MANA 3320 1st Edition Exam 1 Study Guide Lectures 1 6 Lectures 1 6 Tuesday January 20 Tuesday February 10 CH 1 Human Resource Management Generalist vs Specialist o Specialists typically paid more and work in larger corporations Line job vs staff job o Line jobs directly relate to why the company exists for products and services o Staff jobs only exist for line jobs Working life o Average life span with socially acceptable retirement age o In US it s 40 years Employment at will doctrine o Made in England in the 1400s o Originally defined as companies can terminate employees for any reason for any time they wish and employees can leave a company for any reason for any time they wish o Now defined as companies can terminate employees for any reason at any time they wish unless as expressly barred by law or by judicial case o Only state that doesn t have this is Montana Right to Work Law o Written in federal law in the Taft Hartley act state s rights law o Give each person the right to choose without any pressure from any person or organization to be a part of a union or not part of a union o Only 20 states passed this law but now it s up to 24 Human resource management o The process of managing human talent to achieve an organization s objectives o Great business plans products and services can easily be copied by your competitors Great personnel cannot 7 challenges of human resource management o 1 Responding strategically to changes in marketplace Downsizing The planned elimination of jobs head count Layoffs Outsourcing Contracting outside the organization to have work done that formerly was done by internal employees don t come back into the company Subcontracting same thing as outsourcing but they have the possibility of coming back on the payroll also don t have to pay benefits Offshoring global sourcing o The business practice of sending jobs to other countries 2 Competing recruiting and staffing globally Globalization Approximately 70 to 85 of the US economy today is affected by international competition About 10 of what Americans produce every year dollar wise is sold abroad To be considered global the company has to either sell outside the US or manufacture outside the US for the first time Impact of globalization Anything anywhere anywhere markets Partnerships with foreign firms Lower trade and tariff barriers o NAFTA EU APEC trade agreements o WTO and GATT general agreements on tariffs and trade o World Trade Organizations abide by the GATT 3 Setting and achieving corporate social responsibility and sustainability goals Corporate social responsibility CSR o Sustainability is closely related to corporate social responsibility Sustainability refers to a company s ability to produce a good or service without damaging the environment or depleting a resource Benefits Automation of routine tasks lower administrative costs increased productivity and response times Self service access to information and training for managers and employees Online recruiting screening and pretesting of applicants Training tracking and selecting employees based on their record of skills and abilities Organization wide alignment of cascading goals 5 Containing costs while retaining top talent and maximizing productivity o The responsibility of the firm to act in the best interests of the people and communities affected by its activities 4 Advancing HRM with Technology o Organizations take many approaches to lowering labor related costs including Carefully managing employees benefit Downsizing Furloughing employees Outsourcing Offshoring Employee leasing Capital expenditures tend to be fixed costs buildings land equipment Labor expenditures tend to be cut wages benefits 6 Responding to the demographic and diversity challenges of the workforce Demographic changes More diverse workforce o Ethnic and cultural challenges Aging workforce More educated workforce o Managing diversity o Necessity of basic skills training Being aware of characteristics common to employees while also managing employees as individuals Race age and sex are main ones 7 Adapting to educational and cultural shifts affecting the workforce Other factors Cultural and societal changes affecting the workforce Employee rights Privacy concerns of employees Changing attitudes toward work Balancing work and family CH 2 Strategy and Human Resource Planning Short term vs long term o Short One year or less o Long used to be 10 years or more now it s considered 5 years Strategic planning challenges o Strategy formulation o Strategy implementation 6 Steps Areas in Strategic Planning o Step 1 Mission Vision and Values Mission The basic purpose of the organization as well as its scope of operations Strategic vision A statement about where the company is going and what it can become in the future Clarifies the long term direction of the company and its strategic intent Core values o The strong and enduring beliefs and principles that the company uses as a foundation for its decisions Step 2 Environmental Analysis Five forces framework Fig 2 2 1 New entrants 2 Suppliers 3 Customers 4 Substitutes 5 Rival firms Service industry Skilled usually needs license or certificate o Unskilled don t need experience skills training o o Accountants lawyers doctors engineers professors Fast food landscaping retail Step 3 Internal Analysis Three C s 1 Culture o Cultural audits Audits of the culture and quality of work life in an organization How do employees spend their time How do they interact with each other Are employees empowered What is the predominant leadership style of managers How do employees advance within the organization 2 Core Competencies o 3 Composition of the workforce o Contract laborers has no benefits o Knowledge worker o Unskilled worker Forecasting The opinions or judgments of dept heads experts top management that make educated guesses about the future of the business Use quantitative or qualitative approach Internal demand forecasting tools Skills inventories o Files of personnel education experience interests skills etc that allow managers to quickly match job openings with employee backgrounds Replacement charts o Listings of current jobholders and persons who are potential replacements if an opening occurs o Used at management levels upper and mid management Succession planning o o Skills and abilities necessary to complete the mission of the firm The process of identifying developing and tracking key individuals for executive positions