Chapter 2

The Environment of Human Resource Management

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-1

CHAPTER OBJECTIVES
1. 2. 3. 4. 5.

Identify the environmental factors that affect human resource management. Distinguish between a proactive and a reactive response to the external environment. Describe the issue of diversity and identify the diverse workforce that management now confronts. Explain the importance of small business in todays work environment. Define corporate culture and describe how it is developed and shaped.

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-2

CHAPTER OUTLINE MAJOR TOPICS

Environmental Factors Affecting Human Resource Management The External Environment The External Environment: Proactive Versus Reactive Managing the Diverse Work Force Small Business Corporate Culture Human Resource Management in the Global Environment

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-3

The Environments of Human Resource Management

EXTERNAL ENVIRONMENT Legal Considerations INTERNAL ENVIRONMENT
The Economy Labour Force

Marketing

Human Resource Staffing

Operations

Technology

Human Resource Management

Finance

Safety and Health

Competition Shareholders

Other Functional Areas Unions

Customers

EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT

The Labour Force Legal Considerations Contract and Common Law Society Unions

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-5

EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT (Continued)

Shareholders Competition Customers Technology The Economy

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-6

CANADAS LABOUR FORCE, 1999

Total Population 15 + (000s) Labour Force (000s) Participation Rate (%) Employed (000s) Employment Rate (%) Unemployed (000s) Unemployment Rate (%)
Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

24 288 15 925 65.6 14 711 60.6 1 215 7.6

Figure 2-2
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LEGAL CONSIDERATIONS

Human Rights Canadian Human Rights Act, 1978 Employment Equity Act, 1986 Employment Standards Contract and Common Law

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-8

THE EXTERNAL ENVIRONMENT: PROACTIVE VERSUS REACTIVE

Proactive Response Taking Action in Anticipation of Environmental Changes Reactive Response Simply Reacting to Environmental Changes After They Occur

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-9

MANAGING THE DIVERSE WORK FORCE

Women in Business Aboriginals and Visible Minorities People with Disabilities French and English

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-10

MANAGING THE DIVERSE WORK FORCE (Continued)

Work and Family Older Workers Young Workers Contingency Workers

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-11

WOMEN IN BUSINESS

The Glass Ceiling Is Beginning to Crack More Women in the Workplace Women Are Better Educated Women Are Better Paid Than They Were Longer Tenure ButMore progress needs to be made

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-12

WORK AND FAMILY

Major Causes of Increased Work Stress Include: Career Couples Lone-parent Families The Changing Workplace

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-13

CONTINGENCY WORKERS

Over the 1990s Many Companies Chose to Hire Contingency Workers Contract Workers Hired by Companies to Cope With Unexpected or Temporary Challenges This Workforce Consist of Part-timers, Freelancers, Subcontractors, People Hired Through Employment Agencies and Independent Workers

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-14

SMALL BUSINESS

Entrepreneurs Have Been Essential to the Growth and Vitality of the Canadian Economy Nearly 2.5 Million Canadians Reported Working at Their Own Businesses HR Professionals Must Be Aware That the Environment of Managers in Large and Small Businesses Is Often Quite Different, for Example: Managers in Small Businesses Often Identify More Closely With the Goals of the Firm

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-15

CORPORATE CULTURE

Corporate Culture The System Of Shared Values, Beliefs, And Habits Within An Organization That Interacts With The Formal Structure To Produce Behavioural Norms An Organizations Corporate Culture Is Integral to Fulfilling Its Mission, Objectives and Success

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-16

GLOBAL CORPORATION

An Organization That Has Corporate Units in a Number of Countries; The Units Are Integrated to Operate As One Organization World-wide Global Operations Add Another Environmental Layer to Human Resource Management

Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles 2001 Pearson Education Canada, Inc. All rights reserved.

2-17

HRM in the Global Environment

MULTINATIONAL ENVIRONMENT EXTERNAL ENVIRONMENT - CANADA Legal Considerations Labour Force INTERNAL ENVIRONMENT
The Economy Marketing Human Resource Staffing Operations

Technology

Human Resource Management

Finance

Safety and Health Competition Shareholders

Other Functional Areas Unions

Figure 22-18

Customers