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Managing Human Resources and Labour Relations

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1 Managing Human Resources and Labour Relations
Chapter 8 Managing Human Resources and Labour Relations

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 These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms. Objectives: p.212. Summary: p

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 These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms. Objectives: p.212. Summary: p

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 These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms. Objectives: p.212. Summary: p

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 These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms. Objectives: p.212. Summary: p

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 Discussed on page 214. Activities: Invite the Human Resource Manager to your class as a guest speaker. Request that students make up question lists in advance to guide the discussion.

7 Job Analysis Job description Job specification
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 Discussed on page 214. Activities: Have students write a job description for their most recent, or current, job. Analysis Questions #3

8 Forecasting Forecasting internal supply Forecasting external 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 Discussed on page 215. Activities: Using library resources, have students investigate which jobs are growing and which are being reduced by employers. What is supply of labour for these tasks? Where will managers’ challenges lie in staffing five years from now?

9 Forecasting Employee information systems Replacement chart
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 Discussed on page 215.

10 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 Discussed on page Activities: Application Questions: #8.

11 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 Discussed on pages Notes: Be sure to point out to students that demographics that are not relevant to the job cannot be legally sought on an application form. These include: gender, religion, national origin. Note: polygraph tests are against the law in many places. Drug tests can result in lawsuits from those who fail the test. Reference checks are essential although most referees will give glowing reports. Calls to previous employers, checking of academic records, and similar approaches to cross check the applicant’s claims can be more reliable. Activities: Analysis Questions: #8,10.

12 Testing Assessment centre Video assessment
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 Discussed on page 218. Activities: Have students investigate assessment centres in their town or city. What firms use such approaches? Have students script a video of situations with their most recent, or current job, which could be useful in screening someone for the position. Given the time, and available resources, they could also videotape a role play based on their script.

13 Interviews Structured Unstructured
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 Discussed on page 218.

14 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 Discussed on pages Activities: Assign students to work together in small groups. Each group should choose a company in the local business community. They should investigate the various employee development programs in use by the firm. Each student group should present their findings to the class. Analysis Questions #4

15 Work-Based Programs On-the-job training Vestibule training
Employees gain new skills while performing them at work Vestibule training Employees work in a simulated environment Systematic job rotations and transfers Discussed on page 220. Activities: Have students discuss their experiences with on-the-job training. Was it a learning experience, or simply “sink and swim”. How would they rate their experience. If they would rate it critically, how would they improve it? Analysis Questions #4

16 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 Discussed on page Activities: Have students comment on the value of the lecture-discussion approach to job training. Ask them to describe any experiences that they have had with off-the-job training or computer-assisted instruction for their past, or current, job. Analysis Questions #4

17 Training Technology Video teleconferencing Interactive video
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 Discussed on page

18 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 Discussed on page Activities: Assign students to work together in small groups. Each group should choose a company in the local business community. They should investigate the various performance evaluation programs in use by the firm. Each student group should present their findings to the class.

19 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 Discussed on pages Activities: Have students use the Critical Incident Method when evaluating their own course performance.

20 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 Discussed on pages Activities: Analysis Questions #2

21 Basic Compensation Establishing a Pay Structure 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 Discussed on page Notes: Issues to keep in mind when deciding on what to pay employees include: amount of pay for different jobs, and payment within ranks and jobs to compensate for differences in experience and seniority. Activities: Many students will have worked in wage-paid positions. Based on their knowledge of the industry they worked in do they feel that the wages they were paid were comparable to those of others working for similar organizations. What measures were taken to compensate them for job level and seniority or experiential differences. Have students discuss the apparent pay structure in their current (or most recent) job. Does it seem fair and equitable? Are the most valuable jobs the ones with the highest pay level? Analysis Questions #2

22 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 Discussed on page

23 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 Discussed on pages Activities: Have students rate piece rate, individual incentives or sales commissions based on their personal preference for their own pay method.

24 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 Discussed on page Activities: Have students discuss what kinds of work situations are suitable for team and group incentives to be used.

25 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 Discussed on pages Activities: Have students indicate which benefits they feel would be most valuable to them at this time in their lives. How would these benefits change in five years? Ten years? Analysis Question #2

26 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 Discussed on page 231.

