© 2007 Pearson Education Canada 1-1 Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition Chapter One The Strategic Role of Human Resources Management

© 2007 Pearson Education Canada 1-2 Human Resources Management HRM is activities, policies and practices to  obtain and develop employees  utilize, evaluate and maintain employees  accomplish organizational objectives

© 2007 Pearson Education Canada 1-3 Strategic Human Resources Management - linking of Human Resources Management with strategic goals and objectives in order to improve business performance - linking of Human Resources Management with strategic goals and objectives in order to improve business performance

© 2007 Pearson Education Canada 1-4 Introduction to Human Resources Management –serving as consultant and change agent –offering advice –formulating policies and procedures –providing services –monitoring to ensure compliance (page 2) –serving as consultant and change agent –offering advice –formulating policies and procedures –providing services –monitoring to ensure compliance (page 2)

© 2007 Pearson Education Canada 1-5 Strategic HR -effective HRM practices add value to the firm (15% of profit) -shift from perception of HRM as an expense to an asset -high-involvement HR even more effective with complementary workplace culture and climate -effective HRM practices add value to the firm (15% of profit) -shift from perception of HRM as an expense to an asset -high-involvement HR even more effective with complementary workplace culture and climate

© 2007 Pearson Education Canada 1-6 Strategic HR HR shifting from administrative to strategic orientation focus on harnessing human capital to achieve strategic goals strong HRM drives company performance slow to evolve in many Canadian organizations

© 2007 Pearson Education Canada 1-7 Concept of Human Capital -the knowledge, education, training, skills and expertise of a firm’s workers -the knowledge, education, training, skills and expertise of a firm’s workers

© 2007 Pearson Education Canada 1-8 Internal Environmental Influences Organizational Culture –core values, beliefs and assumptions shared by members of an organization Organizational Climate –prevailing atmosphere –its impact on employees Organizational Culture –core values, beliefs and assumptions shared by members of an organization Organizational Climate –prevailing atmosphere –its impact on employees

© 2007 Pearson Education Canada 1-9 Internal Environmental Influences Bureaucratic Culture –pyramid-shaped organization, hierarchical structure and many levels of management Empowerment –provide workers with skills and authority to make decisions traditionally made by managers Boundaryless Organization Structure –relationships formed with customers, suppliers, and/or competitors (typically joint ventures) Bureaucratic Culture –pyramid-shaped organization, hierarchical structure and many levels of management Empowerment –provide workers with skills and authority to make decisions traditionally made by managers Boundaryless Organization Structure –relationships formed with customers, suppliers, and/or competitors (typically joint ventures)

© 2007 Pearson Education Canada 1-10 External Environmental Influences Labour Force Labour force is the individuals who are employed and those actively seeking work Labour force is the individuals who are employed and those actively seeking work

© 2007 Pearson Education Canada 1-11 External Environmental Influences Labour Market Issues Labour market is the geographic area where: –organizations recruit employees –individuals seek employment Labour market is the geographic area where: –organizations recruit employees –individuals seek employment

© 2007 Pearson Education Canada 1-12 External Environmental Influences Economic Conditions Productivity = Outputs (goods and services) Inputs (people, capital, energy, materials) Productivity = Outputs (goods and services) Inputs (people, capital, energy, materials)

© 2007 Pearson Education Canada 1-13 External Environmental Influences Labour Unions –an officially recognized association of employees, practicing a similar trade or employed in the same company or industry, who have joined together to present a united front and collective voice in dealing with management –an officially recognized association of employees, practicing a similar trade or employed in the same company or industry, who have joined together to present a united front and collective voice in dealing with management

© 2007 Pearson Education Canada 1-14 External Environmental Influences Workforce Diversity (1 of 3) –Population growth impact of immigration –Age baby boomers, Generation X, Generation Y –Educational level differences in literacy levels –Population growth impact of immigration –Age baby boomers, Generation X, Generation Y –Educational level differences in literacy levels

