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Managing Human Resources

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1 Managing Human Resources
Chapter 12 Managing Human Resources Copyright © 2016 Pearson Canada Inc.

2 Copyright © 2016 Pearson Canada Inc.
Learning Outcomes: Explain the importance of the human resource management process and the external influences that might affect that process. Discuss the tasks associated with identifying and selecting competent employees. Explain the different types of orientation and training. Copyright © 2016 Pearson Canada Inc.

3 Copyright © 2016 Pearson Canada Inc.
Learning Outcomes: Describe strategies for retaining competent, high-performing employees. Discuss contemporary issues in managing human resources. Copyright © 2016 Pearson Canada Inc.

4 The Human Resource Management Process
Why Human Resources Management is Important It can be a significant source of competitive advantage HR gives an organization an edge by creating superior shareholder value. An important part of organizational strategies Achieving competitive success through people means managers must change how they think about their employees and how they view the work relationship. Adds value to the firm High performance work practices lead to both high individual and high organizational performance. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Various studies have concluded that an organization’s human resources can be an important strategic tool and can help establish a firm’s sustainable competitive advantage. A. Whether or not an organization has a human resource department, every manager is involved with human resource management activities. B. Managers must see employees as partners, not just costs to be minimized. C. Studies that have looked at the link between HRM policies and practices and organizational performance have found that certain ones have a positive impact on performance. Copyright © 2016 Pearson Canada Inc.

5 The Human Resource Management Process
High-performance work practices: Work practices that lead to both high individual and high organizational performance. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. These high-performance work practices are human resource policies and practices that lead to high levels of performance at the individual and organizational levels. Copyright © 2016 Pearson Canada Inc.

6 Exhibit 12-1 Examples of High-Performance Work Practices
Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Examples of high-performance work practices are shown in Exhibit 12-1. Copyright © 2016 Pearson Canada Inc.

7 The Human Resource Management Process
Human Resources for Non-HR Managers Small vs. large organizations Large organizations have HR function. Smaller organizations may rely on managers to handle HR issues. All managers need to be aware of federal and provincial legislation and company policies. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. All managers need to do a good job of handling people, and have a reasonable knowledge of people skills. a. In a smaller organization, managers often have to handle many human resources functions, as well as their other jobs. b. In larger organizations, the human resources tasks are delegated to the human resources person or department. As a result, managers may not need to know all of the intricate details of what a human resources manager faces, but they do need to be aware that federal and provincial legislation as well as company policies govern many aspects of the employment relationship. Copyright © 2016 Pearson Canada Inc.

8 The Human Resource Management Process
Human resource management process: Activities necessary for staffing the organization and sustaining high employee performance. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Even if an organization doesn’t use high-performance work practices, there are specific HRM activities that must be completed in order to ensure that the organization has qualified people to perform the work that needs to be done—activities that compose the human resource management process. Copyright © 2016 Pearson Canada Inc.

9 Exhibit 12-2 The Human Resources Management Process
Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Exhibit 12-2 introduces the key components of an organization’s human resources management process. Copyright © 2016 Pearson Canada Inc.

10 The Human Resource Management Process
External Factors That Affect the HRM Process The Economy The global economic downturn has left what many experts believe to be an enduring mark on HRM practices worldwide Labour Union An organization that represents employees and seeks to protect their interests through collective bargaining. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. A labour union is an organization that represents workers and seeks to protect their interests through collective bargaining. About 31% of Canadian workers belong to labour unions. Copyright © 2016 Pearson Canada Inc.

11 The Human Resource Management Process
External Factors That Affect the HRM Process Collective Bargaining Agreement A contractual agreement between an organization and a union, covering: Wage, hours, and working conditions Government Legislation The federal government has greatly expanded its influence over HRM by enacting a number of laws and regulations. Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. A labour union is an organization that represents workers and seeks to protect their interests through collective bargaining. About 31% of Canadian workers belong to labour unions. Copyright © 2016 Pearson Canada Inc.

