copyright © 2008 by nelson, a division of thomson canada limited. 1–11–1 part 1: nature of...

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 1–1

Part 1: Nature of Human Resource Part 1: Nature of Human Resource Management Management

Part 1: Nature of Human Resource Part 1: Nature of Human Resource Management Management

Chapter 1: Changing Nature of HumanChapter 1: Changing Nature of HumanResource ManagementResource Management

Prepared by Linda Eligh, University of Western Ontario


Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

After you have read this chapter, you should be able to:1. Define HR management and identify the seven

categories of HR activities.2. Discuss management of human capital in

organizations.3. Discuss four challenges facing HR today.4. Describe how the major roles of HR management are

being transformed.5. Identify the purposes and uses of HR technology.6. Discuss why ethical issues affect HR management.7. Explain the key competencies needed by HR

professionals and why certification is important.


Nature of Human Resource ManagementNature of Human Resource ManagementNature of Human Resource ManagementNature of Human Resource Management

• Human Resource (HR) ManagementThe policies, practices and systems that influence

employees’ behaviour, attitude and performance in the attainment of organizational goals.

• Who is an HR Manager? In the course of carrying out their duties, every

operating manager is, in essence, an HR manager.HR specialists design processes and systems that

operating managers help implement.


HR Management Activities HR Management Activities Fig. 1-1Fig. 1-1HR Management Activities HR Management Activities Fig. 1-1Fig. 1-1



HR Activities:

Global forces and HR Management

Strategic HR Management

Equal Employment Opportunity

Staffing



HR Activities (cont’d):

HR Development

Compensation and Benefits

Health, Safety, and Security

Employee and Labour Relations



Smaller Organizations and HR ManagementSmaller Organizations and HR Management

IncreasingCompetition

IncreasingCompetition

Increased Wage

Pressures

Increased Wage

PressuresLegislative

Changes

Legislative Changes

Increasing Costs

(Benefits)

Increasing Costs

(Benefits)

Shortage of

QualifiedWorkers

Shortage of

QualifiedWorkers

Issues of Greatest Concern

Issues of Greatest Concern


Typical Division of HR Responsibilities: Training Fig. 1-2Typical Division of HR Responsibilities: Training Fig. 1-2


Management of Human Capital Management of Human Capital in Organizationsin Organizations

Management of Human Capital Management of Human Capital in Organizationsin Organizations

• Human CapitalThe collective value of the capabilities, knowledge,

skills, life experiences, and motivation of an organizational workforce.

Also known as intellectual capital. How to measure the strategic value of human assets?

• Human Resources as Core CompetencyA unique capability that creates high value and

differentiates an organization from its competition. HR competencies: a source of competitive advantage.


HR Management ChallengesHR Management ChallengesHR Management ChallengesHR Management Challenges

Most prevalent challenges facing HR management:

1. Globalization of Business

2. Economic and Technological Changes

3. Labour

4. Workforce Demographics and Diversity

5. Organizational Cost Pressures and

Restructuring



1. Globalization of Business Outsourcing and offshoring Global security and terrorism

2. Economic and Technological Changes Occupational shifts from manufacturing and

agriculture to service and telecommunications. Job growth primarily in IT and healthcare

Workforce availability and quality concerns Inadequate supply of workers with soft

skills needed for “knowledge jobs” Significant shortage across Canada of

tradespeople



3. Labour Employee retention Growth of contingent workforce

Increases in temporary workers, independent

contractors, leased employees, and part timers

caused by need for flexibility in staffing, more

difficulties in firing regular employees, and

reduced legal liability for contractors.

Technological shifts and the Internet Growth of information technology creating more

“virtual” employees and other challenges

Employability Skills



4. Workforce Demographics and Diversity Multiculturalism Visible minorities and diversity

20% of workforce born outside Canadawith growing presence of visible minorities

More women in the workforce Single-parent households, dual career

couples, domestic partners, workingmothers and family/childcare

Aging workers Significant numbers of experienced

employees are retiring, changing to part time etc. Age discrimination



5. Organizational Cost Pressures, Restructuring Mergers and Acquisitions “Right-sizing”—eliminating layers of management,

closing facilities, merging with other organizations, and outplacing workers Intended results are flatter organizations, increases in

productivity, quality, service and lower costs. Costs are “survivor mentality”, loss of employee loyalty,

and turnover of valuable employees.

HR managers must work toward ensuring

cultural compatibility in mergers.


HR Management RolesHR Management RolesHR Management RolesHR Management Roles

• Administrative RoleClerical and administrative support operations (e.g.,

payroll and benefits work) Technology is transforming how HR services are delivered. Outsourcing HR services to reduce HR staffing costs

• Operational and Employee Advocate Role “Champion” for employee concerns

Employee crisis management Responding to employee complaints


Changing Roles of HR Management Fig. 1-4Changing Roles of HR Management Fig. 1-4

Note: Example percentages are based on various surveys.



• Strategic Role “Contributing at the Table” to organizational results HR becomes a strategic business partner by:

Focusing on developing HR programs that enhance organizational performance.

Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions,

and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR

activities.


