Mid-Term I Notes | HRM | Chapters 2, 3, and 4

Chapter 2: Strategy & HR Planning

Strategic Planning: procedures for making decisions about the organizations long-term goals &
strategies
HR planning: process of anticipating & providing for the movement of people into, within, and
out of an organization.
Strategic HRM: combines strategy formulation & implementation. Looks at types & number of
people available, resource allocation decisions. Six steps to SHRM process:
1. Mission: basic purpose of the organizations, its scope of operations, and core values
related to decisions of organization.
Strategic Vision: is a statement about where the company is going and what it can
become in the future.
Core Values: are strong and underlying beliefs and principles that the company
uses as a foundation for its decisions.
2. Environmental analysis/scanning
a. Economic factors: general, regional, global conditions
b. Industry & competitive trends: new processes, services, & innovations
(1) Competitive environment includes the firms customers, rival firms, new
entrants, substitutes, and suppliers
(2) There should be a focus on customer value, how they will provide it,
will influence the skills and behaviour needed from employees.
(3) Supply of labour influences hiring plans
c. Technological changes: info tech & automation
d. Govt legislative issues: laws & administrative rulings
e. Social concerns: child care & educational priorities
f. Demographic & labor market trends: age, composition, literacy, & immigration
3. Internal Analysis culture, capabilities, composition
o Culture determined through cultural audit - VABE = values, beliefs,
expectations. Can be discovered through interviews & questionnaires.
Is the organization seniority based or merit based? (govt = seniority)
Cooperative or competitive? Feel empowered to interact with managers>
leadership style?
o Core capabilities: integrated knowledge sets in an organization that distinguishes
it from its competitors and deliver value to customers.
3 main core capabilities: people, processes, & systems
People: rare, hard to imitate, low cost or provides something unique,
organized
o Composition: who to employ internally, externally, contract, how to manage &
what skills they need
o Forecasting: A critical element of planning
1. Forecast the demand for labour

a. Consider absenteeism/turnover, technology, growth, and

financial resources.
b. Uses trend analysis (organizational index like sales),
managerial estimates (opinions of supervisors, managers,
experts), and Delphi technique (soliciting and summarizing
judgments of a pre-selected group of people).
2. Forecast the supply of labour
a. Considers unemployment rate, government policies,
education of workforce
b. Uses succession planning (identifying, tracking, and
developing key people for executive positions),
replacement charts (list of current jobholders and people
who potential replacements if an opening occurs), and
management inventories
3. Balancing supply & demand
a. Shortage recruitment full-time, part-time, recalls
b. Surplus reductions layoff, attrition, termination
Formulating Strategy
o Corporate Strategy focuses on the markets they will compete in - growth &
diversification, mergers & acquisitions, strategic alliances & joint ventures
o Business strategy focuses on value creation - low cost = compete on
productivity & efficiency. Differentiation = compete on value added.
o Functional strategy ensuring alignment. Vertical fit/alignment = what
employees are doing, strategy, Horizontal fit/alignment = fit of HR functions with
each other.
4. Strategy implementation
o Taking Action: Reconciling supply & demand
o Balancing supply & demand considerations
o Organizational downsizing, outsourcing, offshoring
o Making layoff decisions
5. Evaluation & Assessment
o Benchmarking: process of comparing the organizations processes and practices to
those of other companies. Goal is to uncover gaps.
o Human capital metrics different aspects of workforce
o HR metrics performance of HR function
o Compare to companies similar to you, but also industry leaders
Chapter 2 Question Bank QS and Answers
1. Describe how HR planning is integrated with strategic planning.
Through strategic planning, organizations set major objectives and develop plans to achieve
those objectives. HRP provides a set of inputs that determine what is or is likely to be possible,
given the number of available people, training needs, and other people-related issues. HR
strategies and action plans are developed according to the overall strategic goals that evolve from
the strategy formulation process. During the strategy implementation phase, HRP must make

