chapter 01 dessler 12-ce_ppt_ch01
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The Strategic Role of Human Resources Management | 1-1
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Dessler, Chhinzer, ColeHuman Resources
Management in CanadaCanadian Twelfth Edition
Chapter 1: The Strategic Role of Human Resources Management
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The Strategic Role of Human Resources Management | 1-2
Learning Outcomes
• DEFINE human resources management and ANALYZE the strategic significance of human resources management.
• DESCRIBE the two categories of activities required of HR managers and DISCUSS examples of each.
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Learning Outcomes
• DISCUSS the internal and external environmental factors affecting human resources management policies and practices and EXPLAIN their impact.
• DESCRIBE the three stages in the evolution of HRM.
• EXPLAIN how HRM has changed over recent years to include a higher-level advisory role.
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The Strategic Role of Human Resources Management
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
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The Strategic Role of Human Resources Management | 1-5
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The Strategic Role of Human Resources Management
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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
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Human Resources Movement: Evolutionary Phases
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
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Human Resources Movement: Evolutionary Phases
Phase 3 – 1960’s to 1980’s
• human resources management
• outsourcing of many administrative functions
• emphasis on contribution and proactive management of people
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Human Resources Movement: Evolutionary Phases
Phase 4 – 1990’s to present
• every line manager must posses basic HR skills
• help achieve strategic objectives
• new roles: activist, change steward, talent manager/organizational designer, operational executor and business ally
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The Strategic Role of Human Resources Management | 1-10
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New HRM Competencies
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continued
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The Strategic Role of Human Resources Management | 1-11
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New HRM Competencies
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continued
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The Strategic Role of Human Resources Management | 1-12
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New HRM Competencies
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The Strategic Role of Human Resources Management | 1-13
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New HRM Competencies
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The Strategic Role of Human Resources Management | 1-14
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New HRM Competencies
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Measuring the Value of HR: Metrics
Traditional Measures
• focused on activity and cost
• for example:• number of candidates interviewed• cost per hire
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Measuring the Value of HR: Metrics
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
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Environmental Influences on HRM
Internal Influences
• Organizational culture
• Organizational climate
• Management practices
External Influences
• Economic conditions
• Labour market issues
• Technology
• Government
• Globalization
• Environmental concerns
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External Influences: Economic Conditions
• employment levels
• productivity levels
• growth of the primary, secondary, and tertiary (service) sectors
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External Influences: Labour Market Issues
• 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 present)
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The Strategic Role of Human Resources Management | 1-20
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Generational Differences
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External Influences: Labour Market Issues
• 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
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The Strategic Role of Human Resources Management | 1-22
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
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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
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External Influences: Globalization
Global trends:• firms extend business operations abroad• emergence of one world economy• 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.
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The Strategic Role of Human Resources Management | 1-25
External Influences: Environmental Concerns
Topics of increasing importance:
• sustainability
• climate change
• global warming
• pollution
• carbon footprints
• extinction of wildlife species
• ecosystem fragility
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The Strategic Role of Human Resources Management | 1-26
Internal Influences: Organizational Culture
• core values, beliefs and assumptions
• often conveyed through an organization’s mission statement
• positive culture is desired
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The Strategic Role of Human Resources Management | 1-27
Internal Influences:Organizational Climate
• prevailing atmosphere in an organization
• friendly/unfriendly, open/secretive, rigid/flexible, innovative/stagnant
• influenced by leadership, HR polices, communication style
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The Strategic Role of Human Resources Management | 1-28
Internal Influences:Management Practices
• bureaucratic organizations being replaced with flatter structures
• increased employee empowerment
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The Strategic Role of Human Resources Management | 1-29
Growing Professionalism in HRMCharacteristics of a profession:
• A common body of knowledge
• Performance standards
• Professional association
• External perception as a professional
• Code of ethics
• Required training credentials
• Ongoing skill development
• Maintenance of professional competence
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Certified Human Resources Professional (CHRP)
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continued
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The Strategic Role of Human Resources Management | 1-31
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Certified Human Resources Professional (CHRP)
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Professional HR Designations
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