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Managing Human ResourcesChapter 10 Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary Copyright © 2011 by Nelson Education Ltd. fff
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.
Human Resource ChallengesChapter 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. fff
Human Resource Success FactorsAttracting 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
Human Resource ManagementChapter 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. fff
Human Resource Management ProcessChapter 10 Human Resource Management Process Copyright © 2011 by Nelson Education Ltd. fff
Human Resource PlanningChapter 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. fff
Human Resource Planning and ForecastingChapter 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. fff
Human Resource Planning ProcessChapter 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. fff
Internal Labour Market External Labour MarketChapter 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 Copyright © 2011 by Nelson Education Ltd. fff
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
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
Employee Selection Chapter 10Selection 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. Copyright © 2011 by Nelson Education Ltd. fff
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
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
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
Quality of Selection Devices as PredictorsSenior 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
Employee Training and DevelopmentChapter 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. Copyright © 2011 by Nelson Education Ltd. fff
Employee Training and DevelopmentChapter 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 Copyright © 2011 by Nelson Education Ltd. fff
Performance Planning and EvaluationChapter 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. Copyright © 2011 by Nelson Education Ltd. fff
Employee Compensation and BenefitsChapter 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. Copyright © 2011 by Nelson Education Ltd. fff
Job Changes within the OrganizationPromotion 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
Separations Layoff Termination Resignation RetirementTemporary 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
Labour Relations TermsChapter 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 Copyright © 2011 by Nelson Education Ltd. fff
Negotiating Labour AgreementsChapter 10 Negotiating Labour Agreements Copyright © 2011 by Nelson Education Ltd.
Common Issues in Collective BargainingChapter 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.
Strategies for Unions and EmployersChapter 10 Strategies for Unions and Employers Copyright © 2011 by Nelson Education Ltd.
Legislation Affecting HR ManagementChapter 10 Legislation Affecting HR Management Copyright © 2011 by Nelson Education Ltd. fff
Trends in Human Resource ManagementChapter 10 Trends in Human Resource Management Employee Diversity and Competitive Advantage Outsourcing HR and Technology Organizational Culture and Hiring for Fit Copyright © 2011 by Nelson Education Ltd. fff
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