TOPIC 1.

HUMAN RESOURCES STRATEGIES AND CHALLENGES

Human resources I

Every organization, large or small, uses a variety of capital to make the business work. Capital includes cash, valuables, or goods used
to generate income for a business. No matter the industry, all companies have one thing in common: they must have people,
motivated, to make their capital work for them. This will be our focus throughout this course: generation of revenue through the use
of people’s skills and abilities.

“HR is the driving force behind what makes a winning team. We make the argument that the team that fields the best players wins.
HR's involved in making sure we field the best players.” - Jack Welch, GM CEO, Jack Welch Management Institute.

Human resources management. The process of employing people, training them, compensating them,
developing policies relating to the workplace and developing strategies to retain employees.

1. 7 MAIN ROLES
1. Staffing
2. Setting policies
3. Compensation and benefits
4. Retention
5. Training
6. Employment laws
7. Worker protection

1. Staffing
You need people to perform tasks and get work done in the organization. Even with the most sophisticated machines,
humans are still needed. Because of this, one of the major tasks in HRM is staffing. Staffing involves the entire hiring
process from posting a job to negotiating a salary package. Socialization. It is one of the most important parts of a
company because it tries to find the perfect person for each place in a company.

● Development of a staffing plan: this plan allows to see how many people they should hire based on revenue
expectations
● Recruitment: gathering all the information about the candidates to finding people to fill the open positions
● Selection: select the best candidates to the company by interviewing and selecting people as well as
negotiating a proper compensation package.
● Development of policies to encourage multiculturalism at work: multiculturalism in the workplace is
becoming more and more important, as we have many more people from a variety of backgrounds in the
workforce.

2. Setting policies
Every organization has policies to ensure fairness and continuity within the organization. One of the jobs of HRM is
to develop the verbiage surrounding of these policies → develop workplace policies (clear rules, requirements,
procedures for everyone in a company)
● Discipline process: how the behavior has to be
● Vacation time: the time of vacation the company will give to their employees
● Dress code: if the employees have to dress in a specific way or not to work.
● Ethics policy
● Internet usage policy: you cannot use your professional mobile or computer for personal things

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3. Compensation and benefits
HRM professionals need to determine that compensation is fair, meets industry standards and is high enough to entice
people to work for the organization. Compensation includes anything employees receive for their work. HRM
professionals need to make sure the payment is comparable to what other people earn performing similar jobs. To
establish the payment it is important to take into account some facts like the number of years within the organization,
years of experience, education…
● Pay
● Health benefits
● Retirement plans
● Stock purchase plans
● Vacation time
● Sick leave
● Bonus
● Tuition reimbursement

4. Retention
Retention involves keeping and motivating employees to stay in the organization. 90% of employees leave a company
for the following reasons:
● Issues around the job they are performing
● Challenges with their manager
● Poor fit with organizational culture
● Poor workplace environment

5. Training and development

Once we have spent the time to hire new employees, we want to make sure they not only are trained to do the job,
but also continue to grow and develop new skills in their job to acquire higher productivity for the organization.
Training is also a component of employee motivation and results in increased employee retention.
● Job skills
● Training on communications
● Team-building activities
● Policy and legal training, such as sexual harassment training and ethics training.

6. Employment laws
HR people must be aware of all the laws that affect the workplace and employment. The legal environment is always
changing, so HRM must always be aware of changes taking place and then communicate those changes to the entire
management organization.
● Discriminating laws
● Health-care requirements
● Compensation requirements
● Worker safety laws
● Labor laws

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7. Worker protection
Safety is a major consideration in all organizations. Oftentimes new laws are created with the goal of setting federal or
state standards to ensure worker safety. Unions and union contracts can also impact the requirements for workers
safety in a workplace. It is up to the HRM to be aware of worker protection requirements and ensure employee safety
at the workplace is meeting both federal and union standards.
● Chemical hazards
● Heating and ventilation requirements
● Private information

Starbucks. The basis for starting thinking on how to manage HR is understanding the company. Some criteria we have
to be aware of when doing so could include structure, sector, strategy, organigram, environment… Video illustrating
the training Starbucks did to its employees as a result of a discrimination attitude that occurred in one store.

