CANADIAN HUMAN RESOURCE MANAGEMENT

Strategic Human
Resource

1
Management

Chapter
One

Krista Uggerslev, NAIT

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-1
CANADIAN HUMAN RESOURCE MANAGEMENT

1. Discuss the objectives of human resource

management.
2. Identify steps in 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.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-2

CANADIAN HUMAN RESOURCE MANAGEMENT
LO1

• 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.
• Supports and enables organizations to:
– Meet short and long-term economic, social, and
environmental goals

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-3

CANADIAN HUMAN RESOURCE MANAGEMENT

The Interconnectivity of Human

Resource Management Activities

Schwind 12th Edition, Figure 1-1

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-4
CANADIAN HUMAN RESOURCE MANAGEMENT

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
© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-5
CANADIAN HUMAN RESOURCE MANAGEMENT
LO2
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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition, Figure 1-2 Schwind 12th Edition 1-6
CANADIAN HUMAN RESOURCE MANAGEMENT

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
• 3 generic business strategies:
– Cost leadership strategy
– Differentiation strategy
– Focus strategy

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-7

CANADIAN HUMAN RESOURCE MANAGEMENT

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

Schwind 12th Edition, Figure 1-3

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-8
CANADIAN HUMAN RESOURCE MANAGEMENT

Four Critical Economic Forces

1. Economic cycles
2. Global trade
3. Productivity improvement
4. Global competitiveness

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-9

CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-10

CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-11

CANADIAN HUMAN RESOURCE MANAGEMENT

Economic Force: Global Trade Cont’d

How Competitive is Canada Compared to Other Nations?

Schwind 12th Edition, Figure 1-4

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-12
CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-13

CANADIAN HUMAN RESOURCE MANAGEMENT

Three Critical Technological

Forces
1. Flexible Work Design
2. Connectivity
3. Automation

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-14

CANADIAN HUMAN RESOURCE MANAGEMENT

Technological Force:
Flexible Work Design
• Unprecedented degree of technology
– 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)

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-15

CANADIAN HUMAN RESOURCE MANAGEMENT

Technological Force: Connectivity

• Knowledge Management
– Process of capturing organizational knowledge and
making it available for sharing and building new
knowledge
• Intranets and integrated information systems help
store and access information quickly and accurately
• Internet has a profound impact on HR activities
– social networking sites, video-sharing, etc.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-16

CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-17

CANADIAN HUMAN RESOURCE MANAGEMENT

Five Critical Demographic Forces

1. Gender balance in the workforce

2. Shift towards knowledge workers
3. Educational attainment of workers
4. Aging population
5. Generational shift

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-18

CANADIAN HUMAN RESOURCE MANAGEMENT

Demographic Force:
Gender Balance in the Workplace
• 47% of the workforce are women (2017)
• Women accounted for 70% of employment growth
in the last 20 years
• Raises importance of:
– Child care
– Work-family balance
– Dual career families
– Employment equity

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-19

CANADIAN HUMAN RESOURCE MANAGEMENT

Demographic Force:
Shift Towards Knowledge Workers
• Shift from primary and extractive industries to
service, technical, and professional jobs
– All services combined currently account for more than 75
percent of the gross domestic product (GDP).
• Knowledge workers have been the fastest growing
type of workers
– Need to attract, retain, and retrain

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-20

CANADIAN HUMAN RESOURCE MANAGEMENT

Demographic Force:
Educational Attainment of Workers

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition, Figure 1-8 Schwind 12th Edition 1-21
CANADIAN HUMAN RESOURCE MANAGEMENT

Demographic Force: Aging Population

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition, Figure 1-9 Schwind 12th Edition 1-22
CANADIAN HUMAN RESOURCE MANAGEMENT

Demographic Force:
Generational Shift
• Baby Boomers, Generation X, Generation Y, and
Generation Next (Gen Z) are qualitatively different
workers
– Need to understand that people have different
expectations from their workplaces

– Generational diversity creates an interpersonal dynamic

for all leaders

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-23

CANADIAN HUMAN RESOURCE MANAGEMENT

Two Critical Cultural Forces

1. Diversity
2. Ethics

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-24

CANADIAN HUMAN RESOURCE MANAGEMENT

Cultural Force: Diversity

• Canadian society is a cultural mosaic
• Canada encourages maintaining unique culture and
heritage vs. U.S. “melting pot”

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-25

CANADIAN HUMAN RESOURCE MANAGEMENT

Cultural Force: Ethics

• Ethical conduct of business is becoming an
increasingly important issue
• Managers should understand ethical perspectives
and consider ethical implications