© 2007 Pearson Education Canada 1-15 External Environmental Influences Workforce Diversity (2 of 3) –Visible and ethnic minorities increasing numbers due to immigration –Women climbing employment rate –Visible and ethnic minorities increasing numbers due to immigration –Women climbing employment rate

© 2007 Pearson Education Canada 1-16 Workforce Diversity (3 of 3) External Environmental Influences –Aboriginal peoples difficulty obtaining and keeping jobs –Persons with disabilities problems with accessibility continue –Aboriginal peoples difficulty obtaining and keeping jobs –Persons with disabilities problems with accessibility continue

© 2007 Pearson Education Canada 1-17 Technology (1 of 2) –increase in technical and professional jobs –decrease in traditional blue-collar jobs –labour force training has not kept pace –creates anxiety, resentment and alienation –increase in technical and professional jobs –decrease in traditional blue-collar jobs –labour force training has not kept pace –creates anxiety, resentment and alienation External Environmental Influences

© 2007 Pearson Education Canada 1-18 External Environmental Influences Technology (2 of 2) –unions concerned about job displacement and health hazards –right to privacy and ethical issues –has promoted egalitarianism –many firms have Human Resources Information System (HRIS) –unions concerned about job displacement and health hazards –right to privacy and ethical issues –has promoted egalitarianism –many firms have Human Resources Information System (HRIS)

© 2007 Pearson Education Canada 1-19 External Environmental Influences Government –must stay abreast of new/changing laws –ensure policies and practices comply with laws –maintain efficiency and effectiveness while complying –must stay abreast of new/changing laws –ensure policies and practices comply with laws –maintain efficiency and effectiveness while complying

© 2007 Pearson Education Canada 1-20 External Environmental Influences Globalization (1 of 2) –tendency of firms to extend business operations abroad –emergence of one world economy –increased international competition –tendency of firms to extend business operations abroad –emergence of one world economy –increased international competition

© 2007 Pearson Education Canada 1-21 External Environmental Influences Globalization (2 of 2) Multinational corporations: –conduct business around the world –seek cheap, skilled labour Multinational corporations: –conduct business around the world –seek cheap, skilled labour

© 2007 Pearson Education Canada 1-22 History of HRM Human Resources Movement Human Relations Movement Scientific Management

© 2007 Pearson Education Canada 1-23 History of HRM Scientific Management –Frederick Taylor –concern for production –emphasis on efficiency –performance-based pay –impersonal, dehumanizing Scientific Management –Frederick Taylor –concern for production –emphasis on efficiency –performance-based pay –impersonal, dehumanizing

© 2007 Pearson Education Canada 1-24 History of HRM Human Relations Movement –Hawthorne studies –concern for people –emphasis on communication –treat employees with dignity and respect –oversimplified view of motivation Human Relations Movement –Hawthorne studies –concern for people –emphasis on communication –treat employees with dignity and respect –oversimplified view of motivation

© 2007 Pearson Education Canada 1-25 History of HRM Human Resources Movement –joint focus on people and productivity –motivation through job design –acknowledges individual differences –employees seen as a competitive advantage Human Resources Movement –joint focus on people and productivity –motivation through job design –acknowledges individual differences –employees seen as a competitive advantage

© 2007 Pearson Education Canada 1-26 History of HRM Phase 3: Human Resources Management Phase 2: Personnel Management Phase 1: Personnel Administration Phase 4: Strategic Human Resources Phases in the Human Resources Movement

© 2007 Pearson Education Canada 1-27 Growing Professionalism in HRM –self-regulation –code of ethics –common body of knowledge –certification of members –self-regulation –code of ethics –common body of knowledge –certification of members

© 2007 Pearson Education Canada 1-28 HR Management Challenges in the Twenty-First Century -formulate and implement corporate strategy -improve service and product quality -increase responsiveness to change -build employee engagement

© 2007 Pearson Education Canada 1-29 Role of HR as a Strategic Partner Role in Formulating Strategy –environmental scanning –competitive intelligence Role in Executing Strategy –formulate effective HR procedures –execute downsizing and restructuring –create effective employee- management relationships