Human Resources Management in Canada

Thirteenth Canadian Edition

Chapter 1
The Strategic Role of Human
Resources Management

Copyright © 2017 Pearson Canada Inc. 1-1

Learning Outcomes (1 of 2)
• DEFINE human resources management(HRM)
and ANALYZE the strategic significance of human
resources management.
• DESCRIBE the value of HR expertise to non-HR
managers and entrepreneurs.
• DESCRIBE the stages in the evolution of HRM.
• EXPLAIN how HRM has changed over recent
years to include a higher-level advisory role.

Copyright © 2017 Pearson Canada Inc. 1-2

Learning Outcomes (2 of 2)
• DESCRIBE the competencies and recognition of
growing professionalism of the HRM function.
• DISCUSS the internal and external environmental
factors affecting human resource management
policies and practices, and EXPLAIN their impact.

Copyright © 2017 Pearson Canada Inc. 1-3

The Strategic Role of Human Resources
Management (1 of 2)
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

Copyright © 2017 Pearson Canada Inc. 1-4

The Strategic Role of Human Resources
Management (2 of 2)

Copyright © 2017 Pearson Canada Inc. 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

Copyright © 2017 Pearson Canada Inc. 1-6

Human Resources Movement: Evolutionary
Phases (1 of 3)
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

Copyright © 2017 Pearson Canada Inc. 1-7

Human Resources Movement: Evolutionary
Phases (2 of 3)
Phase 3 – 1960’s to 1980’s
• human resources management
• outsourcing of many administrative functions
• emphasis on contribution and proactive
management of people

Copyright © 2017 Pearson Canada Inc. 1-8

Human Resources Movement: Evolutionary
Phases (3 of 3)
Phase 4 – 1990’s to present
• every line manager must possess basic HR skills
• help achieve strategic objectives
• new roles: activist, change steward, talent
manager/organizational designer, operational
executor and business ally

Copyright © 2017 Pearson Canada Inc. 1-9

Reorganizing the HRM Function (1 of 3)
Evidence-based HRM
• Using best available evidence in making decisions
about HR practices
• Actual measurements, existing data, research
studies

Copyright © 2017 Pearson Canada Inc. 1 - 10

Reorganizing the HRM Function (2 of 3)
Measuring the Value of HR: Metrics
Traditional Measures
• focused on activity and cost
• for example:
– number of candidates interviewed
– cost per hire

Copyright © 2017 Pearson Canada Inc. 1 - 11

Reorganizing the HRM Function (3 of 3)
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

Copyright © 2017 Pearson Canada Inc. 1 - 12

Growing Professionalism in HRM (1 of 6)
Characteristics of a profession:
• A common body of knowledge
• Performance standards
• Professional association
• External perception as a professional

Copyright © 2017 Pearson Canada Inc. 1 - 13

Growing Professionalism in HRM (2 of 6)
Characteristics of a profession:
• Code of ethics
• Required training credentials
• Ongoing skill development
• Maintenance of professional competence

Copyright © 2017 Pearson Canada Inc. 1 - 14

Growing Professionalism in HRM (3 of 6)

Copyright © 2017 Pearson Canada Inc. 1 - 15

Growing Professionalism in HRM (4 of 6)

Copyright © 2017 Pearson Canada Inc. 1 - 16

Growing Professionalism in HRM (5 of 6)
Table 1.2 Professional HR Designations in Canada (as of 2006)
Designation Holders
Designation in Canada
Certified Human Resources Professional (CHRP) 18 000
Group Benefits Associate (GBA) 1430
Registered Professional Recruiter (RPR) 1200
Certified Payroll Manager (CPM) 1200
Certified Employee Benefits Specialist (CEBS) 896
Payroll Compliance Practitioner (PCP) 850
Certified Compensation Professional (CCP) 734
Retirement Plans Associate (RPA) 652
Canadian Management Professional (CMP) 550

Copyright © 2017 Pearson Canada Inc. 1 - 17

 Growing Professionalism in HRM (6 of 6)
Table 1.2 Continued
Designation Holders
Designation in Canada
International Personnel Management Association 266
(IPMA) – Certified Practitioner
Registered Assessment Specialist (RAS) 250
Certified Training and Development Professional 250
(CTDP)
Registered Professional Trainer (RPT) 200
Compensation Management Specialist (CMS) 174
Global Remuneration Professional (GPR) 37
Senior Professional in HR (SPHR) 37
Source: Reprinted by permission of Canadian HR Reporter. © Copyright Thomson Reuters Canada Ltd.,2009, Toronto,
Ontario

