1. Managing Human Resources
Chapter 10
Managing Human Resources
and Labour Relations
Prepared by
Norm Althouse
University of Calgary
Copyright © 2011 by Nelson Education Ltd.
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2. Chapter 10
Learning Outcomes
1 Discuss the human resource management process, and how human resource needs are determined. 2 Explain how firms recruit applicants. 3 Summarize how firms select qualified applicants. 4 List some of the types of training and development programs organizations offer their employees. 5 Show how performance appraisals are used to evaluate employee performance. 6 Analyze the various methods for compensating employees. 7 Explain how labour–management relations are different in a unionized environment. 8 Describe some of the key laws and federal agencies affecting human resource management and labour relations. 9 List some of the trends and issues affecting human resource management and labour relations.
Copyright © 2011 by Nelson Education Ltd.

3. Human Resource Challenges
Chapter 10
Human Resource Challenges
Competition for a limited number of employees
Employees are struggling to balance their home and work lives
Managers are challenged to manage and communicate with employees around the globe
A diverse and multicultural workforce requires better workplace communication and training
Technology is impacting decision making, communication, and business operation
Human resource laws are dictating many aspects of the employee-employer relationship
Human resource management is instrumental in driving an organization toward its objectives. Successful human resource management hinges on a company’s ability to attract and hire the best employees, equip them with the skills they need, compensate them fairly, and motivate them to reach their full potential.
Copyright © 2011 by Nelson Education Ltd.
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4. Human Resource Success Factors
Attracting and hiring the best employees
Equipping employees with the skills needed to excel
Compensating employees fairly
Motivating employees to reach their full potential
Managing (and interacting with) people will probably be the most stressful and difficult part of your future career
“L'enfer, c'est les autres”
Hell is other people
Jean Paul Sartre
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

5. Human Resource Management
Chapter 10
Human Resource Management
Human Resource Management
(HRM)
The process of hiring, developing,
motivating, and evaluating employees
to achieve organizational goals
Human resource management is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals. Organizational strategies and objectives form the basis for making all human resource management decisions. All companies strive to hire and develop well-trained, motivated employees.
Copyright © 2011 by Nelson Education Ltd.
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6. Human Resource Management Process
Chapter 10
Human Resource Management Process
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7. Human Resource Planning
Chapter 10
Human Resource Planning
Job Description
The tasks and responsibilities of a job
Job Specification
A list of the skills, knowledge, and abilities a person must have to fill the job
Job Analysis
A study of the tasks required to do a particular job well
Creating a strategy for meeting future human resource needs is called human resource planning. Two important aspects are job analysis and forecasting the firm’s people needs. The planning process begins with a review of corporate strategy and policy.
Information about a specific job is assembled through a job analysis, a study of the tasks required to do a job well. This information is used to specify the essential skills, knowledge, and abilities.
The tasks and responsibilities of a job are listed in a job description. The skills, knowledge, and abilities a person must have to fill a job are spelled out in a job specification. These two documents help human resource planners find the right people for specific jobs.
Copyright © 2011 by Nelson Education Ltd.
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8. Human Resource Planning and Forecasting
Chapter 10
Human Resource Planning and Forecasting
Estimate the number of people currently involved who will be available to fill jobs at some future time
Determine the number of people needed by some future time
The HR Demand Forecast
Forecasting an organization’s HR needs, known as an HR demand forecast, is an essential aspect of HR planning. This process involves two forecasts: 1) determining the number of people needed by some future time, and 2) estimating the number of people currently involved by the organization who will be available to fill various jobs at some future time. This is an internal supply forecast.
Copyright © 2011 by Nelson Education Ltd.
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9. Human Resource Planning Process
Chapter 10
Human Resource Planning Process
By comparing HR demand and supply forecasts, a future personnel surplus or shortage can be determined and appropriate action taken.
Many firms with employee shortages are hiring contingent workers, or persons who prefer temporary employment, either part-time or full-time.
Copyright © 2011 by Nelson Education Ltd.
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10. Internal Labour Market External Labour Market
Chapter 10
Employee Recruitment
Internal Labour Market
Follow a policy of promotion from within
External Labour Market
Find and attract qualified applicants
from the external sources
Electronic Job Boards
Most companies follow a policy of promotion from within and try to fill positions within their existing employees.
If qualified job candidates cannot be found inside the firm, the external labor market must be tapped. Recruitment is the attempt to find and attract qualified applicants in the external labor market. Nontechnical, unskilled, and other nonsupervisory workers are recruited through newspaper, radio, and sometimes even television ads in local media.
Many firms participate in job fairs, a one-day event held at a convention center to bring together job seekers and firms searching for employees. Some firms conduct a corporate open house.
Technology is another popular recruiting method, such as online recruitment by the company or through a job board service such as Monster.ca.
Job Fairs
Search Firms
Advertising
Open Houses
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11. Recruitment
External recruiting: managers look outside the firm for people who have not worked at the firm before.
Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.
External recruitment is difficult since many new jobs have specific skill needs.
A multi-prong approach to external recruiting works best.
Internal Recruiting: positions filled from within the firm.
Internal recruiting has several benefits:
Workers know the firm’s culture but may not have new ideas.
Managers likely already know the candidates.
Internal advancement can motivate employees.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

