1. Human Resource Management
Chapter 7
Human Resource Management
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

2. LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter
The Human Resources Management Process
Discuss the environmental factors that most directly affect the HRM process
Human Resources Planning
Contrast job analysis, job description, and job specification
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

3. LEARNING OUTLINE (cont’d)
Staffing the Organization
Discuss the major sources of potential job candidates
Describe the different selection devices and discuss which ones work best for different jobs
Explain what a realistic job preview is and why it’s important
Orientation and Skill Development
Describe the different types of training and how that training can be provided
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

4. LEARNING OUTLINE (cont’d)
Managing and Rewarding Performance
Describe the different performance appraisal methods
Compensation and Benefits
Discuss the factors that influence employee compensation and benefits
Describe skill-based pay systems
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

5. LEARNING OUTLINE (cont’d)
Career Development
Describe career development for today’s employees
Current Issues in Human Resources Management
Discuss how managers can manage workforce diversity
Explain what sexual harassment is and what managers need to know about it
Describe how organizations are dealing with work-life balances
Discuss how managers can deal with planned elimination of jobs in the organization
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

6. The HRM Process Functions of the HRM Process
Identifying and selecting competent employees
Providing employees with up-to-date knowledge and skills to do their jobs
Ensuring that the organization retains competent and high-performing employees
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

7. Exhibit 7.1 The Human Resources Management Process
Environment
Decruitment
Recruitment
Human
Resource
Planning
Selection
Orientation
Training
Performance
Management
Career
Development
Compensation
and
Benefits
Identification and Selection
of Competent Employees
Adapted and competent
employees with up-to-date
skills and knowledge
Competent and high-performing employees who
are capable of sustaining high performance over
the long term
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

8. Environmental Factors Affecting HRM
Economic Conditions
Recruitment is dependent upon unemployment rates and labour markets
Labour Union
An organization that represents workers and seeks to protect their interests through collective bargaining
Collective Bargaining Agreement
A contractual agreement between an organization and a union, covering:
Wage, hours, and working conditions
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

9. Environmental Factors Affecting HRM (cont’d)
Legislation Affecting Workplace Conditions
Canada Labour Code
Occupational Health and Safety Act
Workplace Hazardous Materials Information System (WHMIS)
Employment standards legislation
Antidiscrimination Legislation
The Charter of Rights and Freedoms and the Canadian Human Rights Act
The Employment Equity Act
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

10. Human Resource Planning
Human Resources (HR) Planning
The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks
Helps avoid sudden talent shortages and surpluses
Steps in HR planning:
Assessing current human resources
Assessing future needs for human resources and developing a program to meet those future needs
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

11. Current Assessment Human Resources Inventory
A review of the current makeup of the organization’s resources status
HR Management Information Systems (HRMIS)
Tracks employee information for policy and strategic needs
Job analysis
An assessment that defines a job and the behaviours necessary to perform the job:
Knowledge, skills, and abilities
Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

12. Current Assessment (cont’d)
Job Description
A written statement of what the jobholder does, how it is done, and why it is done
Job Specification
A written statement of the minimum qualifications that a person must possess to perform a given job successfully
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

13. Staffing the Organization
Recruitment
The process of locating, identifying, and attracting capable applicants to an organization
Decruitment
The process of reducing a surplus of employees in the workforce of an organization
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

14. Exhibit 7.2 Major Sources of Potential Job Candidates
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

15. Exhibit 7.3 Decruitment Options
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

16. Selection Selection Process Selection
The process of screening job applicants to ensure that the most appropriate candidates are hired
Selection
An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance
Selection errors:
Reject errors for potentially successful applicants
Accept errors for ultimately poor performers
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

17. Exhibit 7.4 Selection Decision Outcomes
Correct
decision
Accept
error
Reject
Selection Decision
Later Job Performance
Unsuccessful
Successful
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

18. Validity and Reliability
Validity (of Prediction)
A proven relationship between the selection device used and some relevant criterion for successful performance in an organization
High test scores equate to high job performance; low scores to poor performance
Reliability (of Prediction)
The degree of consistency with which a selection device measures the same thing
Individual test scores obtained with a selection device are consistent over multiple testing instances
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

19. Types of Selection Devices
Application Forms
Written Tests
Performance Simulations
Interviews
Background Investigations
Physical Examinations
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

20. Exhibit 7.5 Selection Devices
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

21. Written Tests Types of Tests Legal Challenges to Tests
Intelligence: how smart are you?
Aptitude: can you learn to do it?
Ability: can you do it?
Interest: do you want to do it?
Legal Challenges to Tests
Lack of job-relatedness of test to job requirements
Discrimination against members of areas protected by the Employment Equity Act
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

22. Performance Simulation Tests
Testing an applicant’s ability to perform actual job behaviours, use required skills, and demonstrate specific knowledge of the job
Work sampling
Requiring applicants to actually perform a task or set of tasks that are central to successful job performance
Assessment centres
Dedicated facilities in which job candidates undergo a series of performance simulation tests to evaluate their managerial potential
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

