ch2-HRM Environment

Chapter 2
The Environment of Human

Resource Management
2-1
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.
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
2-3
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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Staffing
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Society
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Human
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Resource
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Management
Technology
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Other
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Finance Safety and Co Functional
Health Areas
2-4
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
2-5
EXTERNAL ENVIRONMENTAL FACTORS
AFFECTING HUMAN RESOURCE
MANAGEMENT (Continued)
Shareholders
Competition
Customers
Technology
The Economy
2-6
LEGAL CONSIDERATIONS
Human Rights
Canadian Human Rights Act, 1978
Employment Equity Act, 1986
Employment Standards
Contract and Common Law
2-7
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
2-8
MANAGING THE DIVERSE WORK FORCE
Women in Business
Aboriginals and Visible Minorities
People with Disabilities
French and English
2-9
MANAGING THE DIVERSE WORK FORCE
(Continued)
Work and Family

Older Workers
Young Workers
Contingency Workers
2-10
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
WORK AND FAMILY
Major Causes of Increased Work Stress Include:

Career Couples
Lone-parent Families
The Changing Workplace
2-12
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
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
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
2-15
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
2-16
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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Pla an R
Hu velo
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Society
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Human
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Resource
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Management
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Technology
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Other
Finance Functional
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Safety and Co
Health Areas
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-
2-18

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Chapter 2

The Environment of Human

Work and Family

The Glass Ceiling Is Beginning to Crack

ButMore progress needs to be made

Major Causes of Increased Work Stress Include:

Over the 1990s Many Companies Chose to Hire

Entrepreneurs Have Been Essential to the Growth and

An Organization That Has Corporate Units in a Number

Customers Competition Shareholders

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