Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada CHAPTER 8 Managing Human Resources

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-2 Learning Objectives Define human resource management, discuss its strategic significance, and explain how managers plan for human resources Identify the issues involved in staffing a company, including internal and external recruiting and selection Discuss different ways in which organizations go about developing the capabilities of employees and managers Explain ways in which organizations evaluate employee performance

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-3 More Learning Objectives Discuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers Describe some of the key legal issues involved in hiring, compensating, and managing workers Discuss workplace diversity, the management of knowledge workers, and the use of contingent and temporary workers as important changes in the contemporary workplace

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-4 Human Resource Management Set of activities to attractdevelop maintain an effective workforce Planning Staffing Developing Evaluating Compensating

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-5 Human Resource Planning A detailed study of the specific duties in a particular job and the human qualities required for that job Job Analysis Job Description  Duties  Working conditions  Materials & equipment Job Specification  Skills  Abilities  Other credentials

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-6 Human Resource Planning Forecasting

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-7 Forecasting Determining the firm’s demand for employees and the likely supply of employees  past trends and historical ratios  organizational plans  general economic trends Internal Supply  # and type of current employees External supply  # and type available for hire

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-8 Replacement Chart HR technique that lists important managerial positions  who occupies it  how long until leave  who is qualified to take over

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-9 Employee Information Systems Computerized systems that contain information about employees, and which can be used to track availability and suitability for upcoming jobs Information may include  Education  Work experience  Skills  Career aspirations

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-10 Recruiting Human Resources Recruiting  process of attracting qualified persons to apply for jobs that are open  Internal recruiting  Consider present employees as candidates  build morale and employee retention  External recruiting  Attract people from outside the organization

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-11 External Recruiting Options use most appropriate method for each job Newspaper wide audience Private employment agencies clerical & technical Internships Job Fair face-to-face Executive Search Firms $ top managers $ Employee Referrals Internet Job Postings impersonal “Walk-ins”

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-12 Selecting Human Resources Gather information that predicts job success and hire most likely candidate  Validation = process of determining the predictive value of information

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-13 Application Forms First step in recruiting Allows employers to gather information relevant to the hiring decision  History  Education  Work experience  Job-related demographic information

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-14 Testing Tests must be  job-related  predictive  non-discriminatory Must be administered and scored consistently  Aptitude and ability tests best  Intelligence or personality useful  Assessment centre ($$ for managers)  Video assessment

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-15 Assessment Centres Management candidates perform realistic management tasks under the supervision of expert appraisers  selection tests  simulated situations  presentations  group discussions Allows appraisers to test trainees’ managerial behaviours under stressful conditions

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-16 Video Assessment Use of videos to show potential new hires realistic work situations Candidates are then asked to respond to various ways of handling the situations in the videos

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-17 Interviews Popular, but may be biased  Structured  Involves the use of a common set of questions  Unstructured  Questions may vary from candidate to candidate  More often used for managerial or professional candidates

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-18 Workforce Development Orientation Training and development  work-based  instructional-based  group-based

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-19 Orientation Introduces employees to the firm and their position  policies  personnel  programs  nature of the job

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-20 Work-Based Programs On-the-job training  Employees gain new skills while performing them at work Vestibule training  Employees work in a simulated environment Systematic job rotations and transfers

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-21 Instructional-Based Programs Trains workers through the use of classroom-based programs  Lecture or discussion  Computer-assisted instruction  Employees use personal computers and software to learn specific materials  Off-the-job training  Employees learn new skills at a location other than the work site

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-22 Training Technology New technologies are reshaping the face of employee training Video teleconferencing  Delivery of centralized training to branch offices allows for cost savings in travel and highly effective training Interactive video  A combination of video and computer-based instruction

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-23 Team Building and Group-Based Training Increasingly popular facilitate intragroup co-operation  outdoor training exercises

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-24 Performance Appraisal Formal evaluations of employee performance  How well are they performing?  How effective is recruiting and selection?  What are training, development & compensation needs?

