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Chapter 2

Chapter 2. The Environment of Human Resource Management. CHAPTER OBJECTIVES. Identify the environmental factors that affect human resource management. Distinguish between a proactive and a reactive response to the external environment.

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Chapter 2

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  1. Chapter 2 The Environment of Human Resource Management

  2. CHAPTER OBJECTIVES • 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 diversityand identify the diverse workforce that management now confronts. • Explain the importance of small business in today’s work environment. • Define corporate culture and describe how it is developed and shaped.

  3. CHAPTER OUTLINEMAJOR 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

  4. The Environments of Human Resource Management EXTERNAL ENVIRONMENT Legal Considerations Labour Force INTERNAL ENVIRONMENT Human Resource Staffing Marketing Operations The Economy Human Resource Planning Human Resource Development Human Resource Management Society Employee and Labour Relations Technology Compensation and Benefits Other Functional Areas Finance Safety and Health Customers Competition Shareholders Unions Figure 2-1

  5. EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT • The Labour Force • Legal Considerations • Contract and Common Law • Society • Unions

  6. EXTERNAL ENVIRONMENTAL FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT (Continued) • Shareholders • Competition • Customers • Technology • The Economy

  7. CANADA’S LABOUR FORCE, 1999 Figure 2-2

  8. LEGAL CONSIDERATIONS • Human Rights • Canadian Human Rights Act, 1978 • Employment Equity Act, 1986 • Employment Standards • Contract and Common Law

  9. 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

  10. MANAGING THE DIVERSE WORK FORCE • Women in Business • Aboriginals and Visible Minorities • People with Disabilities • French and English

  11. MANAGING THE DIVERSE WORK FORCE (Continued) • Work and Family • Older Workers • Young Workers • Contingency Workers

  12. 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 • But…More progress needs to be made

  13. WORK AND FAMILY • Major Causes of Increased Work Stress Include: • Career Couples • Lone-parent Families • The Changing Workplace

  14. 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

  15. 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

  16. 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 Organization’s Corporate Culture Is Integral to Fulfilling Its Mission, Objectives and Success

  17. 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

  18. HRM in the Global Environment MULTINATIONAL ENVIRONMENT EXTERNAL ENVIRONMENT - CANADA Legal Considerations Labour Force INTERNAL ENVIRONMENT Human Resource Staffing Marketing Operations The Economy Human Res. Planning Human Res. Development Human Resource Management Society Employee and Labour Relations Technology Compensation and Benefits Other Functional Areas Finance Safety and Health Customers Competition Shareholders Unions Figure 2-4 2-18

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