Human Resources Management in

Canada
Fifteenth Canadian Edition

Chapter 1
The Strategic Role of Human
Resources Management

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Learning Objectives
1.1 Define what human resources management (HR M) is
and analyze how it relates to the management process
and non-H R managers.
1.2 Explain how HR M has changed over time to include a
higher-level advisory role.
1.3 Identify tools to help make evidence-based HR M
decisions.
1.4 Describe professionalism and ethics in the HR M
function.
1.5 Discuss the internal and external environmental factors
affecting HR M policies and practices, and explain their
impact.

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Where Are We Now … Ellipsis

The purpose of this chapter is to explain what HR M is, why it

is important and how HR M activities are part of every
manager’s job.

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Human Resources Management and
the Management Process (1 of 8)
What is an organization?
• A group consisting of people with formally assigned roles
who work together to achieve organization’s goals.
What do managers do?
• Managers accomplish organization’s goals by managing
the efforts of the organization’s people.
• Perform the management process of planning, organizing,
staffing, leading, and controlling.

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Human Resources Management and
the Management Process (2 of 8)
What is Human Resources Management (HR M)?
• Management of people/employees in organizations to
drive successful organizational performance and
achievement of organization’s strategic goals.
• Responsible for:
– Finding and hiring the best individuals available.
– Developing their talent.
– Creating a productive work environment.
– Continually building and monitoring the human assets.

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Human Resources Management and
the Management Process (3 of 8)
Figure 1.1 Linking Company-Wide and H R Strategies

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Human Resources Management and
the Management Process (4 of 8)
Strategy and Human Capital
• Strategic plan: How the company will match its internal
strengths and weaknesses with external opportunities and
threats to maintain a competitive position.
• Strategy: Course of action the company pursues to
achieve its strategic aims.
• Strategic management: The process of identifying and
executing the strategic plan by matching the company’s
capabilities with the demands of its environment.

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Human Resources Management and
the Management Process (5 of 8)
Strategy and Human Capital
• Human capital is the knowledge, education, training,
skills, and expertise of an organization’s workforce.
• H R practices contribute to development of embedded
knowledge of a firm’s culture, history, processes, and
context.
• High performance H R practices have a positive
relationship with productivity and financial performance.

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Human Resources Management and
the Management Process (6 of 8)
Why Is H R Management Important to All Managers?
• Mistakes managers don’t want to make:
– hire the wrong person for the job
– experience high turnover
– have employees work below performance
expectations
– waste time with useless interviews
– face discrimination lawsuits

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Human Resources Management and
the Management Process (7 of 8)
Why Is H R Management Important to All Managers?
• Mistakes managers don’t want to make (continued):
– be cited under occupational safety laws for unfair
practices
– have some employees think their salaries are unfair
relative to others in the organization
– allow a lack of training to undermine effectiveness
– commit any unfair labour practices

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Human Resources Management and
the Management Process (8 of 8)
Shared Responsibility for Talent Management
• Current trends point to H R and talent management
becoming an everyday part of doing business.
• Figure 1.2 H R Activities: H R Professionals and Senior
Managers:
– Highlights core job requirements found in non-H R
roles.
▪ Traditionally limited to H R department.
– Evidence that H R skills permeate throughout the
organization.
– All managers need basics of H R management skills.
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HR M: Past, Present, and Future (1 of 5)
Past: Brief History of HR M
• Historically any enterprise required attracting, selecting,
and training workers.
– Personnel tasks were part of every manager’s job.
• In later 1800s, labour problems began arising in post-
Industrial Revolution factories.
• In the early 1900s, the first “hiring offices,” training
programs, and factory schools were set up by employers.
• Union laws in the 1930s expanded role of H R.
• Equity-oriented laws in the 1970s and 1980s made
employers more reliant of personnel management.

