1. Last Week… 1. Considered the difference between traditional and contemporary designs 2. Understood why we communicate and how it works 3. Considered the various methods of communication and how to know what works 4. Examined the barriers to effective communication 5. Looked at the flow of communication in organizations 1-1

2. This Week’s Objectives 1-2 1. Understand why Human Resource Management is so important 2. Examine environmental factors affecting HRM. 3. Review the eight process steps in HRM. 4. Look at some contemporary issues in Human Resource Management.

3. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-3 Chapter 11 Human Resource Management

4. The Question… As a manager, how much attention do I have to pay to “people” stuff? 1-4

5. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-5 The Importance of Human Resources Management (HRM) It’s an Operational Necessity: part of the organizing function of management Selecting, training, and evaluating the workforce It’s a Strategic Necessity: 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.

6. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-6 HRM is not just for the HR manager 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 be effective in managing HR processes If you do this stuff wrong, you’ll hit a career ceiling and negatively impact the organization.

7. 11-7 The HRM Process 1. Planning 2. Recruitment 3. Selection 4. Orientation 5. Training 6. Performance Management 7. Compensation and Benefits 8. Career Development

8. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-8 Environmental Factors Affect HRM Economics and Demographics Employment markets, regional economic conditions, industry conditions Makeup of workforces, shifts in demographic factors (e.g. age, gender, education)

9. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-9 Environmental Factors Affect HRM Labour Unions and Contracts An organization that represents workers and seeks to protect their interests through collective bargaining Contracts cover things like wages, hours, and working conditions

10. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-10 Environmental Factors Affect HRM Government Legislation 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

11. 11-11 1 st Step: HR Planning Having the right number of the right people in the right places at the right times, who are capable of effectively and efficiently performing their tasks Involves: 1. Understanding what you have (assessing current human resources) 2. Understanding what you need (assessing future HR needs and developing a program to meet those future needs)

12. 11-12 Understanding What You Have Human Resources Inventory A review of the current makeup of the organization’s resources status Job analysis An assessment that defines a job and the behaviours necessary to perform the job: Knowledge, skills, and abilities

13. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-13 The Critical Products of Job Analysis 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

14. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-14 Understanding What You Need 1.Know the impact of the environmental factors 2.Know what your demand will be 3.Know what your supply will be

15. 11-15 2 nd Step: Recruiting Locating, identifying, and attracting capable applicants to an organization Note that this also considers “Decruitment” - The process of reducing a surplus of employees in the workforce of an organization

16. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-16 What are sources of potential job candidates? Internet services (e.g. Monster) Employee referrals Company website University/colleges Professional recruiting services

17. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-17 3 rd Step: Selection Selection is t he process of screening job applicants to ensure that the most appropriate candidates are hired Selection tries to predict which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance.

18. 11-18 Costs for Poor Selection Wasted investment of time/money resources In hiring process, orientation, training and ongoing management In repeating processes to replace Impact on strategies and goals Affects schedules and budgets in planning Lack of support for strategies Impact on organizational values and culture Negative effect on establishing and maintaining culture

19. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-19 Types of Selection Devices Application Forms Written Tests Performance Simulations Interviews Background Investigations (reference checks) Physical Examinations

20. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-20 4 th Step: Orientation 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

21. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-21 5 th Step: Training Developing the necessary skills in employees Training can be needed for: New employees Promoted employees Performance Management Changed technology, products or processes Legal requirements Career development

22. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-22 Training Subjects Personal/Interpersonal skills Technical Business Mandatory (i.e. legislated, certification) Problem solving/decision making

23. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-23 Employee Training Methods Traditional Methods On-the-job Job rotation Mentoring and coaching Experiential exercises Workbooks/manuals Classroom lectures Technology-based Methods CD-ROM/ DVD/videotapes/ audiotapes Videoconferencing/ teleconferencing/ satellite TV E-learning or other interactive modules.

24. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-24 6 th Step: Performance Management Establishes performance standards and appraises employee performance Provides the information for objective HR decisions and the supporting documentation ABSOLUTELY CRITICAL PROCESS! How else can we know if we have the right HR and if we are maximizing their potential?

25. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-25 Performance Appraisal Methods Written Essays Critical Incidents Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS) Multiperson Comparisons Management by Objectives (MBO) 360-Degree Feedback

26. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-26 7 th Step: 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

27. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-27 Factors That Influence Compensation & Benefits Sources: Based on R.I. Henderson, Compensation Management, 6 th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1 Level of Compensation and Benefits Employee’s Tenure and Performance Size of Company Kind of Job Performed Company Profitability Kind of Business Geographical Location Unionization Management Philosophy Labour- or Capital-Intensive How long has employee been with company and how has he or she performed? Does job require high levels of skills? What industry is job in? Is business unionized? Is business labour- or capital-intensive? How large is the company? How profitable is the company? Where is organization located? What is management’s philosophy toward pay?

28. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-28 8 th Step: Career Development 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

29. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-29 Some Suggestions for a Successful Management Career

30. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-30 Contemporary HRM Issues Managing Large Scale Staffing Changes (e.g. downsizing) Managing Workforce Diversity Recruitment for diversity Selection without discrimination Orientation and training that is effective

31. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-31 Contemporary HRM Issues Sexual Harassment An unwanted activity of a sexual nature that affects an individual’s employment An offensive or hostile environment An environment in which a person is affected by elements of a sexual nature

32. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-32 Contemporary HRM Issues 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

33. This Week’s Summary 1. Emphasized why Human Resource Management is so important to the organization and to all managers. 2. Discussed environmental factors affecting HRM. 3. Went through all eight key process steps in HRM. 4. Looked at some contemporary issues in Human Resource Management. 1-33

34. Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 11-34 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.