Strategic Importance of Human Resource Management 1 . C H A P T E R O N E Strategic Importance of Human Resource Management

Why Study HRM? People (human resources) are the essential resource of all organizations These human resources create organizational innovations and accomplishments Organizational success depends upon careful attention to human resources

Challenges – Canadian Organizations Economic Technological Demographic Cultural Legal Canadian Organizations

Challenges: Economic Global Trade Challenge Jobs and prosperity depend upon international trade Challenge of Productivity Improvement Essential for long-term success Canada faces gap with U.S. in productivity improvement Requires strategic thinking and creative responses

Challenges: Technological Computerization Impacts virtually all aspects of work and life Process and provide large amounts of data at great speed to managers Flexibility e.g. telecommuting Automation Potential benefits include speed, better customer service, predictability and production quality Use robots for hazardous or boring jobs

Challenges: Demographic Trends Increasing number of women in the workforce Shift toward knowledge workers Educational attainment of workers Employment of older workers More part-time, contract and contingent workers

Challenges: Cultural Work related attitudes Ethnic diversity Changing attitudes toward work and leisure Demand for ethical conduct of business Ethnic diversity Cultural mosaic Attitudes toward governments: Fallen out of favour with many

HRM Activities Human Resource Management Attract and orient new employees Human Resource Management Compliance & procedures Effective compensation systems Effective relationships Effective work environment

Objectives of HRM Organizational Objectives Human Resource Management Societal Objectives Employee Objectives

Objectives of HRM: Organizational Contribute to organizational effectiveness Means of helping the organization to achieve its primary objectives Provide level of service appropriate to the organization

Objectives of HRM: Societal Respond to the needs and challenges of society Minimize negative impacts on the organization Reflect society’s concerns e.g. ecological

Objectives of HRM: Employee Assist employees in achieving their personal goals Employee performance may decline or employees may leave the organization if personal objectives are not considered

Strategic HRM Linked to the strategic needs of an organization Human resource strategies and tactics must be mutually consistent Reflects the organizational mission and strategy

Review & Evaluation of HR Strategies Steps in Strategic HRM Environmental Analysis Organizational Mission & Goals Analysis Analysis of Organizational Strengths & Culture Analysis of Organizational Strategies Choice & Implementation Of HR Strategies Review & Evaluation of HR Strategies

Groups of HRM Activities Planning Human Resources Groups of Activities Maintaining High Performance Attracting Human Resources Motivating Employees Placing, Developing & Evaluating

HRM Strategies Reactive Proactive Decision-makers anticipate problems and challenges and take action before a problem occurs Decision-makers respond to problems rather than anticipate them

HRM – Small Organization A separate HR department: Emerges when HR activities become a burden Emerges as a small department or an individual reporting to a middle manager Duties typically include: Maintaining employee records Recruiting

HRM – Large Organization HR department usually grows in impact and complexity Specialists are added: Employment Compensation Training etc. Head of HR department may become a “Vice President”

Service Role of HR Department Staff Authority Authority to advise, not direct managers in other departments Line Authority Possessed by managers of operating departments to make decisions about production, performance, and people Functional Authority When HR department makes decisions usually made by line or senior managers

HR & Organization Character Technology Routine versus non-routine Managerial philosophy Decisions and values Organization’s strategic positioning Defenders versus prospectors

HRM Profession of the Future Enormous growth in the number of HR Managers Sample competencies: Business Mastery, Mastery of HRM Tools, Change Mastery, Personal Credibility CHRP (Certified Human Resources Professional)

Strategic Importance of Human Resource Management 1 . C H A P T E R O N E Strategic Importance of Human Resource Management