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Chapter 1: The Strategic Role of
Human Resources Management

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
Learning Outcomes

• DESCRIBE the two categories of activities
required of HR managers and DISCUSS
examples of each.

The Strategic Role of Human Resources Management | 1-2

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• DEFINE human resources management
and ANALYZE the strategic significance of
human resources management.
Learning Outcomes

• DESCRIBE the three stages in the
evolution of HRM.
• EXPLAIN how HRM has changed over
recent years to include a higher-level
advisory role.
The Strategic Role of Human Resources Management | 1-3

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• DISCUSS the internal and external
environmental factors affecting human
resources management policies and
practices and EXPLAIN their impact.
The Strategic Role of Human
Resources Management
• 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 Strategic Role of Human Resources Management | 1-4

Copyright © 2014 Pearson Canada Inc. All rights reserved.

Human Resources Management (HRM)
reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

The Strategic Role of Human
Resources Management

The Strategic Role of Human Resources Management | 1-5
A Brief History of HRM
Scientific Management

concern for production

•

scientifically analyzing manufacturing
processes to reduce costs and compensating
employees based on performance

Human Resources Movement

•

concern for people and productivity

The Strategic Role of Human Resources Management | 1-6

Copyright © 2014 Pearson Canada Inc. All rights reserved.

•
Human Resources Movement:
Evolutionary Phases
Phase 1 - early 1900’s

personnel administration

•

hiring, firing, payroll/benefits processing

Phase 2 – 1930’s to 1950’s

•

union liaison, compliance with new laws

•

orientation, performance appraisal, employee
relations

The Strategic Role of Human Resources Management | 1-7

Copyright © 2014 Pearson Canada Inc. All rights reserved.

•
Human Resources Movement:
Evolutionary Phases
Phase 3 – 1960’s to 1980’s

• human resources management

• emphasis on contribution and proactive
management of people

The Strategic Role of Human Resources Management | 1-8

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• outsourcing of many administrative
functions
Human Resources Movement:
Evolutionary Phases
Phase 4 – 1990’s to present

• every line manager must posses basic HR
skills
• new roles: activist, change steward, talent
manager/organizational
designer, operational executor and
business ally

The Strategic Role of Human Resources Management | 1-9

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• help achieve strategic objectives
reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

New HRM Competencies

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

New HRM Competencies

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

New HRM Competencies

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

New HRM Competencies

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

New HRM Competencies

The Strategic Role of Human Resources Management | 1-14
Measuring the Value of HR:
Metrics
Traditional Measures

• focused on activity and cost
•
•

number of candidates interviewed
cost per hire

The Strategic Role of Human Resources Management | 1-15

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• for example:
Measuring the Value of HR:
Metrics
• focus on
productivity, quality, sales, market
share, and profits
• balanced scorecard
• a measurement system that translates
organization’s strategy into a comprehensive set
of financial and operational performance measures

The Strategic Role of Human Resources Management | 1-16

Copyright © 2014 Pearson Canada Inc. All rights reserved.

Today’s Measures
Environmental Influences on
HRM
Internal Influences

• Economic conditions

• Organizational culture

• Labour market issues

• Organizational climate

• Technology

• Management practices

• Government
• Globalization
• Environmental concerns

The Strategic Role of Human Resources Management | 1-17

Copyright © 2014 Pearson Canada Inc. All rights reserved.

External Influences
External Influences:
Economic Conditions
• employment levels
• growth of the primary, secondary, and
tertiary (service) sectors

The Strategic Role of Human Resources Management | 1-18

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• productivity levels
External Influences:
Labour Market Issues

• generational differences:
•
•
•
•

Traditionalists (pre-1946)
Baby Boomers (1946 to 1964)
Generation X (1965 to 1980)
Generation Y (1981 to present)

The Strategic Role of Human Resources Management | 1-19

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• increasing workforce diversity: visible and
ethnic minorities; women; Aboriginal
population; people with disabilities
reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

Generational Differences

The Strategic Role of Human Resources Management | 1-20
External Influences:
Labour Market Issues

• increased non-standard or contingent
workers
•
•
•
•

part-time
term/temporary/standby
home
self-employed

The Strategic Role of Human Resources Management | 1-21

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• higher overall level of education, however
higher level of functional illiteracy
External Influences: Technology

• concerns over data control, accuracy, right
to privacy, and ethics

• computerized monitoring of e-mail, voice
mail, telephone conversations, computer
usage, and behaviour

The Strategic Role of Human Resources Management | 1-22

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• new technologies:
Twitter, Facebook, videoconferencing
External Influences: Government

•
•
•
•
•

human rights
employment standards
labour relations
occupational health and safety
workers’ compensation

The Strategic Role of Human Resources Management | 1-23

Copyright © 2014 Pearson Canada Inc. All rights reserved.

