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

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 7-2 Copyright © 2008 Pearson Education Canada

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 7-3 Copyright © 2008 Pearson Education Canada

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 7-4 Copyright © 2008 Pearson Education Canada

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 7-5 Copyright © 2008 Pearson Education Canada

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 7-6 Copyright © 2008 Pearson Education Canada

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 7-7 Copyright © 2008 Pearson Education Canada

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 7-8 Copyright © 2008 Pearson Education Canada

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 7-9 Copyright © 2008 Pearson Education Canada

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 7-10 Copyright © 2008 Pearson Education Canada

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 7-11 Copyright © 2008 Pearson Education Canada

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 7-12 Copyright © 2008 Pearson Education Canada

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 7-13 Copyright © 2008 Pearson Education Canada

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 7-14 Copyright © 2008 Pearson Education Canada

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

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 7-16 Copyright © 2008 Pearson Education Canada

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 7-17 Copyright © 2008 Pearson Education Canada

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 7-18 Copyright © 2008 Pearson Education Canada

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 7-19 Copyright © 2008 Pearson Education Canada

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

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 7-21 Copyright © 2008 Pearson Education Canada

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 7-22 Copyright © 2008 Pearson Education Canada

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 7-23 Copyright © 2008 Pearson Education Canada

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 7-24 Copyright © 2008 Pearson Education Canada

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 7-25 Copyright © 2008 Pearson Education Canada

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 7-26 Copyright © 2008 Pearson Education Canada

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 7-27 Copyright © 2008 Pearson Education Canada

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 7-28 Copyright © 2008 Pearson Education Canada

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 7-29 Copyright © 2008 Pearson Education Canada

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 7-30 Copyright © 2008 Pearson Education Canada

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 7-31 Copyright © 2008 Pearson Education Canada

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 7-32 Copyright © 2008 Pearson Education Canada

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 7-33 Copyright © 2008 Pearson Education Canada

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 7-34 Copyright © 2008 Pearson Education Canada

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 7-35 Copyright © 2008 Pearson Education Canada

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 7-36 Copyright © 2008 Pearson Education Canada

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 7-37 Copyright © 2008 Pearson Education Canada

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 7-38 Copyright © 2008 Pearson Education Canada

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 7-39 Copyright © 2008 Pearson Education Canada

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 7-40 Copyright © 2008 Pearson Education Canada

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 7-41 Copyright © 2008 Pearson Education Canada