HR Chapter1

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Canadian Human Resource Management: A Strategic Approach

CHAPTER1: STRATEGICIMPORTANCEOF

HUMANRESOURCEMANAGEMENT

From organizational perspective, people are resources, human resources (not inanimate resources

like capital and land) w/o people, organizations wouldnt exist

CHALLENGESFACINGCANADIANORGANIZATIONS Economic Challenge:economic factors facing Canadian business toda including global trade

challenge, productivit improvement and increases in competitiveness

o Global trade:Canadians have competitive advantage in dealing w/ other countries and

cultures, anticipating their needs and concerns and proactivel responding to them b/c oftheir highl skilled, multicultural workforce

b/c of open borders, Canada has seen a lot of !brain"drain# over the ears to the$%

o P!o"#c$i%i$&:ratio of a firms outputs (goods and services) divided b its inputs (people,

capital, materials, energ)

increases as organizations find more was to use fewer resources to produce its

output

gains in productivit reduce costs, save on scarce resources and enhance profits

& popular means to achieve higher productivit' workplace innovation and

redesign obs

o#$o#!cing:contracting tasks to outside agencies or persons

enables organization to reduce workers on paroll, contract out when

needs arise reduce wage bill

o#$'lacemen$:assisting emploees to find obs with other emploers Technological Challenges

o Com'#$e!i(a$ion:maor tech* challenge allowing the processing of vast amounts of data

at great speeds, enabling organizations to improve efficienc, responsiveness and

flexibilit in operations

Telecomm#$ing:paid labour performed at the emploees home, full"time/part"time with assistance of +Cs, modems, fax machines, etc*

Cut emploee stress and boost worker productivit

o A#$oma$ion:automaticall controlled operation of a process, sstem or euipment b

mechanical or electronic devices

Benefits:speed, better customer service, increase predictabilit in operations,higher standards of ualit in production, flexibilit in operations

Demog!a'hic Change:changes in demographics of labour force (education levels, age,

participation rates) that occur slowl and are usuall know in advance

o -e' more women emploees, more knowledgeable workers, educational attainment, older

workers, more part"timers

o .odas workforce can be divided into & main categories'

Information Worers


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Da$a )o!*e!:members of (clerical) occupations that use, transmit, or

manipulate smbolic info created b knowledge workers

+no,le"ge )o!*e!:members of occupations generating, processing,

analzing, or snthesizing ideas and info (ie' scientists and mgt

consultants)

o Fastest growing tpe of workers in Cdn labour force in last &0rs

!on"information Worers:persons working in manufacturing and service sectors(ie' machine operators, securit guards, babsitters)

o E"#ca$ional A$$ainmen$:highest educational attained b worker, emploee group or

population

#$mplo%abilit% sills&

basic academic (communication, thinking, learning)

personal management (positive attitude and behaviours, abilit to accept

responsibilit, adaptabilit to new challenges)

teamwork (abilit to work with others, abilit to lead a team)

o Ol" Age C!ii:social (healthcare) and organizational (new workplace ergonomics)

challenges caused b an aging population

o Pa!$-$ime ,o!*e!:persons working fewer than reuired hrs for categorization as full"

time workers (therefore ineligible for man benefits)

o Con$!ac$.Con$ingen$ )o!*e!:freelancers (self"emploed, temporar, or leased

emploees) who are not part of the regular workforce and are paid on a proect

completion basis

'reelancers:work for emploer through independent contract arrangements

(eased emplo%ees:former compan emploees who are members of a leasing

firm and work for previous emploer on need basis

1ore productive and efficient b/c not waste time in meetings, w/ companbureaucrac and provide fresh outside perspective

C#l$#!al Challenge:challenges facing firms decision makers b/c of changes in core culture orsocial values

o )o!*-!ela$e" a$$i$#"e' variet of work"related assumptions and values, including the

role of work in a persons life and the role of women and diverse groups in organization

o $thnic di)ersit%:Canadian societ is a c#l$#!al moaic:Canadian ideal of encouraging

each ethnic, racial and social group to maintain its own cultural heritage, forming a

national mosaic of different cultures

o A$$i$#"e $o,a!" go%e!nmen$:basic assumptions on the role of government in business

and societ, including desirabilit of a welfare state with a ke interventionist role for the

government

2rowing view' !government is ust an economic facilitator that provides the

appropriate infrastructure for prosperit# (egal:emploment euit, human rights laws, charter of rights, minimum wage acts, safet

regulated legislation

O/0ECTIESOFHUMANRESOURCEMANAGEMENT 341 aims to improve the productive contribution of individuals while simultaneousl

attempting to attain other societal and individual emploee obectives

Focus on what managers do and what the should do

Acti)ities:

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o 5ssist organization to attract the right ualit and number of emploees

o 6rient new emploees to organization and place them in ob positions

o 7evelop, disseminate and use ob descriptions, performance standards and evaluation

criteria

o 3elp establish adeuate compensation sstems and administer them in efficient and

timel manner

o

Foster safe, health and productive work environmento 8nsure compliance w/ all legal reuirements as the relate to mgt of workforce

o 3elp maintain harmonious working relationship w/ emploees and unions where present

o Foster work environment that facilitated high emploee performance

o 8stablish disciplinar and counselling procedures

*b+ecti)es:

o O!gani(a$ional:short"term and long"term goals that the 34 department aims to achieve

