1. Chapter 12 Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-1

2. Learning Outcomes: 1.Understand how managing human resources well contributes to the success of the organization. 2.Discuss the tasks associated with identifying and selecting competent employees. 3.Explain the different types of orientation and training. Copyright © 2012 Pearson Education Canada Inc.12-2

3. Learning Outcomes: 4.Describe strategies for retaining competent, high-performing employees. 5.Discuss contemporary issues in managing human resources. Copyright © 2012 Pearson Education Canada Inc.12-3

4. The Human Resource Management Process Why Human Resources Management is Important A necessary part of the organizing function of management  Selecting, training, and evaluating the workforce. An important strategic tool  HRM helps establish an organization’s sustainable competitive advantage. Adds value to the firm  High performance work practices lead to both high individual and high organizational performance. Copyright © 2012 Pearson Education Canada Inc.12-4

5. The Human Resource Management Process High-performance work practices: Work practices that lead to both high individual and high organizational performance. Copyright © 2012 Pearson Education Canada Inc.12-5

6. Exhibit 12-1 Examples of High- Performance Work Practices Self-managed teams Decentralized decision making Training programs to develop knowledge, skills, and abilities Flexible job assignments Open communication Performance-based compensation Staffing based on person–job and person–organization fit Copyright © 2012 Pearson Education Canada Inc.12-6 Source: Based on W. R. Evans and W. D. Davis, “High-Performance Work Systems and Organizational Performance: The Mediating Role of Internal Social Structure,” Journal of Management, October 2005, p. 760.

7. Exhibit 12-2 The Human Resources Management Process Copyright © 2012 Pearson Education Canada Inc. 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 12-7

8. The Human Resource Management Process External Factors That Affect the HRM Process 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 Copyright © 2012 Pearson Education Canada Inc.12-8

9. The Human Resource Management Process Legislation Affecting Workplace Conditions  Canada Labour Code  Occupational Health and Safety Act  Workplace Hazardous Materials Information System (WHMIS)  Employment standards legislation Copyright © 2012 Pearson Education Canada Inc.12-9

10. The Human Resource Management Process Antidiscrimination Legislation  The Charter of Rights and Freedoms and the Canadian Human Rights Act  The Employment Equity Act Demographic Trends  Shortages of skilled workers  More educated workforce  Greater diversity in the labour market Copyright © 2012 Pearson Education Canada Inc.12-10

11. 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 Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-11

12. 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 Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-12

13. Job Analysis: An assessment that defines a job and the behaviours necessary to perform the job including k nowledge, skills, and abilities. Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-13

14. Identifying and Selecting Competent Employees 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. Copyright © 2012 Pearson Education Canada Inc.12-14

15. Identifying and Selecting Competent Employees Recruitment: The process of locating, identifying, and attracting capable applicants to an organization. E-recruiting: Recruitment of employees through the Internet  Organizational web sites  Online recruiters Copyright © 2012 Pearson Education Canada Inc.12-15

16. Exhibit 12-4 Major Sources of Potential Job Candidates Copyright © 2012 Pearson Education Canada Inc.12-16

17. Identifying and Selecting Competent Employees Decruitment: The process of reducing a surplus of employees in the workforce of an organization. Copyright © 2012 Pearson Education Canada Inc.12-17

18. Exhibit 12-5 Decruitment Options Copyright © 2012 Pearson Education Canada Inc.12-18

19. Identifying and Selecting Competent Employees Selection Process: 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 Copyright © 2012 Pearson Education Canada Inc.12-19

20. 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. Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-20

21. 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 Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-21

22. Identifying and Selecting Competent Employees Types of Selection Devices Application Forms Written Tests Performance Simulations Interviews Background Investigations Physical Examinations Copyright © 2012 Pearson Education Canada Inc.12-22

23. Exhibit 12-7 Selection Devices Copyright © 2012 Pearson Education Canada Inc.12-23

24. What works Best and When? 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 Identifying and Selecting Competent Employees Copyright © 2012 Pearson Education Canada Inc.12-24