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HR M: Past, Present, and Future (2 of 5)
Past: Brief History of HR M
• Globalization in the 1980s made gaining competitive edge
through engaged employees increasingly important.
• Technological advances in the 1980s and 1990s resulted
in outsourcing many operational H R activities.
• Today economic and demographic trends make finding,
hiring, and motivating employees more challenging.
– Role of H R department has evolved to that of helping
organizations achieve strategic objectives.

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HR M: Past, Present, and Future (3 of 5)
Present: The New H R Manager
• Defends H R plans in measurable terms.
• Understands strategic planning, marketing, production,
and finance.
• Formulates and Implements organizational changes.
• Drives employee engagement.
• Redesigns organizational structures and work processes.
• Serves as subject-matter expert or in-house consultant.
• Needs to have broad-based business knowledge and
skills.

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HR M: Past, Present, and Future (4 of 5)
Present: The New H R Manager
• Firms are changing how they organize the H R
function.
• New focus separates employees into segments such
as executives, technical employees, and rank-and-file.
• Other H R configurations in use today:
– Transactional H R teams
– Corporate H R teams
– Embedded H R teams
– Relationship managers or H R business partners
(HRB P)
– Centres of excellence (CO E)

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HR M: Past, Present, and Future (5 of 5)
Future: What’s Next for the H R Manager
• Best practices include focusing on workforce growth,
using technology to evolve hiring practices, recognizing
novel employee expectations, determining how to brand
the organization to be the company of choice, establishing
ways to integrate employees, and figuring out how to
select recruits based on evolving job and company
requirements.
• Centralise new talent platforms.
• Post-Covid, determine best ways for employees place of
work, how to work and when to work.
• Manage diversity, equity and inclusion (DE I).

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Evidence-Based HR M (1 of 4)
Evidence-based HR M is making decisions based on
data, facts, analytics, scientific rigour, critical evaluation,
and critically-evaluated research/case studies.
• Using the best-available evidence in making HR M
proposals, decisions, practices and conclusions.
• Measuring the value and impact of human capital and
HR M practices:
– Use metrics (statistics) to measure activities and
results.
▪ Provide critical information that can be linked to
organizational outcomes such as productivity,
market share, and profits.

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Evidence-Based HR M (2 of 4)
Strategic HR M Tools
• Strategy map: A strategic planning tool that shows the
“big picture” of how each department’s performance
contributes to achieving the company’s overall strategic
goals.
• Balanced scorecard: Translates organization’s strategy
into a comprehensive set of performance measures.
– Financial measures tell results of actions already
taken.
– Operational measures drive future performance.
– Balance long-term and short-term actions related to
financial results, customers, business processes, and
human capital management.
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Evidence-Based HR M (3 of 4)
Strategic HR M Tools
• Digital dashboard presents managers with desktop
graphs and charts to create a computerized picture of how
the company is doing on all the metrics from the H R
scoreboard process.

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Evidence-Based HR M (4 of 4)
Figure 1.3 A Sample of a Digital Dashboard

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Growing Professionalism in HR M
(1 of 7)

Characteristics of a Profession
1. Common body of knowledge.
2. Benchmarked performance standards.
3. Representative professional association.
4. External perception as a profession.
5. Code of ethics.
6. Required training credentials for entry and career
mobility.
7. Ongoing skill development.
8. Maintenance of professional competence.

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Growing Professionalism in HR M
(2 of 7)

• Certification is the recognition for having met

specific professional standards.
• Professional H R designation in Canada is changing.
– Ontario has formed its own association.
– New designation in all other jurisdictions:
▪ Chartered Professional in Human Resources
(CPH R)
– Specialized designations recognize expertise in
benefits, recruitment, payroll, employee benefits,
management professionals and certified training
and development professionals.
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Growing Professionalism in HR M
(3 of 7)