12 The Human Resource Management Process
Legislation Affecting Workplace Conditions Canada Labour Code Employment standards legislation The Charter of Rights and Freedoms The Canadian Human Rights Act Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Legislation Affecting Workplace Conditions 1. Canada Labour Code covers employment by the federal government and Crown corporations and establishes the right of employees to join labour unions if desired. Part II of this legislation outlines the health and safety obligations of federal employers to prevent accidents and injury to their employees. 2. Occupational Health and Safety Act (or something similar): Each province and territory has health and safety regulations that cover most nonfederal workplaces in its region. 3. Workplace Hazardous Materials Information System (WHMIS): covers workplace hazards and provides information on the safe use of potentially hazardous materials in the workplace. 4. Employment standards legislation sets minimum employment standards in the private sector in Canada. It covers such things as the minimum age of employees, hours of work and overtime pay, minimum wages, equal pay, general holidays and annual vacations with pay, parental leave, and termination of employment. 5. The intent of the Canada Labour Code, Occupational Health and Safety Act, and employment standards legislation is to ensure that all employees have a safe work environment, that they are not asked to work unreasonable numbers of hours, and that pay for jobs is not discriminatory. Copyright © 2016 Pearson Canada Inc.

13 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 female presence in the labour market Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Antidiscrimination Legislation (see Exhibit 12-3 for Prohibited Grounds of Discrimination in Employment) 1. The Charter of Rights and Freedoms and the Canadian Human Rights Act require employers to ensure that equal employment opportunities exist for job applicants and current employees. 2. The Employment Equity Act creates four “protected categories”—women, Aboriginal people, people with disabilities, and visible minorities. These groups must not be discriminated against by federally regulated employers and all employers who receive federal contracts worth more than $ 3. Managers are not completely free to choose whom they hire, promote, or fire. Although these laws and regulations have significantly helped to reduce employment discrimination and unfair employment practices, they have, at the same time, reduced managers’ discretion over human resource decisions. Copyright © 2016 Pearson Canada Inc.

14 Exhibit 12-3 Prohibited Grounds of Discrimination in Employment
Learning Outcome 1: Explain the importance of the human resource management process and the external influences that might affect that process. Copyright © 2016 Pearson Canada Inc.

15 Identifying and Selecting Competent Employees
Human Resources (HR) Planning 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 Ensuring that the organization has the right number and kinds of capable people in the right places and at the right times Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Human resources planning is the process by which managers ensure that they have the right numbers and kinds of people in the right places and at the right times who are capable of effectively and efficiently performing assigned tasks to ensure that the organization reaches its objectives. Copyright © 2016 Pearson Canada Inc.

16 Identifying and Selecting Competent Employees
Assessing Current Human Resources 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 Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Managers begin with a current assessment of the organization’s human resources and reviewing their status. 1.This is typically done through a human resources inventory. Many firms have introduced HR management information systems (HRMIS) to track employee information for policy and strategic needs. Copyright © 2016 Pearson Canada Inc.

17 Identifying and Selecting Competent Employees
Job Analysis: An assessment that defines a job and the behaviours necessary to perform them. Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. 2. Another part of the current assessment is the job analysis, which is an assessment that defines jobs and the behaviours necessary to perform them. Copyright © 2016 Pearson Canada Inc.

18 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. Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. 3. From this information, management can draw up a job description, which is a written statement of what a jobholder does, how it is done, and why it is done. 4. Also, management can develop a job specification, which is a statement of the minimum acceptable qualifications that a person must possess to perform a given job successfully. Copyright © 2016 Pearson Canada Inc.

