1. Human Resources Management
Chapter 11
Human Resources Management
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

2. LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter.
Why Human Resources Is Important
Explain how an organization’s human resources can be a significant source of competitive advantage.
List the eight activities necessary for staffing the organization and sustaining high employee performance.
The Human Resources Management Process
Discuss the environmental factors that most directly affect the HRM process.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

3. LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter.
Human Resources Planning
Contrast job analysis, job description, and job specification.
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

4. LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter.
Orientation and Skill Development
Describe the different types of training and how that training can be provided.
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 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

5. LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter.
Career Development
Describe career development for today’s employees.
Current Issues in Human Resources Management
Explain how managers can manage downsizing.
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

6. The Importance of Human Resources Management (HRM)
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.
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.
1. These high-performance work practices are human resource policies and practices that lead to high levels of performance at the individual and organizational levels.
2. Examples of high-performance work practices are shown in Exhibit 11.1.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

7. Exhibit 11.1 Examples of High-Performance Work Practices
Self-directed work teams
Job rotation
High levels of skills training
Problem-solving groups
Total quality management procedures and processes
Encouragement of innovative and creative behaviour
Extensive employee involvement and training
Implementation of employee suggestions
Contingent pay based on performance
Coaching and mentoring
Significant amounts of information sharing
Use of employee attitude surveys
Cross-functional integration
Comprehensive employee recruitment and selection procedures
Examples of high-performance work practices are shown in Exhibit 11.1.
Sources: Based on M. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance,” Academy of Management Journal, June 1995, p. 635; and B. Becker and B. Gerhart, “The Impact of Human Resource Management on Organizational Performance: Progress and Prospects,” Academy of Management Journal, August 1996, p. 785.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

8. 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.
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

9. 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
The human resources management process is defined as the eight activities necessary for staffing the organization and sustaining high employee performance. Exhibit 11.2 introduces the key components of an organization’s human resources management process.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

10. Exhibit 11.2 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
Exhibit 11.2 introduces the key components of an organization’s human resources management process.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

11. Environmental Factors Affecting HRM
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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

12. 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
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.
Antidiscrimination Legislation (see Exhibit 11.3 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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

13. Managing Human Resources
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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

14. 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
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.
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

15. 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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

16. Exhibit 11.3 Meeting Future Human Resources Needs
Supply of Employees
Demand for Employees
Factors Affecting Staffing
Strategic Goals
Forecast demand for products and services
Availability of knowledge, skills, and abilities
Future assessment involves a determination of future human resources needs by looking at the organization’s goals and strategies.
Developing a future program involves matching estimates of shortages—both in number and in type—and highlighting areas in which the organization will be overstaffed.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

17. Staffing the Organization
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
Decruitment
The process of reducing a surplus of employees in the workforce of an organization
Recruitment
1. Recruitment is the process of locating, identifying, and attracting capable applicants.
2. Job candidates can be found using several sources (Exhibit 11.4):
a. Job fairs
b. Web-based recruiting (e-recruiting)
c. 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 11.5).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

18. Exhibit 11.4 Major Sources of Potential Job Candidates
Job candidates can be found using several sources (Exhibit 11.4).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

19. Exhibit 11.5 Decruitment Options
Decruitment options include firing, layoffs, attrition, transfers, reduced workweeks, early retirements, and job sharing (see Exhibit 11.5).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

20. 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
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 11.6).
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

21. Exhibit 11.6 Selection Decision Outcomes
Correct
decision
Accept
error
Reject
Selection Decision
Later Job Performance
Unsuccessful
Successful
Prediction is important because any selection decision can result in four possible outcomes (see Exhibit 11.6).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

22. 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
Validity describes the proven relationship that exists between a selection device and some relevant criterion.
Reliability is the ability of a selection device to measure the same thing consistently.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

23. Types of Selection Devices
Application Forms
Written Tests
Performance Simulations
Interviews
Background Investigations
Physical Examinations
There are numerous and varied selection devices to choose from.
Exhibit 11.7 lists the strengths and weaknesses of each of these devices.
The application form is used by almost all organizations for job candidates.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

24. Exhibit 11.7 Selection Devices
Exhibit 11.7 lists the strengths and weaknesses of each of the various selection devices.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

25. 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
Written tests can include tests of intelligence, aptitude, ability, and interest.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

26. 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
Performance-simulation tests involve having job applicants simulate job activities. Two well-known ones are:
1. Work sampling is a selection device in which job applicants are presented with a miniature model of a job and asked to perform a task or set of tasks that are central to that job.
2. Assessment centres are places in which job candidates undergo performance simulation tests that evaluate managerial potential.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

27. 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
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 on page 311 lists some suggestions for making interviews more valid and reliable.
Exhibit 11.8 lists examples of questions that interviewers should not ask.
Background investigations can be done by verifying application data and/or reference checks.
Physical examinations are often used for jobs with physical requirements.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

28. Questions Not to Ask Job Candidates
About name changes; maiden name
For birth certificate, baptismal records, or about age in general
About pregnancy, child bearing plans, or child care arrangements
Whether applicant is single, married, divorced, engaged, separated, widowed, or living common-law
About birthplace, nationality of ancestors, spouse, or other relatives
Whether born in Canada
For photo to be attached to application or sent to interviewer before interview
About religious affiliation, church membership, frequency of church attendance
Whether the applicant drinks or uses drugs
Whether the applicant has ever been convicted
Whether the applicant has ever been arrested
Whether the applicant has a criminal record
About the applicant’s sexual orientation
Sample Questions Taken from Exhibit 11.8
Exhibit 11.8 lists examples of questions that interviewers should not ask.
These are a small sample of the questions so that you can review these with students. Ask them if they find any of them surprising.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