Table 1.1 H R Associations by Province and Designation

Jurisdiction H R Association Designation Link

Chartered Professionals in Human

British Columbia and
Resources of British Columbia and CPH R www.cphrbc.ca
Yukon
Yukon (CPH R B C & Yukon)
Chartered Professionals in Human
Alberta, Nunavut, and
Resources of Alberta (CPH R CPH R www.cphrab.ca
Northwest Territories
Alberta)
Chartered Professionals in Human
Saskatchewan Resources Saskatchewan (CPH R CPH R www.cphrsk.ca
Saskatchewan)
Chartered Professionals in Human
Manitoba Resources Manitoba (CPH R CPH R www.cphrmb.ca
Manitoba)
New Brunswick Chartered Professionals in Human CPH R www.cphrnb.ca
Resources New Brunswick (CPH
R New Brunswick)

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Growing Professionalism in HR M
(4 of 7)

Table 1.1 H R Associations by Province and Designation

Jurisdiction H R Association Designation Link

Chartered Professional in Human

Nova Scotia Resources Nova Scotia CPH R https://cphrns.ca/
(CPH R Nova Scotia)
Chartered Professionals in Human
Prince Edward Island Resources of Prince Edward CPH R www.cphrpei.ca/
Island Association (CPH R PE I)
The Chartered Professionals in
Newfoundland and
Human Resources Newfoundland CPH R www.cphrnl.ca
Labrador
and Labrador (CPH R N L)
L’Ordre des Conseillers en
Quebec CPH R www.ordrecrha.org
Ressources Humaines Agréés
Ontario Human Resources Professionals CHR P, CHR L, www.hrpa.ca/
Association (HRP A) CHR E

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Growing Professionalism in HR M
(5 of 7)

Ethics
• The principles of conduct governing an individual or group.
• For H R professionals abiding by code of ethics is a
requirement to maintain professional status.
• Organizational code of ethics provides a guide.
• Ethical issues in Canadian organizations today:
– Security of information.
– Employee and client privacy.
– Environmental issues.
– Governance.
– Conflict of interest.

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Growing Professionalism in HR M
(6 of 7)

Ethics
• Failure of ethics programs:
– Lack of leadership.
– Inadequate training.
• Positive outcomes of ethics programs:
– Increased confidence among stakeholders.
– Greater client, customer and employee loyalty.
– Decreased vulnerability to crime.
– Reduced losses to internal theft.
– Increased public trust.

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Growing Professionalism in HR M
(7 of 7)

Ethics
• Social responsibility is the balancing organizational
commitments to investors, employees, customers, other
businesses, and the communities in which the firm
operates.
• Mountain Equipment Co-op’s (M E C) social responsibility
perspective:
– Examine every aspect of a product’s life cycle.
– Consider resources that go into making and shipping
products.
– Aim for satisfaction of employees and customers.
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Environmental Influences on HR M
(1 of 14)
Table 1.2 External and Internal Environmental Influences on
HR M
External
Labour market issues: Changes to the workforce composition, including protected
groups (visible/ethnic minorities, women, Indigenous Peoples, people with disabilities),
generational differences (traditionalists, baby boomers, Gen X, Gen Y, and Gen Z), and
contingent workers
Economic conditions: Affect supply and demand for products, impacting quantity and
quality of employees required, and ability to pay/give benefits
Technology: Controlling data and privacy

Government: Abiding by provincial and national standards

Globalization: Managing the workforce in an intense, hypercompetitive global economy

Environment: Managing sustainability and corporate social responsibility

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Environmental Influences on HR M
(2 of 14)
Table 1.2 External and Internal Environmental Influences on
HR M
Internal

Organizational culture: Values, beliefs, and norms of organizational members

Organizational climate: The atmosphere’s impact on employee motivation,

job performance, and productivity
Management practices: Organizational structure and employee empowerment

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Environmental Influences on HR M
(3 of 14)

External Environmental Influences

Labour Market Issues: Workforce Composition
• Increasing workforce diversity, equity and inclusion (DE I)
– Canada’s workforce is one of the most diverse in the world.
– Includes demographic factors, values and cultural norms.
– In Canada there are four protected employee groups:
visible and ethnic minorities, women, Indigenous Peoples,
and persons with disabilities.
– They have face lower pay on average, occupational
segregation higher rates of unemployment, concentration in
low status jobs with little positional for career growth.