Copyright © 2017 Pearson Canada Inc. 1 - 18

Environmental Influences on HRM
External Influences Internal Influences
• Economic conditions • Organizational culture
• Labour market issues • Organizational climate
• Technology • Management practices
• Government
• Globalization
• Environmental
concerns
Copyright © 2017 Pearson Canada Inc. 1 - 19
External Influences: Economic Conditions
• employment levels
• productivity levels
• growth of the primary, secondary, and tertiary
(service) sectors

Copyright © 2017 Pearson Canada Inc. 1 - 20

External Influences: Labour Market Issues
(1 of 4)

• 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 2000)

Copyright © 2017 Pearson Canada Inc. 1 - 21

External Influences: Labour Market Issues
(2 of 4)

Table 1.4 The Four Generations

Blank Traditionalists Baby Boomers Generation X-ers Generation Y-ers
1922–1945 1946–1964 1965–1980 1981–2000
Notes Grew up in an era The largest group in This group grew Beginning to enter
of hardship, the workforce. Grew up as divorce the workforce.
including a war up in a time of major rates skyrocketed. Expect to change
and the Great optimism and change First technology- jobs frequently.
Depression. amidst the moon literate generation.
landing and the
women’s movement.
Attitudes, • Loyalty • Optimism • Independence • Confidence
Values, and • Respect for • Involvement • Self-reliance • Diversity
Expectations authority • Team oriented • Pragmatism • Civic duty
• Dedication • Personal growth • Skepticism • Optimism
• Sacrifice and gratification • Informality • Immediate access
• Conformity • Youthfulness • Balance to information and
• Honour • Equality services
• Privacy • Career focused
• Stability
• Economic
conservatism

Copyright © 2017 Pearson Canada Inc. 1 - 22

External Influences: Labour Market Issues
(3 of 4)

Table 1.4 Continued

Blank Traditionalists Baby Boomers Generation X-ers Generation Y-ers
1922–1945 1946–1964 1965–1980 1981–2000
Key • Compliant • Driven to succeed • Flexible and • Collective action
Characteristics • Detail oriented • Team player adaptable • Expressive and
• Hard-working • Relationship • Creative tolerant of
• Fiscally frugal focused • Entrepreneurial differences
• Trustworthy • Eager to add value • Multitasker • Eager to accept
• Risk averse • Politically savvy in • Results driven challenges
• Long-term the workplace • Individualistic • Innovative and
focused • Competitive creative
Source: Loyalty Unplugged: How to Get, Keep & Grow All Four Generations. Reprinted by permission from Adwoa K
Buahene.

Copyright © 2017 Pearson Canada Inc. 1 - 23

External Influences: Labour Market Issues
(4 of 4)

• 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

Copyright © 2017 Pearson Canada Inc. 1 - 24

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

Copyright © 2017 Pearson Canada Inc. 1 - 25

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

Copyright © 2017 Pearson Canada Inc. 1 - 26

External Influences: Globalization
Global trends:
– firms extend business operations abroad
– emergence of a single global market
– 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.

Copyright © 2017 Pearson Canada Inc. 1 - 27

External Influences: Environmental
Concerns
Topics of increasing importance:
• sustainability
• climate change
• global warming
• pollution
• carbon footprints
• extinction of wildlife species
• ecosystem fragility
Copyright © 2017 Pearson Canada Inc. 1 - 28
Internal Influences: Organizational Culture
• core values, beliefs and assumptions
• often conveyed through an organization’s mission
statement
• positive culture is desired

Copyright © 2017 Pearson Canada Inc. 1 - 29

Internal Influences: Organizational Climate
• prevailing atmosphere in an organization
• friendly/unfriendly, open/secretive, rigid/flexible,
innovative/stagnant
• influenced by leadership, HR polices,
communication style

Copyright © 2017 Pearson Canada Inc. 1 - 30

Internal Influences: Management Practices
• bureaucratic organizations being replaced with
flatter structures
• increased employee empowerment

Copyright © 2017 Pearson Canada Inc. 1 - 31