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COPYRIGHT © 2020 BY NELSON EDUCATION

LTD.
CHAPTER 1
The World of
Human Resources
Management
COPYRIGHT © 2020 BY NELSON EDUCATION 2

LTD.
Learning Outcomes
Explain how human resources managers
and other managers can have rewarding careers
by helping their firms gain a sustainable
competitive advantage through the strategic
utilization of people.
Explain how good human resources practices
can help a firm’s globalization, corporate social
responsibility, and sustainability efforts.
Describe how technology can improve how
people perform their work and how they are
managed.

LTD.
Learning Outcomes
Explain the dual roles human resource managers
have in terms of increasing productivity and
controlling costs.
Discuss how firms can leverage employee differences
to their strategic advantage and how educational and
cultural changes in the workforce are affecting how
human resources managers engage employees.
Provide examples of the roles and competencies

of today’s human resources professionals.

LTD.
Why Study Human Resources
Management?
Human Resources Management (HRM)
◦ The process of managing human talent to achieve an
organization’s objectives

LTD.
Why Study Human Resources
Management?
◦ Establishing the strategic direction
your firm should take, attracting
top-notch people to come to work
for you and your firm, determining
the right people to hire so your
team and company are a success,
and helping and coaching people so
they become top performers are
goals as relevant to line managers
as they are to managers in the HR
department.
◦ Great business plans, products, and
services can easily be copied by
your competitors. Great personnel
cannot.

LTD.
Human Capital and HRM
Words to describe how important people are to
organizations:
• Human Resources
• Human Capital
• Intellectual Assets
• Talent Management

LTD.
Human capital:
◦ knowledge, skills, and capabilities of individuals that have economic
value to an organization
◦ intangible
◦ cannot be managed the way organizations manage jobs, products,
and technologies
Valuable
◦ Capital is based on company-specific skills
◦ Gained through long-term experience
◦ Can be expanded through development

LTD.

LTD.
Competitive Issues and
Human Resources Management
Issue 1:
◦ Responding Strategically to Changes and Disruptions in the Local and
Global Marketplace
Issue 2:
◦ Setting and Achieving Corporate Social Responsibility and
Sustainability Goals
Issue 3:
◦ Advancing HRM with Technology

LTD.
Competitive Issues and
Human Resources Management
Issue 4:
◦ Containing Costs While Retaining
Top Talent
and Maximizing Productivity
Issue 5:
◦ Responding to the Demographic
and Diversity
Challenges of the Workforce
Issue 6:
◦ Adapting to Educational and
Cultural Shifts Affecting the
Workforce

LTD.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
HR Managers and
Business Strategy
From administrative tasks
to strategic partners
Human resources
managers need an intimate
understanding of their
firm’s competitive business
operations and strategies.
“No change means no
chance.”
LTD.
Global Marketplace
Human resources managers need to understand:
◦ Total quality improvement
◦ Reengineering
◦ Six Sigma
◦ Change management
◦ Reactive change
◦ Proactive change

LTD.
Global Marketplace
Reengineering
The fundamental rethinking and radical redesign of business processes
to achieve dramatic improvements in cost, quality, service, and speed

LTD.
Global Marketplace
Six Sigma
A set of principles and
practices whose core
ideas include
understanding
customer needs, doing
things right the first
time, and striving for
continuous
improvement

LTD.
Global Marketplace
Downsizing
◦ Planned elimination of jobs (“head
count”)
Layoffs
Outsourcing
◦ Contracting outside the organization to
have work done that formerly was
done by internal employees
Offshoring (Global Sourcing)
◦ Business practice of sending jobs to
other countries
LTD.
Global Marketplace
Change Management
◦ Systematic way of bringing
about and managing
organizational changes and
changes on the
individual level
◦ Reactive change
◦ Proactive change

LTD.
Global Marketplace
Some changes are reactive, such
as those experienced by
Volkswagen when it
was revealed the company had
cheated on its vehicles’
emission tests.
The
Environmental Protection Agenc
y (EPA) found
that many VW cars being sold in
America had a "defeat device" - or
software - in diesel engines that
could detect when they were being
tested, changing the performance
accordingly to improve results. The
German car giant has since
admitted cheating emissions tests
in the US.
The result? The engines emitted
nitrogen oxide pollutants up to 40
times above what is allowed in the
US.
LTD.
Some changes are proactive..
Amazon
Amazon anticipates questions on
delivery dates and times, notifying
customers in advance of any
delays.
They reach out, usually via email,
letting the customer know what
the new delivery date will be.
If the customer is an Amazon
Prime subscriber, Amazon will
sometimes credit them one free
month of the service for this
inconvenience, all without the
customer ever making an inquiry.
COPYRIGHT © 2014 BY NELSON 19

19
EDUCATION LTD.
Activity #1
Think of any other organizations
that have experienced the kind of
challenges faced by Volkswagen
(reactive change)?

