Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-1 Copyright © 2014 Pearson Canada Inc. All rights reserved. Dessler, Chhinzer, Cole Human Resources Management in Canada Canadian Twelfth Edition Chapter 1: The Strategic Role of Human Resources Management

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-2 Learning Outcomes DEFINE human resources management and ANALYZE the strategic significance of human resources management. DEFINE human resources management and ANALYZE the strategic significance of human resources management. DESCRIBE the two categories of activities required of HR managers and DISCUSS examples of each. DESCRIBE the two categories of activities required of HR managers and DISCUSS examples of each.

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-3 Learning Outcomes DISCUSS the internal and external environmental factors affecting human resources management policies and practices and EXPLAIN their impact. DISCUSS the internal and external environmental factors affecting human resources management policies and practices and EXPLAIN their impact. DESCRIBE the three stages in the evolution of HRM. DESCRIBE the three stages in the evolution of HRM. EXPLAIN how HRM has changed over recent years to include a higher-level advisory role. EXPLAIN how HRM has changed over recent years to include a higher-level advisory role.

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-4 The Strategic Role of Human Resources Management Human Resources Management (HRM) the management of people in organizations to drive successful organizational performance and achievement of organization’s strategic goals the management of people in organizations to drive successful organizational performance and achievement of organization’s strategic goals Human Capital the knowledge, education, training, skills, and expertise of an organization’s workforce the knowledge, education, training, skills, and expertise of an organization’s workforce

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-5 Copyright © 2014 Pearson Canada Inc. All rights reserved The Strategic Role of Human Resources Management

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-6 A Brief History of HRM Scientific Management concern for production concern for production scientifically analyzing manufacturing processes to reduce costs and compensating employees based on performance scientifically analyzing manufacturing processes to reduce costs and compensating employees based on performance Human Resources Movement concern for people and productivity concern for people and productivity

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-7 Human Resources Movement: Evolutionary Phases Phase 1 - early 1900’s personnel administration personnel administration hiring, firing, payroll/benefits processing hiring, firing, payroll/benefits processing Phase 2 – 1930’s to 1950’s union liaison, compliance with new laws union liaison, compliance with new laws orientation, performance appraisal, employee relations orientation, performance appraisal, employee relations

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-8 Human Resources Movement: Evolutionary Phases Phase 3 – 1960’s to 1980’s human resources management human resources management outsourcing of many administrative functions outsourcing of many administrative functions emphasis on contribution and proactive management of people emphasis on contribution and proactive management of people

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-9 Human Resources Movement: Evolutionary Phases Phase 4 – 1990’s to present every line manager must posses basic HR skills every line manager must posses basic HR skills help achieve strategic objectives help achieve strategic objectives new roles: activist, change steward, talent manager/organizational designer, operational executor and business ally new roles: activist, change steward, talent manager/organizational designer, operational executor and business ally

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-10 Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies continued

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-11 Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies continued

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-12 Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-13 Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-14 Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-15 Measuring the Value of HR: Metrics Traditional Measures focused on activity and cost focused on activity and cost for example: for example: number of candidates interviewed number of candidates interviewed cost per hire cost per hire

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-16 Measuring the Value of HR: Metrics Today’s Measures focus on productivity, quality, sales, market share, and profits focus on productivity, quality, sales, market share, and profits balanced scorecard balanced scorecard a measurement system that translates organization’s strategy into a comprehensive set of financial and operational performance measures a measurement system that translates organization’s strategy into a comprehensive set of financial and operational performance measures

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-17 Environmental Influences on HRM Internal Influences Organizational culture Organizational culture Organizational climate Organizational climate Management practices Management practices External Influences Economic conditions Economic conditions Labour market issues Labour market issues Technology Technology Government Government Globalization Globalization Environmental concerns Environmental concerns

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-18 External Influences: Economic Conditions employment levels employment levels productivity levels productivity levels growth of the primary, secondary, and tertiary (service) sectors growth of the primary, secondary, and tertiary (service) sectors

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-19 External Influences: Labour Market Issues increasing workforce diversity: visible and ethnic minorities; women; Aboriginal population; people with disabilities increasing workforce diversity: visible and ethnic minorities; women; Aboriginal population; people with disabilities generational differences: generational differences: Traditionalists (pre-1946) Traditionalists (pre-1946) Baby Boomers (1946 to 1964) Baby Boomers (1946 to 1964) Generation X (1965 to 1980) Generation X (1965 to 1980) Generation Y (1981 to present) Generation Y (1981 to present)

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-20 Copyright © 2014 Pearson Canada Inc. All rights reserved Generational Differences

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-21 External Influences: Labour Market Issues higher overall level of education, however higher level of functional illiteracy higher overall level of education, however higher level of functional illiteracy increased non-standard or contingent workers increased non-standard or contingent workers part-time part-time term/temporary/standby term/temporary/standby home home self-employed self-employed

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-22 External Influences: Technology new technologies: Twitter, Facebook, videoconferencing new technologies: Twitter, Facebook, videoconferencing concerns over data control, accuracy, right to privacy, and ethics concerns over data control, accuracy, right to privacy, and ethics computerized monitoring of , voice mail, telephone conversations, computer usage, and behaviour computerized monitoring of , voice mail, telephone conversations, computer usage, and behaviour

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-23 External Influences: Government Ensure policies and practices comply with new and changing laws covering: human rightshuman rights employment standardsemployment standards labour relationslabour relations occupational health and safetyoccupational health and safety workers’ compensationworkers’ compensation

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-24 External Influences: Globalization Global trends: firms extend business operations abroadfirms extend business operations abroad emergence of one world economyemergence of one world economy increased international competitionincreased international competition multinational corporations: conduct business around the world, seek cheap skilled labourmultinational corporations: conduct business around the world, seek cheap skilled labour HR professionals must become familiar with employment legislation in other countries and manage ethical dilemmas.

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-25 External Influences: Environmental Concerns Topics of increasing importance: sustainability sustainability climate change climate change global warming global warming pollution pollution carbon footprints carbon footprints extinction of wildlife species extinction of wildlife species ecosystem fragility ecosystem fragility

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-26 Internal Influences: Organizational Culture core values, beliefs and assumptions core values, beliefs and assumptions often conveyed through an organization’s mission statement often conveyed through an organization’s mission statement positive culture is desired positive culture is desired

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-27 Internal Influences: Organizational Climate prevailing atmosphere in an organization prevailing atmosphere in an organization friendly/unfriendly, open/secretive, rigid/flexible, innovative/stagnant friendly/unfriendly, open/secretive, rigid/flexible, innovative/stagnant influenced by leadership, HR polices, communication style influenced by leadership, HR polices, communication style

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-28 Internal Influences: Management Practices bureaucratic organizations being replaced with flatter structures bureaucratic organizations being replaced with flatter structures increased employee empowerment increased employee empowerment

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-29 Growing Professionalism in HRM Characteristics of a profession: A common body of knowledge A common body of knowledge Performance standards Performance standards Professional association Professional association External perception as a professional External perception as a professional Code of ethics Code of ethics Required training credentials Required training credentials Ongoing skill development Ongoing skill development Maintenance of professional competence Maintenance of professional competence

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-30 Copyright © 2014 Pearson Canada Inc. All rights reserved Certified Human Resources Professional (CHRP) continued

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-31 Copyright © 2014 Pearson Canada Inc. All rights reserved Certified Human Resources Professional (CHRP)

Copyright © 2014 Pearson Canada Inc. All rights reserved. The Strategic Role of Human Resources Management | 1-32 Copyright © 2014 Pearson Canada Inc. All rights reserved Professional HR Designations