Ensure policies and practices comply with new and
changing laws covering:
External Influences: Globalization
•
•
•
•

firms extend business operations abroad
emergence of one world economy
increased international competition
multinational 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.
The Strategic Role of Human Resources Management | 1-24

Copyright © 2014 Pearson Canada Inc. All rights reserved.

Global trends:
External Influences: Environmental
Concerns
Topics of increasing importance:
• sustainability
• global warming

• pollution
• carbon footprints
• extinction of wildlife species

• ecosystem fragility
The Strategic Role of Human Resources Management | 1-25

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• climate change
Internal Influences:
Organizational Culture
• core values, beliefs and assumptions

• positive culture is desired

The Strategic Role of Human Resources Management | 1-26

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• often conveyed through an organization’s
mission statement
Internal Influences:
Organizational Climate
• prevailing atmosphere in an organization

• influenced by leadership, HR
polices, communication style

The Strategic Role of Human Resources Management | 1-27

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• friendly/unfriendly, open/secretive, rigid/fl
exible, innovative/stagnant
Internal Influences:
Management Practices
• bureaucratic organizations being replaced
with flatter structures
Copyright © 2014 Pearson Canada Inc. All rights reserved.

• increased employee empowerment

The Strategic Role of Human Resources Management | 1-28
Growing Professionalism in HRM
Characteristics of a profession:
• A common body of knowledge
• Performance standards
• External perception as a professional
• Code of ethics
• Required training credentials
• Ongoing skill development

• Maintenance of professional competence
The Strategic Role of Human Resources Management | 1-29

Copyright © 2014 Pearson Canada Inc. All rights reserved.

• Professional association
continued
The Strategic Role of Human Resources Management | 1-30

reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

Certified Human Resources
Professional (CHRP)
reserved.
Copyright © 2014 Pearson Canada Inc. All rights reserved

Certified Human Resources
Professional (CHRP)

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

Professional HR Designations

The Strategic Role of Human Resources Management | 1-32

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Chapter 01 dessler 12-ce_ppt_ch01

