© 2007 pearson education canada 1-1 dessler, cole, goodman, and sutherland in-class edition...
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© 2007 Pearson Education Canada 1-1
Dessler, Cole, Goodman, and SutherlandIn-Class Edition
Management of Human ResourcesSecond 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 ResourcesManagement
-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 ResourcesPhase 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