19 Identifying and Selecting Competent Employees
Recruitment: The process of locating, identifying, and attracting capable applicants to an organization. Decruitment: Techniques for reducing the organization’s workforce. Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Recruitment 1. Recruitment is the process of locating, identifying, and attracting capable applicants. 2. Job candidates can be found using several sources a. Job fairs b. Web-based recruiting (e-recruiting) Employee referrals (usually produce the best candidates) Decruitment 1. Decruitment involves techniques for reducing the labour supply within an organization. 2. Decruitment options include firing, layoffs, attrition, transfers, reduced workweeks, early retirements, and job sharing (see Exhibit 12-5). Copyright © 2016 Pearson Canada Inc.

20 Exhibit 12-4 Major Sources of Potential Job Candidates
Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Job candidates can be found using several sources (Exhibit 12-4). Copyright © 2016 Pearson Canada Inc.

21 Exhibit 12-5 Decruitment Options
Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Decruitment options include firing, layoffs, attrition, transfers, reduced workweeks, early retirements, and job sharing (see Exhibit 12-5). Copyright © 2016 Pearson Canada Inc.

22 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 Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. The selection process is screening job applicants to ensure that the most appropriate candidates are hired. 1. What is selection? It’s an exercise in prediction. a. Prediction is important because any selection decision can result in four possible outcomes (see Exhibit 12-6). b. The major thrust of any selection activity should be to reduce the probability of making reject errors or accept errors while increasing the probability of making correct decisions. Copyright © 2016 Pearson Canada Inc.

23 Exhibit 12-6 Selection Decision Outcomes
Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Prediction is important because any selection decision can result in four possible outcomes (see Exhibit 12-6). Copyright © 2016 Pearson Canada Inc.

24 Identifying and Selecting Competent Employees
Validity (of Prediction): The proven relationship that exists between the selection device and some relevant job criterion. High test scores equate to high job performance; low scores to poor performance. Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Validity describes the proven relationship that exists between a selection device and some relevant criterion. Copyright © 2016 Pearson Canada Inc.

25 Identifying and Selecting Competent Employees
Reliability (of Prediction): The ability of a selection device to measure the same thing consistently. Individual test scores obtained with a selection device are consistent over multiple testing instances Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Reliability is the ability of a selection device to measure the same thing consistently. Copyright © 2016 Pearson Canada Inc.

26 Identifying and Selecting Competent Employees
Types of Selection Devices Application Forms Written Tests Performance Simulations Interviews Background Investigations Physical Examinations Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. There are numerous and varied selection devices to choose from. Exhibit 12-7 lists the strengths and weaknesses of each of these devices. The application form is used by almost all organizations for job candidates. Copyright © 2016 Pearson Canada Inc.

27 Exhibit 12-7 Selection Devices
Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Exhibit 12-7 lists the strengths and weaknesses of each of the various selection devices. Copyright © 2016 Pearson Canada Inc.

28 Identifying and Selecting Competent Employees
Types of Written Tests Intelligence, Aptitude, Ability, Interest. Moderate predictors of semi-skilled and unskilled jobs Legal Challenges to Tests Lack of job-relatedness of test to job requirements Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Written tests can include tests of intelligence, aptitude, ability, and interest. Copyright © 2016 Pearson Canada Inc.

29 Identifying and Selecting Competent Employees
Other Selection Approaches 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 Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Interviews are very popular as a selection device although there are many concerns about their reliability and validity. 1. New approach is using situational interviews where candidates role-play in mock scenarios. The Tips for Managers Box, lists some suggestions for making interviews more valid and reliable. Background investigations can be done by verifying application data and/or reference checks. Physical examinations are often used for jobs with physical requirements. Copyright © 2016 Pearson Canada Inc.

30 Exhibit 12-8 Quality of Selection Devices as Predictors
Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. Exhibit 12-8 provides a summary of the validity of these various selection devices for particular types of jobs. Copyright © 2016 Pearson Canada Inc.

31 Identifying and Selecting Competent Employees
What works Best and When? Realistic Job Preview (RJP): A preview of a job that includes both positive and negative information about the job and the company. Encourages mismatched applicants to withdraw Aligns successful applicants’ expectations with actual job conditions, reducing turnover Learning Outcome 2: Discuss the tasks associated with identifying and selecting competent employees. A realistic job preview (RJP) is a technique that provides job applicants with both positive and negative information about the job and the company. Including an RJP can increase job satisfaction among employees and reduce turnover. Copyright © 2016 Pearson Canada Inc.

