1

Let’s Zoom Out

NEXT LEVEL
COMPANY
 2

Learning Objectives
1. Discuss the objectives of human resource
management.
2. Identify steps in the strategic management of
human resources.
3. Explain how human resource departments are
organized and how they function.
4. Discuss the role of human resource professionals in
today’s organization.

NEXT LEVEL
COMPANY
 3

What is Human Resource

Management?
HRM is the leadership and management of people
within an organization using systems, methods,
processes, and procedures that identify, select,
motivate, and enable employees to achieve outcomes
individually and collectively that enhance their
contribution to the organization’s goals.
HRM supports and enables organizations to:
• Meet short and long-term economic, social, and
environmental goals

NEXT LEVEL
COMPANY
 4

The Interconnectivity of Human Resource

Management Activities

NEXT LEVEL Schwind 13th Edition, Figure 1-1

COMPANY
 5

Strategic Human Resource Management

• The process of integrating the strategic needs of an
organization into the choice of HR systems and
practices to support the overall mission, strategies,
and performance
• The choice of HR tools will depend on what the
organization is trying to achieve
• HR activities must align with and contribute to the
organization’s strategies
• Each HR practice should generate value for the
organization

NEXT LEVEL
COMPANY
 6

A Model of Strategic HRM

Five Steps
1. Organizational Mission, Goals,
and Strategy Analysis
2. Environmental Scan
3. Analysis of Organizational
Character and Culture
4. Choice and Implementation of
Human Resource Strategies
5. Review, Education and Audit of
Human Resource Strategies

NEXT LEVEL
COMPANY Schwind 13th Edition, Figure 1-2
 7

Step 1: Organizational Mission, Goals,

and Strategy Analysis
Mission statement
• Statement outlining the purpose, long-term objectives,
and activities the organization will pursue and the course
for the future
• The organization’s goals outline what specifically
the organization seeks to achieve in a given time
period, which impacts its HR practices
• The organization’s strategies determine the
appropriate array of HR practices
• HR strategies enable the successful completion of
NEXT LEVEL
COMPANY
the organization’s strategies
 8

Step 2: Environmental Scan

Continuous monitoring of economic, technological,

demographic, and cultural forces
The major forces:
1. Economic
2. Technological
3. Demographic
4. Cultural
5. Legal

NEXT LEVEL Schwind 13th Edition, Figure 1-3

COMPANY
 9

Four Critical Economic Forces

1. Economic cycles
2. Global trade
3. Productivity and innovation improvement
4. Knowledge workers

NEXT LEVEL
COMPANY
 10

Economic Force: Economic Cycles

Canadian economy goes through boom and bust cycles

• Often linked to other economies

During recessionary periods, HR faces challenges

• Layoffs, wage concessions, lower morale

During boom cycles, HR must consider

• How to recruit and develop talent

NEXT LEVEL
COMPANY
 11

Economic Force: Global Trade

• International trade has always been crucial to

Canada’s prosperity and growth
• Canada ranks high among exporting nations
• Canadian jobs and economic prosperity
depend upon international trade

NEXT LEVEL
COMPANY
 12

Economic Force: Global Trade

Cont’d
How Competitive is Canada Compared to Other Nations?

NEXT LEVEL Schwind 13th Edition, Figure 1-4

COMPANY
 13

Economic Force: Productivity and

Innovation Improvement

• Productivity: Ratio of an organization’s outputs to its inputs

• Productivity improvement is essential for long-term success
• For over a decade, U.S. productivity has been consistently
outpacing Canada
• Without innovation, productivity differences tend to increase

NEXT LEVEL
COMPANY
 14

Economic Force:
Knowledge Workers
• Extractive industries (e.g.,
mining and fishing) have
decreased

• Industries relying on
knowledge workers (e.g.,
education, health care,
tourism, trade, public
administration) have
increased
NEXT LEVEL
COMPANY
 15

Three Critical Technological Forces

1. Connectivity and work design

2. Automation
3. Data and analytics

NEXT LEVEL
COMPANY
 16

Technological Force:
Connectivity and Work Design
Connectivity influences organizations and the way
people work
• Changed the way we work, play, study, and entertain
ourselves
• Access to information has affected the way organizations
conduct business
Technology has brought flexibility
• When and where work is carried out (e.g., telecommuting)
• Increased cybersecurity concerns
NEXT LEVEL
COMPANY
 17

Technological Force: Automation

Organizations automate to:

• Increase speed
• Provide better service
• Increase flexibility
• Increase predictability in operations
• Achieve higher standards of quality
May use robots to replace boring or hazardous jobs

NEXT LEVEL
COMPANY
 18

Technological Force: Data and

analytics
• The role of data and analytics have shifted due to
AI/ML and rapidly increasing computing power
• Intranets and integrated information systems help
store and access information quickly and accurately
• Information management systems capturing digital
information about employees give rise to human
resource data analytics

