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The Strategic Role of Human Resources Management | 1-1

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Dessler, Chhinzer, ColeHuman Resources

Management in CanadaCanadian Twelfth Edition

Chapter 1: The Strategic Role of Human Resources Management

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Learning Outcomes

• 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.

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Learning Outcomes

• 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.

• EXPLAIN how HRM has changed over recent years to include a higher-level advisory role.

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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

Human Capital

• the knowledge, education, training, skills, and expertise of an organization’s workforce

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The Strategic Role of Human Resources Management

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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

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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

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Human Resources Movement: Evolutionary Phases

Phase 3 – 1960’s to 1980’s

• human resources management

• outsourcing of many administrative functions

• emphasis on contribution and proactive management of people

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Human Resources Movement: Evolutionary Phases

Phase 4 – 1990’s to present

• every line manager must posses basic HR skills

• help achieve strategic objectives

• new roles: activist, change steward, talent manager/organizational designer, operational executor and business ally

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New HRM Competencies

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The Strategic Role of Human Resources Management | 1-11

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New HRM Competencies

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The Strategic Role of Human Resources Management | 1-12

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New HRM Competencies

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The Strategic Role of Human Resources Management | 1-13

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New HRM Competencies

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New HRM Competencies

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Measuring the Value of HR: Metrics

Traditional Measures

• focused on activity and cost

• for example:• number of candidates interviewed• cost per hire

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Measuring the Value of HR: Metrics

Today’s Measures

• 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

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Environmental Influences on HRM

Internal Influences

• Organizational culture

• Organizational climate

• Management practices

External Influences

• Economic conditions

• Labour market issues

• Technology

• Government

• Globalization

• Environmental concerns

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External Influences: Economic Conditions

• employment levels

• productivity levels

• growth of the primary, secondary, and tertiary (service) sectors

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External Influences: Labour Market Issues

• increasing workforce diversity: visible and ethnic minorities; women; Aboriginal population; people with disabilities

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

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Generational Differences

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External Influences: Labour Market Issues

• higher overall level of education, however higher level of functional illiteracy

• increased non-standard or contingent workers• part-time• term/temporary/standby• home• self-employed

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External Influences: Technology

• new technologies: Twitter, Facebook, videoconferencing

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

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

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External Influences: Government

Ensure policies and practices comply with new and changing laws covering: • human rights• employment standards• labour relations• occupational health and safety• workers’ compensation

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External Influences: Globalization

Global trends:• 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.

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External Influences: Environmental Concerns

Topics of increasing importance:

• sustainability

• climate change

• global warming

• pollution

• carbon footprints

• extinction of wildlife species

• ecosystem fragility

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Internal Influences: Organizational Culture

• core values, beliefs and assumptions

• often conveyed through an organization’s mission statement

• positive culture is desired

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Internal Influences:Organizational Climate

• prevailing atmosphere in an organization

• friendly/unfriendly, open/secretive, rigid/flexible, innovative/stagnant

• influenced by leadership, HR polices, communication style

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Internal Influences:Management Practices

• bureaucratic organizations being replaced with flatter structures

• increased employee empowerment

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Growing Professionalism in HRMCharacteristics of a profession:

• A common body of knowledge

• Performance standards

• Professional association

• External perception as a professional

• Code of ethics

• Required training credentials

• Ongoing skill development

• Maintenance of professional competence

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Certified Human Resources Professional (CHRP)

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Certified Human Resources Professional (CHRP)

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Professional HR Designations

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