HRM1 - Module 1 - Weeks 1 and 2

CANADIAN HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
Weeks 1 and 2
© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-1

HR
Matters
More on what Human Resource

Management is all about
Exercise….
Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Get your feet wet… In Human Resources
1-3
HR Self-Assessment Exercise
1. How would you answer the following questions? Take 5 minutes [Make
Notes]
a) What are some things your best boss or worse boss did to you as an
employee
b) Identify a job opportunity that you really wanted, but missed
c) Identify a time when you were unfairly paid
d) Identify a time when a manager asked you to do something that you didn’t
think was your job
i. What must a company offer you to keep you as a long-term employee?
ii. Can you identify any of the laws that have an impact on workers?
iii. What are the HR skills that you will need to be a good leader- manager?
So now here is the critical question… So What!?

What’s HR All
About then?
Here are some of the questions we
will address in this Course
1. What are some of the functional
areas within a large HR organization?
2. What are some of the workplace
related laws that impact HR
management?
3. How does Human Resources
impact a company’s bottom line?
4. What types of jobs are there in the
Human Resources field? Check them
out online…

Learning Objectives – what we want to

accomplish in this lecture
1. Discuss the objectives of human resource

management.
2. Identify steps in strategic management of human
resources.
3. Explain how human resource departments are
organized and how they function.
4. Discuss the role of human resource professionals in
today’s organization.

LO1
What is Human Resource Management?
• HRM is the leadership and management of people
within an organization using systems, methods,
processes, and procedures that identify, select,
motivate, and enable employees to achieve
outcomes individually and collectively that enhance
their contribution to the organization’s goals.
• Supports and enables organizations to:
– Meet short and long-term economic, social, and
environmental goals

Other Names Used for HRM
• Personnel administration
• Personnel management
• Manpower management

TO UNDERSTAND
HRM WE MUST
FIRST
UNDERSTAND THE
FOUNDATION OF
AN
ORGANIZATION.
All Organizations Exist to Create Some Product or
Service
• This diagram illustrates a basic cross-

section of an organization. There are
inputs, which must be converted
through the process of transformation,
to some output.
• Look at the inputs: here you will
notice that a major input is knowledge
(or people i.e. employees.
• So, how does an organization
determine what employees are
needed? i.e.jobs. How do we get these
employees into the organization?
• Herein establishes the need for HRM
What is (HRM)? cont’d
• HRM is a specialist function and is an integral part of the strategic

position that an organization assumes
• For an organization to achieve its goals, each employee must engage
in actions and behaviors to move the organization toward these goals
Human Human
Resource Resource
Management Department
What do you think is the difference between the two?

The Interconnectivity of Human

Resource Management Activities
Schwind 12th Edition, Figure 1-1

Functions Within HRM
Workflow analysis via job analysis
HR planning
Recruitment and selection
Training and Development
Compensation
Health and Safety
Performance Management
Industrial Relations Employment Law

Before we move on….Video Activity… HR at
UPS UPS HR
1-13
Instructions:
• Go to SLATE – Content – Module 1
• Open the Word document titled: What is HRM at UPS. Watch
the video below, then answer the question posted in this
document.
• Be prepared to discuss your responses during our “in-class”
time online.
• View the following video on UPS -
https://www.youtube.com/watch?v=sO2vNyBroco – incorrect link – see SLATE Module 1 for
correct link
• .Note: there is a link directly to the video in the Chapter 1 module

Read [on your own]
Go to SLATE – Module 1
Read article “The Importance

of Human Resources
Management”.
Check your
Understanding
• What/who do we mean when

we say the HR?
• …and HRM?
• What about HRD?
• In one (1) sentence, can you
show the connection
between HR, HRM and HRD?
• ……..now we will move on to

SHRM….

HR in the
Organization…
• HR is not the only
department in an
organization
• So how does HR
work together with
the other
departments?
• This leads us to
SHRM…..

Strategic HRM
Strategic human resource

management is:
Integrating (i.e working with all the
other departments in the organization) This involves the development of a
the strategic needs of an organization strategic plan for the overall
into the organization’s choice of organization, wherein is determined
human resource management systems the organization’s corporate strategy,
and practices to support the business strategy, and functional
organization’s overall mission, strategies.
strategies, and performance. p. 4
LO2
A Model of Strategic HRM
Five Steps
1. Organizational Mission, Goals,
and Strategy Analysis [i.e. MVV]
2. Environmental Scan
3. Analysis of Organizational
Character and Culture
4. Choice and Implementation of
Human Resource Strategies
5. Review, Education and Audit of
© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition, Figure 1-2 Schwind 12th Edition 1-19
Step 1: Organizational Mission, Goals, and
Strategy Analysis
• Mission statement
– Statement outlining the purpose, long-term objectives,
and activities the organization will pursue and the course
for the future
• 3 corporate strategies: growth, restructure, stability
• 3 generic business strategies:
– Cost leadership strategy – see p.7
– Differentiation strategy – see p.7
– Focus strategy – see p.7

Step 2: Environmental Scan

• Continuous monitoring of economic, technological,
demographic, and cultural and legal forces
• The major forces:
1. Economic
2. Technological
3. Demographic
4. Cultural
5. Legal
6. Plus Environmental
7. Plus Competitive

