Part 1: Nature of Human Resource Management Chapter 1: Changing Nature of Human Resource ManagementPrepared by Linda Eligh, University of Western Ontario

Learning ObjectivesAfter you have read this chapter, you should be able to:Define HR management and identify the seven categories of HR activities.Discuss management of human capital in organizations.Discuss four challenges facing HR today.Describe how the major roles of HR management are being transformed.Identify the purposes and uses of HR technology.Discuss why ethical issues affect HR management.Explain the key competencies needed by HR professionals and why certification is important.

Nature of Human Resource ManagementHuman Resource (HR) ManagementThe policies, practices and systems that influence employees behaviour, attitude and performance in the attainment of organizational goals.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.

HR Management Activities Fig. 1-1

Nature of Human Resource ManagementHR Activities: Global forces and HR ManagementStrategic HR ManagementEqual Employment OpportunityStaffing

Nature of Human Resource ManagementHR Activities (contd):HR Development Compensation and BenefitsHealth, Safety, and SecurityEmployee and Labour Relations

Nature of Human Resource ManagementSmaller Organizations and HR Management

Typical Division of HR Responsibilities: Training Fig. 1-2

Management of Human Capital in OrganizationsHuman CapitalThe collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.Also known as intellectual capital.How to measure the strategic value of human assets?Human Resources as Core CompetencyA unique capability that creates high value and differentiates an organization from its competition.HR competencies: a source of competitive advantage.

HR Management ChallengesMost prevalent challenges facing HR management:Globalization of BusinessEconomic and Technological ChangesLabourWorkforce Demographics and DiversityOrganizational Cost Pressures and Restructuring

HR Management ChallengesGlobalization of Business Outsourcing and offshoring Global security and terrorismEconomic and Technological ChangesOccupational shifts from manufacturing and agriculture to service and telecommunications. Job growth primarily in IT and healthcareWorkforce availability and quality concernsInadequate supply of workers with softskills needed for knowledge jobsSignificant shortage across Canada oftradespeople

HR Management ChallengesLabourEmployee retentionGrowth of contingent workforceIncreases in temporary workers, independent contractors, leased employees, and part timerscaused by need for flexibility in staffing, moredifficulties in firing regular employees, and reduced legal liability for contractors.Technological shifts and the InternetGrowth of information technology creating morevirtual employees and other challengesEmployability Skills

HR Management Challenges4. Workforce Demographics and DiversityMulticulturalismVisible minorities and diversity20% of workforce born outside Canadawith growing presence of visible minoritiesMore women in the workforce Single-parent households, dual careercouples, domestic partners, workingmothers and family/childcare Aging workersSignificant numbers of experiencedemployees are retiring, changing to part time etc.Age discrimination

HR Management ChallengesOrganizational Cost Pressures, RestructuringMergers and AcquisitionsRight-sizingeliminating layers of management, closing facilities, merging with other organizations, and outplacing workersIntended 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.HR managers must work toward ensuringcultural compatibility in mergers.

HR Management RolesAdministrative RoleClerical 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 costsOperational and Employee Advocate RoleChampion for employee concernsEmployee crisis managementResponding to employee complaints

Changing Roles of HR Management Fig. 1-4Note: Example percentages are based on various surveys.

HR Management RolesStrategic RoleContributing 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 processesAccounting and documenting the financial results of HR activities.

Operational to Strategic Transformation of HR Fig. 1-5

HR Management RolesCollaborative HRThe 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.

HR TechnologyHuman Resource Management System (HRMS)An integrated system providing information used by HR management, in conjunction with other managers, in decision making.Purposes (Benefits) of HRMSAdministrative and operational efficiency in compiling HR dataAvailability of data for effective HR strategic planningUses of HRMSAutomation of payroll and benefit activitiesEEO/affirmative action trackingHR Workflow: increased access to HR informationEmployee self-service reduces HR costs.

Figure 1-6: Web Based SystemsBulletin boardsWhat information will be available and what is information needed?Data accessTo what uses will the information be put?Employee self-serviceWho will be allowed to access to what information? Web-based services and accessExtended linkageWhen, where, and how often will the information be needed?Web Based Systems Fig. 1-6

Ethics and HR ManagementFirms with High Ethical StandardsAre more likely to reach strategic goals.Are viewed more positively by stakeholdersAre better able to attract and retain human resources.Ethics and Global DifferencesDifferent legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers.Corruption of Foreign Public Officials ActProhibits Canadian firms from engaging in bribery and other practices in foreign countries.

Ethics and HR ManagementHRs Role in Organizational Ethics: HR management plays a key role as the keeper and voice of organizational ethics.What is Ethical Behaviour?What ought to be done.Dimensions of decisions about ethical issues in management:Extended consequencesMultiple alternativesMixed outcomesUncertain consequencesPersonal effects

CCHRA CHRP National Code of Ethics Fig. 1-7.PreambleCompetenceLegal RequirementsDignity in the workplaceBalancing InterestsConfidentialityConflict of InterestProfessional Growth and Support of Other ProfessionalsEnforcementCCHRA/CHRP

Ethics and HR ManagementHRs Role in Organizational Ethics: Responses to Ethical Situations Are guided by values and personal behaviour codes that include:Does 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?

Examples of Ethical Misconduct in HR Activities Fig. 1-8

Ethics and HR ManagementEthical Behaviour and Organizational Culture:Organizational CultureThe shared values and beliefs in an organizationCommon forms of unethical conduct:Lying to supervisorsEmployee drug use or alcohol abuseFalsification of recordsFostering Ethical BehaviourA written code of ethics and standards of conductTraining on ethical behaviour for all employeesA means for employees to obtain ethical adviceConfidential reporting systems for ethical misconduct

HR Management Competencies and CareersImportant HR CompetenciesStrategic contribution to organizational successBusiness knowledge of the organization and its strategiesEffective and efficient delivery of HR servicesFamiliarity with HRMS technologyPersonal credibility

Human Resources Professional Capabilities Profile Fig. 1-9

HR Management Competencies and CareersHR Management as a Career FieldHR GeneralistA person with responsibility for performing a variety of HR activities.HR SpecialistA person with in-depth knowledge and expertise in a limited area of HR.

Expected Earnings by Age for an HR Manager Fig. 1-10

HR Management Competencies and CareersHR Professionalism and CertificationProfessional Involvement and DevelopmentInvolvement by HR Professionals in professional associations and organizations has become important because of the broad range of issues they face. Examples include:Human Resources Professionals Association of Ontario (HRPAO)Canadian Public Personnel Management Association (CPPMA)

HR Management Competencies and CareersCHRP DesignationAdministered by the Canadian Council of Human Resource Associations (CCHRA) in partnership with provincial Human Resources associations.

Eligibility requirements vary by provincial associations, but the National Knowledge Exam (NKE) and Professional Practice Exam (PPE) is the same for everyone.