  • 1. Chapter 1: The Strategic Role of Human Resources Management 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
  • 2. Learning Outcomes • DESCRIBE the two categories of activities required of HR managers and DISCUSS examples of each. The Strategic Role of Human Resources Management | 1-2 Copyright © 2014 Pearson Canada Inc. All rights reserved. • DEFINE human resources management and ANALYZE the strategic significance of human resources management.
  • 3. Learning Outcomes • DESCRIBE the three stages in the evolution of HRM. • EXPLAIN how HRM has changed over recent years to include a higher-level advisory role. The Strategic Role of Human Resources Management | 1-3 Copyright © 2014 Pearson Canada Inc. All rights reserved. • DISCUSS the internal and external environmental factors affecting human resources management policies and practices and EXPLAIN their impact.
  • 4. The Strategic Role of Human Resources Management • 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 Strategic Role of Human Resources Management | 1-4 Copyright © 2014 Pearson Canada Inc. All rights reserved. Human Resources Management (HRM)
  • 5. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved The Strategic Role of Human Resources Management The Strategic Role of Human Resources Management | 1-5
  • 6. A Brief History of HRM Scientific Management concern for production • scientifically analyzing manufacturing processes to reduce costs and compensating employees based on performance Human Resources Movement • concern for people and productivity The Strategic Role of Human Resources Management | 1-6 Copyright © 2014 Pearson Canada Inc. All rights reserved. •
  • 7. Human Resources Movement: Evolutionary Phases Phase 1 - early 1900’s personnel administration • hiring, firing, payroll/benefits processing Phase 2 – 1930’s to 1950’s • union liaison, compliance with new laws • orientation, performance appraisal, employee relations The Strategic Role of Human Resources Management | 1-7 Copyright © 2014 Pearson Canada Inc. All rights reserved. •
  • 8. Human Resources Movement: Evolutionary Phases Phase 3 – 1960’s to 1980’s • human resources management • emphasis on contribution and proactive management of people The Strategic Role of Human Resources Management | 1-8 Copyright © 2014 Pearson Canada Inc. All rights reserved. • outsourcing of many administrative functions
  • 9. Human Resources Movement: Evolutionary Phases Phase 4 – 1990’s to present • every line manager must posses basic HR skills • new roles: activist, change steward, talent manager/organizational designer, operational executor and business ally The Strategic Role of Human Resources Management | 1-9 Copyright © 2014 Pearson Canada Inc. All rights reserved. • help achieve strategic objectives
  • 10. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies continued The Strategic Role of Human Resources Management | 1-10
  • 11. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies continued The Strategic Role of Human Resources Management | 1-11
  • 12. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies The Strategic Role of Human Resources Management | 1-12
  • 13. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies The Strategic Role of Human Resources Management | 1-13
  • 14. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved New HRM Competencies The Strategic Role of Human Resources Management | 1-14
  • 15. Measuring the Value of HR: Metrics Traditional Measures • focused on activity and cost • • number of candidates interviewed cost per hire The Strategic Role of Human Resources Management | 1-15 Copyright © 2014 Pearson Canada Inc. All rights reserved. • for example:
  • 16. Measuring the Value of HR: Metrics • focus on productivity, quality, sales, market share, and profits • balanced scorecard • a measurement system that translates organization’s strategy into a comprehensive set of financial and operational performance measures The Strategic Role of Human Resources Management | 1-16 Copyright © 2014 Pearson Canada Inc. All rights reserved. Today’s Measures
  • 17. Environmental Influences on HRM Internal Influences • Economic conditions • Organizational culture • Labour market issues • Organizational climate • Technology • Management practices • Government • Globalization • Environmental concerns The Strategic Role of Human Resources Management | 1-17 Copyright © 2014 Pearson Canada Inc. All rights reserved. External Influences
  • 18. External Influences: Economic Conditions • employment levels • growth of the primary, secondary, and tertiary (service) sectors The Strategic Role of Human Resources Management | 1-18 Copyright © 2014 Pearson Canada Inc. All rights reserved. • productivity levels
  • 19. External Influences: Labour Market Issues • generational differences: • • • • Traditionalists (pre-1946) Baby Boomers (1946 to 1964) Generation X (1965 to 1980) Generation Y (1981 to present) The Strategic Role of Human Resources Management | 1-19 Copyright © 2014 Pearson Canada Inc. All rights reserved. • increasing workforce diversity: visible and ethnic minorities; women; Aboriginal population; people with disabilities
  • 20. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Generational Differences The Strategic Role of Human Resources Management | 1-20
  • 21. External Influences: Labour Market Issues • increased non-standard or contingent workers • • • • part-time term/temporary/standby home self-employed The Strategic Role of Human Resources Management | 1-21 Copyright © 2014 Pearson Canada Inc. All rights reserved. • higher overall level of education, however higher level of functional illiteracy
  • 22. External Influences: Technology • concerns over data control, accuracy, right to privacy, and ethics • computerized monitoring of e-mail, voice mail, telephone conversations, computer usage, and behaviour The Strategic Role of Human Resources Management | 1-22 Copyright © 2014 Pearson Canada Inc. All rights reserved. • new technologies: Twitter, Facebook, videoconferencing
  • 23. External Influences: Government • • • • • human rights employment standards labour relations occupational health and safety workers’ compensation The Strategic Role of Human Resources Management | 1-23 Copyright © 2014 Pearson Canada Inc. All rights reserved. Ensure policies and practices comply with new and changing laws covering:
  • 24. External Influences: Globalization • • • • firms extend business operations abroad emergence of one world economy increased international competition multinational 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. The Strategic Role of Human Resources Management | 1-24 Copyright © 2014 Pearson Canada Inc. All rights reserved. Global trends:
  • 25. External Influences: Environmental Concerns Topics of increasing importance: • sustainability • global warming • pollution • carbon footprints • extinction of wildlife species • ecosystem fragility The Strategic Role of Human Resources Management | 1-25 Copyright © 2014 Pearson Canada Inc. All rights reserved. • climate change
  • 26. Internal Influences: Organizational Culture • core values, beliefs and assumptions • positive culture is desired The Strategic Role of Human Resources Management | 1-26 Copyright © 2014 Pearson Canada Inc. All rights reserved. • often conveyed through an organization’s mission statement
  • 27. Internal Influences: Organizational Climate • prevailing atmosphere in an organization • influenced by leadership, HR polices, communication style The Strategic Role of Human Resources Management | 1-27 Copyright © 2014 Pearson Canada Inc. All rights reserved. • friendly/unfriendly, open/secretive, rigid/fl exible, innovative/stagnant
  • 28. Internal Influences: Management Practices • bureaucratic organizations being replaced with flatter structures Copyright © 2014 Pearson Canada Inc. All rights reserved. • increased employee empowerment The Strategic Role of Human Resources Management | 1-28
  • 29. Growing Professionalism in HRM Characteristics of a profession: • A common body of knowledge • Performance standards • External perception as a professional • Code of ethics • Required training credentials • Ongoing skill development • Maintenance of professional competence The Strategic Role of Human Resources Management | 1-29 Copyright © 2014 Pearson Canada Inc. All rights reserved. • Professional association
  • 30. continued The Strategic Role of Human Resources Management | 1-30 reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Certified Human Resources Professional (CHRP)
  • 31. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Certified Human Resources Professional (CHRP) The Strategic Role of Human Resources Management | 1-31
  • 32. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Professional HR Designations The Strategic Role of Human Resources Management | 1-32