Strategic HRM: The
Environmental Scan Activity
Step 2: External Environmental Scan
Activity:
Go to SLATE – Module 1 – Environmental

Activity
Relevant slides: slides 23 – 43
See text: pp. 8 - 17
1-22
Four Critical Economic Forces
Economic cycles
Global trade
Productivity improvement
Global competitiveness
© 2019 McGraw-Hill Education Schwind 12th Edition 1- 23
Economic Force: Economic Cycles

• Canadian economy goes through boom and bust
cycles
– Often linked to other economies
• During recessionary periods, HR faces challenges
– Layoffs, wage concessions, lower morale
• During boom cycles, HR must consider
– How to recruit and develop talent

Economi • International trade has always been
crucial to Canada’s prosperity and
c Force: growth
• Canada ranks high among exporting
Global
nations
• Canadian jobs and economic
prosperity depend upon international
Trade
trade

Economic Force: Global Trade Cont’d

How Competitive is Canada Compared to Other Nations?

Economic
Force: • Productivity: Ratio of an
organization’s outputs to its inputs
Productivity • Productivity improvement is
and Innovation essential for long-term success
Improvement • For over a decade, U.S.
productivity has been consistently
outpacing Canada
• Without innovation, productivity
differences tend to increase

Three Critical Technological
Forces
Flexible Work
Design
Connectivity
Automation
© 2019 McGraw-Hill Education Schwind 12th Edition 1- 28
• The use of Technology
• Changes the way we work, play, study,
and entertain ourselves
• Access to information has affected the
way organizations conduct business
• Technology has also brought flexibility

• When, where and how work is carried out
(e.g. Telecommuting)
Technological • Example: Kodak

• Major producer of photographic film since
Force: Flexible 1880 (had digital photography technology
but did not commercialize it - Filed for
Work Design bankruptcy in 2012)
• Technology improves job efficiencies but can

also eliminate jobs
• Automation in lumber industry increased
production by approx. 25% but eliminated
many jobs
• HRM must support organizational efficiency,

but needs to manage changes in employee
structures

• Knowledge Management
Technologica • Process of capturing organizational
l Force: knowledge and making it available for
Connectivity sharing and building new knowledge
• Intranets and integrated information
systems help store and access
information quickly and accurately
• Internet has a profound impact on HR
activities
• social networking sites, video-sharing,
etc.

• Organizations automate
to:
• Increase speed
• Provide better service
• Increase predictability
in
operations
• Achieve higher
standards of quality
• Increase flexibility
• May use robots to replace
boring or hazardous jobs
• Automation often results
in a smaller workforce
• Automation can also
enhance the work
Technological Forces: experience
Mechanization
Five Critical Demographic Forces
1. Gender balance in the workforce

2. Shift towards knowledge workers
3. Educational attainment of workers
4. Aging population
5. Generational shift

• Nearly 47% of the workforce are
women (2017)
• Women accounted for 70% of
Demographic employment growth in the last 20
years
Force: Gender • Management, law, engineering and
Balance in the medical fields continue to be largest
growth areas
Workplace • Raises importance of various work-
related issues/challenges:
• Child care
• Work-family balance
• Dual career families
• Employment equity
With these issues/challenges, more
women than men work part-time

Distribution of Gender in the Workforce in
Different Industries

• Shift from primary and
extractive industries to service,
technical, and professional jobs
Demographic • All services combined
Force: currently account for more
than 75 percent of the gross
Shift Towards domestic product (GDP).
Knowledge • Knowledge workers have been
Workers the fastest growing type of
workers
• Need to attract, retain, and
retrain

Demographic Force:
Educational Attainment of Workers
Demographic Force:
Educational Attainment of Workers
• Increasing dramatically and expected to continue
• 9% of women and 15% of men drop out of school
• More than 8 million Canadians lack basic school certificate or
diploma
• There are critical “employability skills” required:
• Basic Academic skills (e.g., Communication, thinking, learning)
• Personal Management skills (e.g., positive attitudes and
behaviours, ability to accept responsibility)
• Teamwork skills (e.g., ability to work with others, lead a team)
With increased knowledge workers and continued lack of education,

where do you see potential employee development issues?

Demographic Force: Aging Population

• Average age of the workforce is increasing
– Impending “old age crisis” with an aging population
Demographic Force: Aging
Population
• This presents more issues for HR in organizations:
• Expanded retirement benefits
• Variable work schedules
• Coordination of benefits
• Retraining programs
• One major challenge is retaining older, more experienced and

skilled employees whose expertise is in demand in the market
How does age crisis affect HR especially when mandatory retirement
does not exist? (Hint: There are challenges but many benefits too!)

