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Learning 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.
Copyright 2008 by Nelson, a division of Thomson Canada Limited. 12
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.
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HR Management Activities
Fig. 1-1
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Legislative Changes
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Fig. 1-2
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HR 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
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HR Management Challenges
1. Globalization of Business
Outsourcing and offshoring Global security and terrorism
Inadequate supply of workers with soft skills needed for knowledge jobs Significant shortage across Canada of tradespeople
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HR Management Challenges
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. Growth of information technology creating more virtual employees and other challenges
Employability Skills
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HR Management Challenges
4. Workforce Demographics and Diversity
Multiculturalism Visible minorities and diversity
20% of workforce born outside Canada with growing presence of visible minorities
Single-parent households, dual career couples, domestic partners, working mothers and family/childcare Significant numbers of experienced employees are retiring, changing to part time etc. Age discrimination
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Aging workers
HR Management Challenges
5. Organizational Cost Pressures, Restructuring
Mergers and Acquisitions Right-sizingeliminating 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.
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HR Management Roles
Administrative Role
Clerical 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
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Fig. 1-4
HR Management Roles
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.
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Fig. 1-5
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HR Management Roles
Collaborative HR
The 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.
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HR 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 Web 1-6: Based Web Systems Based Systems Fig. 1-6
Bulletin boards
What information will be available and what is information needed? To what uses will the information be put?
Data access
Employee self-service
Who will be allowed to access to what information? Web-based services and access
Extended linkage
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Prohibits Canadian firms from engaging in bribery and other practices in foreign countries.
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Fig. 1-7
CCHRA/CHRP
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?
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Fig. 1-8
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Fig. 1-9
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HR Specialist
A person with in-depth knowledge and expertise in a limited area of HR.
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Fig. 1-10
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Human Resources Professionals Association of Ontario (HRPAO) Canadian Public Personnel Management Association (CPPMA)
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