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Ryerson University
Human Resources
MHR 523
Margaret Yap

MHR 523 LECTURE 1 Introduction to Human Resources Management What is HRM? HRM is the leadership and management of people within an organization using systems, methods, processes, and procedures that enable employees to optimize their contribution to the organization and its goals. Supports and enables organizations to: Meet short and long-term economic, social, and environmental goals. Why study HRM? o People (human resources) are the common element in all social organizations o These human resources create the objectives, innovations, and accomplishments o Organizational success depends upon careful attention to human resources The Role of the HR Department • Staff authority - HR is a service department - Authority to advise, not direct • Line authority - Possessed by managers of operating departments - Authority to make decisions • Functional authority - HR department may be provided authority to make decisions usually made by line managers or top management - E.g. deciding type of benefits The Organization of HRM • HR Department in a small organization - Separate GR department emerges when HR activities become a burden - Often emerges as a small department or individual reporting to a middle-level manager • Large HR Department - As the organization grows, the HR department usually grows in impact/complexity - Specialists are added - Vice president title Strategic HRM Definition: “Integrating HRM strategies and systems to achieve overall mission, strategies, and success of the firm while meeting needs of employees and other stakeholders.” • Systematically linked to the strategic needs of an organization and reflects the organizational mission and strategy • Human resource strategies and tactics must be mutually consistent Proactive HRM: Decision-makers anticipate problems and likely challenges and take action before a problem exists Reactive HRM: Decision-makers respond to problems than anticipate them Steps in Strategic HRM 1. Environmental Scan 2. Organizational mission and goals analysis 3. Analysis of organizational character and culture 4. Analysis of organizational strategies 5. Choice & implementation of HR strategies 6. Review, evaluation & audit of HR strategies Step 1: Environmental Scan Economic Forces: Economic Cycles • Canadian economy goes through boom and bust cycles - Often linked to other economies • During boom cycles, HR must consider - How to recruit, develop and retain talent • During recessionary periods, HR faces challenges - Layoffs, wage concessions - Lower morale Economic Forces: Global Trade • International trade has always been a crucial issue • Canada ranks high among exporting nations • Canadian jobs and economic prosperity depend upon international trade • Exports of goods and services account for 31% of Canada’s GDP Economic Forces: Productivity Improvement • Definition: Ratio of an organization’s outputs to its inputs PRODUCTIVITY=OUTPUTS (goods and services)/INPUTS (ex. people, capital, materials, energy) • Productivity improvement is essential for long-term success • Tools to increase productivity: - Outsourcing - Use of part-time workers - Contract or contingent workers, etc. Economic Forces: Global Competitiveness • U.S. productively levels outpace Canada • Canada ranked 14 in terms of global competitiveness by the World Economic Forum • Canada holds only 2% of the world’s patents (U.S. and Japan hold 60%) Technological Forces • Flexible Work Design - Changed the way we work, e.g., when and where • Information Sharing & Knowledge Management - Information management systems store integrated information - Knowledge management: process of capturing organizational knowledge and making it available for sharing and building new knowledge • Automation - Organizations automate to Increase speed, provide better service to customers, increase predictability in operations, achieve higher standards of quality
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