NEXT LEVEL
COMPANY
 19

Four Critical Demographic Forces

1. Gender balance
2. Educational attainment of workers
3. Aging population
4. Generational shift

NEXT LEVEL
COMPANY
 20

Demographic Force:
Gender Balance

• 47% of the workforce assigned female at birth

(2020)
• Participation rate of biologically female in health
care and professional, scientific, and technical
services continues to grow
• More women than men work part-time

NEXT LEVEL
COMPANY
 21

Demographic Force:
Educational Attainment of Workers

NEXT LEVEL
COMPANY
Schwind 13th Edition, Figure 1-8
 22

Demographic Force: Aging Population

Average age of the workforce is increasing
• Impending “old age crisis”

NEXT LEVEL
COMPANY Schwind 13th Edition, Figure 1-9
 23

Demographic Force: Generational Shift

• Although the differences within groups may be wider than the

differences between groups, some managers find benefit through
understanding that not all generations view the world through the
same lens that they do
• Baby Boomers, Generation X, Generation Y (Millennials), and
Generation Z and soon Generation Alpha, are all in the workforce
• Different people have different expectations from their
workplaces
• Generational diversity creates an interpersonal dynamic for all
leaders

NEXT LEVEL
COMPANY
 24

Two Critical Cultural Forces

1. Diversity and social justice

2. Ethics

NEXT LEVEL
COMPANY
 25

Cultural Force: Diversity and Social

Justice
• Canadian society is a cultural mosaic
• Canada encourages maintaining unique culture and
heritage vs. U.S. “melting pot”
• Continued inequalities articulated by social justice
advocates for Indigenous, Black, and other
racialized people of colour attributed to systemic
bias
• Social justice has become central to diversity,
equity, and inclusion initiatives in the workplace

NEXT LEVEL
COMPANY
 26

Cultural Force: Ethics

• Ethical conduct of business is becoming an

increasingly important issue
• Managers should understand ethical perspectives
and consider ethical implications

NEXT LEVEL
COMPANY
 27

Step 3: Analysis of Organizational

Structure and Culture

Human resource strategies should be formulated only

after a careful look at the organization’s structure
• Employees, objectives, technology, size, age, unions,
policies, successes, failures
Structure reflects the past and shapes the future
Each organization has a unique culture
• Core beliefs and assumptions that are widely shared by
all organizational members

NEXT LEVEL
COMPANY
 28

Step 4: Choice and Implementation of Human

Resource Strategies

There should be a clear

line of sight between
HR strategy and
corporate goals

NEXT LEVEL Schwind 13th Edition, Figure 1-10

COMPANY
 29

Step 4: Choice and Implementation of Human

Resource Strategies
HR must continuously focus on the following
activities:
1. Identifying opportunities, risks, and challenges
2. Making data-informed decisions aligned to strategy
3. Optimizing for high performance

NEXT LEVEL
COMPANY
 30

Step 5: Review, Evaluation, and Audit of

Human Resource Strategies

• HR Strategies should be examined periodically in

consideration of changing factors (e.g., technology, environment)
• A holistic review of HR strategies with the intention of
identifying and correcting deficiencies is called a human
resource audit
• Human resource activities aimed at productivity
improvement, succession planning, and cultural change
are critical to competitive survival

NEXT LEVEL Schwind 12th Edition, Figure 1-12

COMPANY
 31

The Organization of HRM

HR Department in a small organization
• Separate HR department emerges when HR activities becomes a
burden
• Often emerges as a small department or individual reporting to a
middle-level manager

NEXT LEVEL
COMPANY
 32

The Human Resource

Department in a Small Organization

NEXT LEVEL Schwind 13th Edition, Figure 1-12

COMPANY
 33

The Organization of HRM

Large HR Department
• As the organization grows, the HR department usually grows in
impact/complexity
• Specialists are added
• Vice President title

NEXT LEVEL
COMPANY
 34

A Large Human Resource Department

NEXT LEVEL Schwind 13th Edition, Figure 1-13

COMPANY
 35

The Service Role of the HR Department

Staff authority
• HR departments are service departments
• Authority to advise, not direct
Line authority
• Possessed by managers of operating departments (i.e.,
authority to make decisions)

Functional authority
• HR department may be provided authority to make
decisions (e.g., deciding type of benefits)

NEXT LEVEL
COMPANY
 36

Today’s HR Professional

Enormous growth in the number of HR managers

• HR had been slow to evolve into a profession
Competencies for HR Managers:
• Strategy; engagement; labour and employee relations; learning and
development; human resource metrics, reporting, and financial
management; professional practice, workforce planning, and talent
management; health, wellness, and safe workplaces; and total
rewards
The nationally recognized designation in HR is called the CPHR
(Chartered Professional in Human Resources) for all Canadians
except in Ontario, which has the Certified Human Resources
Professional (CHRP) designation
NEXT LEVEL
COMPANY
 37

1 Strategic Human Resource

Management Summary
After mastering this chapter content, you should be able to:
1. Discuss the objectives of human resource management.
2. Identify steps in the strategic management of human
resources.
3. Explain how human resource departments are organized and
how they function.
4. Discuss the role of human resource professionals in today’s
organization.

NEXT LEVEL
COMPANY