Dessler, Chhinzer

Human Resources
Management in Canada
Thirteenth Canadian Edition

Copyright © 2017 Pearson Canada Inc. All rights reserved.

Chapter 1: The Strategic Role of
Human Resources Management

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 Learning Outcomes

• DEFINE human resources

management(HRM) and ANALYZE the
strategic significance of human resources
management.

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• DESCRIBE the value of HR expertise to
non-HR managers and entrepreneurs.

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 Learning Outcomes

• DESCRIBE the stages in the evolution of

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

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advisory role.
• DESCRIBE the competencies and
recognition of growing professionalism of
the HRM function.

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 Learning Outcomes

• DISCUSS the internal and external

environmental factors affecting human
resource management policies and
practices, and EXPLAIN their impact.

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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

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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

reserved.
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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

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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

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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

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management of people

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 Human Resources Movement:
Evolutionary Phases
Phase 4 – 1990’s to present
• every line manager must possess basic HR skills
• help achieve strategic objectives
• new roles: activist, change steward, talent

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manager/organizational designer, operational
executor and business ally

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 Reorganizing the
HRM Function
Evidence-based HRM
• Using best available evidence in making decisions
about HR practices
• Actual measurements, existing data, research

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studies

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 Reorganizing the
HRM Function

Measuring the Value of HR: Metrics

Traditional Measures
• focused on activity and cost

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

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 Reorganizing the HRM
Function
Today’s Measures

• focus on productivity, quality, sales, market

share, and profits

• balanced scorecard

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• a measurement system that translates
organization’s strategy into a comprehensive set
of financial and operational performance measures

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 Growing Professionalism in HRM

Characteristics of a profession:
• A common body of knowledge
• Performance standards

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• Professional association
• External perception as a professional

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 Growing Professionalism in
HRM

Characteristics of a profession:
• Code of ethics

• Required training credentials

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• Ongoing skill development

• Maintenance of professional competence

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 Growing Professionalism in
HRM

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 Growing Professionalism in
HRM

Copyright © 2017 Pearson Canada Inc. All rights reserved.

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 Growing Professionalism in
HRM

Copyright © 2017 Pearson Canada Inc. All rights reserved.

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 Environmental Influences on
HRM
External Influences Internal Influences

• Economic conditions • Organizational culture

• Labour market issues • Organizational climate

• Technology • Management practices

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• 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:

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• Traditionalists (pre-1946)
• Baby Boomers (1946 to 1964)
• Generation X (1965 to 1980)
• Generation Y (1981 to 2000)

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 External Influences:
Labour Market Issues

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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

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• 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

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• 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

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• occupational health and safety
• workers’ compensation

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External Influences: Globalization
Global trends:
• firms extend business operations abroad
• emergence of a single global market
• increased international competition
• multinational corporations: conduct business around

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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

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• 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

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• 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

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• 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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