resource allocation decisions, and implement policy, practices, and training that support the
decisions and outcomes of the strategic planning process.
2. Describe the three key elements of the HRP model.
The three key elements in the HR planning process are (1) forecasting demand, (2) forecasting
supply, and (3) balancing supply and demand considerations.
Forecasting demand involves estimating in advance the number and type of people needed to
meet organizational objectives. It may involve a quantitative approach using statistical analysis
and mathematical models or a qualitative approach focusing on employee performance and
promotability.
Forecasting supply determines if there are sufficient numbers and types of employees available
to staff anticipated openings. Sources of supply can be external or internal.
HR planning should strive for a proper balance between the emphasis places on demand
considerations and that placed on supply considerations. Demand considerations are based on the
forecast of trends in business activity. Supply considerations involve the determination of where
and how candidates with the required qualifications are to be found to fill vacancies.
3. Identify and briefly describe three strategies that managers frequently use to cope with a
labour shortage.
(1) Overtime asking employees to work extra hours is a strategy used by most firms
during peak periods.
(2) Part-time employees to increase flexibility in scheduling and reducing payroll costs,
and to cover the absences of regular, full-time employees.
(3) Temporary employees are typically used for short-term assignments, vacation fill-ins,
for peak work periods, or to cover for employees taking sick leave, pregnancy leave, and
so forth.
4. What are the advantages and disadvantages of using attrition as a downsizing strategy?
The primary advantage of using attrition (combined with a hiring freeze) is the ability to control
and predict compensation expenses that go beyond the salaries and benefits redeemed from
departing employees. When the organization does not replace departing employees, the reduction
in recruitment, orientation and training, office space costs, and so forth, can result in substantial
savings.
However, the disadvantages of attrition are significant. Current employees may be overburdened
with the work of departing employees; their skills may not match the skill sets of the departed
workers; and no new skills or ideas are infiltrating the organization. In addition, the organization
is unable to control who leaves and who stays, which may result in valuable employees leaving,
while less needed ones remain. Attrition also poses the disadvantage of taking a long time,
compared to processes that can be accomplished rapidly, such as layoffs.
Chapter 3: Equity and Diversity in HR

Important to:
- Understand the legal environment of a country
- Limit potential liability, want to underline shared responsibility between employee and
employer, doing the right thing.
- Be aware of consequences like negative publicity
Employment equity 2 main goals:
- Redress past discrimination
- Prevent future discrimination
Designated groups (4)
- Women, aboriginal people, people with disabilities, visible minorities.
- They make up 60% of the population in Canada, and yet do not represent 60% of the
workforce, especially in the higher levels.
Legal Framework.
- Canadian Charter of Rights & Freedoms
- Canadian Human Rights Act (CHRA)
- Provincial laws
- 14 jurisdictions in Canada 10 provinces, 3 territories, + federal
- 90% of all employment law is enforced by the provinces. 10% federal crown
corporations, civil service, agencies, transportation, banking, communications
- Standard legislation & human rights legislation
- Exemption to discrimination: Bona Fide Occupational Qualification/Requirement
(BFOQ/BFOR) = a justifiable reason for discrimination based on business reasons of
safety on effectiveness. Basically needs to be a requirement of the job.
- Concept: reasonable accommodations. Adjustments in job content & working conditions
that an employer is expected to make in order to accommodate a person protected by
human rights provisions
Enforcement of provincial human rights laws:
- Fill a written complaint
- Investigation & submission of report
- If complaint is sustained, settlement
- If no agreement, then a tribunal.
Pay equity: it is illegal to discriminate on the basis of job content. Equal pay for work of equal
value. Inputs = outputs. Value = effort, required skills, responsibility, working conditions.
Canada HR Act
Pay equality: Equal pay for equal work
Employment Equity an attempt by an organization to select talented employees from
traditionally under tapped pools, prevent future discrimination, correct previous discrimination
Occupational segregation e.g. traditionally male/female jobs like being a nurse

