1. Strategic Importance of Human Resource Management1 .
C H A P T E R
O N E
Strategic Importance of Human Resource Management

2. 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

3. Challenges – Canadian Organizations
Economic
Technological
Demographic
Cultural
Legal
Canadian
Organizations

4. 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

5. 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

6. 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

7. 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

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

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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

18. 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”

19. 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

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

21. 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)

22. Strategic Importance of Human Resource Management1 .
C H A P T E R
O N E
Strategic Importance of Human Resource Management