Managing Human Resource Systems

Managing Human Resource Systems
Chapter 11 Managing Human Resource Systems

Copyright © 2015 by Nelson Education Ltd.
Explain how different employment laws affect human resource practice. Explain how companies use human resource planning and recruiting to find qualified job applicants. Describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers. Copyright © 2015 by Nelson Education Ltd. 11-2

Describe how to determine training needs and select the appropriate training methods. Discuss how to use performance appraisal to give meaningful performance feedback. Describe basic compensation strategies and discuss the four kinds of employee separations. Copyright © 2015 by Nelson Education Ltd. 11-3

The Human Resource Management Process
Exhibit 11.1 shows the human resource management process—attracting, developing, and keeping qualified employees—which remains one of most important and difficult of management tasks. Managers often treat questions as separate issues. human resource process components are interdependent issues. You can't solve one problem without considering the impact on others. Exhibit 11.1 shows how the human resource needs affect how a company uses recruiting and selection to attract employees. The kind and number of employees hired influence the orientation, training, performance appraisal, and compensation strategies a company uses, which affect who stays and who leaves. As indicated by the feedback loop, the process comes full circle, as the number and kind of employees who leave a company affect its human resource needs and planning. Copyright © 2015 by Nelson Education Ltd. 11-4

Employment Legislation: What Is It All About?
Federal and provincial legislation Covers human rights and employment standards Labour relations, health and safety, and employment equity The Canadian Labour Code The Constitution Act of 1867 (formerly known as the British North America Act) The Canadian Charter of Rights and Freedoms (1982) 5 1 Copyright © 2015 by Nelson Education Ltd. 11-5

Summary of Major Federal Employment Laws
Constitution Act (BNA) of 1867 Sets out basic federal and provincial responsibilities Canadian Charter of Rights and Freedoms Sets out the 15 basic areas of freedoms in Canada Canadian Human Rights Act Prohibits discrimination on a number of grounds 1.1 Copyright © 2015 by Nelson Education Ltd. 11-6

Summary of Major Federal Employment Laws
Canadian Labour Code Lays out responsibilities of each province and provides national guidelines Employment Equity and Pay Equity Legislation Requires equal pay for equal work Workers Compensation Act (Manitoba) Provincial act that lays out safety standards 1.1 Copyright © 2015 by Nelson Education Ltd. 11-7

Employment Discrimination and BFOQ
BFOQ: Bona Fide Occupational Qualification An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, only if they are “reasonably necessary to the normal operation of that particular business” 1.2 Copyright © 2015 by Nelson Education Ltd. 11-8

Employment Discrimination and BFOQ
Unfair discrimination Intentional or unintentional Based on race, religion, ethnic origin Falls under the Charter of Rights and Freedoms Leads to investigations by one of the provincial or territorial Human Rights Commissions 1.2 Copyright © 2015 by Nelson Education Ltd. 11-9

Canadian Human Rights Commission
Beyond the Book Guide to Understanding the Canadian Human Rights Act: Canadian Human Rights Commission Duty to Accommodate/Undue Hardship: The Canadian Human Rights Commission is a wealth of information, fact sheets, examples, past cases, and video clips. Have students visit these links: resourcec-ccdp.ca/eng/content/your-guide-understanding-canadian-human-rights-act-page1 resourcec-ccdp.ca/eng/content/duty-accommodate Copyright © 2015 by Nelson Education Ltd. 11-10

