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Chapter 2

The Environment of Human


Resource Management

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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
CHAPTER OBJECTIVES
1. Identify the environmental factors that affect human
resource management.
2. Distinguish between a proactive and a reactive
response to the external environment.
3. Describe the issue of diversity and identify the diverse
workforce that management now confronts.
4. Explain the importance of small business in todays
work environment.
5. Define corporate culture and describe how it is
developed and shaped.

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

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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
The Environments of Human Resource Management
EXTERNAL ENVIRONMENT
Legal Considerations INTERNAL ENVIRONMENT Labour Force

Human Resource
The Economy

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Marketing Operations

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Finance Safety and Co Functional
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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
Customers Competition Shareholders
2001 Pearson Education Canada, Inc. All rights reserved. Unions
EXTERNAL ENVIRONMENTAL FACTORS
AFFECTING HUMAN RESOURCE
MANAGEMENT
The Labour Force
Legal Considerations
Contract and Common Law
Society
Unions

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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
EXTERNAL ENVIRONMENTAL FACTORS
AFFECTING HUMAN RESOURCE
MANAGEMENT (Continued)

Shareholders
Competition
Customers
Technology
The Economy

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

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

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

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

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

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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
MANAGING THE DIVERSE WORK FORCE
(Continued)

Work and Family


Older Workers
Young Workers
Contingency Workers

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

2-11
Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
WORK AND FAMILY

Major Causes of Increased Work Stress Include:


Career Couples
Lone-parent Families
The Changing Workplace

2-12
Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
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

2-13
Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
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

2-14
Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
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

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

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Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles
2001 Pearson Education Canada, Inc. All rights reserved.
HRM in the Global Environment
MULTINATIONAL ENVIRONMENT
EXTERNAL ENVIRONMENT - CANADA
Legal Considerations Labour Force
INTERNAL ENVIRONMENT
The Economy

Human Resource
Marketing Staffing Operations

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Safety and Co
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Customers Competition Shareholders


Human Resource Management, 2/C/E, Mondy, Noe, Premeaux, Knowles Unions 2-17
2001 Pearson Education Canada, Inc. All rights reserved. Figure 2-
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