The Environment of Human Resource Management Chapter 2 The Environment of Human Resource Management 1

CHAPTER OBJECTIVES Identify the environmental factors that affect human resource management. Distinguish between a proactive and a reactive response to the external environment. Describe the issue of diversity and identify the diverse workforce that management now confronts. Explain the importance of small business in today’s work environment. Define corporate culture and describe how it is developed and shaped. 2

CHAPTER OUTLINE MAJOR TOPICS Environmental Factors Affecting Human Resource Management The External Environment The External Environment: Proactive Versus Reactive Managing the Diverse Work Force Small Business Corporate Culture Human Resource Management in the Global Environment 3

The Environments of Human Resource Management EXTERNAL ENVIRONMENT Legal Considerations Labour Force INTERNAL ENVIRONMENT Human Resource Staffing Marketing Operations The Economy Human Resource Planning Human Resource Development Human Resource Management Society Employee and Labour Relations Technology Compensation and Benefits Other Functional Areas Finance Safety and Health Customers Competition Shareholders Unions Figure 2-1 7

EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT The Labour Force Legal Considerations Contract and Common Law Society Unions

EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT (Continued) Shareholders Competition Customers Technology The Economy

Participation Rate (%) 65.6 Employed (‘000’s) 14 711 CANADA’S LABOUR FORCE, 1999 Total Population 15 + (‘000’s) 24 288 Labour Force (‘000’s) 15 925 Participation Rate (%) 65.6 Employed (‘000’s) 14 711 Employment Rate (%) 60.6 Unemployed (‘000’s) 1 215 Unemployment Rate (%) 7.6 Figure 2-2

LEGAL CONSIDERATIONS Human Rights Canadian Human Rights Act, 1978 Employment Equity Act, 1986 Employment Standards Contract and Common Law

THE EXTERNAL ENVIRONMENT: PROACTIVE VERSUS REACTIVE Proactive Response Taking Action in Anticipation of Environmental Changes Reactive Response Simply Reacting to Environmental Changes After They Occur

MANAGING THE DIVERSE WORK FORCE Women in Business Aboriginals and Visible Minorities People with Disabilities French and English

MANAGING THE DIVERSE WORK FORCE (Continued) Work and Family Older Workers Young Workers Contingency Workers

WOMEN IN BUSINESS The Glass Ceiling Is Beginning to Crack More Women in the Workplace Women Are Better Educated Women Are Better Paid Than They Were Longer Tenure But…More progress needs to be made

WORK AND FAMILY Major Causes of Increased Work Stress Include: Career Couples Lone-parent Families The Changing Workplace

CONTINGENCY WORKERS Over the 1990s Many Companies Chose to Hire Contingency Workers Contract Workers Hired by Companies to Cope With Unexpected or Temporary Challenges This Workforce Consist of Part-timers, Freelancers, Subcontractors, People Hired Through Employment Agencies and Independent Workers

SMALL BUSINESS Entrepreneurs Have Been Essential to the Growth and Vitality of the Canadian Economy Nearly 2.5 Million Canadians Reported Working at Their Own Businesses HR Professionals Must Be Aware That the Environment of Managers in Large and Small Businesses Is Often Quite Different, for Example: Managers in Small Businesses Often Identify More Closely With the Goals of the Firm

CORPORATE CULTURE Corporate Culture The System Of Shared Values, Beliefs, And Habits Within An Organization That Interacts With The Formal Structure To Produce Behavioural Norms An Organization’s Corporate Culture Is Integral to Fulfilling Its Mission, Objectives and Success

GLOBAL CORPORATION An Organization That Has Corporate Units in a Number of Countries; The Units Are Integrated to Operate As One Organization World-wide Global Operations Add Another Environmental Layer to Human Resource Management

HRM in the Global Environment MULTINATIONAL ENVIRONMENT EXTERNAL ENVIRONMENT - CANADA Legal Considerations Labour Force INTERNAL ENVIRONMENT Human Resource Staffing Marketing Operations The Economy Human Res. Planning Human Res. Development Human Resource Management Society Labour Relations Employee and Technology Compensation and Benefits Other Functional Areas Finance Safety and Health Customers Competition Shareholders Unions Figure 2-4 2-18 9