SHRM case study

Actually, SHRM had clearly proved its efficiency in modern companies. It focuses now, not only on the traditional vocation (Administration) but more especially on a strategic view of recruitment and Training. These HRM policies are different along corporations and thus the profitability: The difference lives in the intensity of adapting them; this intensity is affected by variables wish are indentified as intrinsic and extrinsic properties of a firm.

Let’s now analyze, as Benoit POSTRIE and Marie-Pierre PELLETIER did, the return of Training and factors that explain its variability.

The analyze will be based on the study established by EMTE in Canada.

First of all let’s define the 4 types of Training wish are identified by the general theory of economy:

General Training: Lead to increase the productivity of workers thus their ability to move in other firms. Workers accept then low wages and pay costs of Training during their learning period.

Specific Training: Increase the productivity of workers in their own companies. In this case; potential wages are low. Workers share then the Training costs with the company.

Formal Training: Refers to a Training accomplished by an outside person after the working hour

Informal Training: Refers to a Training accomplished by a colleague or a supervisor during the working hour

Secondly we will identify in the following:

• The characteristics of firms that lead to invest in Training.

• The determining of the level of Training in a company.

• The Type of Training (Formal\Informal) that provide the most productivity gain.

Those are the factors that impact the productivity of workers and thus the returns on Training.

They can be explained by three type of variables wish affect the decisions of Training.

The intensity will be determined as the proportion of trained workers in each type of Training

The table below summarizes the nature of the variables and their impact.

Variables Impact on returns

Strategic variables The strategy adopted by companies affect the intensity of Training

Competitive variable 2 Reasoning : -To be more competitive firms must intensify the level of Training

-In a rude competition context, firms do not do Training so as not to give the opportunity to their competitor to benefit from the workers’ new competences.

Structural

Variables:

• Size of the company

• Business

sector

• The regional specificities

• The unionization

The bigger is the company, the more intensified are Training.

The

...