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

2. 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

3. 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

4. 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

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

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

7. 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

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

9. 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

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

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

12. 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

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

14. 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

15. 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

16. 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

17. 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

18. 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