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CHAPTER 3 Environmental Influences on HRM DISCUSSION QUESTIONS 1. Search for workplace trends affecting Canadian employers. Using the issues priority matrix (Table 3.1), rate the probability of these issues impacting your career. Answer: • Gig economy for hiring Prob of Occurring: High Impact on HR Career: Medium • Recession Probability of Occurring: Medium Impact on HR Career: Medium • Big data analysis Probability of Occurring: High Impact on HR Career: High 2. Using your school as an example, find one trend in each of the areas (economics, globalization, political/legislative, technology, demographic and social/cultural) that will impact enrollment in your school. Answer: Impact on HR Career of the Gig Economy Economic If average workers are taking contracts, HR will have to adjust to being in a constant hiring cycle—possibly by establishing a pool of freelancers who possess specific skills to bring in when needed. Politics/legislation As employment legislation is changed by politicians, more consistency will have to be developed for wages, conditions, and benefits given to full-time workers, part-time hourly workers, and contractors. Technology As technology is adapted constantly, HR will need to understand and coordinate with the skills the business needs or will need. There may be certain skills that are difficult to find, for which they have to hire full-time or risk paying a premium for the skills, if it is even possible to obtain then. Demographic factors Millennials with in-demand skills can find satisfaction and earn significant compensation in the gig economy. Workers of retirement age may also want to work this way; however, more likely for only one or two organizations. Social/cultural Factors With many workers employed for short amounts of time, the social interaction and relationships will diminish. HR will need to help staff and managers organize lunches, outings, and meetings to help workers get to know each other. 3. Employees spend an average of 43 minutes a day at work on personal mobile devices. A company in the United States implanted a micro chip in employees (who had volunteered to have this done) to prove the identity of the user and increase security and privacy. What policies should the HR department develop in anticipation of the continuing use of technology? Answer: This is a difficult challenge. • Organizations will have to acknowledge that while workers spend significant time during their workday on mobile devices for personal reasons, it is usually balanced with the time they spend doing tasks related to work on their own time, i.e., checking and answering emails, being on call, and conducting Internet research. • During employee hiring and orientation, it is essential that HR and managers explain company policies on which mobile devices can be used for work, how they can be used, what content employees can access at work (on any device), and what is appropriate use and inappropriate use. • Employees should sign an agreement to the above and repeat this signing every year with their performance appraisal to keep the rules close to mind. 4. Some HR professionals are suggesting that employers not “stereotype” generations and treat them differently. Argue the pros and cons of establishing different HR Policies for different generations. Answer: PROS CONS Workers that fit the “expectations” for their age group will appreciate the targeted approach to meeting their HR needs. Workers different from the “expectations” for their age will resent the stereotyping and inconsistency in policies. Workers fitting the age assumptions will feel they are understood. Managers and even HR might want to limit hires of certain age ranges they perceive negatively, causing cases of discrimination. HR could administer benefit plans as a cafeteria plan allowing each age group or individual to get the benefits they need most. The administration of many flexible HR and benefits may be cumbersome in terms of keeping up to date and answering questions from employees or managers. SUGGESTED ANSWERS TO EXERCISE: SCENARIO PLANNING 1. "Identify and discuss potential outcomes or responses for Amazon based on various environmental, global, political/legislative, technological, demographic, and sociocultural factors." Factor Possible Result Environmental factors including economics—higher wages may lead to higher prices, causing recession. Consumers comparison shop even more frequently for goods, which is convenient through Amazon. Globalization—Amazon may be available in more countries and additional products. Amazon will acquire medium-sized successful businesses, and others will close, unable to compete. Political/legislative factors—U.S. government forces increased postage fees and/or taxes on Amazon. • Amazon may move some offices overseas to decrease tax levels. • Amazon may create its own shipping service possibly coordinated with other online shopping groups and technology providers. Technology factors—Amazon may create a specialized technology department for sales, consulting, and problem solving. Amazon may develop more interactive tools, including allowing customers to participate in online user groups related to products, and record video reviews. Demographic Factors—Millennials and the next group, iGen, do the majority of shopping