Cost, response, data and control!

In class exercise. Which do you think are the main functions of a manager? “The fundamental task of management is to
make people capable of joint performance through common goals, common values, the right structure, and the
training and development they need to perform and to respond to change”. Peter Drucker

2. 5 MAIN FUNCTIONS OF A MANAGER

1. Setting objectives and planning
2. Organizing the group
3. Motivating and communicating
4. Measuring performance
5. Developing people

1. Setting objectives and planning 2. Organizing the group

● Objectives aligned with corporate vision and mission ● Analyze activities, decisions, relations
● Goals in each objective ● Classify work
● What to be done ● Manageable activities into manageable jobs
● Communicate objectives ● Units and jobs into organization structure
● Select people for management

3. Motivating and communicating 4. Measuring performance

● Team responsible ● Organization and employee performance
● Empower and motivate employees ● Performance measurements available
● Relationship responsibility ● Analyze, appraise, and interpret performance
● People decisions on pay, placement and promotion ● Communicate to subordinates, superiors, colleagues
● Communication to / from subordinates, superior,
colleagues

5. Developing people
● To develop yourself
● To develop others

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3. ENVIRONMENT
It is important to take into account external factors; external factors that
make things change inside the organization.
- Labor market
- Society
- Economy
- Technology
- Shareholders
- Customers

4. HR CHALLENGES

Containment of costs: benefits, training programs Economy: workforce; legal and union implications;
hybrid jobs

Hiring: turnover (lowest), retention Social: telecommuting, mobility

Communication: channels, personality and styles Diversity and inclusion: culture, multi
generationalism, women

Technology: alternative work schedules, work life Ethics: code of conduct

balance, workplace stress, cyberloafing

New French Law Bars Work Email After Hours: New French union rule limits emails outside office.
Kutoo movement: Japan

ORGANIZATIONAL MODEL
Strategy, complexity, size, regulations, culture, workforce

5. STRATEGIC PLAN
HRM is not only crucial to an organization's success, but it should be a part of the overall company’s strategic plan,
because so many businesses today depend on people to earn profits. Strategic planning plays an important role in how
productive the organization is.

Think of the HRM strategic plan as the major objectives the organization wants to achieve and the HR plan as the
specific activities carried out to achieve the strategic plan. In other words, the strategic plan may influence long-term
goals, while the HR plan may include short term objectives that are tied to the overall strategic plan.

● Applicable: often people spend an inordinate amount of time developing plans, but the plans sit in the file
somewhere and are never actually used. A good strategic plan should be guiding principles for the HRM
function. It should be reviewed and changed as aspects of the business change. Involvement of all members in
the HR department and communication among everyone within the department will make the plan better.

● Strategic: alignment of corporate value, in the HRM strategic plan should be a major objective of the plan.
In addition, the HRM strategic plan should be aligned with the mission and objectives of the organization as
a whole.

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 ● Involvement of people: the plan should involve everyone in the organization. The HR manager will likely
want to meet with the financial department and executives who do the budgeting, so they can determine HR
needs and recruit the right number of people at the right time. In addition, once the HR department
determines what is needed, communicating a plan can gain positive feedback aht ensures the plan is aligned
with business objectives.

● Understand how technology can be used: software and budget friendly options. Data

6. STRATEGIC MANAGEMENT PROCESS

Walmart case - Strategy.

The model of distribution is changing because of the change of customers.
Objectives stated by the CEO: (1) Make life easier for busy families (online grocery shopping) (2) change how we
work (faster, more efficiently), (3) operate with discipline (efficient deployment of capital), (4) most trusted retailer
(loyalty)

- Face and respond to the needs of customers

- Use of technology
- Associates (employees)
- Development, promotion and training
- Be efficient and fast

Associate Delivery 2.0

Associates deliver purchases to consumers while they drive back home. Before launching this proposal it would be
good to test once and get feedback and control the response. According to costs, there are more coordination costs,
costs in terms of time for the associates.

