Chapter 1 Strategic Importance of HRM
STRATEGIC IMPORTANCE OF
1 HUMAN RESOURCE
MANAGEMENT
PAGE
LEARNING OBJECTIVES ................................................................................................................................. 2
TERMS FOR REVIEW ..................................................................................................................................... 2
LECTURE NOTES ........................................................................................................................................... 3
RESPONSES TO REVIEW AND DISCUSSION QUESTIONS ............................................................................. 10
RESPONSES TO CRITICAL THINKING QUESTIONS ....................................................................................... 12
SHORT CASE: HUMAN RESOURCE DECISION MAKING AT CANADA IMPORTERS LTD. ............................... 14
CASE STUDY: DIGITECH .............................................................................................................................. 15
Complete Chapters Solutions Included
✅
Complete Case Studies Answers Included
IM for Schwind, Canadian Human Resource Management, 14e
© 2025 1-1
,Part 2 Planning Human Resources
LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Discuss the objectives of human resource management.
2. Identify the steps in the strategic management of human resources.
3. Explain how human resource departments are organized and how they function.
4. Discuss the role of human resource professionals in today’s organizations.
TERMS FOR REVIEW
Automation Knowledge workers
Chartered Professional in Human Resources Line authority
(CPHR) Mission statement
Cultural mosaic Organization structure
Demographic Changes Organizational culture
Economic forces Organizational goals
Educational attainment Productivity
Functional authority Sociocultural forces
Human resource audit Staff authority
Human resource management Strategic human resource management
IM for Schwind, Canadian Human Resource Management, 14e
©2025 1-2
, Chapter 1 Strategic Importance of HRM
LECTURE NOTES
Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® slides for
each chapter. Please contact your McGraw-Hill Ryerson representative to find out how instructors can
receive these files. These lecture notes are intended to accompany the PowerPoint® slides.
Slide 1-1 Chapter cover slide
Slide 1-2 Learning Objectives
Slide 1-3 Introduction—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
performance and in turn their contribution to the organization and its goals.
HRM aims to support and enable organizations to meet their short- and long-term
economic, social, cultural, and environmental goals.
Slide 1-4 Although each topic within human resources is addressed individually, it is important
to recognize that the activities within human resource management are all
interconnected.
Figure 1-1 highlights some of this interconnectedness. When a change is made to one
activity or system, it often has an impact on another activity. For example, if an
organization acts to engage long-term employees in order to prevent them from leaving,
it may spend fewer dollars recruiting and hiring new employees. In order for human
resource management systems, practices, and activities to be effective, leaders must
consider how changes may affect the system overall.
Slide 1-5 STRATEGIC HUMAN RESOUCE MANAGEMENT
• A strategy is similar to a game plan and is linked to the strategic needs of an
organization
• Strategic human resource management is the process of integrating the strategic
needs of an organization into the choice of human resource management
systems and practices
• Human Resource strategies and tactics must be mutually consistent—strategies
may fail if they are not supported by effective tactics, i.e. methods and
procedures
• Human Resource strategies need to reflect the organization’s mission and
strategies, i.e., be consistent with organizational priorities
Slide 1-6 A MODEL OF STRATEGIC HRM
To be effective, a human resource management strategy and system should be
formulated after careful consideration of an organization’s environment, mission, vision
and objectives, strategies, and internal strengths and weaknesses, including its culture.
For purposes of discussion, we will break the human resource strategy formulation and
IM for Schwind, Canadian Human Resource Management, 14e
© 2025 1-3
, Part 1 The Strategic Human Resource Management Model
implementation process into five major steps, as outlined in Figure 1-2. Alternative
sources may provide different stages and descriptions. Regardless, the logic remains
consistent: Know what you are aligning to, understand your external and internal
environment, make decisions, and evaluate decisions.