12. Honesty in Hiring
Managers may be tempted to over-rate the attractiveness of the job and firm.
Recruits will not work for dishonest employers
Research indicates this is a poor strategy.
Realistic Job Preview: provides an accurate overview of the job.
Avoids having to hire, train, and then lose workers.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

13. Employee Selection Chapter 10
Selection is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job. The steps in the employee selection process are shown above.
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14. Selection Process
After a pool of applicants are identified, qualifications related to the job requirements are determined:
Background Information: includes education, prior employment, college major, etc.
Interview: almost all firms use one of two types:
Structured interview: managers ask each person the same job-related questions.
Unstructured interview: held like a normal conversation.
Usually structured interviews preferred; bias is possible.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

15. Selection Process
Testing: includes testing of ability, personality, physical ability, and performance
Ability test: assess if applicant has right skills for the job.
Personality test: seek traits relevant to job performance.
Physical ability test: assesses whether applicant has physical ability to do job tasks
Be sure test is a good predictor of job performance.
Performance Tests: measure job performance.
Typing speed test is one example.
Assessment Center: candidates assessed on job-related activities over a period of a few days.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

16. Selection Process
References: outside people provide candid information about candidate.
Can be hard to get accurate information
Sometimes they want to get rid of someone
Usually phone – written comments = lawsuits!
“You will be very lucky if you can get Josephine Smith to work for you………”
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

17. Quality of Selection Devices as Predictors
Senior
Manag.
Mid-Lower
Managers
High-Tech
Workers
Routine
Operatives
Position
Application Forms
Written Tests
Work Samples
Assessment Center
Interviews
Application Reviews
Reference Checks
Physical Exams 2 1 -- 5 4 3
Note: Scale is 5 (highest) to 1 (lowest) and a dash = N/A.
Quality of Selection Devices as Predictors
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

18. Employee Training and Development
Chapter 10
Employee Training and Development
Training and development involves learning situations in which the employee acquires additional knowledge or skills to increase job performance.
Training for new employees begins with employee orientation. On-the-job training is job specific training, during which the employee learns the job by doing it with guidance from a supervisor or coworker. With mentoring, a senior employee or manager provides job- and career-related information to a protégé.
Off-the-job training is training away from the workplace.
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19. Employee Training and Development
Chapter 10
Employee Training and Development
employee orientation
Examples of
Types of Training
and Development
on-the-job
job rotation
apprenticeship
mentoring
Off-the-job training
programmed instruction
simulation
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20. Performance Planning and Evaluation
Chapter 10
Performance Planning and Evaluation
Along with employee orientation and training, new employees learn about performance expectations through performance planning and evaluation. Job expectations are communicated as job objectives, schedules, deadlines, and product quality requirements. As an employee performs job tasks, the supervisor periodically evaluates the efforts via a performance appraisal—a comparison of actual performance with expected performance to assess an employees contributions to the organization.
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21. Employee Compensation and Benefits
Chapter 10
Employee Compensation and Benefits
Benefits
Salaries
Piecework & commission
Accelerated commission schedule
Profit sharing
Hourly wages
Types of Compensation
Bonus
Compensation is closely connected to performance appraisal. Several factors affect an employee’s pay:
Pay structure and internal influences. Based on the importance of the job.
Pay level and external influences: Based on salaries paid by competitors and geographic region.
There are two types of compensation: direct and indirect.
This slide shows the most common types of compensation.
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22. Job Changes within the Organization
Promotion
An upward move to a position with more authority, responsibility, and pay.
Transfer
A horizontal move to a position with about the same salary and organizational level.
Demotion
The downgrading or reassignment
of an employee to a position with less responsibility.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

23. Separations Layoff Termination Resignation Retirement
Temporary separation of an employee.
Arranged by employer.
Termination
Permanent separation of an employee.
Arranged by employer.
Resignation
Permanent separation of an employee.
Arranged by employee.
Retirement
Separation of an employee at the end of his or her career.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited

24. Labour Relations Terms
Chapter 10
Labour Relations Terms
labour union
organization that represents workers in dealing with management
collective bargaining
process of negotiating labour agreements
national union
a union that consists of many local unions, operating nationally
local union
units of a national union, representing workers in a specific location
shop steward
elected union official – represents members to management
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25. Negotiating Labour Agreements
Chapter 10
Negotiating Labour Agreements
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26. Common Issues in Collective Bargaining
Chapter 10
Common Issues in Collective Bargaining
Union Security
Management Rights
Wages/Benefits
Job Security and Seniority
Grievance Procedures
Arbitration/Mediation
Copyright © 2011 by Nelson Education Ltd.

27. Strategies for Unions and Employers
Chapter 10
Strategies for Unions and Employers
Copyright © 2011 by Nelson Education Ltd.

28. Legislation Affecting HR Management
Chapter 10
Legislation Affecting HR Management
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29. Trends in Human Resource Management
Chapter 10
Trends in Human Resource Management
Employee Diversity and Competitive Advantage
Outsourcing HR and Technology
Organizational Culture and Hiring for Fit
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