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-26

CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-27

CANADIAN HUMAN RESOURCE MANAGEMENT

Step 4: Choice and Implementation

of Human Resource Strategies
• There should be a
clear line of sight
between HR
strategy and
corporate goals

Schwind 12th Edition, Figure 1-10

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-28
CANADIAN HUMAN RESOURCE MANAGEMENT

Step 4: Choice and Implementation

of Human Resource Strategies
• HR must continuously focus on 5 groups of
activities:
1. Planning Human Resources
2. Attracting Human Resources
3. Placing, Developing, and Evaluating Human Resources
4. Motivating Employees
5. Maintaining High Performance

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-29

CANADIAN HUMAN RESOURCE MANAGEMENT

Step 5: Review, Evaluation, and

Audit of Human Resource Strategies
HR Audit:
• HR Strategies
should be
examined
periodically in
consideration of
changing factors
(e.g., technology, environment)

Schwind 12th Edition, Figure 1-12

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-30
CANADIAN HUMAN RESOURCE MANAGEMENT
LO3

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-31

CANADIAN HUMAN RESOURCE MANAGEMENT

The Human Resource

Department in a Small Organization

Schwind 12th Edition, Figure 1-14

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-32
CANADIAN HUMAN RESOURCE MANAGEMENT

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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-33

CANADIAN HUMAN RESOURCE MANAGEMENT

A Large Human Resource

Department

Schwind 12th Edition, Figure 1-15

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-34
CANADIAN HUMAN RESOURCE MANAGEMENT

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)

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-35

CANADIAN HUMAN RESOURCE MANAGEMENT
LO4
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:
– Mastery of HRM Tools, Change Mastery, Personal
Credibility
• CCHRA is a collaborative effort of HR associations
– Coordinates national designation - CPHR

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-36

CANADIAN HUMAN RESOURCE MANAGEMENT

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.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 1-37

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Analysis

2
and Design

Chapter
Two

Krista Uggerslev, NAIT

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-1

CANADIAN HUMAN RESOURCE MANAGEMENT

Learning Objectives
1. Describe the uses of job analysis information for human
resource managers.
2. Discuss the various steps in conducting job analysis and
methods of job data collection.
3. Describe the contents of a job description and a job
specification.
4. Discuss the various approaches to setting performance
standards.
5. Define what competencies are and describe competency
models.
6. Outline the key considerations in job design.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-2

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Analysis
• Systematic study of a job to discover its
specifications and skill requirements.
• Used for all HR functions:
– Wage-setting, recruitment, training, performance
management, or job-redesign

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-3

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Analysis Terminology

• Job
– Group of related activities and duties
– May be held by one or several employees
• Position
– Collection of tasks and responsibilities performed by an
individual

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-4

CANADIAN HUMAN RESOURCE MANAGEMENT
LO1 HRM Activities That Rely on Job Analysis
1. Careful study of jobs to improve employee productivity levels.
2. Elimination of unnecessary job requirements that can cause discrimination in
employment.
3. Creation of job advertisements used to generate a pool of qualified applicants.
4. Matching of job applicants to job requirements.
5. Planning of future human resource requirements.
6. Determination of employee onboarding and training needs.
7. Fair and equitable compensation of employees.
8. Identification of realistic and challenging performance standards.
9. Redesign of jobs to improve performance, morale, and quality of work life.
10. Fair and accurate appraisal of employee performance.

Schwind 12th Edition, Figure 2-1

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-5
CANADIAN HUMAN RESOURCE MANAGEMENT
LO2
Steps in Job Analysis

Phase 1 •Preparation for Job Analysis

•Collection of Job Analysis

Phase 2
Information

•Use of Job Analysis

Phase 3
Information

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-6

CANADIAN HUMAN RESOURCE MANAGEMENT

Phase 1: Preparation
• Step 1
– Become familiar with the organization and its jobs
• Step 2
– Determine uses of job analysis information
• Step 3
– Identify jobs to be analyzed

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-7

CANADIAN HUMAN RESOURCE MANAGEMENT

Phase 2: Collection of Job

Analysis Information
• Step 4
– Determine sources of job data
– Human and nonhuman sources
• Step 5
– Identify the data required, which may include:
• Job Identification (e.g., job title)
• Duties (e.g., the job tasks)
• Responsibilities (e.g., equipment operation, supervisory responsibility)
• Human Characteristics (e.g., lifting, hearing)
• Working Conditions (e.g., exposure to hot or cold)
• Performance Standards (e.g., how well the job needs to be performed)
© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-8
CANADIAN HUMAN RESOURCE MANAGEMENT

Phase 2: Collection of Job

Analysis Information Cont’d

• Step 6:
– Choose the method for data collection
• Interviews
• Focus groups
• Questionnaires
• Employee logs
• Observation
• Combinations