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Environmental Influences on HR M
(4 of 14)

External Environmental Influences

Labour Market Issues: Generational Differences
• See Table 1.3 for a description of the 5 generations in the
workplace.
• Values and beliefs are shared within each of the 5
generations which impact their approach to work and
working life.

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Environmental Influences on HR M
(5 of 14)

External Environmental Influences

Labour Market Issues: Non-standard or Contingent
Workers
• Workers who do not have regular full-time employment
status.
• Used by companies to provide flexible, on-demand labour
without the same guarantees for continued employment,
development or benefits.
• Direct employment types: full-time, part-time, on call or in
limited-term roles.
• Contract work types: direct contracting, subcontracting
and gig workers.
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Environmental Influences on HR M
(6 of 14)

External Environmental Influences

Economic Conditions
• Affect supply and demand.
• Employment levels fluctuate with economy.
• Productivity improvement is essential for long-term
success.
– Ratio of outputs (goods and services) to inputs
(people, capital, energy, and materials).
• Decline of the primary, secondary sectors but growth of
tertiary (service) sectors.

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Environmental Influences on HR M
(7 of 14)

External Environmental Influences

Technology
• Digital technologies are driving transfer of functionality
from H R professionals to automation.
– Mobile applications – monitor employee location.
– Gaming – used in training applications.
– Cloud computing – provide real-time feedback.
– Data analytics – applied to problem solving.
– Talent analytics – analyze traits of ideal candidates.
• Increasing use of social media tools to recruit new
employees.
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Environmental Influences on HR M
(8 of 14)

External Environmental Influences

Technology
• Affects the nature of jobs.
– Dispersed workforce.
▪ Work anywhere.
– Line between work and family time is blurred.
– Concerns about data control, accuracy, right to privacy
and ethics.
– Monitoring of employee speed, accuracy, efficiency,
email, voicemail, phone conversations, computer use.
– Video surveillance of employee behaviour.
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Environmental Influences on HR M
(9 of 14)

External Environmental Influences

Government
• Impact of laws on employer-employee relationship.
– Complicated by federal and ten provincial jurisdictions.

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Environmental Influences on HR M
(10 of 14)

External Environmental Influences

Globalization
• Globalization is the emergence of a single global market.
– Sustainability
– Increasing intensity of competition.
– Human resources are a source of competitive
advantage.
– H R professionals must become familiar with
employment legislation in other countries.

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Environmental Influences on HR M
(11 of 14)

External Environmental Influences

Environmental Concerns
• Environmental concerns are motivating behaviour of
employees.
– Sustainability
– Climate change
– Global warming
– Pollution
– Carbon footprints
– Extinction of wildlife
– Ecosystem fragility
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Environmental Influences on HR M
(12 of 14)

Internal Environmental Influences

Organizational Culture
• Organizational culture is the core values, beliefs, and
assumptions that are widely shared by members of an
organization.
• Conveyed through mission statement, stories, symbols and
ceremonies.
– Communicates what organization believes in and stands
for.
– Provides sense of direction and expected behaviour.
– Creates a sense of identity and consistency.
– Fosters employee loyalty and commitment.
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Environmental Influences on HR M
(13 of 14)

Internal Environmental Influences

Organizational Climate
• Organizational climate is the atmosphere or “internal
weather”, and its impact on employee motivation, job
satisfaction, performance, productivity, and loyalty.
– Examples: friendly or unfriendly, open or secretive,
rigid of flexible, innovative or stagnant.

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Environmental Influences on HR M
(14 of 14)

Internal Environmental Influences

Management Practices
• Flat structures, cross-functional teams, improved
communication.
• Empowerment provides workers with skills and authority
to make decisions that would traditionally be made by
managers.
• Two-way communication.
• Open-door policies.
• Management by “walking around”.

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