32 Providing Employees with Needed Skills and Knowledge
Employee Orientation 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 Learning Outcome 3: Explain the different types of orientation and training. Orientation is defined as the introduction of a new employee into his or her job and the organization. Work-unit orientation familiarizes the employee with the goals of the work unit, clarifies how his or her job contributes to the unit’s goals, and includes an introduction to his or her new co-workers. Copyright © 2016 Pearson Canada Inc.

33 Providing Employees with Needed Skills and Knowledge
Orientation: Introduction of a new employee to his or her job and the organization. Learning Outcome 3: Explain the different types of orientation and training. Organization orientation informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules. Copyright © 2016 Pearson Canada Inc.

34 Providing Employees with Needed Skills and Knowledge
Training: Employee training is an important HRM activity. As job demands change, employee skills have to be altered and updated. Canadian companies spend about $852 per employee compared with $1273 by the Americans in 2006. Learning Outcome 3: Explain the different types of orientation and training. Employee training is an important HRM activity. As job demands change, employee skills have to be altered and updated. In 2006, US business firms budgeted over $55 billion on workforce formal training.40 Canadian companies spend far less than American firms on training and development, about $852 per employee compared with $1273 by the Americans in 2006. Copyright © 2016 Pearson Canada Inc.

35 Exhibit 12-9 Types of Training
Learning Outcome 3: Explain the different types of orientation and training. Copyright © 2016 Pearson Canada Inc.

36 Exhibit 12-10 Types of Training
Learning Outcome 3: Explain the different types of orientation and training. Copyright © 2016 Pearson Canada Inc.

37 Retaining Competent and High Performance Employees
Performance Management System: A process of establishing performance standards and evaluating performance in order to arrive at objective HR decisions, as well as to provide documentation to support those decisions. Learning Outcome 4: Describe strategies for retaining competent, high performing employees. A performance management system is a process of establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and support those decisions with documentation. Copyright © 2016 Pearson Canada Inc.

38 Retaining Competent and High Performance Employees
Performance Appraisal Methods (Exhibit 12-11) Written Essays Critical Incidents Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS) Multiperson Comparisons Management by Objectives (MBO) 360-Degree Feedback Learning Outcome 4: Describe strategies for retaining competent, high performing employees. a. Written essays are an appraisal technique in which an evaluator writes out a description of an employee’s strengths and weaknesses, past performance, and potential. b. Critical incidents are a technique in which the appraiser writes down anecdotes that describe what the employee did that was especially effective or ineffective. The key is that only specific behaviours, not vaguely defined personality traits, are cited. c. Graphic rating scales are one of the oldest and most popular performance appraisal methods. This method lists a set of performance factors, and the evaluator goes down the list and rates the employee on each factor using an incremental scale. d. Behaviourally anchored rating scales (BARS) is an appraisal approach that combines major elements from the critical incident and graphic rating scale approaches. The appraiser rates an employee according to items along a scale, but the items are examples of actual behaviour on the job rather than general descriptions or traits. e. Multiperson comparison methods compare one individual’s performance with that of one or more others. f. Management by Objectives. MBO is also a mechanism for appraising performance. g Degree Feedback is a performance appraisal method that uses feedback from supervisors, employees, and co-workers. Copyright © 2016 Pearson Canada Inc.

39 Copyright © 2016 Pearson Canada Inc.
Exhibit Advantages and Disadvantages of Performance Appraisal Methods Learning Outcome 4: Describe strategies for retaining competent, high performing employees. Exhibit summarizes the advantages and disadvantages of various performance appraisal methods. Copyright © 2016 Pearson Canada Inc.

