Cengage Canada Teaching Advantage
PowerPoint® Slides
to accompany
Copyright © 2023 by Cengage Canada
CHAPTER 1
The World of
Human Resources Management
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Learning Outcomes – 1
LO1 Explain how human resources managers
and other managers have rewarding careers
through the strategic management of people.
LO2 Explain how good human resources practices
can help a firm gain a sustainable competitive
advantage and how COVID-19 may impact this
relationship.
LO3 Describe how technology can improve how
people perform their work and how they are
managed.
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Learning Outcomes – 2
LO4 Explain the dual goals human resources
managers have in terms of increasing
productivity and controlling costs.
LO5 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.
LO6 Provide examples of the roles and competencies
of today’s human resources professionals.
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Why Study Human Resources
Management? – 1
• Human Resources Management (HRM)
− The process of managing human talent to
achieve an organization’s objectives
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Why Study Human Resources
Management? – 2
• Work with people to help solve organizational issues
• Attract top-notch people to come to work with you and
your firm
• Determine the right people to hire so your team and
company are a success
• Help and coach people so they become top performers
• Make pay and reward decisions that may influence
peoples’ lives
• Establish the strategic direction your firm should take
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Human Capital and HRM
• 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
• Organizations must find ways to better use the
knowledge of their workers.
− Managers of all types must carry out the specific
activities for a company to effectively do so.
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Figure 1.1
Overall Framework for HRM
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Competitive Issues and
Human Resources Management – 1
• Issue 1:
− Responding Strategically to Crisis, 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
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Competitive Issues and
Human Resources Management – 2
• 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
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 1
• COVID-19 and HRM
− COVID-19 has resulted in one of the most extreme
organizational changes in the past century and
strategic planning has become even more important.
− It has highlighted the need for a feeling of
community and common objectives.
• HR Managers and Business Strategies
− HR managers need an intimate understanding of
their firm’s competitive business operations and
strategies.
− “No change means chance”
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 2
• Human resources managers need to
understand the following:
− Six Sigma
− Reengineering
− Downsizing
− Outsourcing
− Change management
− Reactive change
− Proactive change
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 3
• 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
• Reengineering
− The fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in cost, quality, service, and
speed
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 4
• Downsizing
− Planned elimination of jobs (“head count”)
• Outsourcing
− Contracting out work that was formerly was
done by employees
• A common denominator of these strategies is that
they require companies to engage in change
management
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 5
• Change Management
− Systematic way of bringing about and managing
organizational changes and changes on the
individual level
COVID-19 has
placed new
restrictions
at work.
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 6
• Good HR managers know that they can be key
players when it comes to driving the business
strategies of their organizations to make changes.
• Reactive change
− Changes that occur after external forces have
already affected performance
• Proactive change
− Change initiated to take advantage of targeted
opportunities
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Issue 1: Responding Strategically to
Crisis, Changes, and Disruptions – 7
• Competing, Recruiting, and Staffing Globally
− Globalization: the trend to opening up foreign
markets to international trade and investment
− About 70–85 percent of the Canadian economy
today is affected by international competition.
− China may overtake the U.S as the world's largest
economy by 2041
• Impact of Globalization
− “Anything, anytime, anywhere” markets
− Partnerships with foreign firms
− Lower trade and tariff barriers
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Issue 2:
Corporate Social Responsibility and
Sustainability Goals
• HR's responsibilities include the development and
implementation of corporate citizenship and good
environmental management
• Corporate Social Responsibility
− The responsibility of the firm to act in the best
interests of the people and communities affected by
its activities
• Sustainability
− 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
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Issue 3:
Advancing HRM with Technology – 1
• Computer networks and “cloud computing”
− unlimited amounts of data can be stored,
retrieved, and used in a wide variety of ways.
• Collaborative software–allows workers anywhere,
anytime to interface and share information with
one another has changed how and where people
and companies do business.
