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 Describe human resource management Explain how organizations attract a quality workforce Explain how organizations develop and maintain a quality workforce Planning Ahead — Chapter 8 Learning Goals

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 labour-management 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 for 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 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 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 job-relevant 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 A set of activities that provides the opportunity to acquire and improve job-related 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 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 labour-management relations © John Wiley & Sons Canada Ltd.

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