Q 1. What is thecore HR problem of the company?As per the information given in the case, although there hasbeen an increase in service offered by Société de transport de Montréal (i.
e.STM) by more than 21% in five years, there have been some issues in terms ofevaluating and forecasting the demand and merging it with the company’smanpower requirement. STM follows the policy of hiring as per the requirementand training them accordingly as and when need arises. In today’s world, HumanResource Management is a lot more than that.
There is a continuous need for improvingthe techniques to be implemented to survive in the market. The company is rightin forecasting the future trends and demands. The core issues are listed belowas following: i. Mr. Gilles Bussières, CEO is not aware of thevarious systems implemented to measure the Human resource management. He makesa future plan for the company overlooking the current issues being faced by thecompany. So as long as there is demand and growth it would be good but resourceutilization like manpower won’t be measured and properly utilized.
ii. Mr. Gilles Bussières, CEO is a visionary man whois good at taking rational decision which is good for the company, but what lacksin his decision is that he is not aware of the fact that his team faces a lotof difficulties in implementing those decisions. iii. Further issue with the HR of the company is thehuge number of experienced employees are getting retired. So, it will not beeasy to appoint an equally experienced and efficient manpower in place of thosewho are retiring.
They need to focus on how to train the new recruitsefficiently so that they can effectively take position of the ones who areretiring. iv. Due to the high rate of unionization (nearly 90%),it is very difficult to control the workers trade union. Also, the new AppendixR system that has been implemented is focusing mainly on the unionizedemployees.
v. The staffing turnaround time in total takesapproximately eighteen weeks, which clearly shows inefficiency in therecruiting process and is also a waste of time and energy. Q 2. Drawing onappropriate theoretical models, undertake an analysis of the kind of HRM systemin operation at Société de transport deMontréal?Figure 1.
Michigan Model Société de transport de Montréal uses Michigan model interms of its strategic HRM models as this model underlines the deployment ofHRM to achieve its objectives. Société de transport de Montréal’s HR decisionsare highly based on external forces such as: Economic and Cultural/SocialforcesThe demand for public transport gets affected due toincreases in the price of fuel that shifts people from private to public modeof transportation. In terms of cultural forces, age group of the population and Political forcesThe government also promotes the mode of public transportdue to various reasons, one being to avoid congestion on roads and reduce airpollution. This is also the strategic goal of STM. Also the recentimplementation of the Quebec Public Transit Policy (QPTP) by the Quebecgovernment is in favor of STM. So government goals support them in achievingtheir goals as much as they can. Mission and StrategyMr. Gilles Bussières inclines his strategic goal byforecasting trends and demands in the external factors surrounding the companyand directs his management to work towards it.
He discusses company’s missionand strategy with the senior management. It is more inclined in a top downapproach method where the management will have to make changes in managementdecisions as per the seniority level. HR ManagementClémence Beauchemin, Head of the Staffing and WorkforcePlanning Division, Christian Eiffel, Section Head, Selection and ManagementInformation, and Stéphanie Lallier, Section Head, Staffing and WorkforcePlanning comprise of the core team which is responsible for convertingcompany’s’ strategic goals into workable operational process. They have verylittle say in deciding the company’s strategic goals. They have been pro-activeand working on solutions to get maximum output from the workforce. They alsohave clear idea of the issues at hand when it comes to expansion. For examplelarge number of workforce is due for retirement and the initiatives taken tomeasure the human resource is still not trustable.
They also know that companyhas invested 1.5billion in its workforce (citation)and that tey have a huge responsibility to make sure there won’t be any issueswhen company expands as per their strategic goal. Organization structureIn terms of management they have a top down approach. Thecore team of Human resource has done well in maintaining a good rate ofemployee turnover with many employees retiring in this company. This shows howmuch they enjoy working for this company.
They have a productivity basedconfiguration. Recruitment includes screening many candidates, it iscomprehensive and uses many different sources. There is a certain level ofgrading in terms of seniority but there is equity amongst peers. Jobs are uptocertain level standardized, lot of emphasis has been given on improvement ofcurrent job performance, on the job experience.
