Comprehensive Analysis of HRM Issues and External Influences in Canada

This report provides an in-depth analysis of Human Resource Management (HRM) issues within the Canadian context, emphasizing the influence of external factors on HR practices. The paper examines the impact of national culture, labor market systems, and industrial relations on HRM functions, including recruitment, training, and performance management. It highlights the unique aspects of Canadian culture, such as its flat organizational structure, individualism, and emphasis on work-life balance, and discusses how these cultural elements affect HRM strategies. The report also explores the role of trade unions, migration patterns, and demographic shifts in shaping the Canadian labor market. Furthermore, it analyzes how companies in Canada are adapting their HRM policies to address challenges related to recruitment, training, and employee retention in a globalized environment. The report uses examples from companies like Walmart and Starbucks to illustrate the practical implications of these external factors on HRM, particularly in terms of diversity, inclusion, and technological advancements. Ultimately, the report concludes that external forces, such as cultural and demographic changes, significantly impact HRM strategies in Canada, from recruitment to employee management and retention.

Running head: HRM ISSUES
HRM ISSUES
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Introduction:
The aim of this paper is to discuss the impact of the external forces relating to the
management of labor in the organizations. In this paper the external factors like culture of the
nation, labor market systems and systems of industrial relations in the country to regulate the
HRM systems of the companies operating in the same market (Vance and Paik, 2014). In this
paper the responsibilities of the HRM system like recruitment, training, payment and
performance management will be analyzed in this context to determine how the factors are
affecting the policies and process of the human workforce and how the employee management
policies of the country like Canada is being transformed due to these factors will be analyzed.
The choice of the country is Canada because its unique culture relating to migration and other
external factors like government, unions have initiated legislation to support the HRM of the
companies operating here. Canada is a nation in northern part of the North America. It is
consisted of ten provinces and three territories extended from Atlantic to Pacific and northward
into Arctic Ocean. This has made it the second-largest country in the world by total area.
Discussion:
Culture:
The organizational culture is more or less depended upon the national culture of the
market where the company is operating. The organizational culture of Canada is somewhat
different in terms hierarchy, termination, minimum wage and solution of the problem regarding
sexual harassment and unethical issues associated with racism. In this regard the theory of
organizational culture namely Hofsted can be discussed (O'Lawrence 2016). The findings refer
to the fact that the country maintains a flat organizational culture as the hierarchy system is not

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so projected. The people are highly individualistic as they prefer working individually rather than
in teams. The uncertainty avoidance factor and masculinity are average in number. The long term
orientation factor is low which determines that makes it a normative country. The indulgence of
this country is high because the people here prefer to maintain work life balance. However, the
issues of racial discrimination can be found in various MNCs operative in Canada. Like
Approximately 4,500 black truck drivers, applied to work for Walmart Inc. between 2001 and
2008, had filed a class-action suit against it for racial discrimination (Nytimes.com. 2009).
Trade unions:
In Canada, there are several employee unions work in order to secure the interest of the
employees working in various sectors. There are four types of unions working in Canada which
includes national, international, directly chartered local and independent local organistion. In
these workers’ unions, more or less 69.7% unionized workers are affiliated with national
workers’ unions (Elbanna, Andrews and Pollanen 2016). Most of the important workers’ union is
the Canadian Labor Congress that mainly affiliates the teachers, postal workers, public service
workers and film and television artists. On the other hand the international affiliates refer to
tobacco workers, technicians and the workers in the menial job grounds.
Migration:
Many companies operating in Canada across various industries routinely outsource their
employees from different countries in order to meet the demand of the skills needed in the
industries. Outsourcing is very much common in the sectors like insurance, banking, retail,
telecommunication, mining and many other industries, here the process of migration of thee
workers outsourced from different countries, are monitored by both the Federal Government as

