CHAPTER 8 HUMAN RESOURCE MANAGEMENT Business Leadership Management

CHAPTER 8: HUMAN RESOURCE MANAGEMENT Business Leadership: Management Fundamentals John R. Schermerhorn, Jr. , Barry Wright, and Lorie Guest © John Wiley & Sons Canada, Ltd.

PLANNING AHEAD — CHAPTER 8 LEARNING GOALS o Describe human resource management o Explain how organizations attract a quality workforce o Explain how organizations develop and maintain a quality workforce

HUMAN RESOURCE MANAGEMENT • Major human resource management responsibilities: – Attracting a quality workforce • Human resource planning, recruitment, and selection – Developing a quality workforce • Employee orientation, training and development, and performance appraisal. – Maintaining a quality workforce • Career development, work-life balance, compensation and benefits, employee retention and turnover, and labourmanagement relations. © John Wiley & Sons Canada Ltd.

GLOBAL HUMAN RESOURCE MANAGEMENT • Strategic human resource management mobilizes human capital through the HRM (human resource management) process to best implement organizational strategies. © John Wiley & Sons Canada Ltd.

GLOBAL HUMAN RESOURCE MANAGEMENT (CONT’D) • Challenges in managing a global workforce – Keeping track of expertise – Availability of visas foreign workers © John Wiley & Sons Canada Ltd.

LEGAL ENVIRONMENT OF HUMAN RESOURCE MANAGEMENT • Discrimination in employment – Occurs when someone is denied a job or job assignment for reasons that are not job relevant • Employment equity – The right to employment without regard to race, color, national origin, religion, gender, age, sexual orientation, pregnancy or physical or mental ability – Canadian Human Rights Act of 1977 © John Wiley & Sons Canada Ltd.

TABLE 8. 2 A SAMPLE OF PROHIBITED GROUNDS OF EMPLOYMENT DISCRIMINATION IN CANADA © John Wiley & Sons Canada Ltd.

CURRENT LEGAL ISSUES IN HR MANAGEMENT • Current legal issues in HRM – Sexual harassment – Equal pay and comparable worth – Pregnancy discrimination – Legal status of independent contractors – Workplace privacy © John Wiley & Sons Canada Ltd.

HUMAN RESOURCE PLANNING • Human resource planning analyzes an organization’s HR needs and how to best fill them • Steps in the HR planning process: – Step 1: review organizational mission, objectives, and strategies – Step 2: review HR objectives and strategies – Step 3: assess current HR needs – Step 4: forecast HR needs – Step 5: develop and implement HR plans © John Wiley & Sons Canada Ltd.

FIGURE 8. 3 STEPS IN STRATEGIC HUMAN RESOURCE PLANNING © John Wiley & Sons Canada Ltd.

HUMAN RESOURCE PLANNING (CONT’D) • The foundation of human resource planning is job analysis – The orderly study of job facts to determine just what is done, when, where, how, why, and by whom in existing or potential new jobs • Job analysis provides information for developing: – Job descriptions: details the duties and responsibilities of a job holder – Job specifications: lists the qualifications required of a job © John Wiley & Sons Canada Ltd.

RECRUITMENT TECHNIQUES • Recruitment: – Activities designed to attract a qualified pool of job applicants to an organization – Steps in the recruitment process: • Advertisement of a job vacancy • Preliminary contact with potential job candidates • Initial screening to create a pool of qualified applicants © John Wiley & Sons Canada Ltd.

RECRUITMENT TECHNIQUES (CONT’D) • Recruitment methods: – External recruitment: candidates are sought from outside the hiring organization – Internal recruitment: candidates are sought from within the organization – Traditional recruitment: candidates receive information only on most positive organizational features – Realistic job previews: candidates receive all pertinent information © John Wiley & Sons Canada Ltd.

SELECTION TECHNIQUES • Selection: – Choosing from a pool of applicants the person or persons who offer the greatest performance potential • Selection Steps: – Completion of a formal application form – Interviewing – Testing – Reference checks. – Physical examination – Final analysis and decision to hire or reject © John Wiley & Sons Canada Ltd.

FIGURE 8. 4 STEPS IN THE SELECTION PROCESS: THE CASE OF A REJECTED JOB APPLICANT © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS Step 1: Application Forms • Declares individual to be a job candidate • Documents applicant’s personal history and qualifications. • Personal résumés may be included • Applicants lacking appropriate credentials are rejected at this step © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) Step 2: Interviews • Exchange of information between job candidate and key members of the organization • Opportunity for job candidate and organizational members to learn more about each other © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) • How to succeed in a telephone interview: – – – – Be prepared ahead of time Take the call in private Dress professionally Practice your interview voice Have reference materials handy Have a list of questions ready Ask what happens next © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) Step 3: Employment Tests • Used to further screen applicants by gathering additional jobrelevant information • Common types of employment tests: • Intelligence • Aptitude • Personality • Interests © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) • Criteria for selection devices: – Reliability: • The selection device is consistent in measurement – Validity: • There is a demonstrable relationship between a person’s score or rating on a selection device and his/her eventual job performance © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) • Behaviourally-oriented employment tests: – Assessment centre: • Evaluates a person’s performance in simulated work situations – Work sampling: • Evaluates a person’s performance on actual job tasks © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) Step 4: Reference and Background Checks • Inquiries to previous employers, academic advisors, coworkers and/or acquaintances regarding applicant’s: – Qualifications – Experience – Past work records • Can better inform potential employer • Can enhance candidate’s credibility © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) Step 5: Physical Examinations • Ensure applicant’s physical capability to fulfill job requirements • Basis for enrolling applicant in life, health, and disability insurance programs • Drug testing is done at this step © John Wiley & Sons Canada Ltd.