Slide 1-7 Understanding the strategic HRM process
STEP 1. ORGANIZATIONAL MISSION, VISION, GOALS, AND STRATEGY ANALYSIS
• The organization’s overall mission and goals guide the human resources that are
needed to fulfil the mission and goals
• For instance, goals such as productivity (or revenue surplus), organizational growth,
employee satisfaction, efficiency, ability to adapt to environmental changes, etc., will
help to identify human resources strategies
Slide 1-8 STEP 2. ENVIRONMENTAL SCAN
• Continuous monitoring of economic, legal, technological, demographic, and cultural
forces and noting changes in governmental policies, legislation, and statements
• These forces are covered over the next series of slides
Slide 1-9 The environmental scan includes the following economic forces: economic cycles, global
trade, productivity and innovation improvement, and activity in the extractive,
production, and service-based economic sectors.
Slide 1-10 Economic Force: Economic cycles
• The Canadian economy goes through boom and bust cycles, which are often linked to
boom and bust cycles in other economies
• During recessionary periods, HR managers face challenges associated with layoffs,
wage concessions, and the lower morale that accompanies recessions.
• During boom cycles, HR managers must consider how to recruit and develop the
organization’s talent base.
Slide 1-11 Economic Force: Global trade
• For Canada, international trade has always been a crucial issue
o Canada ranks high among exporting nations, exporting more than U.S.
and Japan on a per capita basis
o Canadian jobs and economic prosperity depend upon international trade
Slide 1-12 In 2022, Canada was the fifteenth most competitive nation in the world; although this
ranking is higher than 7 of Canada’s top 10 trading partners, it is below that of our
largest trading partner, the US. (Figure 1-4).
Slide 1-13 Economic Force: Productivity and Innovation Improvement
• Productivity refers to the ratio of an organization’s outputs (goods and services)
to its inputs (people, capital, material, and energy)
• Productivity improvement is essential for long-term success i.e., to reduce costs,
save scare resources, and enhance profits
IM for Schwind, Canadian Human Resource Management, 14e
©2025 1-4
STRATEGIC IMPORTANCE OF
1 HUMAN RESOURCE
MANAGEMENT
PAGE
LEARNING OBJECTIVES ................................................................................................................................. 2
TERMS FOR REVIEW ..................................................................................................................................... 2
LECTURE NOTES ........................................................................................................................................... 3
RESPONSES TO REVIEW AND DISCUSSION QUESTIONS ............................................................................. 10
RESPONSES TO CRITICAL THINKING QUESTIONS ....................................................................................... 12
SHORT CASE: HUMAN RESOURCE DECISION MAKING AT CANADA IMPORTERS LTD. ............................... 14
CASE STUDY: DIGITECH .............................................................................................................................. 15
Complete Chapters Solutions Included
✅
Complete Case Studies Answers Included
IM for Schwind, Canadian Human Resource Management, 14e
© 2025 1-1
,Part 2 Planning Human Resources
LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Discuss the objectives of human resource management.
2. Identify the steps in the strategic management of human resources.
3. Explain how human resource departments are organized and how they function.
4. Discuss the role of human resource professionals in today’s organizations.
TERMS FOR REVIEW
Automation Knowledge workers
Chartered Professional in Human Resources Line authority
(CPHR) Mission statement
Cultural mosaic Organization structure
Demographic Changes Organizational culture
Economic forces Organizational goals
Educational attainment Productivity
Functional authority Sociocultural forces
Human resource audit Staff authority
Human resource management Strategic human resource management
IM for Schwind, Canadian Human Resource Management, 14e
©2025 1-2
, Chapter 1 Strategic Importance of HRM
LECTURE NOTES
Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® slides for
each chapter. Please contact your McGraw-Hill Ryerson representative to find out how instructors can
receive these files. These lecture notes are intended to accompany the PowerPoint® slides.
Slide 1-1 Chapter cover slide
Slide 1-2 Learning Objectives
Slide 1-3 Introduction—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
performance and in turn their contribution to the organization and its goals.