27 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) Discussed on page Notes: Affects about 10% of workers with remainder covered by various provincial human rights acts Supercedes any individual company policy

28 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 Discussed on page 231.

29 Employment Equity Act Federally legislated
Designates four groups as employment disadvantaged Women Visible minorities Aboriginal people People with disabilities Discussed on page 232.

30 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 Discussed on page Notes: It is hoped that employment equity programs will ease the gap between male and female wages. The average woman earns about 75% of the pay of the average man. Single women obtain 99% of the pay of men. Top jobs are still dominated by males. Ironically, male earning power is eroding, but not female earning power. 80% of jobs lost have been male-dominated. Equity programs can be costly to implement. To bring such programs into the public and private sectors of Ontario is expected to cost about $10 Billion. Activities: What do students feel about the pay equity concept? Is it appropriate? Is it practical? Do they think it will impact their work lives? If so, how?

31 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 Discussed on pages 233. Activities: Have students familiarize themselves with the school’s sexual harassment policy. In class discussion, indicate whether they recognize the proscribed activities in the policy as being forms of harassment.

32 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 Discussed on page 234. Notes: government regulations exist to insure safe workplaces and are getting stricter. Ontario legislation holds officers and directors of companies responsible for workplace health and safety violations. On the job injury can result in jail terms for offenders. Injury can result in high risk situations (such as mining or logging) or from repetitive tasks like keyboarding. Repetitive Strain Injury (also known as Carpel Tunnel Syndrome) affects over 200,000 Canadian yearly. Also, air quality has affected some workers’ lives even away from work when they begin to suffer allergic or auto-immune problems. Employers must show employees how to work safely and operate heavy equipment properly. Employees may refuse to work on an unsafe site. Activities: 1) Have students browse work injury records of major firms. What kinds of injuries have occurred? Were they preventable? 2) Have students research the Health and Safety legislation required of firms in their province.

33 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 Discussed on page 234. Notes: Workers over the age of 65 are almost four times more likely to die from work-related causes than younger workers are, and have double the health-care costs. Retirement is happening at earlier ages than ever before in Canada. In the median retirement age was 62.3 years, compared to 64.9 years in Often, firms need the expertise of those who could be retiring, encouraging them to continue to work. Activities: While students tend to be young and waiting to enter the workforce, many will have considered the benefits of early retirement in determining their life goals. Many will also have relatives who have retired. What are the benefits of early retirement? What do they think they would do if they were over 55 years old today?

34 Managing Workforce Diversity
Everyone in the workforce must be treated equitably The workforce is becoming more diverse Gender Race Age Ethnicity Physical ability Discussed on page 235.

35 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 Discussed on page

36 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 Discussed on pages 237. Activities: Ask students about their experiences as either contingent or temporary employees. For those who have had such an experience, as them to describe the advantages and disadvantages of their position.

37 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 Discussed on page Activities: Review Questions: #3,5,9.

38 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 Discussed on page 238. Activities: Review Questions: #3,5,9.

39 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 Discussed on pages Activities: Have students do research to identify reasons that employees are deciding not to be members of a union. How much of this trend is due to the fact that employers are creating better work environments for non-union members? Review Questions: #3,5,9.

40 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 Discussed on page Notes: Guaranteed annual wage is a provision in the collective agreement which guarantees a minimum annual income to those paid hourly wages. Provides income security to employees. Cost of Living Adjustment (COLA): a clause in the Collective Agreement insuring that wages will increase automatically with inflation. Activities: Review Questions: #3,5,9.

41 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 Discussed on page Activities: Review Questions: #3,5,9.

42 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 Discussed on pages Activities: Concluding Case 10-1: Labour Relations at Canada Post.

43 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 Discussed on pages Activities: Concluding Case 10-1: Labour Relations at Canada Post.

44 Management Tactics Lockout Hire strike-breakers Plant closures
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 Discussed on pages Activities: Concluding Case 10-1: Labour Relations at Canada Post.

45 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 Discussed on page 245. Activities: Concluding Case 10-1: Labour Relations at Canada Post.

46 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 Discussed on pages 245. Activities: Concluding Case 10-1: Labour Relations at Canada Post.

47 Voluntary Arbitration & Compulsory 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) Discussed on pages 245. Activities: Concluding Case 10-1: Labour Relations at Canada Post.

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