H600 Human Resource Management and Labour Relations Dr. Teal McAteer-Early Spring 2006 Michael G. DeGroote School of Business McMaster University - PowerPoint PPT Presentation


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H600 Human Resource Management and Labour Relations Dr. Teal McAteer-Early Spring 2006 Michael G. DeGroote School of Business McMaster University


Human Resource Management and ... Global trade international trade and competition with other markets ... Strategic HRM Integration of HRM systems to the ... – PowerPoint PPT presentation

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Title: H600 Human Resource Management and Labour Relations Dr. Teal McAteer-Early Spring 2006 Michael G. DeGroote School of Business McMaster University

H600 Human Resource Management and Labour
Relations Dr. Teal McAteer-Early Spring
2006 Michael G. DeGroote School of
Business McMaster University
H600 Intro to Human Resource Management Week
1 _________________________________
  • Dr. Teal McAteer-Early
  • Michael G. DeGroote School of Business
  • McMaster University

  • Complete and hand in Information Sheet
  • See text website
  • www.mcgrawhill.ca/college/schwind
  • check preface of text
  • Includes
  • Multiple choice quizzes for each chapter
  • List of relevant HR webpages
  • E.g., HRPAO, HRDC, Ontario Ministry of Labour,

Week Overview / Objectives
  • Introduction to HRM and its functions
  • The Human Asset
  • - OB to HR link (understanding the connection
    between individual behaviour, job performance and
  • - Individual Assignment requirements
  • Challenges facing Canadian organizations
  • Exercise Discussion re challenges
  • Strategic HRM

What is HRM?
  • HRM functional definition
  • Is a set of interrelated functions and processes
    whose goal is to attract, socialize, motivate,
    maintain, and retain an organizations employees
    (Belcourt et al., 2002)
  • HRM goal-based definition
  • aims to improve the productive contribution of
    individuals while simultaneously attempting to
    attain other societal and individual employee
    objectives (Schwind et al., 2002)
  • HRM serves 3 primary constituencies
  • The organization
  • Society
  • Individual employees

HRM Organizational Objectives
  • Primary objective of HRM is to contribute to
    organizational effectiveness
  • HRM is not an end in itself
  • Its role is to help the organization achieve its
    primary objectives
  • E.g., through selection, training, managing HS
  • Influenced by many factors
  • Industry characteristics, organizations product
    or service, organizations competitive strategy,

HRM Societal Objectives
  • HRM must be socially responsible
  • Meet the needs and challenges of society
  • Narrowly - legal compliance
  • Broadly - concern with human rights, social
    responsibility, etc.
  • Can be challenging when social concerns conflict
    with organizational goals
  • Examples??

HRM Employee Objectives
  • Assist employees in achieving personal goals
  • Short-term performance goals and long-term career
  • Can be challenging to balance individual and
    organizational goals
  • E.g., when training results in employees
    developing skills that are attractive to other

The HRM Professional
  • Major competencies
  • Business mastery
  • Strategy, financial realities, customer
  • Mastery of HRM tools
  • Staffing, training, compensation, etc.
  • Change mastery
  • Personal credibility

The HRM Professional
  • CHRP
  • Certified Human Resources Professional
  • Requirements
  • Academic coursework, etc.
  • Comprehensive exam
  • 3 years of relevant experience
  • See www.hrpao.org

Challenges facing Canadian Organizations
  • Economic
  • Technological
  • Demographic
  • Cultural
  • Legal

Economic Challenges
  • 2 related challenges
  • Global trade international trade and
    competition with other markets
  • Need for productivity Improvement
  • More output with equal (or less) input
  • HR Implications
  • Need to contribute to international competence of
    workers (via training, etc.)
  • Potential workforce reductions can result in
    job insecurity and negative effects on workers

Technological Challenges
  • Technology affects how work gets done
  • Computerization increased flexibility
  • Automation some hazardous/repetitive jobs being
  • HR Implications
  • Workers need to possess competencies related to
  • Job losses (layoffs, etc.) due to technology
  • Changes in how HR activities get done
  • E.g., internet recruiting

Demographic Challenges
  • Increasing of women in the workforce
  • Account for 70 of the employment growth in
    Canada over last 20 years
  • Implications Employment equity, child care,
    flexible work, etc.
  • Change in the types of work
  • Shift toward knowledge workers
  • Implications different skill and training needs

