Chapter 2

The Environment of Human Resource Management

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles © 2001 Pearson Education Canada, Inc. All rights reserved.

2-1

Describe the issue of diversity and identify the diverse workforce that management now confronts. Premeaux. Inc. 2. Distinguish between a proactive and a reactive response to the external environment. Mondy. Define corporate culture and describe how it is developed and shaped. Explain the importance of small business in today’s work environment. Human Resource Management.CHAPTER OBJECTIVES 1. 4. 5. All rights reserved. Noe. Knowles © 2001 Pearson Education Canada. Identify the environmental factors that affect human resource management. 2/C/E. 2-2 . 3.

2/C/E. Inc. Noe. 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 Human Resource Management. Knowles © 2001 Pearson Education Canada. Mondy. All rights reserved. Premeaux.

The Environments of Human Resource Management EXTERNAL ENVIRONMENT Legal Considerations INTERNAL ENVIRONMENT The Economy Labour Force Marketing Human Resource Staffing Operations Technology Human Resource Management Finance Safety and Health Competition Shareholders Other Functional Areas Unions Customers .

Premeaux. 2-5 . Noe. Knowles © 2001 Pearson Education Canada. 2/C/E.EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT      The Labour Force Legal Considerations Contract and Common Law Society Unions Human Resource Management. Mondy. All rights reserved. Inc.

EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT (Continued)      Shareholders Competition Customers Technology The Economy Human Resource Management. Premeaux. Mondy. All rights reserved. 2/C/E. Inc. Noe. Knowles © 2001 Pearson Education Canada. 2-6 .

6 Figure 2-2 2-7 . 24 288 15 925 65. Noe. 2/C/E. All rights reserved. Mondy. Premeaux.CANADA’S LABOUR FORCE.6 14 711 60. Knowles © 2001 Pearson Education Canada.6 1 215 7. 1999 Total Population 15 + (‘000’s) Labour Force (‘000’s) Participation Rate (%) Employed (‘000’s) Employment Rate (%) Unemployed (‘000’s) Unemployment Rate (%) Human Resource Management. Inc.

1978 Employment Equity Act. All rights reserved. Noe. Inc. Mondy. Premeaux.LEGAL CONSIDERATIONS    Human Rights Canadian Human Rights Act. 1986 Employment Standards Contract and Common Law Human Resource Management. Knowles © 2001 Pearson Education Canada. 2-8 . 2/C/E.

Premeaux. 2-9 . All rights reserved. Knowles © 2001 Pearson Education Canada.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 Human Resource Management. 2/C/E. Inc. Noe. Mondy.

Mondy. 2-10 . 2/C/E. Knowles © 2001 Pearson Education Canada. Noe. All rights reserved.MANAGING THE DIVERSE WORK FORCE     Women in Business Aboriginals and Visible Minorities People with Disabilities French and English Human Resource Management. Inc. Premeaux.

All rights reserved. 2/C/E. Knowles © 2001 Pearson Education Canada. Mondy. Noe.MANAGING THE DIVERSE WORK FORCE (Continued)     Work and Family Older Workers Young Workers Contingency Workers Human Resource Management. Premeaux. Inc. 2-11 .

All rights reserved. Premeaux. Noe. 2-12 . Knowles © 2001 Pearson Education Canada. Inc. 2/C/E. Mondy.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  Human Resource Management.

Knowles © 2001 Pearson Education Canada. Premeaux. Noe. 2-13 . 2/C/E. Mondy. Inc.WORK AND FAMILY  Major Causes of Increased Work Stress Include: Career Couples Lone-parent Families The Changing Workplace Human Resource Management. All rights reserved.

Noe. Inc. Premeaux.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. Knowles © 2001 Pearson Education Canada. People Hired Through Employment Agencies and Independent Workers Human Resource Management. Subcontractors. 2/C/E. All rights reserved. 2-14 . Mondy. Freelancers.

2-15 . 2/C/E. Premeaux. Knowles © 2001 Pearson Education Canada.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. Mondy. for Example: Managers in Small Businesses Often Identify More Closely With the Goals of the Firm Human Resource Management.SMALL BUSINESS    Entrepreneurs Have Been Essential to the Growth and Vitality of the Canadian Economy Nearly 2. Inc. Noe. All rights reserved.

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. All rights reserved. Premeaux. Inc. 2-16 . Beliefs.CORPORATE CULTURE   Corporate Culture The System Of Shared Values. Knowles © 2001 Pearson Education Canada. Objectives and Success Human Resource Management. 2/C/E. Mondy. Noe.

Premeaux. Mondy. Noe.GLOBAL CORPORATION   An Organization That Has Corporate Units in a Number of Countries. 2/C/E. The Units Are Integrated to Operate As One Organization World-wide Global Operations Add Another Environmental Layer to Human Resource Management Human Resource Management. All rights reserved. Knowles © 2001 Pearson Education Canada. Inc. 2-17 .

HRM in the Global Environment MULTINATIONAL ENVIRONMENT EXTERNAL ENVIRONMENT .CANADA Legal Considerations Labour Force INTERNAL ENVIRONMENT The Economy Marketing Human Resource Staffing Operations Technology Human Resource Management Finance Safety and Health Competition Shareholders Other Functional Areas Unions Figure 22-18 Customers .