The Strategic Role of Human Resources Management Dessler, Cole, and Sutherland Human Resources Management in Canada Canadian Ninth Edition Chapter One The Strategic Role of Human Resources Management 1 © 2005 Pearson Education Canada Inc., Toronto, Ontario 1-1

Introduction to HRM HRM is activities, policies and practices to  obtain and develop employees  utilize, evaluate and maintain employees  accomplish organizational objectives © 2005 Pearson Education Canada Inc., Toronto, Ontario

Strategic HRM Strategic HRM Links HRM with strategic goals and objectives in order to: improve business performance develop an organizational culture that fosters innovation and flexibility © 2005 Pearson Education Canada Inc., Toronto, Ontario

HRM Responsibilities serving as consultants and strategic change agents offering advice formulating policies and procedures providing services monitoring to ensure compliance © 2005 Pearson Education Canada Inc., Toronto, Ontario

Strategic HR: The Impact of Effective HRM Practices on the Bottom Line fifteen percent of relative profit performance of an organization derives from HR strategy highest performance levels associated with high-involvement HR practices combined with a supportive work environment human capital management is a leading indicator of improved financial outcomes © 2005 Pearson Education Canada Inc., Toronto, Ontario

Internal Environmental Influences Organizational Culture -core values, beliefs and assumptions -shared by members of an organization Organizational Climate -prevailing atmosphere -its impact on employees © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Labour Market Issues -economic conditions eg. labour force, labour market, productivity levels -growth of the service sector and the concept of ‘human capital’ (knowledge, education, training, skills and expertise of a firm’s workers) -labour union movement -use of contingent and part-time employees © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Demographic Trends population growth (impact of immigration) -age (baby boomers, Sandwich Generation, Generation X) -educational level (differences in literacy levels) © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Workforce Diversity -visible and ethnic minorities: growth due to immigration -women: growing force in the labour market -aboriginal peoples: difficulty obtaining and keeping jobs -persons with disabilities: problems with accessibility continue © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Technology -increase in technical/professional jobs -decrease in traditional blue-collar jobs -labour force training has not kept pace -concern about job displacement and health hazards -right to privacy and ethical issues © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Government -ensure policies and practices comply with new and changing laws covering: -human rights -pay equity and employment equity -occupational health and safety -employment standards -government-sponsored benefit plans -multiple jurisdictions across Canada © 2005 Pearson Education Canada Inc., Toronto, Ontario

External Environmental Influences Globalization -tendency of firms to extend business operations abroad -emergence of one world economy -increased international competition -multinational corporations: conduct business around the world seek cheap, skilled labour © 2005 Pearson Education Canada Inc., Toronto, Ontario

History of HRM Human Resources Movement: Concern for People and Productivity Human Relations Movement: Concern for People Scientific Management: Concern for Production © 2005 Pearson Education Canada Inc., Toronto, Ontario

Growing Professionalism in HRM common body of knowledge certification of members (CHRP) self-regulation code of ethics © 2005 Pearson Education Canada Inc., Toronto, Ontario

HR Auditing HR audits encompass three areas: 1. Effectiveness of HR as a strategic partner 2. Legal compliance 3. Performance of specific HR programs © 2005 Pearson Education Canada Inc., Toronto, Ontario

HR Auditing Methods Attitude surveys Exit interviews Focus groups Records analysis Field experiments Benchmarking © 2005 Pearson Education Canada Inc., Toronto, Ontario

HRM Challenges in the 21st Century -developing and implementing corporate strategy -improving productivity -increasing responsiveness to change -improving service -helping to build employee commitment © 2005 Pearson Education Canada Inc., Toronto, Ontario