• Knowledge workers–responsibilities extend
beyond the physical execution of work to include
planning, decision making, and problem solving
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Issue 3:
Advancing HRM with Technology – 2
• Virtual learning
• Video conferencing platforms
− Zoom, Webex, Teams, and Hangouts
− COVID-19 broke down barriers and expedited the
transformation process
• Automation and Artificial Intelligence
− web robots (‘bots’) – affects blue-collar and routine
jobs
− plays a major part in the gig economy
− platforms such as Uber and Lyft, algorithms are
essential to allocate, monitor, and reward gig
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work
Issue 3:
Advancing HRM with Technology – 3
• Human Resources Information System (HRIS)
− A computerized system that provides current
and accurate data for purposes of control and
decision making
• Impact of HRIS:
− Operational
− Relational
− Transformational
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Issue 3:
Advancing HRM with Technology – 4
• 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; organizationwide alignment of “cascading” goals
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Issue 3:
Advancing HRM with Technology – 5
• Workforce (HR) analytics
− process of gathering and analyzing data to
improve a firm’s human resources management
− big data is useful for recruitment and selection
and a variety of other reasons such as
performance appraisal and management,
evaluate leadership behaviours, assess
organizational climate and culture
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Issue 4: Containing Costs – 1
• Organizations can take many approaches to
lowering labour-related costs:
− Downsizing
− Furloughing
− Outsourcing
− Offshoring
− Employee Leasing
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Issue 4: Containing Costs – 2
• Downsizing:
− Widespread throughout North America
− Every major corporation has undergone some
cycle of downsizing
− Beginning in the 1990s, the layoffs began to
affect white-collar in knowledge-intensive
industries
− In 2020 and 2021, COVID-19 resulted in many
industries having to resort to downsizing
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Issue 4: Containing Costs – 3
• Hidden Costs of a Layoff include:
− 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
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Issue 4: Containing Costs – 4
• 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
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Issue 4: Containing Costs – 5
• Furloughing
− An alternative to downsizing
− A situation in which an organization asks or
requires employees to take time off for either
no pay or reduced pay
− Gained widespread use since the COVID-19
pandemic
− When the public learns that a company has used
such a tactic, it can harm its recruiting efforts
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Issue 4: Containing Costs – 6
• Outsourcing:
− Employment relationship between companies
and employees has shifted from relationshipbased to transaction-based
− Is one of the most prominent HR trends
• Offshoring (or global sourcing) – sending jobs to
other countries
• Nearshoring – moving jobs closer to one’s home
country
• Homeshoring – moving jobs to work-from home
domestic independent contractors
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Issue 4: Containing Costs – 7
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Issue 4: Containing Costs – 8
• An alternative to downsizing, outsourcing,
offshoring, and furloughing is 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
• Productivity Enhancements:
− Providing work flexibility can improve the
productivity and motivation of valuable
employees.
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Issue 5: Demographic and Diversity
Challenges in the Workforce – 1
• 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.
• Significant challenges are the demographic changes in
Canada:
− More diverse workforce
− Aging workforce
− Gender
− More educated workforce
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Issue 5: Demographic and Diversity
Challenges in the Workforce – 2
• Diversity/Immigration Challenge
− In 2019, India, China, the Philippines, Nigeria,
and the United States made up the largest
portion of new immigrants
− In the midst of COVID-19, Canada announced in
2020 that it would welcome 1.2 million new
immigrants between 2021 and 2023 in order to
recover economically from the pandemic
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Figure 1.2
Top 20 Ethnic Origins in Canada, 2016
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Issue 5: Demographic and Diversity
Challenges in the Workforce – 3
• Age Distribution
− Imbalance in age
distribution is having
a significant effect.
− Large portions of
workforces are
nearing retirement.
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Issue 5: Demographic and Diversity
Challenges in the Workforce – 4
• Gender Distribution
− Women make up nearly half of the workforce in
Canada.
− Organizations must realize the value of diversity
and inclusion in their workforce.
− The current gender equality efforts often
overlook the approximately 1.5 million adults in
the United States and Canada who are
transgender
− Initiatives should address and improve the
conditions for LGBTQ people.
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Figure 1.3
Composition of the Population of Canada
(Millions)
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Issue 6:
Adapting to Educational and Cultural
Shifts Affecting the Workforce
• Education of the Workforce
− According to the 2016 Census, more than half (54.0
percent) of Canadians aged 25 to 64 had a college
or university diploma, up from 48.3 percent in 2006.
• 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
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Figure 1.4
Factors Related To The Best And Worst
Places To Work
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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.
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Responsibilities of the HR Manager
• The major activities for which an HR manager is
typically responsible are:
− Strategic advice and counsel
− Service
− Policy formulation and implementation
− Employee advocacy
− Business mastery
− HR mastery
− Change mastery
− Personal credibility
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Competencies of the HR Manager
• Changes are taking place in the HRM profession,
both in Canada and around the world.
• Human resource professionals must become more
accountable to those they serve.
• Good human resource managers assist their
organizations in gaining a sustainable competitive
advantage over competitors.
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FIGURE 1.5
Human Resource Competency Model
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Activity 1:
Contract Employees
• Should contract employees be treated the same as
“permanent” employees?
− Watch the video
“The Role of Human Resources Today” featuring
a keynote speech by Kelly CEO Carl Camden.
− What does he mean by “velcro” culture?
− How can “outside the wall” employees become
engaged?
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Activity 2:
Challenges in Organizations Today
• Which of the following challenges (COVID-19,
technology, globalization, corporate social
responsibility, demographic changes) will have the
most impact on your working lives?
• What strategies are organizations employing to
address the challenges posed by the COVID-19
crisis?
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