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well as the government of the ten provinces and three territories (Marfelt and Muhr 2016). There
is no legislation regarding the process of governing outsourcing but the contracts of the
companies with the workers play a vital role in this procedure.
Demographics skills:
The labor market systems and systems of industrial relations are dependent upon the
demography of the country. Canada has one of the highest per capita migration rate in the world.
According to the Canadian census in 2016, the population of the country is more or less
35,151,728 which has increased by 2011 (Data.oecd.org 2020). Through immigration, the
population has increased mainly having Asian background. The National Household Survey
(NHS), the Canadian labor force participants aged 15 years. Since 2011 the employment rates
have increased in the three industrial sectors like health, retail and social assistance along with
manufacturing. The number of women workforce have been growing with time and there are
several sectors in which the women employees are becoming more effective than their male
counter parts (O'Lawrence 2016). The sectors like retail business, registered nurses and teachers
in the elementary schools and kindergartens are dominated by the women employees. On the
other hand the men employees are occupied in the management, driving, building superintendent
and sales.
Recruitment:
All of these above mentioned factors are effective in in increasing pressure upon the
human resource management of any country. This is due to the fact that the companies are
becoming more Global where many of the stakeholders are operative from overseas countries
(Paik, Kwon and Chen 2017). This is the reason why keeping space with this type of changes in

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global context needs to be incorporated in the human resource management of Canada also. As
the local employees in the country may not possesses similar type of skills needed for the
company therefore it needs to depend upon immigration policy of the government where through
outsourcing they can arrange for skilled at cheap labors. Here the example of truck drivers in
Walmart Inc. can be mentioned as they were not recruited for having a backward racial
background. For these labors the company needs to develop policies and strategies so that they
can be retained and convinced to contribute their skills in the growth of the organization (Dubé,
Brunelle and Legros 2016). There is a scope for tough competition in the market therefore
keeping skilled outsourced workers is a challenge.
Training:
Since now the organizations have diverse workforce this is necessary for the businesses
to manage the cultural changes. This is the reason why recruiting diverse workforce and
accepting challenge regarding culture with open mindedness has become a necessity. There is a
shirt from collectivism to individualism therefore the personal development of the employees
have become important for the companies (Ansah and Sorooshian 2017). The organizations I
have started to focus on the career development of the individuals and develop the future leaders.
The companies in Canada have started to provide training to the individuals upon different
cultures and bringing structural changes. In this regard the example of Starbucks can be
mentioned for its initiative to the development of a flat hierarchy, empowerment of the
employees reduced power distance and communication barriers have come into light. For the
success of the business the Canadian companies are taking initiatives for higher employee
engagement which is reducing employee turnover and boosted business growth.

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Increasing use of Technology as well as business intelligence is another factor that is
affecting Canadian Human Resource Management. The organizations has started to look for
technology and enhance performance to feel the skill gaps. This is the result why human resource
is also using Technology for gaining advantage in the organizations (Nujen et al. 2018). This
have provided the companies with competitive edge and lowering the cost of the human resource
operations. In order to operate in the competitive market with human resource asset the
organizations using technologies in the recruitment, training and development, performance
management and keeping records of the workforce. This is how a strategic decision and aligning
them with the corporate goals have become easier.
Pay or performance management:
In this country the trade unions are very much operative and take good care of the sector
specific labors. These are important for regulating the company strategies in order to monitor
employee rights and which system these unions have their reach in the overseas markets also
which connect the government it in different ways. This is the reason why give the human
resource management strategy of a company operative in Canadian market do not comply with
the contracts and agreement of the labors in a proper way they can face pressure from the
government directly (Howlett, Wellstead and Craft 2017). The payment issues can be seen in the
MNCs like General Motors operative in Canada (Michael 2019). As mentioned before, the
employee rights is a very strict issue why every company needs to consider. Therefore the
Canadian employees of GM participated in a strike in support of fair contract settlement.
Conclusion:

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Therefore it can be concluded that the external factors like the employee unions cultural
changes, migration and demographic changes in the country may affect the human resource
management of the companies in any country in the case of Canada, this is more prominent. The
data published in various official sources and literatures have pointed out that culture is the more
dominant factor than the others as the migration policy of the government allows for more
outsourcing to meet the skill gaps in the companies. There all have played an important role in
developing HRM strategies staring from recruitment to management and retention of the
employees.

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