-e' help identif right ualit, tpe and number of emploees organization needs

o Socie$al:societal priorities (lower pollution levels) that 34 department targets while

setting own obectives and strategies

341 should be responsive to societs needs and challenges while minimizing

negative impact of such demands on organization

o Em'lo&ee O23ec$i%e:goal set b 34 department to assist emploees to achieve

personal goals that will enhance their contribution to the organization

STRATEGICHUMANRESOURCEMANAGEMENT S$!a$egic HRM: integrating 341 strategies and sstems to achieve overall mission, strategies,

and successes of the firm while meeting needs of emploees and other stakeholders

%trategies formed at 9 levels'

o Corporate:involving entire organization

o Business:involving maor activit, business or division in a large multi"business

organizationo 'unctional:involving managers of different activities, services (finance, marketing), or

geographical areas

Tac$ic:methods, procedures or sstems emploed b 34 professionals to achieve specific

strategies

S$e' in S$!a$egic HR Managemen$

* $n)ironmental Anal%sis' identif environmental threats b continuous monitoring of economic,

social and labour market trends, and b noting changes in governmental policies, legislation and

public polic statements

,- *rgani.ational Mission and Goals Anal%sis

a* Miion S$a$emen$:statement outlining the purpose, :. obectives, and activities theorganization will pursue as well as the course for the future

/- Anal%sis of *rgani.ational Strengths and Culturea* 5fter looking at strengths and weaknesses of organization, build the 34 strategies; dont

build strategies based on existing 34 capabilities

b* O!gani(a$ion Cha!ac$e!:product of all the organizations features (ppl, obectives,technolog, size, age, unions, policies, successes and failures)

i* %trategies need to adust to uniue character of each organization

c* E4#i5inali$&:there are usuall man paths to an given obective

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0- Anal%sis of *rgani.ational Strategiesa* Co$ Lea"e!hi':strateg to gain competitive advantage through lower costs of

operations and lower prices for products

b* Di55e!en$ia$ion:strateg to gain competitive advantage b creating a distinct

product/offering a uniue servicec* Foc#: strateg to gain a competitive advantage b focusing on needs of specific

segment(s) of total market

1- Choice and Implementation of HR Strategiesa* -dentifing, securing, organizing and directing the use of resources both within and

outside the organization

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.raining and development' provide guidance and programs for managers wanting to improve 34

>enefits and %afet sections look at reuired services

Control activities (communications, counselling) divided among sub"departments (emploee and

labour relations do most of work)

Se!%ice Role

S$a55 A#$ho!i$&:authorit to advise, but not to direct, others (managers in other departments)

Line A#$ho!i$&:authorit to make decisions about production, performance and people;

possessed b managers of operating departments

F#nc$ional A#$ho!i$&(in highl technical/extremel routine situations)' authorit that allows

staff experts to make decisions and take actions normall reserved for line managers/top mgt

H#man Reo#!ce F#nc$ion an" $he O!gani(a$ion Cha!ac$e!

Technolog%:

o Fairl routine production processes can benefit from 34 focussing on predictabilit of

emploee performance

o -n non"routine production processes, the must look at 34 practices that foster creativit,

innovation and entrepreneurship

Managerial 2hilosoph%:

o -n autocratic decision making with strong organizational hierarch, 34 practices like

seniorit, rank"based pa and top"down communication channels work best

o 8galitarian, participative and entrepreneurial work climate use result"oriented pa and up"

and"down communication channels

o -nfluences structure and 34 role in organization

'ormal:34 structured along functional lines (marketing, finance, production);preserve existing division of work b creating clear ob descriptions, hiring

department specialists and introducing training sstems to foster functional

expertise 'le7ible Structure: socialization of emploees creates organization"wide

perspective and creation of broad ob classes

o 34 has role in shaping culture so that it is consistent w/ overall mission and strateg

*rgani.ation8s Strategic 2ositioning:

o De5en"e!:conservative business units that prefer to maintain secure position in

relativel stable product/service areas instead of expanding to unchartered territories

34 asked to support control sstems, emphasize reliabilit and predictabilit in

operations, foster emploee policies encouraging :. emploee attachment to firm

o P!o'ec$o!:emphasize growth, entrepreneurship and eagerness to be stppl in new

market/selling new product even if efforts fail

34 foster flexible, decentralized structure, emphasize creativit and adaptabilitand support risk"taking and performance sstems

341?management of peopleshould be done professionall and humanel

HRM PROFESSIONOFFUTURE 3uman 4esource managers are expected to possess number of competencies'

o >usiness master

o 1aster of 341 tools

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o Change master

o +ersonal credibilit

Ce!$i5ie" HR P!o5eional 6CHRP7:34 practitioner, formall accredited to practise, who

reflects a threshold professional level of practice

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