They also implement measure toquantify the productivity and efficiency of the human resource. Q 3. Choose one ofthe topics discussed in the module (as outlined below) and evaluate how Sociétéde transport de Montréal Staffing and Workforce Planning Division could haveadopted to manage its staff better: Société de transport de Montréal Staffing and WorkforcePlanning Division shows lot of initiatives in terms of trying to improve theirprocess and work in line with the company’s goals.
They developed someperformance measure as well to evaluate and improve their current situation.Although Individualization of HRM is a good way to go about it but it will bedifficult to manage as they have a lot of employees and not enough humanresource department manpower to manage the extra added responsibility and willcreate a sense biases within peers. What they can really do on other hand is create flexiblehour practices for employees. That way employee has sense of freedom and canmanage work life balance in a better way. This would eventually lead to evenbetter employee turnover. They can create several batches of employees. Withanalysis of employee’s performances separate them into different batches.
During peak hours Société de transport de Montréal can put high performingemployees and during non-peak hours they can put new recruits and few employeeswho are due for retirement. This way the new recruits get to learn fromexperienced employees on the job and it is not much burden for the employees’who are due for retirement. Flexible work hours can not only be about the workhours but it could also be about the work given during the time of work. Forexample if an employee works 3 hours during peak hour regularly and efficientlythey can be given some concession on the total amount of work hours to be givenduring off peak time. Drawing on these findings, wewanted to see if behavioral economics could be used to encourage people to workmore flexibly, especially to commute outside of peak hours. This would have theadded benefit of reducing pressure on the transport system.
(Wiryakusuma, 2017).This way STM can make sure that the employees do not get exhausted dueto work pressure and their efficiency is not affected. During peak time likefestive season there would be a huge demand and supply for manpower could beless. STM can also bring an idea of work from home especially for the employeeswho are in the non-technical department. STM could also focus on getting parttime workers for non-technical job, as it is not easy to find part time workersfor a technical job. Here, what STM can do is that they can train theirpermanent non-technical people to do some technical work for a good amount ofsatisfactory money and hire part time people in place of them for the timebeing.These are the ways by which not only will the employee havebetter work life balance but will also have a sense of feeling that theirpresence in the organization matters. It will reduce the redundancy of the jobtask for an employee when he explores new departments.
STM could also benefitfrom it in case a maintenance worker is a better driver or something similar.This will lead to more productive work done and efficient employee turnover. Q 4. If the HRfunction is to become a strategic partner within an organization, it must beable to measure the results of its activities and programs. But how? Please identifyand develop indicators that you will use to give suggestions for the head ofthe Staffing and Workforce Planning Division of the Société de transport deMontréal (STM). The Staffing and Workforce PlanningDivision need to build the key performance indicators (KPI) and dashboardsbased on employees by experience, by skill set, by profile.
This would helpthem identify the highly expertise jobs and the time required to replace theworkforce in those categories. Individual focus needs to be given to having acontingency plan if the workforce for such jobs retire or decides to changejobs. Having such segmentation and profiling will help them address businessissues and recognize if the source of the challenge is human resource. (Kinni, 2016) They can diagnosethe employee population and start addressing issues like: 1. Where is our talent mix? At what stage is our talent in the overall talent life cycle?3. When will our employees leave for retirement?4.
How will our talents’ trend in the future? (Willthey leave? Change jobs? Retire early?)5. When will they formally leave?6. How many will leave at the retirement time? Howmany will formally retire in the next 3, 5, or 10 years? Based on this they can explore theco-relation between two variables and see if they can make things better bychanging either one of the variables. The findings can give insights a majorissue such as the amount of people who are due for retirement and the amount ofpeople STM would need for replacing them and what is the age of replacing humanresource, how much experience and expertise new human resource needs to have.How many quality employees we would be able to acquire if we have to expand. STMcan build a model for each category of occupation, from managers and supportand maintenance staffs to bus and subway drivers and auto mechanics. The keylearning from these models was that there is no single, one-size-fits-allPeople Analytics model.
We needed to go local — by category of occupation,critical roles, and experience. The advantage of people’sanalytics is that the solution can be incurred from inside the organizationonly. STM does not need to invest in external resources for greater return oninvestment or meeting the expansion demands of the organization.