CANADIAN HUMAN RESOURCE MANAGEMENT

1
Strategic Human Resource Management

Chapter Krista Uggerslev, NAIT

One

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Learning Objectives
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.

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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

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The Interconnectivity of Human

Resource Management Activities

Schwind 12th Edition, Figure 1-1

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Strategic Human Resource Management

• The process of integrating the strategic needs of an
organization into the choice of HR systems and
practices to support the overall mission, strategies,
and performance
• The choice of HR tools will depend on what the
organization is trying to achieve
• HR activities must align with and contribute to the
organization’s strategies
• Each HR practice should generate value for the
organization
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LO2
A Model of Strategic HRM
Five Steps
1. Organizational Mission, Goals,
and Strategy Analysis
2. Environmental Scan
3. Analysis of Organizational
Character and Culture
4. Choice and Implementation of
Human Resource Strategies
5. Review, Education and Audit
of Human Resource Strategies

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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 generic business strategies:
– Cost leadership strategy
– Differentiation strategy
– Focus strategy

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Step 2: Environmental Scan

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

Schwind 12th Edition, Figure 1-3

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Four Critical Economic Forces

1. Economic cycles
2. Global trade
3. Productivity improvement
4. Global competitiveness

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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

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Economic Force: Global Trade

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

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Economic Force: Global Trade Cont’d

How Competitive is Canada Compared to Other Nations?

Schwind 12th Edition, Figure 1-4

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

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Three Critical Technological Forces

1. Flexible Work Design

2. Connectivity
3. Automation

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Technological Force:
Flexible Work Design
• Unprecedented degree of technology
– Changed the way we work, play, study, and entertain
ourselves
– Access to information has affected the way organizations
conduct business
• Technology has brought flexibility
– When and where work is carried out (e.g., telecommuting)

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Technological Force: Connectivity

• Knowledge Management
– Process of capturing organizational knowledge and
making it available for 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.

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Technological Force: Automation

• Organizations automate to:
– Increase speed
– Provide better service
– Increase flexibility
– Increase predictability in operations
– Achieve higher standards of quality
• May use robots to replace boring or hazardous jobs

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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

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Demographic Force:
Gender Balance in the Workplace
• 47% of the workforce are women (2017)
• Women accounted for 70% of employment growth
in the last 20 years
• Raises importance of:
– Child care
– Work-family balance
– Dual career families
– Employment equity

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

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Demographic Force:
Educational Attainment of Workers

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Demographic Force: Aging Population

• Average age of the workforce is increasing
– Impending “old age crisis”

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Demographic Force: Generational Shift

• Baby Boomers, Generation X, Generation Y, and

Generation Next (Gen Z) are qualitatively different
workers
– Need to understand that people have different
expectations from their workplaces

– Generational diversity creates an interpersonal dynamic

for all leaders

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Two Critical Cultural Forces

1. Diversity
2. Ethics

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Cultural Force: Diversity

• Canadian society is a cultural mosaic
• Canada encourages maintaining unique culture and
heritage vs. U.S. “melting pot”

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Cultural Force: Ethics

• Ethical conduct of business is becoming an
increasingly important issue
• Managers should understand ethical perspectives
and consider ethical implications

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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

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Step 4: Choice and Implementation of

Human Resource Strategies

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

Schwind 12th Edition, Figure 1-10

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Step 4: Choice and Implementation of

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

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Step 5: Review, Evaluation, and Audit of

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

Schwind 12th Edition, Figure 1-12

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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

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The Human Resource

Department in a Small Organization

Schwind 12th Edition, Figure 1-14

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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

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A Large Human Resource Department

Schwind 12th Edition, Figure 1-15

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The Service Role of the HR
Department
• Staff authority
– HR departments are service departments
– Authority to advise, not direct
• Line authority
– Possessed by managers of operating departments (i.e.,
authority to make decisions)
• Functional authority
– HR department may be provided authority to make
decisions (e.g., deciding type of benefits)

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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

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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.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-37