Copyright © 2006 Pearson Education Canada Inc. 8-1 Chapter 8 Managing Human Resources and Labour Relations
Copyright © 2006 Pearson Education Canada Inc. 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
Copyright © 2006 Pearson Education Canada Inc. 8-3 Learning Objectives Discuss different ways in which organizations go about developing the capabilities of employees and managers Discuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers
Copyright © 2006 Pearson Education Canada Inc. 8-4 Learning Objectives Describe some of the key legal issues involved in hiring, compensating, and managing workers in today’s workplace Discuss workplace diversity, the management of knowledge workers, and the use of contingent and temporary workers as important changes in the contemporary workplace
Copyright © 2006 Pearson Education Canada Inc. 8-5 Learning Objectives Trace the evolution of, and discuss trends in, unionism Describe the major laws governing unionism Identify the steps in the collective bargaining process
Copyright © 2006 Pearson Education Canada Inc. 8-6 Human Resource Planning Human Resource Management Set of organizational activities directed at attracting, developing, and maintaining an effective workforce Job Analysis A detailed study of the specific duties in a particular job and the human qualities required for that job
Copyright © 2006 Pearson Education Canada Inc. 8-7 Job Analysis Job description The objectives, responsibilities, and key tasks of a job Describes the conditions under which the tasks must be accomplished Explains the relationships between that position and others in the firm Describes the skills required to do the job Job specification The specific skills, education, and experience needed to perform a job
Copyright © 2006 Pearson Education Canada Inc. 8-8 Forecasting Forecasting internal supply The number and type of employees who will be in the firm at some future date Forecasting external supply The number and type of people who will be available for hiring from the labour market at large
Copyright © 2006 Pearson Education Canada Inc. 8-9 Forecasting Employee information systems Computerized systems that contain information on each employee’s education, skills, work experience, and career aspirations Replacement chart An HR technique that lists each important managerial position, who occupies it, and who is now qualified to to move in to it
Copyright © 2006 Pearson Education Canada Inc Recruiting Human Resources Internal recruiting Consider present employees as candidates for job openings Promoting or transferring existing staff Can help build morale and keep high quality employees from leaving External recruiting Attracting people outside the organization to apply for jobs Include advertising, campus interviews,employment agencies, and employment agencies
Copyright © 2006 Pearson Education Canada Inc Steps in Selection Process Application forms Efficient method of gathering information about applicant’s previous work history, educational background and other job- related data Tests Tests of ability, skill, aptitude or knowledge that is relevant to a particular job Interviews
Copyright © 2006 Pearson Education Canada Inc Testing Assessment centre A series of exercises in which management candidates perform realistic management tasks while being observed by appraisers Video assessment Involves showing potential hires videos of realistic work situations and asking them to choose a course of action
Copyright © 2006 Pearson Education Canada Inc Interviews Structured Involves the use of a common set of questions Unstructured Questions may vary from candidate to candidate More often used when interviewing managerial or professional candidates
Copyright © 2006 Pearson Education Canada Inc Workforce Development Orientation The initial acquaintance of new employees with the company’s policies and programs Training and development Work-based programs Instructional-based programs Training technology
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc Instructional-Based Programs Lecture or discussion Management development programs Managers’ conceptual, analytical, and problem- solving skills are enhanced Networking Informal interactions among managers Mentoring A more experienced manager sponsors and teaches a less experienced manager Off-the-job training
Copyright © 2006 Pearson Education Canada Inc Training Technology 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
Copyright © 2006 Pearson Education Canada Inc Performance Appraisal Formal evaluations of employee performance Actual performance is compared to objectives Should be regularly scheduled Performance expectations must be made clear Results are used to determine training needs, promotion opportunities, compensation, and dismissal
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc Compensation and Benefits Basis compensation Wages and salaries Performance-based compensation Merit pay plans Skill and knowledge based pay systems Incentive compensation systems Benefits programs
Copyright © 2006 Pearson Education Canada Inc Basic Compensation Wages Salaries Job Evaluation A method of determining the relative value or worth of a job to the organization so that individuals who perform it can be appropriately compensated Establishing a Pay Structure Develop a pay structure by linking a rational pay scale, level by level, to jobs
Copyright © 2006 Pearson Education Canada Inc Performance-Based Compensation Merit pay Pay awarded to employees according to their relative value of their contributions Skill-based pay Employees are paid for acquired skill level, rather than specific performance Knowledge-based pay Employees are paid for learning
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc 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 reward level for its employees
Copyright © 2006 Pearson Education Canada Inc Benefits Benefits: non-financial rewards Mandated protection plans: EI, CPP, Workers compensation Optional protection plans: health, dental, life insurance Paid time off: vacation time, personal leave Other types of benefits: wellness programs, child- care benefits Cafeteria-style benefits plan: employees choose their own benefits
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc 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)