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-9

CANADIAN HUMAN RESOURCE MANAGEMENT

Phase 3: Use of Job Analysis

Information
• Job Descriptions
• Job Specifications
• Job Standards
• Competency Models

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-10

CANADIAN HUMAN RESOURCE MANAGEMENT
LO3 Contents of a Typical Job
Description
• The key parts of a job description:
– Job identity
– Job summary
– Duties and responsibilities
– Working conditions
– Approvals

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-11

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Identity
• Job title, job location, job code
• National Occupational Classification (NOC)
• Skill level and skill type
• Industry and occupational mobility

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-12

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Summary and Duties

• Summarizes the job in a few sentences
– Indicates what the job is
– Indicates how the job is done
• Explains what the job requires
– Each major duty is described in terms of the actions
expected

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-13

CANADIAN HUMAN RESOURCE MANAGEMENT

Working Conditions and Approvals

• Working Conditions:
– May go beyond descriptions of the physical environment
– Hours of work, safety and health hazards, travel
requirements, and other features of the job
• Approvals:
– Reviewed by jobholders and supervisors

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-14

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Specifications
• A written statement that explains the human
knowledge, skills, abilities, and other characteristics
(KSAOs) needed to do a job
• Includes experience, specific tools, actions,
education and training required
• Includes physical and mental demands on
jobholders

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-15

CANADIAN HUMAN RESOURCE MANAGEMENT
LO4
Job Performance Standards
• The performance level expected from an employee
– Objectives or targets for employee efforts
– Criteria for measuring job success
• Sources of standards:
– Job analysis information
– Alternative sources (e.g. industry standards)

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-16

 CANADIAN HUMAN RESOURCE MANAGEMENT
LO5
Competency Models
• Competency
– Knowledge, skills, ability, or behaviour associated with
success on the job
– Broader in scope than KSAOs (e.g. communication)
• Competency Model (competency framework)
– Describes a group of competencies required in a particular
job
• Competency Matrix
– A list of the level of each competency required for several
jobs at an organization

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-17

CANADIAN HUMAN RESOURCE MANAGEMENT
LO6
Job Design: Key Considerations

Schwind 12th Edition, Figure 2-12

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-18
CANADIAN HUMAN RESOURCE MANAGEMENT

Organizational Considerations
• Efficiency
– Achieving maximal output with minimal input
– Scientific management & industrial engineering principles
– Stresses efficiency in effort, time, labour costs, training, and
employee learning time
• Work flow
– Sequence of and balance between jobs in an organization
needed to produce the firm’s goods or services

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-19

CANADIAN HUMAN RESOURCE MANAGEMENT

Ergonomic Considerations
• Considers the physical relationship between the worker
and the work
• Fitting the task to the worker rather than forcing
employees to adapt to the task
• Can lead to significant improvements:
– Efficiency and productivity
– Workplace safety

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-20

CANADIAN HUMAN RESOURCE MANAGEMENT

Employee Considerations: Job

Characteristics Model

Schwind 12th Edition, Figure 2-13

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-21
CANADIAN HUMAN RESOURCE MANAGEMENT

Employee Considerations
• Having control over one’s work &
Autonomy response to work environment

• Opportunity to use different skills or

Variety perform different activities

• Feeling of responsibility or pride from

Task Identity doing an entire piece of work

• Information that helps evaluate

Feedback success or failure

Task
• Knowing that one’s work is important
Significance
© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-22
CANADIAN HUMAN RESOURCE MANAGEMENT

Job Specialization:
Increase Quality of Work Life
• Job Rotation
• Job Enlargement
• Job Enrichment
• Employee Involvement and Work Teams

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-23

CANADIAN HUMAN RESOURCE MANAGEMENT

Environmental Considerations
• Workforce Availability
– Abilities and availability of the people who will do the
work
• Social Expectations
– Expectations of larger society and workers
• Work Practices
– Set ways of performing work

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-24

CANADIAN HUMAN RESOURCE MANAGEMENT

Job Analysis in “Jobless” World

• Adopt a future-oriented style when describing
job activities and specifications
• Focus on new competencies required
• Will continue to be relevant for legal compliance
and defensibility

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-25

CANADIAN HUMAN RESOURCE MANAGEMENT

2 Job Analysis and Design Summary

After mastering this chapter content, you should be able to:
1. Describe the uses of job analysis information for human resource
managers.
2. Discuss the various steps in conducting job analysis and methods of job
data collection.
3. Describe the contents of a job description and a job specification.
4. Discuss the various approaches to setting performance standards.
5. Define what competencies are and describe competency models.
6. Outline the key considerations in job design.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 2-26