25. Identifying and Selecting Competent Employees 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. Copyright © 2012 Pearson Education Canada Inc. Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200) 12-25

26. Identifying and Selecting Competent Employees 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. Copyright © 2012 Pearson Education Canada Inc. Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200) 12-26

27. Providing Employees with Needed Skills and Knowledge 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 Copyright © 2012 Pearson Education Canada Inc.12-27

28. Providing Employees with Needed Skills and Knowledge Organization Orientation :  Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules  Includes a tour of the entire facility Copyright © 2012 Pearson Education Canada Inc.12-28

29. Exhibit 12-10 Employee Training Methods Traditional Training Methods: On-the-job Job rotation Mentoring and coaching Experiential exercises Workbooks/manuals Classroom lectures Copyright © 2012 Pearson Education Canada Inc.12-29

30. Exhibit 12-10 Employee Training Methods Technology-based Training Methods: CD-ROM/ DVD/videotapes/ audiotapes Videoconferencing/ teleconferencing/ satellite TV E-learning or other interactive modules. Copyright © 2012 Pearson Education Canada Inc.12-30

31. 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. Retaining Competent and High Performance Employees Copyright © 2012 Pearson Education Canada Inc.12-31

32. Exhibit 12-11 Advantages and Disadvantages of Performance Appraisal Methods Copyright © 2012 Pearson Education Canada Inc.12-32

33. Employee Job Counselling: A process designed to help employees overcome performance-related problems. Discipline: Actions taken by a manager to enforce an organization’s standards and regulations. Retaining Competent and High Performance Employees Copyright © 2012 Pearson Education Canada Inc.12-33 What Happens When Performance Falls Short?

34. Retaining Competent and High Performance Employees Benefits of a Fair, Effective, and Appropriate Compensation System Helps attract and retain high-performance employees Impacts on the strategic performance of the firm Copyright © 2012 Pearson Education Canada Inc.12-34

35. Retaining Competent and High Performance Employees Types of Compensation Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay Copyright © 2012 Pearson Education Canada Inc.12-35

36. Exhibit 12-12 Factors That Influence Compensation and Benefits Copyright © 2012 Pearson Education Canada Inc. Sources: Based on R.I. Henderson, Compensation Management, 6 th 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 Level of Compensation and Benefits Employee’s Tenure and Performance Size of Company Kind of Job Performed Company Profitability Kind of 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 company? Where is organization located? What is management’s philosophy toward pay? 12-36

37. Retaining Competent and High Performance Employees Copyright © 2012 Pearson Education Canada Inc.12-37 Skill-based Pay: A pay system that rewards employees for the job skills and competencies they can demonstrate.

38. Tips for Managers: Some Suggestions for a Successful Management Career Copyright © 2012 Pearson Education Canada Inc.12-38

39. Managing Workforce Diversity Recruitment for diversity Selection without discrimination Orientation and training that is effective Contemporary Issues in Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-39

40. Sexual Harassment An unwanted activity of a sexual nature that affects an individual’s employment  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 Contemporary Issues in Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-40

41. Workplace Romances Common in today’s organizations, given mixed gender work teams and long working hours. Potentially troublesome – conflicts/sexual harassment Necessarily to have some policy regarding workplace romances Contemporary Issues in Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-41

42. Managing Work-Life Balance Some examples of Work-Life Balance Issues:  Is it okay for someone to bring his baby to work because of an emergency crisis with normal child care arrangements?  Is it okay to expect an employee to work 60 or more hours a week?  Should an employee be given the day off to watch her child perform in a school event? Contemporary Issues in Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-42

43. Contemporary Issues in Managing Human Resources 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 Copyright © 2012 Pearson Education Canada Inc.12-43

44. Helping Survivors Respond to Downsizing  The planned elimination of jobs in an organization. Provide open and honest communication Reassure survivors Contemporary Issues in Managing Human Resources Copyright © 2012 Pearson Education Canada Inc.12-44