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc Employment Equity Act Federally legislated Designates four groups as employment disadvantaged Women Visible minorities Aboriginal people People with disabilities
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc 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
Copyright © 2006 Pearson Education Canada Inc Employee Health and Safety Health and safety programs reduce absenteeism and labour turnover, increase productivity and morale, by making 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
Copyright © 2006 Pearson Education Canada Inc Retirement Retirement plans may allow early retirement, usually after the age of 55 Flexible plans allow those who wish to leave early to do so, while allowing those who are able and willing to work longer the opportunity to do so Regular retirement age is 65 years, but many choose to work beyond that time Health statistics show that workers over the age of 65 are more likely to suffer from work- related causes
Copyright © 2006 Pearson Education Canada Inc Managing Workforce Diversity Everyone in the workforce must be treated equitably The workforce is becoming more diverse Gender Race Age Ethnicity Physical ability
Copyright © 2006 Pearson Education Canada Inc Managing Knowledge Workers Employees who are experts in specific fields like computer technology and engineering 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
Copyright © 2006 Pearson Education Canada Inc Managing Contingent and Temporary Workers Contingent workers Work for a firm on a basis other than full or part-time Freelance, on-call, temporary subcontractors Temporary workers Hired through outside agencies Management issues Fairness and cost issues
Copyright © 2006 Pearson Education Canada Inc Labour Unions Groups of individuals working together to achieve shared job-related goals higher pay reasonable work hours better working conditions better job security benefits
Copyright © 2006 Pearson Education Canada Inc Collective Bargaining A process through which union leaders and management personnel negotiate common terms and conditions of employment Union power is achieved through group action enabled by the collective bargaining process
Copyright © 2006 Pearson Education Canada Inc Unionism Today Unions are experiencing difficulties in attracting new members Union membership as a percentage of the total workforce is declining Diversity in the workforce consists of people who are not traditionally members of a union Women, ethnic minorities Employers are engaging in more anti-union activities, including more employee-friendly workplaces
Copyright © 2006 Pearson Education Canada Inc The Legal Environment for Unions in Canada 1900: Conciliation Act 1907: Industrial Disputes Investigation Act 1943: Privy Council Order : Constitution Act The Canada Labour Code Canada Industrial Relations Regulations of the Canadian Labour Code
Copyright © 2006 Pearson Education Canada Inc Canadian Labour Code Labour legislation for firms operating under parliamentary authority (Federal jurisdiction according to the constitution act) Fair employment practices Standard hours, wages, vacations, and holidays Employee safety Industrial relations regulations Deals with all matters related to collective bargaining
Copyright © 2006 Pearson Education Canada Inc Collective Bargaining The bargaining cycle begins when representatives from the union and management get together to negotiate a contract A “bargaining zone” is reached, which is a reasonable range of options acceptable to the parties Union members vote to accept or reject a tentative agreement through a ratification vote If accepted, the contract is signed and becomes the Collective Agreement If rejected, management and union can resort to different tactics to influence the process
Copyright © 2006 Pearson Education Canada Inc The Bargaining Zone Union’s demands Union’s expectations Union’s minimum limit Bargaining Zone Employer’s maximum limit Employer’s expectations Employer’s desired result
Copyright © 2006 Pearson Education Canada Inc Contract Issues Compensation Current and future wages Cost-of-living-adjustment (COLA) Benefits Job security Other issues such as the use of temporary workers, grievance procedures, overtime,and working hours
Copyright © 2006 Pearson Education Canada Inc Union Tactics Strike Withdraw labour services Boycott Members refuse to buy products produced by their firm, and may lobby others to do the same Picket Members may picket the company and have large signs at the company entrance Slowdown Workers perform their jobs at a slower pace, limiting production
Copyright © 2006 Pearson Education Canada Inc Management Tactics Lockout Employees are not permitted on the premises to do their jobs Hire strike-breakers Employees that cross picket lines to work for management (often called “scabs”) Plant closures Contracting out
Copyright © 2006 Pearson Education Canada Inc Decertification The process by which employees terminate their union’s right to represent them The union organizes membership meetings, house-to-house visits, and other tactics Employers may use meetings, letters, improved working conditions A vote is held to decide whether or not to decertify the union
Copyright © 2006 Pearson Education Canada Inc Conflict Resolution Methods Mediation Appoint a third-party conciliator to recommend a solution Has no legal authority to enforce the recommendation Arbitration Appoint a third-party to devise and impose a solution Has legal authority to do so Arbitration may be voluntary or compulsory Essential services like fire and police protection
Copyright © 2006 Pearson Education Canada Inc Voluntary Arbitration & Compulsory Arbitration Voluntary arbitration Settles a contract dispute by having a third party hear union and management arguments and issue a binding resolution (voluntary cooperation) Compulsory arbitration Settles a contract dispute by having management and union forced to let a neutral third party issue a binding resolution (non-voluntary cooperation)
Copyright © 2006 Pearson Education Canada Inc Challenges Facing Unions Decline of the so-called “smokestack industries” Employment growth in service industries Deregulation, which has led to mergers and layoffs Free trade and the globalization of business Jobs being moved to areas with lower labour costs Technological change Increases the difficulty of organizing workers