Glass ceiling = invisible barrier for designated groups to advance to higher level positions
compared to undesignated groups, organizational bias.
Implementation of employment equity in organizations:
- Management commitment of assignment of accountable senior staff
- Data collection and Analysis stock data, flow data, self-identification form
- Employment Systems Review systemic discrimination, special measures, reasonable
accommodations
- Establishment of a work plan > specific goals
- Implementation
- Evaluation, Monitoring, and Revision
Sexual Harassment: unwelcome advances, requests for sexual favours, & other verbal or
physical conduct of a sexual nature in the working environment. Person may be in a position of
power. Person may be able to withhold something or implement consequence.
Managing Diversity: the optimization of an organizations multicultural workforce in order to
reach business objectives.
- Business reasons: better utilization of talent, increases marketplace understanding,
enhanced creativity, increased quality of team problem solving, greater understanding in
leadership positions.
- Employment equity = mandatory, diversity management is not.
Chapter 3 Question Bank QS and Answers
1. What are some of the disadvantages in employment faced by the four designated groups
in Canada?
There are four designated groups in Canada that have not received equitable treatment in
employment: women, Aboriginal peoples, people with disabilities, and visible minorities.
Women tend to be concentrated in occupations that are accorded lower status and pay
Many Aboriginal workers are concentrated in low-paying, unstable employment.
The unemployment rate for employable people with disabilities is much higher than the national
unemployment rate. People with disabilities face attitudinal barriers, physical demands that are
unrelated to actual job requirements, and inadequate access to technical and human support
systems that would make productive employment possible.
Visible minority groups vary in their labour force profiles; however, studies have shown that
Latin Americans and Southeast Asians experience lower-than-average incomes, higher rates of
unemployment, and reduced access to job interviews, even when they have the same
qualifications as other candidates. Culturally biased aptitude tests, lack of recognition of foreign
credentials, and excessively high language requirements pose systematic barriers for visible
minority groups.

2. What are the steps involved in filing and investigating a human rights complaint?
Individuals under federal jurisdiction have the right to file a complaint with the Canadian Human
Rights Commission (CHRC) if they feel they have been discriminated against on any of the
prohibited grounds. The complaint must first complete a written report describing the
discriminatory action. A CHRC representative reviews the facts and determines if the claim is
legitimate. Once a complaint has been accepted by the CHRC, an investigator is assigned to the
case in order to gather more facts, from both the complainant and the accused. The investigator
submits a report to the CHRC, recommending a finding of either substantial or nonsubstantiation of the allegation. If the allegation is substantiated, a settlement may be arranged in
the course of the investigation. If the parties are unable to reach agreement, a human rights
tribunal consisting of up to three members may be appointed to further investigate the complaint.
If the tribunal finds that a discriminatory practice did take place, it may order the person or
organization responsible to compensate the victim. Any person who obstructs an investigation or
a tribunal, or fails to comply with the terms of a settlement, can be find and/or jailed.
Provincial human rights laws are enforced in a very similar manner. Individuals who feel they
have been discriminated against on any of the prohibited grounds file a written complaint with
the applicable human rights commission, which then investigates the claim. The majority of
cases are resolved at the investigation stage. If agreement cannot be reached, the case is
presented to the provinces human rights commission. The members of the commission study the
evidence and then submit a report to the minister in charge of administering the human rights
legislation. The minister may appoint an independent board of inquiry, which has similar powers
to a federal tribunal. Failure to comply with the remedies prescribed by the board of inquiry may
result in prosecution in provincial court.
3. What can employees do to deter sexual harassment?
Employers must develop an effective sexual harassment policy if they wish to deter sexual
harassment. The policy should be clear and comprehensive, publicizing to all organizational
members that sexual harassment will not be tolerated. Supervisors and managers should be
trained to understand human rights legislative requirements and their role in providing an
environment free from harassment. A formal complaint procedure should be established that
allows employees to report harassment occurrences without fear of retaliation. All charges should
be investigated immediately and, if warranted, discipline should be administered. Cases should
be followed up to ensure a satisfactory resolution of the problem.
Chapter 4: Job Analysis & Work Design
Job Analysis: bedrock of HR. Way of dissecting jobs into tasks and duties so you know who to
assign/reward. When you disqualify have to be able to explain criteria and defend.
Job Description: a statement of the tasks, duties, & responsibilities of a job to be performed.