40 Retaining Competent and High Performance Employees
Compensation and Benefits Managers must develop a compensation system that reflects the changing nature of work and the workplace in order to keep people motivated. Skill-based pay: A pay system that rewards employees for the job skills and competencies they can demonstrate. Learning Outcome 4: Describe strategies for retaining competent, high performing employees. Copyright © 2016 Pearson Canada Inc.

41 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 Learning Outcome 4: Describe strategies for retaining competent, high performing employees. A. The purpose of having an effective reward system is to attract and retain competent and talented individuals who can help the organization achieve its mission and goals. B. A compensation system can include base wages and salaries, wage and salary add-ons, incentive payments, and benefits and services. Copyright © 2016 Pearson Canada Inc.

42 Retaining Competent and High Performance Employees
Types of Compensation Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay Learning Outcome 4: Describe strategies for retaining competent, high performing employees. A compensation system can include base wages and salaries, wage and salary add-ons, incentive payments, and benefits and services. Copyright © 2016 Pearson Canada Inc.

43 Exhibit 12-12 Factors That Influence Compensation and Benefits
Learning Outcome 4: Describe strategies for retaining competent, high performing employees. Several factors influence the differences in compensation and benefit packages for different employees. Exhibit summarizes these factors, which are both job-based and business- or industry-based. 1. One key factor is the kind of job an employee performs. a. Typically, the higher the skill level, the higher the pay. b. Many organizations have implemented skill-based pay systems in which employees are rewarded for the job skills and competencies that they can demonstrate. 2. Another factor is the kind of business the organization is in (private sector versus public sector). 3. Flexibility is becoming a key consideration in the design of an organization’s compensation system. Copyright © 2016 Pearson Canada Inc.

44 Retaining Competent and High Performance Employees
Career Defined 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. Boundaryless Career A career in which individuals, not organizations, define career progression, organizational loyalty, important skills, and marketplace value. Learning Outcome 4: Describe strategies for retaining competent, high performing employees. A career is defined as the sequence of positions held by a person during his or her lifetime. A. The Way It Was. 1. Career development programs were typically designed by organizations to help employees advance their work lives within a specific organization. 2. However, widespread internal changes have altered the idea of a traditional organizational career. 3. Now, it’s the individual, not the organization, who is responsible for his or her own career. B. You and Your Career Today. 1. The idea of increased personal responsibility for one’s career has been described as a boundaryless career in which individuals rather than organizations define career progression, organizational loyalty, important skills, and marketplace value. 2. The challenge for individuals is that there are no norms and few rules to guide them. The optimum career choice is one that offers the best match between what a person wants out of life and his or her interests, abilities, and market opportunities. Copyright © 2016 Pearson Canada Inc.

45 Copyright © 2016 Pearson Canada Inc.
Exhibit What Do College and University Grads Want from Their Jobs? Learning Outcome 4: Describe strategies for retaining competent, high performing employees. Several factors influence the differences in compensation and benefit packages for different employees. Exhibit summarizes these factors, which are both job-based and business- or industry-based. 1. One key factor is the kind of job an employee performs. a. Typically, the higher the skill level, the higher the pay. b. Many organizations have implemented skill-based pay systems in which employees are rewarded for the job skills and competencies that they can demonstrate. 2. Another factor is the kind of business the organization is in (private sector versus public sector). 3. Flexibility is becoming a key consideration in the design of an organization’s compensation system. Copyright © 2016 Pearson Canada Inc.

46 Contemporary Issues in Managing Human Resources
Workforce Diversity Recruitment for diversity Managing downsizing Managing sexual harassment Learning Outcome 5: Discuss contemporary issues in managing human resources. One current HR issue is managing workforce diversity. The makeup of the workforce is changing and will impact recruitment, selection, and orientation/training of employees. 1. Recruitment. To improve workforce diversity, managers need to widen their recruiting net. 2. Selection. Once a diverse set of applicants exists, efforts must be made to ensure that the selection process does not discriminate. 3. Orientation and Training. The outsider–insider transition is often more challenging for women and minorities than for white males. Many organizations provide special workshops to raise diversity awareness issues. Copyright © 2016 Pearson Canada Inc.