online. • Millennials and iGen consumers appreciate interactive tools and specialized technology services, purchase entire systems including implementation and maintenance services. • Start-up companies with owners who trust Amazon will purchase whole technology setups, implementation, and maintenance services from Amazon, creating ongoing business. Sociocultural factors— • Technology-adept consumers are used to looking up product reviews and giving reviews. • With sales and services worldwide, Amazon may offend customers with their North American–based practices. Amazon may offend buyers in different cultures through telephone communication, online communication, online documentation, and products offered that conflict with local legislation or religious norms. Most Desirable Scenarios Demographic Factors • Interactive tools such as video reviews and online user groups will become popular. Most Likely Scenarios • Globalization will become available worldwide • Cultural differences will cause problems with Amazon’s reputation. Least Desirable Scenarios Increased taxes and postage/shipping fees will make Amazon move some offices overseas and set up its own shipping services. 2. Readiness of Above Scenarios, challenges faced, HR’s strengths and weaknesses, and potential programs to deal with issues: Demographic Factors • Amazon has thus far been very good at adapting to new needs and broadening services such as building Canadian offices, and faster distribution. It will continue to observe trends and build upon interactive tools for customers. • HR will hire workers with skills-innovating practices and manage employees who are creative and risk takers. Globalization • Amazon will become available worldwide. • Amazon has good potential for gaining the knowledge it needs about cultural, legal, and religious norms where it grows its business. • Amazon will need to efficiently research issues and train its staff on the nuances in the region before Amazon is heavily involved there. The company can perform these tasks through user groups, industry associations, economic development and tourism offices, and government input. Political/Legislative Factors • Amazon will have to work with governments and industry leaders where the company is moving before setting up services. • Different political systems such as socialist and communist governments may insist on special privileges and fees for Amazon to set up in the country. • Before moving into countries very different from North American’s capitalist system, Amazon will have to establish standards on how far outside its norms the company is willing to go to operate. • This will involve HR assistance to coordinate with corporate lawyers including employment lawyers to establish policies on the appropriate and inappropriate practices of employees dealing with international clients. HR planners will need to keep up to date on business strategies and related problems and obstacles. • Work culture is ultra-demanding and competitive. • Criticism in meetings can be so harsh that people break down in tears. • Many present and past Amazon employees rage in online debates about the merits and morality of the company’s culture. • Some are critical of its approach including lack of women in upper management. • Others say that atmosphere is expected in a company that excels. • Culture is everything including work–life balance, and how people treat you, feedback, and how the company takes action. • Culture affects drive and success. The Amazon effect, especially in innovative competitive companies, might include a culture including: • Jerks may be tolerated because of their results. • Some companies, especially startups, actively disregard work–life balance of employees. If you choose to work there, you must know what you are committing to. • Amazon has a system where anyone can anonymously criticize other employees. You need to know how this process will affect you. • In some places, there is a flat structure where senior managers work with everyone else. CASE STUDY: WORK–LIFE FAMILY BALANCE Question: Continue the research started by Magda. Prepare a report summarizing your findings and recommending policies that will help your employees cope with work–family balance issues. Answer: Refer students to the following websites: • Duxbury L. and Higgins, C., Work‒Life Conflict in Canada in the New Millennium, Ottawa: Carleton University, http://hrcouncil.ca/hr-toolkit/documents/rprt_2_e.pdf • Duxbury L. and Higgins, C., “Revisiting Work Life issues in Canada: The 2012 National Study of Balancing Work and Caregiving in Canada,” http://www.healthyworkplaces.info/wp-content/uploads/2012/11/2012-National-Work-Long-Summary.pdf Some of the highlights from these reports include the following findings: • The majority of Canadians struggle to maintain work–life balance despite experiencing work–life conflict, especially with the added responsibilities of caring for aging parents. • Various work environments as well as demographic, social, and economic contributors have made this issue prevalent. • Work–life conflict affects employers, employees, and families. • Work–life conflict is a crucial issue for HR professionals because it affects decisions related to programs and policies. • HR professionals must assist in reducing demands or increasing employee control over work–life interface. • This challenge will require professionals with the skills and know-how to address it. Strategies needed to address work‒life family balance issues: Employer strategies: 1. Educate employees on work‒life balance issues. 