HRM aims to support and enable organizations to meet their short- and long-term
economic, social, cultural, and environmental goals.
Slide 1-4 Although each topic within human resources is addressed individually, it is important
to recognize that the activities within human resource management are all
interconnected.
Figure 1-1 highlights some of this interconnectedness. When a change is made to one
activity or system, it often has an impact on another activity. For example, if an
organization acts to engage long-term employees in order to prevent them from leaving,
it may spend fewer dollars recruiting and hiring new employees. In order for human
resource management systems, practices, and activities to be effective, leaders must
consider how changes may affect the system overall.
Slide 1-5 STRATEGIC HUMAN RESOUCE MANAGEMENT
• A strategy is similar to a game plan and is linked to the strategic needs of an
organization
• Strategic human resource management is the process of integrating the strategic
needs of an organization into the choice of human resource management
systems and practices
• Human Resource strategies and tactics must be mutually consistent—strategies
may fail if they are not supported by effective tactics, i.e. methods and
procedures
• Human Resource strategies need to reflect the organization’s mission and
strategies, i.e., be consistent with organizational priorities
Slide 1-6 A MODEL OF STRATEGIC HRM
To be effective, a human resource management strategy and system should be
formulated after careful consideration of an organization’s environment, mission, vision
and objectives, strategies, and internal strengths and weaknesses, including its culture.
For purposes of discussion, we will break the human resource strategy formulation and
IM for Schwind, Canadian Human Resource Management, 14e
© 2025 1-3
, Part 1 The Strategic Human Resource Management Model
implementation process into five major steps, as outlined in Figure 1-2. Alternative
sources may provide different stages and descriptions. Regardless, the logic remains
consistent: Know what you are aligning to, understand your external and internal
environment, make decisions, and evaluate decisions.
Slide 1-7 Understanding the strategic HRM process
STEP 1. ORGANIZATIONAL MISSION, VISION, GOALS, AND STRATEGY ANALYSIS
• The organization’s overall mission and goals guide the human resources that are
needed to fulfil the mission and goals
• For instance, goals such as productivity (or revenue surplus), organizational growth,
employee satisfaction, efficiency, ability to adapt to environmental changes, etc., will
help to identify human resources strategies
Slide 1-8 STEP 2. ENVIRONMENTAL SCAN
• Continuous monitoring of economic, legal, technological, demographic, and cultural
forces and noting changes in governmental policies, legislation, and statements
• These forces are covered over the next series of slides
Slide 1-9 The environmental scan includes the following economic forces: economic cycles, global
trade, productivity and innovation improvement, and activity in the extractive,
production, and service-based economic sectors.
Slide 1-10 Economic Force: Economic cycles
• The Canadian economy goes through boom and bust cycles, which are often linked to
boom and bust cycles in other economies
• During recessionary periods, HR managers face challenges associated with layoffs,
wage concessions, and the lower morale that accompanies recessions.
• During boom cycles, HR managers must consider how to recruit and develop the
organization’s talent base.
Slide 1-11 Economic Force: Global trade
• For Canada, international trade has always been a crucial issue
o Canada ranks high among exporting nations, exporting more than U.S.
and Japan on a per capita basis
o Canadian jobs and economic prosperity depend upon international trade
Slide 1-12 In 2022, Canada was the fifteenth most competitive nation in the world; although this
ranking is higher than 7 of Canada’s top 10 trading partners, it is below that of our
largest trading partner, the US. (Figure 1-4).
Slide 1-13 Economic Force: Productivity and Innovation Improvement
• Productivity refers to the ratio of an organization’s outputs (goods and services)
to its inputs (people, capital, material, and energy)
• Productivity improvement is essential for long-term success i.e., to reduce costs,
save scare resources, and enhance profits
IM for Schwind, Canadian Human Resource Management, 14e
©2025 1-4