Demographic Challenges
  • Educational attainment of workers
  • Higher education levels coupled with high
    illiteracy rates
  • Implications productivity, safety
  • Aging workforce
  • Growing of workforce is in higher age
  • Implications retirement, job design,
    re-training, benefits, work schedules, etc.
  • More part-time and contingent workers
  • Accounts for about 15 of all employment
  • Implications more flexibility for organizations
    but raises issues of pay inequity, reduced
    employee loyalty

Cultural (Values) Challenges
  • Text refers to 3 examples
  • Attitudes toward work
  • Different expectations re work and leisure
  • People want more flexibility, holiday time, etc.
  • Ethnic diversity
  • Immigration from numerous countries
  • Potential for conflicts of values, etc. but also
    opportunity to learn, expand
  • Attitudes toward government
  • Negative attitudes toward those in power
    effects employment relationships

Legal Challenges
  • Numerous laws influence organizational (and HR)
  • Employment equity
  • Human rights laws
  • Charter of rights and freedoms
  • Safety legislation

Exercise Group Discussion
  • Choose two of the challenges facing HR managers
    (pp. 5-23 of text)
  • Economic
  • Demographic
  • Technological
  • Cultural
  • Exercise What are the HR implications of those
  • (e.g. implication of increased women in the
    workforce is increased need for flexible work

  • Challenges illustrate the need for a strategic
    approach to managing organizations

Strategic HRM
Common Misconceptions about HR
  • HR is primarily an administrative function
  • HR has little strategic importance and does not
    represent a potential source of an organizations
    competitive advantage
  • HR is a cost centre its activities add to an
    organizations expenses/costs but not to revenue

Overcoming these Misconceptions
  • HR can and indeed should play a key role in
    an organizations strategy
  • There is increasing evidence that HR activities
    are associated with various indicators of
    organizational performance (e.g., ROI,
    profitability, stock prices)
  • put toward HR systems and activities should be
    viewed as investment rather than simply cost

What is Strategic HRM?
  • Strategic HRM
  • Integration of HRM systems to the overall
    mission, strategy, and success of the firm, while
    meeting the needs of employees and other
  • The intentional use of HR systems to help an
    organization gain competitive advantage

Guiding Logic of SHRM
  • HRM practices must develop employees skills,
    knowledge, and motivation such that employees
    behave in ways that are instrumental to the
    implementation of a particular strategy (Bowen
    Ostroff, 2004)
  • Contingency Perspective
  • Effectiveness of HRM system depends on contextual
    factors such as industry type, firm size, etc.

Steps in Strategic HRM
  1. Environmental Analysis
  2. Organizational Mission and Goals Analysis
  3. Analysis of Organizational Strengths and Culture
  4. Analysis of Organizational Strategies
  5. Choice and Implementation of HR Strategies
  6. Review and Evaluation of HR Strategies

Aligning HR and Organizational Strategy
  • Use Porters strategies for illustration
  • Cost Leadership
  • Tight cost control, production efficiency,
    products designed for ease of manufacture,
    intense supervision of labour
  • Differentiation
  • Emphasis on marketing, product engineering, RD,
    quality, technological innovation
  • Focus
  • Combination of cost leadership and
    differentiation directed a market segment

Example of Aligning HR and Organizational
  • Cost Leadership
  • Tight cost control
  • Production efficiency
  • Products designed for ease of manufacture
  • Intense supervision of labour
  • HR Strategies
  • Clear job descriptions
  • Detailed work planning
  • Emphasis on technical skills
  • Job-specific training
  • Job-based pay
  • Performance evaluations for control

Example of Aligning HR and Organizational
  • Differentiation
  • Emphasis on marketing
  • Product engineering
  • RD
  • Focus on quality
  • Technological innovation
  • Highly skilled labour
  • HR Strategies
  • Emphasis on innovation and flexibility
  • Broad job classes
  • Loose work planning
  • Focus on recruitment, careful selection
  • Team-based training
  • Individual (skill)-based pay
  • Performance evaluations for development

Outcomes of Strategic HRM
  • When you align HR with organizational strategy,
    youll see growth in commitment, improved
    financial results, and find yourself better able
    to attract and retain the right people.
  • (Paine, 1999)

Questions / Comments
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