Dessler, Cole, Goodman, and Sutherland

In-Class Edition
Management of Human Resources
Canadian Edition

Chapter One

The Strategic Role of

Human Resources
Management

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 Human Resources
Management

HRM is activities, policies and practices to

obtain and develop employees
utilize, evaluate and maintain employees
accomplish organizational objectives

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 Strategic Human Resources
Management

-linking of Human Resources Management

with strategic goals and objectives in order
to improve business performance

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 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)

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 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

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 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

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 Concept of Human Capital

-the knowledge, education, training,

skills and expertise of a firms workers

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Internal Environmental Influences

Organizational Culture
core values, beliefs and assumptions
shared by members of an organization

Organizational Climate
prevailing atmosphere
its impact on employees

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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)
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External Environmental Influences

Labour Force

Labour force is the individuals who are

employed and those actively seeking work

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External Environmental Influences

Labour Market Issues

Labour market is the geographic area where:

organizations recruit employees
individuals seek employment

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External Environmental Influences

Economic Conditions

Productivity =

Outputs (goods and services)

Inputs (people, capital, energy, materials)

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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

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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

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External Environmental Influences

Workforce Diversity (2 of 3)

Visible and ethnic minorities

increasing numbers due to immigration
Women
climbing employment rate

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External Environmental Influences

Workforce Diversity (3 of 3)

Aboriginal peoples
difficulty obtaining and keeping jobs
Persons with disabilities
problems with accessibility continue

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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

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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)

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External Environmental Influences

Government

must stay abreast of new/changing laws

ensure policies and practices comply
with laws
maintain efficiency and effectiveness while
complying

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External Environmental Influences

Globalization (1 of 2)

tendency of firms to extend business

operations abroad
emergence of one world economy
increased international competition

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External Environmental Influences

Globalization (2 of 2)

Multinational corporations:
conduct business around the world
seek cheap, skilled labour

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 History of HRM

Human Resources Movement

Human Relations Movement

Scientific Management

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 History of HRM

Scientific Management

Frederick Taylor
concern for production
emphasis on efficiency
performance-based pay
impersonal, dehumanizing

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 History of HRM

Human Relations Movement

Hawthorne studies
concern for people
emphasis on communication
treat employees with dignity and respect
oversimplified view of motivation

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 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

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 History of HRM

Phases in the Human Resources Movement

Phase 4: Strategic Human Resources

Phase 3: Human Resources Management

Phase 2: Personnel Management

Phase 1: Personnel Administration

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Growing Professionalism in HRM

self-regulation
code of ethics
common body of knowledge
certification of members

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 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

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 Role of HR as a Strategic Partner

Role in Formulating Role in Executing

Strategy Strategy
formulate effective HR
environmental
procedures
scanning
execute downsizing
competitive
intelligence and restructuring
create effective employee-
management
relationships

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