2. Identify ways to reduce employee workloads. 3. Identify ways to reduce the amount of job-related travel or at least offer notice well ahead of travel time. 4. Tangibly reward and recognize overtime work. 5. Develop etiquette related to reasonable use of office technologies. 6. Make alternative work arrangements more widely available. 7. Let employees participate in decisions/actions affecting their jobs. 8. Give employees the opportunity to say “no” to overtime requests. 9. Provide necessary leaves for treating ill dependants. 10. Foster an environment where employees do not have to choose between participating in family activities and career advancement. Employee strategies: 1. Work to achieve individual balance. 2. Say “no” to overtime hours if unreasonable. 3. Try to limit the amount of work that is taken home. 4. Make every effort to separate work time from family time. 5. Reduce the amount of time spent in job-related travel. 6. Take advantage of flexible work arrangements and benefits offered by the employer such as on-site gyms, health care, and EAP (employee assistance programs). Governmental/political strategies: 1. Implement relevant legislation. 2. Determine how to best help Canadians with respect to child care and elder care. 3. Lead by example with respect to flexible work arrangements and supportive policies. 4. Increase Canadians’ awareness of social roles and responsibilities, what changes still need to happen, and why. 5. Examine how employees can reduce the financial penalties associated with parenthood. Union strategies: 1. Become advocates of employee work–life balance by undertaking public campaigns to raise awareness of work–life issues, particularly related to aging parents. 2. Include work–life provisions in negotiations during the collective bargaining process. 3. Set up educational campaigns to increase individual workers’ knowledge of work–life balance issues. 4. Give employees the tools they need to effectively deal with situations as they arise. ADDITIONAL SUGGESTED EXERCISES A. Learning Activity: Who should come first: employees, customers, or stakeholders? Purpose: To understand the role of the stakeholder and list several examples. Identify several considerations that must be m ade when managing HR within a multi-constituent organization. Instructions: Drawing from your own value system and business philosophy, rank employees, customers, and stakeholders first, second, and third in terms of managerial priority. What is the rationale for your ranking? Read the two brief quotes below. Based on the opinions of these two respected business leaders, would you change your initial priority ranking? Why? With whom do you agree more, Iacocca or Kelleher? Why? 1. Lee Iacocca, former president of Ford and retired CEO of Chrysler: Just be sure to take care of your customers. You have to go eyeball to eyeball with them and say, “Do I have a deal for you!” and then stand behind your product or services. Don’t worry about stockholders or employees. If you take care of your customers, everything else will fall into place. (As quoted in L. McCauley and C. Canabou, eds. “Unit of One: The Voice of Experience,” Fast Company, May 2001, p. 82.) 2. Herb Kelleher, co-founder and chairman of Southwest Airlines: In the old days, my mother told me that in business school they’d say, “This is a real conundrum: Who comes first, your employees, your shareholders, or your customers?” My mother taught me that your employees come first. If you treat them well, then they treat the customers well; that means your customers come back and your shareholders are happy. (As quoted in J. Huey, “Outlaw Flyboy CEOs,” Fortune, November 13, 2002, p. 246.) B. Visit the website of one of the Professional Associations identified in HR Planning Notebook 3.2—Associations of Interest to HR Professionals. Describe the mandate of this organization and identify three trends of current interest to the association. C. Obtain an article from one of the professional publications listed in HR Planning Notebook 3.1—Publications of Interest to HR Professionals. Summarize the key findings in this article and identify how these are relevant to environmental impacts on HRM. D. Most experts predict labour shortages, resulting in a war for talent. Many employers will need workers. Various articles have been written on different cohorts in both negative and positive terms. Millennials are criticized. criticized for being slackers; being bored quickly; wanting too much quality time with their bosses; being impatient with their career progress; and wanting high pay, impressive titles, and fancy offices. On the other hand, many view them as flexible, technically literate, a truly green generation (i.e., concerned with environmental issues), entrepreneurial, loyal to their profession, and concerned with future marketability. In groups, develop a list of characteristics of this cohort. Then determine how an organization could change to be an “employer of choice” for this group. Answer: A. Ranking Priority: 1. Employees: Employees should come first because they are the ones directly interacting with customers and stakeholders. Happy employees lead to satisfied customers and stakeholders. Additionally, taking care of employees can lead to better retention rates and a positive work culture. 