Dessler, Cole, Goodman and Sutherland Fundamentals of Human Resources Management in Canada Chapter One Human Resources Management: Its Environment and Evolving Role © 2004 Pearson Education Canada Inc., Toronto, Ontario 1-1

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-2 Introduction to HRM HRM is activities, policies and practices to  obtain and develop employees  utilize, evaluate and maintain employees  accomplish organizational objectives

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-3 Introduction to HRM Goals of HRM (1 of 3) –maximize employee contributions –optimize productivity and effectiveness –attain both individual and societal objectives Goals of HRM (1 of 3) –maximize employee contributions –optimize productivity and effectiveness –attain both individual and societal objectives

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-4 Introduction to HRM Goals of HRM (2 of 3) –create a positive climate –maintain performance standards –ensure harmonious working relationship –ensure safe and healthy work environment Goals of HRM (2 of 3) –create a positive climate –maintain performance standards –ensure harmonious working relationship –ensure safe and healthy work environment

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-5 Introduction to HRM Goals of HRM (3 of 3) –develop programs to meet employee needs –retain productive employees –ensure compliance with employment legislation Goals of HRM (3 of 3) –develop programs to meet employee needs –retain productive employees –ensure compliance with employment legislation

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-6 HR Management Responsibilities –formulating policies and procedures –offering advice –providing services –monitoring to ensure compliance –serving as consultant and change agent –formulating policies and procedures –offering advice –providing services –monitoring to ensure compliance –serving as consultant and change agent

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-7 Strategic HR -effective HRM practices add value to the firm -shift from perception of HRM as an expense to an asset -effective HRM practices add value to the firm -shift from perception of HRM as an expense to an asset

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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)

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-11 External Environmental Influences Labour Market Conditions 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-12 External Environmental Influences Economic Environment Productivity = Outputs (goods and services) Inputs (people, capital, energy, materials) Productivity = Outputs (goods and services) Inputs (people, capital, energy, materials)

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-14 External Environmental Influences Work Force Diversity (1 of 3) –Population growth impact of immigration –Age baby boomers, Generation X –Educational level differences in literacy levels –Population growth impact of immigration –Age baby boomers, Generation X –Educational level differences in literacy levels

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-15 External Environmental Influences Work Force 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-16 External Environmental Influences Work Force Diversity (3 of 3) –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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-17 External Environmental Influences 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 –to privacy and ethical issues –increase in technical and professional jobs –decrease in traditional blue-collar jobs –labour force training has not kept pace –creates anxiety, resentment and alienation –to privacy and ethical issues

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-18 External Environmental Influences Technology (2 of 2) –to privacy and ethical issues –has promoted egalitarianism –many firms have Human Resources Information System (HRIS) –to privacy and ethical issues –has promoted egalitarianism –many firms have Human Resources Information System (HRIS)

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 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

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-22 Growing Professionalism in HRM –self-regulation of performance standards –code of ethics –common body of knowledge, widely communicated –certification of members –self-regulation of performance standards –code of ethics –common body of knowledge, widely communicated –certification of members

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-23 HR Management Challenges in the Twenty-First Century –increased responsiveness –improved service –increased responsiveness –improved service

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-24 HR Management Challenges in the Twenty-First Century –helping to build employee commitment –developing and implementing corporate strategy –helping to build employee commitment –developing and implementing corporate strategy

© 2004 Pearson Education Canada Inc., Toronto, Ontario 1-25 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