LTD.
Global Marketplace
Globalization
Approximately 70–85 percent

of the Canadian economy
today is affected by
international competition.
Impact of Globalization
“Anything, anytime,
anywhere” markets
Partnerships with foreign firms
Lower trade and tariff barriers

LTD.
Issue 2: Setting and Achieving Corporate
Social Responsibility and Sustainability Goals
Corporate Social
Responsibility
The responsibility of the firm to
act in the best interests
of the people and communities
affected by its activities
Sustainability is closely related

to corporate social
responsibility:
◦ Doing business in a way that does
as little harm to the environment
and depletes as few natural
resources as possible
◦ MAMAEARTH
LTD.
Issue 3: Advancing HRM
with Technology
Collaborative software that allows workers anywhere, anytime to
interface and share information with one another has changed
how and where people and companies do business.
From Touch Labour to Knowledge Workers

◦ Knowledge Workers: Workers whose responsibilities extend beyond
the physical execution of work to include planning, decision making,
and problem solving

LTD.
with Technology
Human Resources Information System (HRIS)
A computerized system that provides current and accurate data for
purposes of control and decision making
Workforce analytics is the process of gathering and analyzing data

to improve a firm’s human resources management.

LTD.
with Technology
Impact of Technology on
HRM
Operational: Automation of
routine tasks, lower
administrative costs, increased
productivity, and faster
response times; self-service
access to information and
training for managers and
employees
Relational: Online recruiting,
screening, and pretesting
of applicants
Transformational: Training,
tracking, and selecting
employees based on their
record of skills and abilities;
organization-wide alignment of
“cascading” goals
LTD.
Issue 4: Containing Costs While Retaining
Top Talent and Maximizing Productivity
Organizations take many approaches to lowering
labour-related costs, including:
Carefully managing employees’ benefits
Downsizing
Outsourcing
Offshoring, Nearshoring, Homeshoring
Employee Furloughing and Leasing

LTD.
Hidden Costs of a Layoff:
Severance and rehiring costs
Accrued vacation and sick-day payouts
Pension and benefit payoffs
Potential lawsuits from aggrieved
workers
Loss of institutional memory and trust
in management
Lack of staffers when the economy
rebounds
Survivors who are risk averse,
paranoid, and political COPYRIGHT © 2020 BY NELSON EDUCATION
LTD.
27
Benefits of a No-Layoff
Policy:
◦ A fiercely loyal, more
productive workforce
◦ Higher customer satisfaction
◦ Readiness to snap back with
the economy
◦ A recruiting edge
◦ Workers who aren’t afraid to
innovate, knowing their jobs
are safe

LTD.
Employee Leasing:
◦ The process of dismissing employees who are then hired by a
leasing company (which handles all HR-related activities), and
contracting with that company to lease back the employees

LTD.
Issue 5: Responding to the Demographic
and Diversity Challenges of the Workforce
In a recent survey, almost half of the organizations surveyed
reported that the biggest investment challenge facing them over
the next 10 years is obtaining human capital and optimizing their
human capital investments.

LTD.
Issue 5: Responding to the Demographic
and Diversity Challenges of the Workforce
Demographic Changes Managing Diversity
•More diverse workforce • Being aware of
characteristics common
•Aging workforce
to employees, while also
•More educated managing employees
workforce as individuals

LTD.
Issue 6: Adapting to Educational and
Cultural Shifts Affecting the Workforce
Educational and Cultural
Factors:
Cultural and societal changes
affecting the workforce
Employee rights
Privacy concerns of employees
Changing nature of the job
Changing attitudes toward work
Balancing work and family
LTD.
The Partnership of Line Managers
and Human Resources Departments
Successful organizations combine the experience of
line managers with the expertise of HR managers to develop and
utilize the talents of employees.
Line managers are non-HR managers who are responsible for

overseeing the work of other employees.
Different types of human resources managers specialize in

different HR functions.

LTD.
The Partnership of Line Managers
and Human Resources Departments
Responsibilities of the HR Manager
1. Advice and counsel
2. Service
3. Policy formulation and implementation
4. Employee advocacy
Competencies of the HR Manager

5. Business mastery
6. HR mastery
7. Change mastery
8. Personal credibility

LTD.
HR Competency Model

LTD.
Activity #2
Suppose your boss asked you
to summarize the major
people-related concerns in
opening an office in China.
What issues would be on your
list?
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EDUCATION LTD.

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NETA PowerPoint® Slides

COPYRIGHT © 2020 BY NELSON EDUCATION

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Provide examples of the roles and competencies

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Approximately 70–85 percent

Partnerships with foreign firms

Lower trade and tariff barriers

COPYRIGHT © 2020 BY NELSON EDUCATION 21

Sustainability is closely related

From Touch Labour to Knowledge Workers

COPYRIGHT © 2020 BY NELSON EDUCATION 23

Workforce analytics is the process of gathering and analyzing data

COPYRIGHT © 2020 BY NELSON EDUCATION 24

COPYRIGHT © 2020 BY NELSON EDUCATION 26

COPYRIGHT © 2020 BY NELSON EDUCATION 28

COPYRIGHT © 2020 BY NELSON EDUCATION 29

COPYRIGHT © 2020 BY NELSON EDUCATION 30

COPYRIGHT © 2020 BY NELSON EDUCATION 31

Line managers are non-HR managers who are responsible for

Different types of human resources managers specialize in

COPYRIGHT © 2020 BY NELSON EDUCATION 33

Competencies of the HR Manager

COPYRIGHT © 2020 BY NELSON EDUCATION 34

COPYRIGHT © 2020 BY NELSON EDUCATION 35

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