• Baby Boomers, Generation X,
Generation Y, and Generation
Next (Gen Z) are qualitatively
different workers.
Demographic
Force: • Need to understand that
people have different
Generational expectations from their
Shift workplaces
• Generational diversity creates

an interpersonal dynamic for
all leaders

Demographic Force: Generational Shift cont’d

– Baby Boomers: remain loyal; not adverse to
authority; stay in one job
– Gen Xers: not adverse to hard work; unfazed by

authority; see work as a job, and are more self
reliant
– Gen Yers: work smart not hard; adverse to

command management; want continuous
What are the potential challenges for managers and/or HR professionals

of having diverse ages working together?
Two
Critical 1. Diversity
Cultural 2. Ethics
Forces

Cultural Force: Diversity & Ethics
• Diversity
• The Canadian society is a cultural mosaic
• Canada encourages maintaining unique culture and heritage
vs. U.S. “melting pot”
• Ethics
• Ethical conduct of business is becoming an increasingly
important issue
• Managers should understand ethical perspectives and
consider ethical implications

Step 3: Analysis of Organizational

Structure and Culture
• Human resource strategies should be formulated
only after a careful look at the organization’s
structure
– Employees, objectives, technology, size, age, unions,
policies, successes, failures
• Structure reflects the past and shapes the future
• Each organization has a unique culture
– Core beliefs and assumptions that are widely shared by
all organizational members

From Strategy Formulation to
Strategy Implementation
Strategy formulation is comprised of…
• Steps 1 – 3 ….at the end of which there is a clear understanding
of the organization’s a) corporate strategy, and b) business
strategy
Next….strategy implementation……
Step 4: Choice and Implementation of

• There should be a
clear line of sight
between HR
strategy and
corporate goals’

• HR must continuously focus on 5
Step 4: Choice groups of activities:
and 1. Planning Human Resources
Implementation 2. Attracting Human Resources
3. Placing, Developing, and
of Human Evaluating Human Resources
Resource 4. Motivating Employees
5. Maintaining High
Strategies Performance

Do this….
• Look back at slide # 12; place those functions of HR
within the 5 groups of activities mention in the previous
slide #47.
• Let me help you get started. Planning human resources
would involve a) having an understanding of the
workflow process through job analysis, and b) HR
planning. Now you try to complete the remaining 4
“activities”
• Attracting Human Resources……
• Placing, developing and evaluating human resources…..
• Motivating employees ……
• Maintaining high performance…..
Step 5: Review, Evaluation, and Audit of

HR Audit:
• HR Strategies
should be
examined
periodically in
consideration of
changing factors
(e.g., technology, environment)

LO3
The Organization of HRM

• HR Department in a small organization
– Separate HR department emerges when HR
activities becomes a burden
– Often emerges as a small department or
individual reporting to a middle-level manager

The Human Resource

Department in a Small Organization

The Organization of HRM

• Large HR Department
– As the organization grows, the HR department
usually grows in impact/complexity
– Specialists are added
– Vice President title

A Large Human Resource Department

Staff HR departments are service departments
authority
Authority to advise, not direct
The Service Line

authority
Possessed by managers of operating
departments (i.e., authority to make decisions)
Role of the
HR They direct and ask HR for advice
Department
Functional HR department may be provided authority to
authority make decisions (e.g., deciding type of benefits)
Require line managers to follow policies and

procedures

LO4
Today’s HR Professional
• Enormous growth in the number of HR managers
– HR had been slow to evolve into a profession
• Competencies for HR Managers:
– Mastery of HRM Tools, Change Mastery, Personal
Credibility
• CCHRA is a collaborative effort of HR associations
– Coordinates national designation - CPHR

1 Strategic Human Resource Management

Summary
After mastering this chapter content, you should be able to:
1. Discuss the objectives of human resource management.
2. Identify steps in the strategic management of human
resources.
3. Explain how human resource departments are organized
and how they function.
4. Discuss the role of human resource professionals in today’s
organization.

•Do you have any
questions?

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CANADIAN HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-1

More on what Human Resource

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

So now here is the critical question… So What!?

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Learning Objectives – what we want to

1. Discuss the objectives of human resource

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-5

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-6

Other Names Used for HRM

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-7

• This diagram illustrates a basic cross-

• HRM is a specialist function and is an integral part of the strategic

What do you think is the difference between the two?

The Interconnectivity of Human

Schwind 12th Edition, Figure 1-1

Recruitment and selection

Training and Development

Health and Safety

Industrial Relations Employment Law

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Read article “The Importance

• What/who do we mean when

• ……..now we will move on to

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Strategic human resource

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-20

Step 2: Environmental Scan

Schwind 12th Edition, Figure 1-3

Step 2: External Environmental Scan

Go to SLATE – Module 1 – Environmental

Relevant slides: slides 23 – 43

See text: pp. 8 - 17

Economic Force: Economic Cycles

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-24

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Economic Force: Global Trade Cont’d

Schwind 12th Edition, Figure 1-4

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

• Technology has also brought flexibility

Technological • Example: Kodak

• Technology improves job efficiencies but can

• HRM must support organizational efficiency,

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Five Critical Demographic Forces

1. Gender balance in the workforce

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-32

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

With increased knowledge workers and continued lack of education,

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Demographic Force: Aging Population

• One major challenge is retaining older, more experienced and

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

• Generational diversity creates

Copyright © 2016 McGraw-Hill Education Limited Schwind 11th Canadian Edition

Demographic Force: Generational Shift cont’d