Employees were really interested, because one element of Walmart culture is familiarity (which also involves
customers); connecting one to one to customers. This could also build more trust and loyalty. That was volunter. This
may motivate them during Covid time because it entailed interaction with people.

One year later, there was plenty of deception. HR started working on compensation and some of the associates
reconsidered the activity if there were some benefits.

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7. STRATEGY FUNDAMENTALS

Walmart case - Mission and Vision

● Mission statement: to help people save money so they can life better
● Goal: becoming in an international brand
● Vision: If we work together, we’ll lower the cost of living for everyone… we’ll give the world an
opportunity to see what it’s like to save and have a better life
● Advertising slogan: Save Money, Life Better

4 Values and core behaviors at Walmart

Values and culture

IKEA SHELL
- Humbleness and willpower - Honesty
- Leadership by example - Integrity
- Daring to be different - Respect for people
- Togetherness and enthusiasm
- Cost-consciousness DECATHLON
- Constant desire for renewal - Viality
- Accept and delegate responsibility - Responsibility

SANTANDER BANK
- Dynamism
- Sterenth
- Leadership
- innovation
- Quality service and customer satisfaction
- Professional ethics and sustainability

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Facebook case. Facebook values: bold and take risks, impact on the world, move fast and not worry about mistakes,
transparency and embrace openness, want to build social value.

6.1. INTERNAL ANALYSIS: NEEDS

Managing oneself: strengths, values, how best perform → Management skills, self-assessment

Skills
What are the professional and personal skills needed to be a successful HR Manager?
- Communication skills
- Adaptability
- Performance management
- Organization and good time management
- Multitask
- People skills
- Functional specific knowledge
- Strategic mindset
- Ethics and sense of fairness

Video. Important things in HR Manager: build strong relationships, data usage

Managing oneself
Success comes to those who know themselves: their strengths, their values, how they best perform. Video:
● What are my strengths? know what you’re good at through feedback analysis and actual results (outcomes
from any key decisions actions). Action plan: improve strength, get skills is needed, fix bad habits, avoid areas
of incompetence
● How do I perform? Employ the methods that work, don’t try to change yourself
● What are my values?
● Where do I belong? Always be prepared for opportunities. always be ready to go
● What should I contribute? What does the situation require? What is the greatest contribution I could make to
what needs to be done? What results have to be achieved to make a difference?
● Responsibility for relationships. Warning relationships are based on people and work (trust between people,
understanding one another)

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8. EXTERNAL ANALYSIS
In addition to managing internal factors. HRM needs to consider the outside forces at play that may affect the
organization. Outside forces, or external factors, are those things the company has no direct control over; however,
they may be things that could positively or negatively impact HR:
● Globalization and offshoring
● Changes to employment law
● Health-care costs
● Employee expectations
● Diversity of the workforce
● Changing demographics of workforce
● More highly educated workforce
● Layoffs and downsizing
● Technology used
● Social networking to distribute information

8.1. TRENDS
For example, the recent trends in flexible work schedules (allowing employees to set their own schedules; work around
family and personal needs) and telecommuting (allowing employees to work from home or a remote location for a
specified period of time, such as one day per week) are external factors that have affected HR.

8.2. PESTLE ANALYSIS

Political, Economic, Social, Technological, Legal, Environment

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8.3. SWOT ANALYSIS

Strengths
● Characteristics that give your business an advantage over others
● What is your value proposition, how does it differentiate with your competitors?
● What do others perceive as your strengths?

Weaknesses
● Characteristics that place the business a a disadvantage relative to others
● What do your competitors do better than you?
● What do others perceive as your weaknesses?

Opportunities
● What are the elements your business could exploit to its advantage?
● What trends, conditions that may positively impact you?

Threats
● What are the elements in the environment that could cause trouble for your business
● What trends or conditions may negatively impact you?

8.4. SOAR MODEL ANALYSIS - APPRECIATIVE INQUIRY

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