BUSI 1250 Notes

Chapter 1
The Strategic Role of
Human Resources
Management
BUSI1250 – Human Resources Management I
Instructor: SA Herrmann

KWANTLEN POLYTECHNIC UNIVERSITY

RICHMOND

SURREY

CLOVERDALE

LANGLEY

Learning Objectives
After this lecture you should be able to:
• Articulate the role and importance of human resources management (HRM).
• Explain the importance of strategic HR and its impact on the bottom line.
• Identify and discuss environmental issues on HRM.
• Describe the challenges facing HR in the 21st century

Strategic Human Resources Management
Strategic HRM blurs the traditional boundary between people management and business management. – links HRM to a company’s strategic goals and objectives
– seeks to establish a sustainable competitive advantage.

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Strategic Human Resources Management
• The goal of strategic HRM is to use human resources to improve business performance
• Strategic HR recognizes an HR department’s partnership role in the strategic planning process
• HR strategies are specific HR actions a company might use to achieve its strategic objectives

Strategic Human Resources Management
 Linking HR management to strategy can also develop the culture required to reach business goals (ie: innovation, customer service, quality focus)
 HR is starting to focus on harnessing human capital to achieve strategic goals

Concept of Human Capital
Human Capital is the knowledge, education, training, skills and expertise of a firm’s workers.

Gary Becker, American economist and Nobel laureate.

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Strategic Human Resources
Strategic HRM has a positive effect on profitability:
Fundamental shift from being a cost item to being able to justify its existence as an asset through return on investment (ROI)
Canadian HR professionals’ goal is a seat at the senior management table o This goal will be achieved by quantifying and harnessing human capital resources o has been somewhat