2. Customers: Customers are crucial for business success, so they come second. By providing excellent products and services, businesses can satisfy customers and ensure repeat business. 3. Stakeholders: While stakeholders are important, they come third because their interests are often aligned with the success of employees and customers. By prioritizing employees and customers, stakeholders are likely to benefit as well. Quotes Evaluation: • Iacocca's quote emphasizes the importance of customers, but it overlooks the crucial role of employees in delivering exceptional customer service. Kelleher's quote, on the other hand, highlights the importance of employees in ensuring customer satisfaction, which aligns with my initial ranking. • I agree more with Kelleher because happy employees are essential for delivering exceptional customer service and driving business success. B. Professional Association: • Society for Human Resource Management (SHRM): • Mandate: SHRM is dedicated to serving the needs of HR professionals and advancing the HR profession. They provide resources, tools, and networking opportunities to support HR professionals in their roles. • Trends: Three trends of current interest to SHRM include remote work policies and practices, diversity, equity, and inclusion initiatives, and the impact of technology on HR practices. C. Professional Publication: • Article Summary: The article discusses the importance of environmental sustainability in HRM practices. It highlights the role of HR professionals in implementing green initiatives, reducing carbon footprint, and promoting sustainability in the workplace. Key findings include the benefits of green practices for employee morale, cost savings, and corporate social responsibility. • Relevance to Environmental Impacts on HRM: The article emphasizes the need for HR professionals to consider environmental impacts in their strategic planning and daily operations. It suggests that green practices can enhance the employer brand, attract top talent, and contribute to a sustainable future. D. Characteristics of Millennials: • Positive: Flexible, technically literate, environmentally conscious, entrepreneurial, loyal to their profession, and concerned with future marketability. • Negative: Perceived as slackers, easily bored, impatient with career progress, and wanting high pay, impressive titles, and fancy offices. Becoming an Employer of Choice for Millennials: • Offer flexible work arrangements, such as remote work options and flexible hours. • Provide opportunities for professional development and advancement to address their impatience with career progress. • Offer competitive pay and benefits packages to attract and retain talent. • Create a positive work culture that aligns with their values, such as sustainability and social responsibility. • Provide opportunities for creativity and innovation, allowing them to contribute meaningfully to the organization. CHAPTER 4 The HR Forecasting Process DISCUSSION QUESTIONS 1. If you are reading this discussion question, you are probably taking a course at a university or community college. In groups, discuss some ways that you might be able to forecast the demand for, and supply of, business management professors. What sources would you use and why? Answer: To forecast the demand for business professors, an envelope method can be used. This takes into consideration many factors including varied scenarios that could happen including those related to the economy, social factors, demographic factors, demographic factors, and technological factors (if considering business technology courses and online courses). This may include reviewing how the government and employers fund tuition, as well as whether the labour market and economy show there will be a demand for workers with business knowledge. 2. The chapter starts with a discussion of the labour supply/demand mismatch and suggests that the government needs to become more actively involved in influencing the supply of the types of workers that employers need. However, others suggest that employers need to develop programs to address shortages. What can an employer do to ensure that it has the skills sets that it needs? Answer: Employers can ensure they get the types of workers they need by coordinating with colleges to offer courses and trade programs to get workers skilled in these areas. Alternatively, employers can sit on college committees determining the programs that are needed by new workers. Organizations can also train their current staff to meet needs for today and the future, either through reimbursed tuition at schools, or though on-the-job trade training. 3. List all the ways that an organization can deal with a surplus of employees. Discuss the advantages and limitations of each option. Answer: There are many ways employers can deal with a surplus of employees including: • Layoffs • Reduced hours using Canada Employment Insurance to partially cover lost employee hours • Voluntary attrition including retirement packages, buyouts, and not replacing workers who quit • Job sharing • Work redesign SUGGESTED ANSWERS TO EXERCISES 1. "Identify and prioritize the stakeholders affected by the shortage of nurses in the hospital, and discuss the potential consequences for each stakeholder group." Answer: 1. A hospital does not have enough nurses. • Hospital cannot meet nursing needs. • Nurses will have to work overtime. • Nurses can possibly become overtired, with resulting in low morale and injuries. • Nurses may resign. • Mistakes may be made with medications and patient procedures; epidemics could occur. 