47 Providing Employees with Needed Skills and Knowledge
Downsizing: The planned elimination of jobs in an organization. Learning Outcome 5: Discuss contemporary issues in managing human resources. The planned elimination of jobs in an organization. When an organization has too many employees—which can happen when it’s faced with an economic recession, declining market share, too aggressive growth, or poorly managed operations—one option for improving profits is to eliminate some of those excess workers. Copyright © 2016 Pearson Canada Inc.

48 Exhibit 12-14 Tips for Managing Downsizing
Learning Outcome 5: Discuss contemporary issues in managing human resources. Copyright © 2016 Pearson Canada Inc.

49 Contemporary Issues in Managing Human Resources
Sexual Harassment 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 An unwanted activity of a sexual nature that affects an individual’s employment. Learning Outcome 5: Discuss contemporary issues in managing human resources. Sexual harassment is behaviour marked by sexually aggressive remarks, unwanted touching and sexual advances, requests for sexual favours, or other verbal or physical conduct of a sexual nature. It can occur between members of the opposite sex or of the same sex. Copyright © 2016 Pearson Canada Inc.

50 Contemporary Issues in Managing Human Resources
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 Learning Outcome 5: Discuss contemporary issues in managing human resources. Copyright © 2016 Pearson Canada Inc.

51 Contemporary Issues in Managing Human Resources
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? Learning Outcome 5: Discuss contemporary issues in managing human resources. Copyright © 2016 Pearson Canada Inc.

52 Contemporary Issues in Managing Human Resources
Family-friendly benefits : Benefits that accommodate employees’ needs for work–life balance. Learning Outcome 5: Discuss contemporary issues in managing human resources. The planned elimination of jobs in an organization. When an organization has too many employees—which can happen when it’s faced with an economic recession, declining market share, too aggressive growth, or poorly managed operations—one option for improving profits is to eliminate some of those excess workers. Copyright © 2016 Pearson Canada Inc.

53 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 Learning Outcome 5: Discuss contemporary issues in managing human resources. Family concerns, especially work-life balance, are another issue of current importance in human resource management. Organizations are beginning to realize that employees can’t just leave their family needs and problems behind when they walk into work. They’re responding by developing programs to help employees deal with the family issues that may arise. They’re making their workplaces more family-friendly by offering family-friendly benefits. Copyright © 2016 Pearson Canada Inc.

54 Summary and Implications
Explain the importance of the human resource management process and the external influences that might affect that process. Managing human resources well can provide a significant competitive advantage. Learning Outcome 1 Copyright © 2016 Pearson Canada Inc.

55 Summary and Implications
Discuss the tasks associated with identifying and selecting competent employees. Human resource managers do a human resource inventory to discover what skills and capabilities current employees have. They map that inventory against what might be needed in the future, based on the organization’s mission, goals, and strategies. Learning Outcome 2 Copyright © 2016 Pearson Canada Inc.

56 Summary and Implications
Explain the different types of orientation and training. Companies use a variety of training methods, from on-the-job training to classroom work to technology- based training. Learning Outcome 3 Copyright © 2016 Pearson Canada Inc.

57 Summary and Implications
Describe strategies for retaining competent, high-performing employees. Organizations develop compensation and benefit programs that will motivate employees to achieve high performance. Many organizations have implemented skill-based pay systems, which reward employees for the job skills and competencies they can demonstrate. Learning Outcome 4 Copyright © 2016 Pearson Canada Inc.

58 Summary and Implications
Discuss contemporary issues in managing human resources. The major current issues in human resource management include managing workforce diversity, dealing with sexual harassment and workplace romances, helping employees manage work–life balance, and managing downsizing. Learning Outcome 5 Copyright © 2016 Pearson Canada Inc.


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