Chapter 10 Managing Human Resources and Labour Relations

Learning Outcomes 1 Discuss the human resource management process, and how human resource needs are determined. 2 Explain how firms recruit applicants. 3 Summarize how firms select qualified applicants. 4 List some of the types of training and development programs organizations offer their employees. 5 Show performance appraisals are used to evaluate employee performance. 6 Analyze the various methods for compensating employees. 7 Explain how labour–management relations are different in a unionized environment. Chapter 10 8 Describe some of the key laws and federal agencies affecting human resource management and labour relations. 9 List some of the trends and issues affecting human resource management and labour relations. Copyright © 2011 by Nelson Education Ltd. 2

Human Resource Challenges Competition for a limited number of employees Employees are struggling to balance their home and work lives Managers are challenged to manage and communicate with employees around the globe A diverse and multicultural workforce requires better workplace communication and training Chapter 10 Technology is impacting decision making, communication, and business operation Human resource laws are dictating many aspects of the employee-employer relationship Copyright © 2011 by Nelson Education Ltd. 3

Human Resource Success Factors Attracting and hiring the best employees Equipping employees with the skills needed to excel Compensating employees fairly Motivating employees to reach their full potential Managing (and interacting with) people will probably be the most stressful and difficult part of your future career Chapter 10 “L'enfer, c'est les autres” Hell is other people Jean Paul Sartre Copyright © 2008 by Nelson, a division of Thomson Canada Limited 4

Human Resource Management Chapter 10 Human Resource Management (HRM) Copyright © 2011 by Nelson Education Ltd. The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals 5

Chapter 10 Human Resource Management Process Copyright © 2011 by Nelson Education Ltd. 6

Human Resource Planning Chapter 10 Job Analysis A study of the tasks required to do a particular job well Job Description The tasks and responsibilities of a job Job Specification A list of the skills, knowledge, and abilities a person must have to fill the job Copyright © 2011 by Nelson Education Ltd. 7

Human Resource Planning and Forecasting Determine the number of people needed by some future time Chapter 10 The HR Demand Forecast Copyright © 2011 by Nelson Education Ltd. Estimate the number of people currently involved who will be available to fill jobs at some future time 8

Chapter 10 Human Resource Planning Process Copyright © 2011 by Nelson Education Ltd. 9

Employee Recruitment Internal Labour Market External Labour Market Follow a policy of promotion from within Find attract qualified applicants from the external sources Chapter 10 Electronic Job Boards Copyright © 2011 by Nelson Education Ltd. Advertising Search Firms Job Fairs Open Houses 10

Recruitment Chapter 10 – External recruiting: managers look outside the firm for people who have not worked at the firm before. • Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet. – External recruitment is difficult since many new jobs have specific skill needs. – A multi-prong approach to external recruiting works best. – Internal Recruiting: positions filled from within the firm. • Internal recruiting has several benefits: – Workers know the firm’s culture but may not have new ideas. – Managers likely already know the candidates. – Internal advancement can motivate employees. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 11

Honesty in Hiring § Managers may be tempted to over-rate the attractiveness of the job and firm. – – Recruits will not work for dishonest employers Research indicates this is a poor strategy. § Realistic Job Preview: provides an accurate overview of the job. Chapter 10 – Avoids having to hire, train, and then lose workers. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 12

Chapter 10 Employee Selection Copyright © 2011 by Nelson Education Ltd. 13

Selection Process After a pool of applicants are identified, qualifications related to the job requirements are determined: • Chapter 10 • Background Information: includes education, prior employment, college major, etc. Interview: almost all firms use one of two types: – Structured interview: managers ask each person the same job-related questions. – Unstructured interview: held like a normal conversation. – Usually structured interviews preferred; bias is possible. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 14

Selection Process Testing: includes testing of ability, personality, physical ability, and performance Chapter 10 § » Ability test: assess if applicant has right skills for the job. » Personality test: seek traits relevant to job performance. » Physical ability test: assesses whether applicant has physical ability to do job tasks » Be sure test is a good predictor of job performance. Performance Tests: measure job performance. » Typing speed test is one example. » Assessment Center: candidates assessed on jobrelated activities over a period of a few days. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 15

Selection Process • References: outside people provide candid information about candidate. – Can be hard to get accurate information – Sometimes they want to get rid of someone – Usually phone – written comments = lawsuits! Chapter 10 “You will be very lucky if you can get Josephine Smith to work for you………” Copyright © 2008 by Nelson, a division of Thomson Canada Limited 16

Selection Devices Quality of Selection Devices as Predictors Position Selection Devices Chapter 10 Senior Manag. 3 Application Forms 2 Mid-Lower High-Tech Routine Managers Workers Operatives 2 2 2 3 Written Tests 1 1 2 3 3 Work Samples -- -- 4 4 3 Assessment Center 5 5 -- -- 3 Interviews 4 3 2 2 3 Application Reviews 3 3 3 Reference Checks 1 1 3 Physical Exams 1 1 1 2 Note: Scale is 5 (highest) to 1 (lowest) and a dash = N/A. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 17

Chapter 10 Employee Training and Development Copyright © 2011 by Nelson Education Ltd. 18

Employee Training and Development employee orientation Examples of Types of Training and Development on-the-job rotation apprenticeship Chapter 10 mentoring Off-thejob training Copyright © 2011 by Nelson Education Ltd. programmed instruction simulation 19

Chapter 10 Performance Planning and Evaluation Copyright © 2011 by Nelson Education Ltd. 20

Employee Compensation and Benefits Hourly wages Salaries Types of Compensation Piecework & commission Accelerated commission schedule Bonus Chapter 10 Profit sharing Benefits Copyright © 2011 by Nelson Education Ltd. 21

Chapter 10 Job Changes within the Organization Promotion An upward move to a position with more authority, responsibility, and pay. Transfer A horizontal move to a position with about the same salary and organizational level. Demotion The downgrading or reassignment of an employee to a position with less responsibility. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 22

Chapter 10 Separations Layoff Temporary separation of an employee. Arranged by employer. Termination Permanent separation of an employee. Arranged by employer. Resignation Permanent separation of an employee. Arranged by employee. Retirement Separation of an employee at the end of his or her career. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 23

Labour Relations Terms Chapter 10 labour union organization that represents workers in dealing with management collective bargaining process of negotiating labour agreements national union a union that consists of many local unions, operating nationally local union units of a national union, representing workers in a specific location shop steward elected union official – represents members to management Copyright © 2011 by Nelson Education Ltd. 24

Chapter 10 Negotiating Labour Agreements Copyright © 2011 by Nelson Education Ltd. 25

Common Issues in Collective Bargaining Chapter 10 Union Security Management Rights Wages/Benefits Job Security and Seniority Grievance Procedures Arbitration/Mediation Copyright © 2011 by Nelson Education Ltd. 26

Chapter 10 Strategies for Unions and Employers Copyright © 2011 by Nelson Education Ltd.

Chapter 10 Legislation Affecting HR Management Copyright © 2011 by Nelson Education Ltd. 28

Trends in Human Resource Management Employee Diversity and Competitive Advantage Outsourcing HR and Technology Chapter 10 Organizational Culture and Hiring for Fit Copyright © 2011 by Nelson Education Ltd. 29