1. Identify and prioritize the stakeholders affected by the shortage of nurses in the hospital: • Patients: Patients are the primary stakeholders affected by the shortage of nurses as they rely on nursing care for their well-being and recovery. • Nurses: Nurses are directly impacted by the shortage as they are required to work overtime to meet patient needs, potentially leading to fatigue, low morale, and injuries. • Hospital Administration: Hospital administrators are responsible for managing resources and ensuring quality care delivery. They are challenged with finding solutions to address the nursing shortage while maintaining patient safety and staff satisfaction. • Families of Patients: Family members of patients may experience anxiety and concern for their loved ones' well-being due to reduced nursing care and potential risks associated with a shortage. • Other Healthcare Providers: Physicians, allied health professionals, and support staff working in the hospital may face increased workloads and disruptions in patient care coordination due to the nursing shortage. 2. Discuss the potential consequences for each stakeholder group: • Patients: Patients may experience delays in receiving care, decreased attention from nurses, and heightened risks of medical errors or complications due to inadequate staffing levels. This can impact patient outcomes, satisfaction, and overall trust in the hospital. • Nurses: Nurses may suffer from burnout, stress, and fatigue as they are required to work long hours to compensate for the staffing shortage. This can lead to decreased job satisfaction, increased turnover rates, and compromised quality of care delivery. • Hospital Administration: Hospital administrators may face challenges in maintaining staffing levels, ensuring patient safety, and managing budget constraints associated with overtime pay and recruitment efforts. They may also face reputational risks and regulatory scrutiny if patient care standards are compromised. • Families of Patients: Family members may experience heightened stress and anxiety about the well-being of their loved ones, particularly if they perceive inadequate staffing levels as a threat to patient safety and quality of care. • Other Healthcare Providers: Other healthcare providers may experience increased workloads, disruptions in care coordination, and challenges in maintaining collaborative practice environments due to the nursing shortage. This can impact overall team morale and patient outcomes. By identifying and prioritizing stakeholders and discussing potential consequences, healthcare organizations can better understand the multifaceted impact of nursing shortages and develop targeted strategies to address the needs of all stakeholders while maintaining high-quality patient care. 2. "Identify and analyze the stakeholders affected by the shortage of professors at the university, and discuss the potential implications for each stakeholder group." Answer: 2. A university does not have enough professors. • Too many students will be in each class, lowering interaction. • Both professors and students will be dissatisfied. • Professors may resign and students may choose to go to a different university. • That university’s reputation with professors, students, and industry may suffer. 1. Identify and analyze the stakeholders affected by the shortage of professors at the university: • Students: Students are the primary stakeholders affected by the shortage as they rely on professors for instruction, guidance, and support in their academic endeavors. • Professors: Professors are directly impacted by the shortage as they face increased workloads, larger class sizes, and potential burnout due to the inability to adequately meet student needs. • University Administration: University administrators are responsible for managing academic affairs, resource allocation, and maintaining institutional reputation. They must address the staffing shortage while balancing budget constraints and maintaining academic quality. • Alumni: Alumni may have a vested interest in the university's reputation and academic quality, as it reflects upon their alma mater and may impact the value of their degree. • Industry Partners: Industry partners may rely on the university for skilled graduates and collaborative research initiatives. A shortage of professors could impact the quality of education and research outputs, affecting partnerships and recruitment prospects. 