23. Other Selection Approaches
Situational Interviews
Interviews in which candidates are evaluated on how well they handle role play in mock scenarios
Background Investigations
Verification of application data
Reference checks:
Lack validity because self-selection of references ensures only positive outcomes
Physical Examinations
Useful for physical requirements
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

24. Tips for Managers: Some Suggestions for Interviewing
Structure a fixed set of questions for all applicants
Have detailed information about the job for which applicants are interviewing
Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics
Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours
Use a standardized evaluation form
Take notes during the interview
Avoid short interviews that encourage premature decision making
Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

25. Exhibit 7.6 Quality of Selection Devices as Predictors
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

26. Other Selection Approaches (cont’d)
Realistic Job Preview (RJP)
The process of relating to an applicant both the positive and the negative aspects of the job
Encourages mismatched applicants to withdraw
Aligns successful applicants’ expectations with actual job conditions, reducing turnover
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

27. Orientation and Skill Development
Bringing a new employee into the organization
Work-unit orientation
Familiarizes new employee with work-unit goals
Clarifies how his or her job contributes to unit goals
Introduces employee to his or her co-workers
Organization orientation
Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules
Includes a tour of the entire facility
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

28. Exhibit 7.7 Types of Training
Interpersonal skills
Technical
Business
Mandatory
Performance management
Problem solving/decision making
Personal
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

29. Exhibit 7.8 Employee Training Methods
Traditional Training Methods
On-the-job
Job rotation
Mentoring and coaching
Experiential exercises
Workbooks/manuals
Classroom lectures
Technology-based Training Methods
CD-ROM/ DVD/videotapes/ audiotapes
Videoconferencing/ teleconferencing/ satellite TV
E-learning or other interactive modules.
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

30. Managing and Rewarding Performance
Performance Management System
A process establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

31. Performance Appraisal Methods
Written Essays
Critical Incidents
Graphic Rating Scales
Behaviourally Anchored Rating Scales (BARS)
Multiperson Comparisons
Management by Objectives (MBO)
360-Degree Feedback
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

32. Exhibit 7.9 Advantages and Disadvantages of Performance Appraisal Methods
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

33. Compensation and Benefits
Benefits of a Fair, Effective, and Appropriate Compensation System
Helps attract and retain high-performance employees
Impacts on the strategic performance of the firm
Types of Compensation
Base wage or salary
Wage and salary add-ons
Incentive payments
Skill-based pay
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

34. Exhibit 7.10 Factors That Influence Compensation and Benefits
Level of
Compensation
and Benefits
Employee’s Tenure
and Performance
Size of
Company
Kind of
Job Performed
Profitability
Business
Geographical
Location
Unionization
Management
Philosophy
Labour- or
Capital-Intensive
How long has employee
been with company and
how has he or she performed?
Does job require
high levels of skills?
What industry is job in?
Is business unionized?
Is business labour- or
capital-intensive?
How large is the
company?
How profitable is the
Where is organization
located?
What is management’s
philosophy toward pay?
Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

35. Career Development Career Defined Career Development
A sequence of positions held by a person during his or her lifetime
Career Development
Provides for information, assessment, and training
Helps attract and retain highly talented people
Managing One’s Career
You, not the organization is responsible for your career
A career choice should be a match between what you want out of life and your interests, abilities, and market opportunities
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

36. Exhibit 7.11 Top 10 Job Factors for College Graduates
(ranked in order of importance)
1. Enjoying what they do
2. Opportunity to use skills and abilities
3. Opportunity for personal development
4. Feeling what they do matters
5. Benefits
6. Recognition for good performance
7. Friendly co-workers
8. Job location
9. Lots of money
10. Working on teams
Source: Based on V. Frazee. “What’s Important to College Grads in Their First Jobs?” Personnel Journal, July 1996, p. 21.
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

37. Tips for Managers: Some Suggestions for a Successful Management Career
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

38. Contemporary HRM Issues
Managing Workforce Diversity
Recruitment for diversity
Selection without discrimination
Orientation and training that is effective
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

39. Contemporary HRM Issues (cont’d)
Sexual Harassment
An unwanted activity of a sexual nature that affects an individual’s employment
The Supreme Court of Canada definition: Unwelcome behaviour of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job-related consequences for the employee
There continues to be disagreement as to what specifically constitutes sexual harassment.
An offensive or hostile environment
An environment in which a person is affected by elements of a sexual nature
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

40. Contemporary HRM Issues (cont’d)
Work-Life Balance
Employees have personal lives that they don’t leave behind when they come to work.
Organizations have become more attuned to their employees by offering family-friendly benefits:
On-site child care
Summer day camps
Flextime
Job sharing
Leave for personal matters
Flexible job hours
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada

41. Contemporary HRM Issues (cont’d)
Helping survivors respond to layoffs
Downsizing is the planned elimination of jobs in an organization
Layoff-survivor sickness is a set of attitudes, perceptions, and behaviours of employees who survive involuntary staff reductions
Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition
Copyright © 2008 Pearson Education Canada