1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

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

17. 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