29. 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.
Interviewing is an important skill for managers to learn.
Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

30. Exhibit 11.9 Quality of Selection Devices as Predictors
Exhibit 11.9 provides a summary of the validity of these various selection devices for particular types of jobs.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

31. 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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

32. 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
Orientation is defined as the introduction of a new employee into his or her job and the organization.
1. 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.
2. Organization orientation informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules.
3. Managers have an obligation to new employees to ensure that their integration into the organization is as smooth and anxiety-free as possible. The major objectives of orientation include:
a. Reduce initial anxiety.
b. Familiarize new employees with the job, the work unit, and the organization.
c. Facilitate the outsider-insider transition.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

33. Exhibit 11.10 Types of Training
Interpersonal skills
Technical
Business
Mandatory
Performance management
Problem solving/decision making
Personal
Employee training is a critical component of the human resources management program. Exhibit outlines the major types of training.
Types of Training
a. Interpersonal skills, which involve the ability to interact effectively with co-workers and bosses.
b. Technical skills, which include basic skills (reading, writing, math) and job-specific competencies.
c. Business skills
d. Mandatory skills
e. Performance management skills
f. Problem-solving/decision-making skills, which involve the ability to solve problems that arise
g. Personal skills
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

34. Exhibit 11.11 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.
Exhibit describes the major types of training that organizations provide.
a. Traditional Training Methods. Employee training can be delivered in traditional ways including on-the-job training, job rotation, mentoring and coaching, experiential exercises, workbooks and manuals, or classroom lectures.
b. Technology-driven Training Methods. Many organizations are relying more on technology-based training methods because of their accessibility, lower cost, and ability to deliver information.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

35. Exhibit 11.12a Occupations of Employees Who Receive Training10 20 30 40 50 60 70 80 90
100
Professional and managerial white collar occupations
Clerical, sales, and service white collar occupations
Blue collar occupations
How Training Occurs. Managerial and professional employees are far more likely than blue-collar employees to receive training (see Exhibit 11.12a).
Different industries provide differing amounts of training. Those in goods-producing industries received substantially less training than those in service-producing industries (18% vs. 28%).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

36. Exhibit 11.12b How Employees Train Themselves10 20 30 40 50 60 70 80 90
100
Sought advice from someone
Used the Internet or computer software
Observed someone perform a task
Consulted books/manuals/other documents
Taught themselves by trying different methods
In 2002, about one-third of employees engaged in self-learning activities, such as observing others, or trying new methods themselves (see Exhibit 11.12b for dominant methods of self-learning).
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

37. 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
Managers need to know whether their employees are performing their jobs efficiently and effectively or whether there is need for improvement.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

38. Performance Appraisal Methods
Written Essays
Critical Incidents
Graphic Rating Scales
Behaviourally Anchored Rating Scales (BARS)
Multiperson Comparisons
Management by Objectives (MBO)
360-Degree Feedback
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.
Performance Appraisal Methods (Exhibit summarizes the advantages and disadvantages of each of these methods.)
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

39. Exhibit 11.13 Advantages and Disadvantages of Performance Appraisal Methods
Exhibit summarizes the advantages and disadvantages of various performance appraisal methods.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

40. 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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

41. Exhibit 11.14 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?
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.
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 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

42. Public Sector Vs. Private Sector
Governments pay about 9% more compared to private sector.
Public sector employees: better benefit plans, likelihood of pension plans
Public sector pay rates: labour union equity initiatives
Private sector pay rates: “market wages”
On average, all three levels of government (federal, provincial, and local) pay about 9% more to their employees, compared with what equivalent jobs in the private sector would be paid. Public sector employees generally have better benefit plans and are more likely to be covered by pension plans as well.
1. Public sector pay rates are affected by labour union equity initiatives that seek to ensure women are paid equivalent wages to men for substantially similar work.
2. The private sector is much more responsive to “market wages,” which do not always result in equal pay rates for jobs that are similar, but performed predominantly by one gender.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

43. 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
Boundaryless Career
A career in which individuals, not organizations, define career progression, organizational loyalty, important skills, and marketplace value
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

44. 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
Exhibit provides results of a survey of college graduates regarding what is important to them in their first jobs.
Source: Based on V. Frazee. “What’s Important to College Grads in Their First Jobs?” Personnel Journal, July 1996, p. 21.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

45. Tips for Managers: Some Suggestions for a Successful Management Career
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

46. Contemporary HRM Issues
Managing Downsizing
The planned elimination of jobs in an organization
Provide open and honest communication
Reassure survivors
Managing Downsizing is a challenge for management in a tight economy.
Downsizing is the planned elimination of jobs in an organization. This can be due to the need to cut costs, declining market share, overaggressive organizational growth.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

47. Contemporary HRM Issues (cont’d)
Managing Workforce Diversity
Recruitment for diversity
Selection without discrimination
Orientation and training that is effective
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

48. 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
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.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.

49. 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
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.
Possible discussion questions:
• 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?
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.