STEPS IN THE SELECTION PROCESS (CONT’D) Step 6: Final Decision to Hire or Reject • Best selection decisions will involve extensive consultation among multiple parties • Selection decision should focus on all aspects of the candidate’s capacity to perform the designated job © John Wiley & Sons Canada Ltd.

DEVELOPING A QUALITY WORKFORCE • Orientation: – Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization • Socialization: – Process of influencing the expectations, behaviours, and attitudes of a new employee in a way considered desirable by the organization © John Wiley & Sons Canada Ltd.

TRAINING AND DEVELOPMENT Training: • A set of activities that provides the opportunity to acquire and improve jobrelated skills On-the-job training: • Job rotation • Coaching • Mentoring • Modelling Off-the-job training: • Management development © John Wiley & Sons Canada Ltd.

PERFORMANCE MANAGEMENT Performance management systems ensure that: • Performance standards and objectives are set • Performance results are assessed regularly • Actions are taken to improve future performance potential © John Wiley & Sons Canada Ltd.

PERFORMANCE MANAGEMENT (CONT’D) Performance appraisal: – Formally assessing someone’s work accomplishments and providing feedback – Purposes of performance appraisal: • Evaluation: lets people know where they stand relative to objectives and standards • Development: assists in training and continued personal development of people © John Wiley & Sons Canada Ltd.

PERFORMANCE APPRAISAL METHODS Graphic rating scales: – Uses checklists of traits or characteristics to evaluate performance – Relatively quick and easy to use – However, issue of questionable reliability and validity © John Wiley & Sons Canada Ltd.

PERFORMANCE APPRAISAL METHODS (CONT’D) Behaviourally anchored rating scales (BARS): – Describes actual behaviours that exemplify various levels of performance achievement in a job – More reliable and valid than graphic rating scales – Helpful in training people to master important job skills © John Wiley & Sons Canada Ltd.

FIGURE 8. 7 SAMPLE BEHAVIOURALLY ANCHORED RATING SCALE FOR PERFORMANCE APPRAISAL © John Wiley & Sons Canada Ltd.

PERFORMANCE APPRAISAL METHODS (CONT’D) Critical-incident techniques: – Keeping a running log or inventory of effective and ineffective behaviours – Documents success or failure patterns © John Wiley & Sons Canada Ltd.

PERFORMANCE APPRAISAL METHODS (CONT’D) • Multi-person comparisons: – Formally compare one person’s performance with that of one or more others – Types of multi-person comparisons: • Rank ordering • Paired comparisons • Forced distributions © John Wiley & Sons Canada Ltd.

OTHER APPRAISALS • Alternatives to supervisory appraisal: – Peer Appraisal: • Occurs when people who work regularly and directly with a jobholder are involved in the appraisal – Upward Appraisal: • Occurs when subordinates reporting to the jobholder are involved in the appraisal – 360° Feedback: • Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance © John Wiley & Sons Canada Ltd.

MAINTAINING A QUALITY WORKPLACE • Work-life balance: – How people balance career demands with personal and family needs – Progressive employers support a healthy work-life balance – Contemporary work-life balance issues: • Single parent concerns • Dual-career couples concerns • Family-friendliness as screening criterion used by candidates © John Wiley & Sons Canada Ltd.

MAINTAINING A QUALITY WORKPLACE (CONT’D) • Compensation and benefits: – Base compensation: • Salary or hourly wages © John Wiley & Sons Canada Ltd.

COMPENSATION AND BENEFITS • Pay for performance: – Paying people for performance is consistent with: • Equity theory • Expectancy theory • Reinforcement theory – Merit pay: • Awards a pay increase in proportion to individual performance contributions • Provides performance contingent reinforcement • May not succeed due to weakness in performance appraisal system or lack of consistency in application © John Wiley & Sons Canada Ltd.

COMPENSATION AND BENEFITS (CONT’D) • Incentive compensation systems: – Skill-based pay: • Links pay to the number of job-relevant skills an employee masters – Bonus pay plans: • One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution © John Wiley & Sons Canada Ltd.

COMPENSATION AND BENEFITS (CONT’D) • Incentive compensation systems: – Profit-sharing plans: • Some or all employees receive a proportion of net profits earned by the organization – Gain-sharing plans: • Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity – Employee stock ownership plans: • Employees own stock in the company that employs them © John Wiley & Sons Canada Ltd.

COMPENSATION AND BENEFITS (CONT’D) • Fringe benefits: – Include non-monetary forms of compensation • Flexible Benefits: – Help in choosing a set of benefits within a dollar amount • Family-friendly benefits: – Help in balancing work and non-work responsibilities • Employee assistance programs: – Help employees deal with troublesome personal problems © John Wiley & Sons Canada Ltd.

RETENTION AND TURNOVER • Retention and turnover: – Replacement is the management of promotions, transfers, terminations, layoffs, and retirements – Replacement decisions relate to: • Shifting people between positions within the organization • Retirement – Including early retirement incentive programs • Termination • Wrongful dismissal © John Wiley & Sons Canada Ltd.

LABOUR-MANAGEMENT RELATIONS • Labour unions deal with employers on the workers’ behalf • Labour contracts specify the rights and obligations of employees and management regarding: – Wages – Work hours – Work rules – Seniority – Hiring – Grievances – Other conditions of employment © John Wiley & Sons Canada Ltd.

LABOUR-MANAGEMENT RELATIONS (CONT’D) • Collective Bargaining: – Process of negotiating, administering, and interpreting a labour contract • Two-Tier Wage System: – Pays new hires less than workers already doing the same work with more seniority © John Wiley & Sons Canada Ltd.

FIGURE 8. 9 THE TRADITIONAL ADVERSARIAL VIEW OF LABOURMANAGEMENT RELATIONS © John Wiley & Sons Canada Ltd.

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