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-25 Performance Appraisal 1.Conducting the appraisal  usually supervisor  can be subordinates, self, customers  360 degree feedback from every source 2.Providing Performance Feedback  coaching and counselling

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-26 Methods for Appraising Performance Ranking Methods  Simple ranking (rank order from top to bottom)  Forced distribution (group into predefined frequencies of performance ratings) Rating Methods  Graphic rating scale (statement with rating scale) Critical Incident Method  Recall and discussion of especially good, or poor, performance

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-27 Compensation and Benefits Basic  wages and salaries Performance-Based  merit pay plans  incentive programs Benefits  mandated  optional

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-28 Basic Compensation Wages  paid based on number of hours worked Salaries  paid at regular intervals regardless of the time or output involved Source of determining  pay surveys or other employers  job evaluation to determine relative worth  pay structure to assign minimum and maximum pay ranges for each job class logically ranked from most to least valuable job

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-29 Performance-Based Compensation Merit Pay  Employees are paid based on their relative contribution to the firm for some of their compensation Skill-Based Pay  Employees are paid for acquired skill level, rather than specific performance Knowledge-Based Pay  Employees are paid for learning

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-30 Incentive Compensation Systems Piece-Rate Plan  employees are paid a certain amount for each unit of product they produce Individual Incentive Plan  employees receive a salary increase, or other similar reward, for outstanding performance Sales Commission  salespeople are paid based on unit, or dollar, sales Other Incentives  may be non-monetary, such as time relief or points

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-31 Team and Group Incentive Systems Gainsharing programs  Employees get a bonus if the firm’s costs are reduced due to increased work efficiency Performance increases  Awards directed to a team of employees to reward combined effort Profit-sharing plans  The profitability level of the firm is used to determine the bonus level for its employees

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-32 Benefits Benefits: non-financial rewards  Mandated Protection Plans:  EI, CPP, Worker’s compensation  Optional Protection Plans:  health, dental, life insurance  Paid Time Off:  vacation time, sick leave, personal leave  Other Types of Benefits:  wellness programs, child-care benefits Cafeteria-Style Benefits Plan:  employees choose their own benefits

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-33 Equal Employment Opportunity Regulations protecting people from unfair, or inappropriate, discrimination in the workplace  Decisions are made whenever employees are hired or promoted  The regulations are there to prevent such decisions from being made on any basis other than job-related reasons

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-34 Canadian Human Rights Act Ensures that any individual who wishes to obtain employment has an equal opportunity to apply Key anti-discrimination legislation enacted in 1977  applies to all federal agencies, federal Crown corporations, and firms that do business inter- provincially  prohibits discrimination based on: age, race, colour, national/ethnic origin, physical handicap, religion, gender, marital status, or prison record (if pardoned)  enforced by the Human Rights Commission

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-35 Bona Fide Occupational Requirement Allows an individual to be chosen over another due to job characteristics  when only a particular type of candidate is acceptable because of the nature of the job  a washroom attendant in a luxurious hotel should be a female

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-36 Employment Equity Act Federally legislated Designates four groups as employment disadvantaged  women  visible minorities  aboriginal people  people with disabilities Companies covered by the act are required to publish statistics showing their employment of individuals from the four groups

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-37 Comparable Worth Principle  equal wages should be paid for work of equal value to the firm  jobs must be classified based on the qualifications needed to do the job  jobs with similar requirements must be paid the same  critics argue that such approaches ignore the supply and demand aspects of labour; more scarce employees are paid more than those with plentiful skill sets

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-38 Dealing with Sexual Harassment Develop clear and enforceable policies Inform all employees of the policies Train employees to recognize and refrain from sexual harassment Take complaints seriously Establish a procedure to deal with complaints Take action against those involved

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-39 Employee Health and Safety Health and safety programs  reduce absenteeism and labour turnover  increase productivity and morale  make the workplace safer & healthier Each province has its own regulations Government inspectors come on-site, unannounced, to ensure that health and safety regulations are being met Canada places behind other industrialized nations in safety for mining and construction

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-40 Retirement Regular retirement age is 65 years, but not mandatory in most provinces Retirement plans may allow early retirement, usually after the age of 55 Those staying past 65 are usually most productive ones

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-41 Managing Workforce Diversity Everyone in the workforce must be treated equitably The workforce is becoming more diverse  Gender  Race  Age  Ethnicity  Physical ability

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-42 Managing Knowledge Workers Employees who are experts in specific fields  technology, engineering, science Identify with their profession rather than the firm Prefer to work independently Define performance based on their industry and peers, rather than their employer Pose a special management challenge in training and retention

Business, Sixth Canadian Edition, by Griffin, Ebert, and StarkeCopyright © 2008 Pearson Education Canada 8-43 Contingent and Temporary Workers Contingent Workers  work for a firm on a basis other than permanent or full-time  freelance, on-call, contract, part-time  temporary workers (h ired through outside agencies) Management Issues  fairness and cost issues  understand and plan strategy