2. Discuss the potential implications for each stakeholder group: • Students: Students may experience reduced access to professors, larger class sizes, and decreased opportunities for personalized instruction and mentorship. This can impact learning outcomes, academic satisfaction, and student retention rates. • Professors: Professors may face increased workloads, stress, and job dissatisfaction as they struggle to meet the demands of larger class sizes and limited resources. This can lead to burnout, decreased productivity, and potential turnover. • University Administration: University administrators may face challenges in maintaining academic quality, managing student and faculty expectations, and preserving institutional reputation. A shortage of professors could impact student recruitment, retention, and overall competitiveness in the higher education landscape. • Alumni: Alumni may perceive the university's reputation and academic quality as diminished due to the staffing shortage. This could impact alumni engagement, philanthropic support, and the perceived value of their degree in the job market. • Industry Partners: Industry partners may be concerned about the quality of graduates and research outputs from the university, potentially impacting collaborative initiatives, recruitment pipelines, and industry partnerships. By identifying and analyzing the stakeholders affected by the shortage of professors and discussing potential implications, the university can develop targeted strategies to address the needs of all stakeholders while maintaining academic excellence and institutional reputation. 3. "Identify and evaluate the potential consequences of the shortage of salespersons at Best Buy stores for both customers and the company, and discuss strategies that Best Buy could implement to mitigate these consequences." Answer: 3. Best Buy does not have enough salespersons in stores. • Customers will receive poor service and therefore may purchase less or leave the store. • A poor reputation will mean new customers do not come to the store. 1. Identify and evaluate the potential consequences of the shortage of salespersons at Best Buy stores: • Customers: Customers may experience poor service due to a lack of available salespersons, leading to frustration, dissatisfaction, and potentially lower purchase intent. This could result in lost sales opportunities as customers may choose to shop elsewhere or abandon their purchases altogether. • Company Reputation: A pattern of poor service due to understaffing may damage Best Buy's reputation among existing customers and deter new customers from visiting the stores. Negative word-of-mouth and online reviews could further compound the company's reputation issues, leading to decreased foot traffic and sales. 2. Discuss strategies that Best Buy could implement to mitigate these consequences: • Hiring and Staffing: Best Buy could prioritize hiring and training additional salespersons to ensure adequate staffing levels during peak hours and busy periods. Implementing flexible scheduling practices could help optimize staffing based on customer traffic patterns. • Cross-Training and Task Allocation: Best Buy could cross-train existing employees to handle multiple tasks, such as customer assistance, product demonstrations, and checkout procedures, to maximize efficiency and service coverage in the absence of dedicated salespersons. • Technology Integration: Best Buy could leverage technology solutions, such as self-service kiosks, mobile checkout options, and virtual assistants, to augment the customer service experience and reduce reliance on in-store salespersons for routine transactions. • Service Recovery Protocols: Best Buy could develop and implement service recovery protocols to address customer complaints and dissatisfaction promptly. Empowering employees with the authority to resolve issues on the spot and offering compensation or incentives for affected customers could help mitigate negative impacts on customer loyalty and satisfaction. • Communication and Transparency: Best Buy could proactively communicate with customers about staffing challenges and efforts to address them, demonstrating transparency and commitment to service excellence. Providing channels for customer feedback and suggestions could also help Best Buy identify areas for improvement and prioritize solutions accordingly. By implementing these strategies, Best Buy can minimize the negative consequences of the shortage of salespersons at its stores, maintain customer satisfaction, and safeguard its reputation in the highly competitive retail landscape. CASE STUDY Forecasting for Home Support Workers Question: List all the reasons that demand for health care workers will increase, and the reasons that supply will decrease. What can governments do to increase the supply? What can employers do? Answer: • Over the years, health care staff have been cut, so fewer new graduates are entering the workforce after seeing dissatisfaction, injuries and strikes. • Baby boomers in health care may consider retiring, part-time work, or switching to different fields. • Health care workers in rural areas may move to the city where they believe there will be more opportunities for them and their children. This has been happening for some time in the Maritime provinces. What can be done? • The government can advertise and provide incentives (e.g., scholarships) for students going into health care. • The government can assist with union negotiations and funding to increase wages. • More nurses can be trained. • More nurse practitioners (who have less training than nurses) can be trained and employed to take on lower-level tasks. Solution Manual for Strategic Human Resources Planning Monica Belcourt 9780176798086, 9780176570309