Operational to Strategic Transformation of HR Fig. 1-5Operational to Strategic Transformation of HR Fig. 1-5



• Collaborative HRThe process of HR professionals from several

different organizations working jointly to address shared business problems.

Firms benefit from the expertise of other firms, without having the time and expense of developing some of their own HR practices.


HR TechnologyHR TechnologyHR TechnologyHR Technology

• Human Resource Management System (HRMS)An integrated system providing information used by HR

management, in conjunction with other managers, in decision making.

Purposes (Benefits) of HRMS Administrative and operational efficiency in compiling HR data Availability of data for effective HR strategic planning

Uses of HRMS Automation of payroll and benefit activities EEO/affirmative action tracking HR Workflow: increased access to HR information

– Employee self-service reduces HR costs.


Figure 1-6: Web Based SystemsFigure 1-6: Web Based SystemsFigure 1-6: Web Based SystemsFigure 1-6: Web Based Systems

Bulletin boards What information will be available and what is information

needed?

Data access To what uses will the information be put?

Employee self-service Who will be allowed to access to what information? Web-based services and access

Extended linkage When, where, and how often will the

information be needed?

Web Based Systems Fig. 1-6Web Based Systems Fig. 1-6


Ethics and HR ManagementEthics and HR ManagementEthics and HR ManagementEthics and HR Management

Firms with High Ethical StandardsAre more likely to reach strategic goals.Are viewed more positively by stakeholdersAre better able to attract and retain human resources.

• Ethics and Global DifferencesDifferent legal, political, and cultural factors in other

countries can lead to ethical conflicts for global managers.

Corruption of Foreign Public Officials Act Prohibits Canadian firms from engaging in bribery and other

practices in foreign countries.



HR’s Role in Organizational Ethics: HR management plays a key role as the “keeper and voice” of organizational ethics.

• What is Ethical Behaviour?What “ought” to be done.Dimensions of decisions about ethical issues in

management: Extended consequences Multiple alternatives Mixed outcomes Uncertain consequences Personal effects


CCHRA CHRP National Code of Ethics CCHRA CHRP National Code of Ethics Fig. 1-7Fig. 1-7CCHRA CHRP National Code of Ethics CCHRA CHRP National Code of Ethics Fig. 1-7Fig. 1-7

.

1. Preamble

2. Competence

3. Legal Requirements

4. Dignity in the workplace

5. Balancing Interests

6. Confidentiality

7. Conflict of Interest

8. Professional Growth and Support of Other Professionals

9. Enforcement

CCHRA/CHRP



HR’s Role in Organizational Ethics: • Responses to Ethical Situations

Are guided by values and personal behaviour “codes” that include:Does response meet all applicable laws, regulations, and

government codes?Does response comply with all organizational standards of

ethical behaviour?Does response pass the test of professional standards for

ethical behaviour?


Examples of Ethical Misconduct in HR Activities Examples of Ethical Misconduct in HR Activities Fig. 1-8Fig. 1-8Examples of Ethical Misconduct in HR Activities Examples of Ethical Misconduct in HR Activities Fig. 1-8Fig. 1-8



Ethical Behaviour and Organizational Culture:• Organizational Culture

The shared values and beliefs in an organization Common forms of unethical conduct:

Lying to supervisors Employee drug use or alcohol abuse Falsification of records

• Fostering Ethical Behaviour A written code of ethics and standards of conduct Training on ethical behaviour for all employees A means for employees to obtain ethical advice Confidential reporting systems for ethical misconduct


HR Management Competencies HR Management Competencies and Careersand Careers


• Important HR CompetenciesStrategic contribution to organizational

successBusiness knowledge of the organization and

its strategiesEffective and efficient delivery of HR servicesFamiliarity with HRMS technologyPersonal credibility


Human Resources Professional Capabilities Profile Human Resources Professional Capabilities Profile Fig. 1-9Fig. 1-9Human Resources Professional Capabilities Profile Human Resources Professional Capabilities Profile Fig. 1-9Fig. 1-9




HR Management as a Career FieldHR Management as a Career Field• HR Generalist

A person with responsibility for performing a variety of HR activities.

• HR SpecialistA person with in-depth knowledge and expertise in a

limited area of HR.


Expected Earnings by Age for an HR Manager Expected Earnings by Age for an HR Manager Fig. 1-10Fig. 1-10Expected Earnings by Age for an HR Manager Expected Earnings by Age for an HR Manager Fig. 1-10Fig. 1-10




HR Professionalism and Certification• Professional Involvement and Development

Involvement by HR Professionals in professional associations and organizations has become important because of the broad range of issues they face.

Examples include: Human Resources Professionals Association of

Ontario (HRPAO) Canadian Public Personnel Management

Association (CPPMA)




• CHRP DesignationAdministered by the Canadian Council of Human

Resource Associations (CCHRA) in partnership with provincial Human Resources associations.

Eligibility requirements vary by provincial associations, but the National Knowledge Exam (NKE) and Professional Practice Exam (PPE) is the same for everyone.

copyright © 2008 by nelson, a division of thomson canada limited. 1–11–1 part 1: nature of...

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