Job Specification: a statement of the needed knowledge, skills, & abilities (KSAs) of the person
who is to perform the job.
Relationship of job requirements & HRM functions:
Strategic HR planning assesses whether organisation has right human resources and jobs to
fulfill strategy
Recruitment: job specification must be determined on basis of skills needed
Selection: job description must clearly state tasks & duties of position to be filled
a. Training development: organisation must determine how much space for discrepancies
between needs & KSAs of new hires.
b. Performance appraisal: must be benchmarked against requirements of job descriptions.
c. Compensation mgmt.: worth of job based on KSAs in job specification
d. Legal compliance: vague & unrelated criteria for above opens room for charges of job
discrimination.
Job Analysis: the process of obtaining information about jobs by determining the duties, tasks,
or activities of jobs.
o Should also include info on tools needed, environment & times to be done, with whom
(alone or team), required performance level
o Process of job analysis - *see textbook
o Onet job database
o Approaches to job analysis:
a. Position analysis questionnaire system
b. Critical incident method
c. Task inventory analysis
d. Competency based analysis
Job Description: job duties, or essential functions section indicate responsibilities entailed &
results to be accomplished + job specification section skills required to perform the job &
physical demands of the job
- Problems with job descriptions: poorly written, vague terms, little guidance, not updates
as job duties & specifications vary, they may violate the law by containing specifications
not related to job success, can limit scope of activities of the job, reducing organisational
flexibility
Job Design: an outgrowth of job analysis that improves jobs through technological & human
considerations to enhance organization efficiency & employee job satisfaction.
Behavioural Concerns: the job enrichment model & job characteristics model: 2 methods
designed to increase the job satisfaction of employees.
1. Job characteristics model designing jobs to motivate employees.
2. Job enrichment increasing level of difficulty & responsibility of job, increase
authority & control over outcomes, adding new tasks that require training & growth,

providing performance appraisal directly to individual employees, assigning specific

tasks.
Flexible work schedules compressed work week, flextime, job sharing, telecommuting
Chapter 4 Question Bank QS and Answers
1. What is the role of job analysis in HRM, and how does it relate to other HRM functions?
Job analysis involves a systematic process of obtaining information about jobs to determine the
duties, tasks, and activities involved in the job. This information is useful in a variety of HRM
functions including recruitment, selection, training, development, performance appraisal,
compensation, and labour relations.
Job analysis permits HR managers to identify job specifications or qualification required by the
job. This information enables recruiters to target sources that are most likely to generate qualified
candidates. It also allows HR managers to design appropriate selection programs.
Information provided by job analysis may identify discrepancies between the knowledge, skills,
and abilities of the jobholder and the requirements contained in the specifications for the job.
This can provide clues about training and development needs.
Job analysis reveals the requirements of a job and can serve as a basis for developing criteria to
be used in performance evaluation and determining the relative worth of a job. Job descriptions
generated by job analysis also allow the organization to identify those jobs subject to union
jurisdiction.
2. What factors should be considered in job design?
Job design is concerned with structuring jobs to improve organizational efficiency and employee
job satisfaction. Considerations should include (1) the organizational objectives the job was
created to fulfill; (2) industrial engineering considerations, including ways to make the job
technologically efficient; (3) ergonomic concerns, including workers physical and mental
capabilities; and (4) employee contributions reflected in the participation of employees in
making job improvements or enhanced operational decisions.
3. Discuss the job characteristics that motivate employees.
The job characteristics model proposed that three psychological states - (1) meaningfulness of
work, (2) responsibility for work outcomes, and (3) knowledge of results result in improved
performance and motivation of workers. The five characteristics that produce these states are:
Skill Variety: the degree to which a job entails a variety of activities and the use of different
skills or talents by the jobholder.
Task Identity: the degree to which the job requires the completion of a whole, identifiable piece
of work.

Task Significance: the degree to which the job has an impact on the lives or work of other
people.
Autonomy: the degree to which the job provides freedom, independence, and discretion to the
jobholder in scheduling and completing the work.
Feedback: the degree to which the jobholder is given clear information about the effectiveness
of his or her performance.
4. What are the advantages and disadvantages of flextime or flexible working hours?
Advantages of flextime or flexible working hours include:
- Employers reduce some of the traditional causes of tardiness and absenteeism
- Employees gain greater job satisfaction through the ability to adjust their work to
accommodate their lifestyle.
- Employees can schedule their working hours for the time of day they are most
productive.
- Traffic congestion may be reduced by variations in arrival and departure times.
- Flexible schedules can be helpful in recruiting and retaining personnel.
- They are invaluable to organizations that wish to improve service to customers or clients
by extending operating hours.
Disadvantages of flextime or flexible working hours include:
- Flexible schedules are not suited to some jobs, such as those where specific workstations
must be staffed at all times.
- They can create problems for managers in communicating with and instructing
employees.
- They can force managers to extend their workweek to work directly with employees.