H600 Chapter 1

Chapter 1 Strategic Importance of Human Resource Management

Human Resource Management: aims to improve the productive contribution of individuals whiel simultaneously attempting to attain other societal and individual employee objectives.

Strategic Human Resource Management linking strategic needs of an organization and aims to provide it with an effective workforce while meeting the needs of its members and the rest of society

Major Challenges Facing Businesses

1. Economic

a. Surviving a recessionary cycle

i. May need to do layoffs, wage concessions, morale is low, may need more employee counselling, go into crisis management mode

ii. Job insecurity causes erosion of trust in management, almost ½ don’t trust management. Workers feel they don’t care about them, feel decisions are made behind closed doors without transperency

b. Facing global trade challenge

iii. Some companies depend heavily on international trade and exports, 40% of GDP, Canada is one of the biggest traders

iv. Canadian companies are opening up companies where things are cheap

v. New cheaper players are turning up, Thailand, India. Canada is losing ground in industries that were previously ours (pulp, paper)

vi. Global village means major changes for Canada. Open borders present new opportunities but also need to worry about brain drain

c. Meeting challenge of productivity improvement

vii. Ration of outputs / inputs

viii. HR helps productivity by finding better ways to meet objectives – hiring better people, improving quality of work life

ix. Outsourcing to cut costs – contracting tasks to outside agencies or persons

x. Outplacement – assisting employees to find jobs with other employers

xi. Renewed emphasis on strategic thinking and creative responses. Involves using new technology to improve productivity and create value.

2. Technology –...