
oThese goals vary depending on the organization.
oFor an organization to achieve its goals, employees must engage in actions and
behaviours that move the organization in the right direction towards
accomplishing them
-Human resource management: the leadership and management of people within an
organization using systems, methods, processes and procedures that recruit, select,
motivate and enable employees to achieve outcomes individually and collectively that in
turn enhance the employee’s positive contribution to the organizations goals.
oIs therefore a means of structuring the organization to facilitate and enable the
achievement of goals.
Thus, critical to the success of the organization
- Human resource management is a completely integrated system with many parts.
o When one change is made to one activity, it often has an impact on one or more
activities.
oLeaders must consider how changes may affect the system overall.
The Difference between Human Resource Management and a Human Resource Department
find more resources at oneclass.com
find more resources at oneclass.com
Chapter 1 – Strategic Human Resource Management
- Although human resource management is central to all organizations, not all
organizations will have a human resource department.
oThe field of human resource management thus focuses on what leaders and
managers should do as it relates to organizing human resource systems, policies,
and procedure.
These systems create value by facilitating and enabling employees to
achieve individual goals that in turn contribute to corporate or
organizational goals.
- A human resource department is a specialized group with the primary focus of ensuring
the most effective use of human resource systems across an organization to enhance
employee performance and accomplish organizational goals.
oResources are wasted when the HR department is too big or too small for the
demands of the organization.
oOn average there were 3 HR staff for every 200 employees.
- Regardless of the size of an organization and whether or not the organization has a HR
department, the responsibility of the management of human resources usually rests
with individual managers throughout the organization.
Strategic Human Resource Management
- Human resource activities must contribute to the organizational goals and performance.
- Strategic human resource management seeks to recognize that the choice of human
resource management tools depends on what the organization is trying to achieve
oThat is, the human resource management activities must align and contribute to
the organizations strategies.
- A strategy involves a large-scale, future-oriented, integrated plans to achieve
organizational goals and respond to uncertain and competitive environments facing the
organizations.
- Strategies are formulated on three levels:
oCorporate
Involves the entire organization
oBusiness
Involves a major activity
oFunctional
Involving managers of different activities, services or geographical areas
-Strategic human resource management: the process of integrating the strategic needs
of an organization into our choice of human resource management systems and
practices to support the organizations overall mission, strategies, and performance.
find more resources at oneclass.com
find more resources at oneclass.com
Chapter 1 – Strategic Human Resource Management
oValue driven, proactive, focuses on the best way to practise human resources.
oIt is important that human resource strategies and tactics are mutually
consistent and reflect the larger organizational mission.
-Proactive human resource management: a human resources management approach
wherein decision makers anticipate problems or challenges both inside and outside the
organization before they impact the organization.
-Reactive human resource management: a human resource approach where decision
makers respond to challenges as they arise, rather than anticipating them
- Every human resource system and tactic should generate value for the organization.
oThis challenge for managers is to understand that within a system of people, a
decision to change one thing will often have an impact on other practices for HR.
- Although HR managers must be strategic, new hr issues are dominating corporate
strategies. This is because over 50% of operating costs go to salaries.
Understanding the Strategic Human Resource Management Process
- Often the HR strategy formulation and implementation process consists of the following
five steps:
Step 1: Organizational Mission, Goals and Strategy Analysis
- The less clear the human resource management and strategic human resource
management becomes, the more important HR systems focused on the organizations
overall missions, goals and strategies becomes.
oMission statement: specifies what activities the organization intends to pursue
and what course is charted for the future.
Answers who you are, what you do and where you’re headed.
Gives the organization identity and character
- Even organization’s with similar goals may show remarkable differences in their
strategies to achieve these goals.
- Three major strategies:
oCost leadership
oDifferentiation
oFocus
-Cost leadership strategy: strategy to obtain a competitive advantage through lower cost
of operation and lower prices.
oSeek efficiencies in production and use tight controls to gain a competitive
advantage
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
One element that ties all aspects of the organization together are people: people are at the core of all social organization. They create goals, innovations, and the accomplishments for which organizations are praised. People are resources, human resources, and without them the organization wouldn"t exist. Sometimes human capital is an organizations greatest asset. Organizational success depends on paying careful attention to human resources: organizational strategies are dependant on the people brought together to create them. In turn, the success of an organization relative to these strategies are dependant on the practices used to lead the human resources. Organizations bring people together in a coordinated manner to accomplish goals or objectives that could not be accomplished by a single individual. Thus, critical to the success of the organization. The difference between human resource management and a human resource department. These systems create value by facilitating and enabling employees to achieve individual goals that in turn contribute to corporate or organizational goals.