Workplace Harassment Workplace harassment is prohibited by several laws, both federal and provincial does not have to be sexual in nature, although it commonly is Harassment can also mean that someone is bullying you about your work or tormenting you simply because you are a man or a woman. Expressing stereotypes about one gender or the other, for example, can be a form of harassment. In some provinces, cases are handled by a Human Rights Commission; in other provinces, cases are handled by a Human Rights Tribunal. Most of the cases involve infractions of the Labour Code and are dealt with under the Human Rights Act. Individuals and employers deal with issues through civil courts. Alpaerts v. Obront was one case that had limited success in challenging the exclusive remedial jurisdiction of the Labour Code. The plaintiff alleged sexual harassment in her workplace to the point of constructive dismissal (i.e., intolerable circumstances). She sued for wrongful dismissal, alleging in part human rights violations by the employer. The case was allowed to proceed, partly on the basis that the plaintiff had a cause of action separate from the code violation. The court was concerned that if a code complaint had been brought at the same time, the result could have been different and a stay might have been merited. None of the provinces—or, for that matter, the Canadian Human Rights Commission—will investigate without the formal filing of a complaint. 1.3 Copyright © 2015 by Nelson Education Ltd. 11-11

Sexual Harassment A form of discrimination in which unwelcome sexual advances, requests for sexual favours, or other verbal or physical conduct of a sexual nature occurs while performing one’s job Quid pro quo cases: requests for sexual acts are linked to economic outcomes (i.e., keeping a job) 1.3 Copyright © 2015 by Nelson Education Ltd. 11-12

Sexual Harassment: What Companies Should Do
Respond immediately to reports. Engage in a quick and fair investigation. Create a sexual harassment policy. Communicate this policy (i.e., zero tolerance). Establish clear reporting procedures. Provide an impartial, nonthreatening avenue for employees to access. Be aware of federal, provincial, and municipal laws. Copyright © 2015 by Nelson Education Ltd. 11-13

Recruiting Recruiting is the process of developing
a pool of qualified job applicants. Job Analysis and Recruiting Internal Recruiting External Recruiting Human resource planning ensures an organization has appropriate human resource to implement the chosen strategy. If an organization has adopted the strategy of customer service, for example, then the human resource department must ensure that policies, processes, and actions will help the organization realize that chosen “customer service” strategy. human resource planning ensures that all parts of the human resource function embrace the chosen strategy and ensures that other functional departments (finance, manufacturing, marketing, etc.) have the human resources needed to accomplish their own strategic “customer service” objectives. 14 2 Copyright © 2015 by Nelson Education Ltd. 11-14

Job Analysis and Recruiting
A purposeful, systematic process for collecting information on the important work-related aspects of a job Job Description A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job Job Specifications A written summary of the qualifications needed to successfully perform a job Information derived from job analysis is vital to effective human resource planning. Job analysis collects four kinds of information: work activities, such as what workers do and how, when, and why they do it tools and equipment used to do job context in which the job is performed, such as actual working conditions and schedule personnel requirements for performing the job, meaning the knowledge, skills, and abilities needed to do the job well Job descriptions and job specifications are two of the most important results of job analysis. 2.1 Copyright © 2015 by Nelson Education Ltd. 11-15

Internal and External Recruiting
Internal Recruitment “Promotion from within” Improves employee morale and motivation Reduces employer time and cost Internal advertising is in the form of a job posting Career path: a planned sequence of jobs Copyright © 2015 by Nelson Education Ltd. 11-16

Internal and External Recruiting
External Recruitment Advertising Employee referrals Walk-ins Outside organizations Employment services Special events Internet job sites External recruiting: the process of developing a pool of qualified job applicants from outside a company. External recruitment methods include: advertising (newspapers, magazines, direct mail, radio, television), employee referrals (asking current employees to recommend possible job applicants), walk-ins (people who apply on their own), outside organizations (universities, technical/trade schools, professional societies), employment services (state/ private employment agencies, temporary agencies, and professional search firms), special events (career conferences/ job fairs), and Internet job sites. Which external recruiting method should you use? Studies show that employee referrals, walk-ins, newspaper advertisements, and state employment agencies tend to be used most frequently for office/clerical and production/service employees. Newspaper advertisements and college/university recruiting are used most frequently for professional/technical employees. When recruiting managers, organizations tend to rely heavily on newspaper advertisements, employee referrals, and search firms. Copyright © 2015 by Nelson Education Ltd. 11-17

Application Forms and Résumés References and Background Checks
Selection Application Forms and Résumés References and Background Checks Selection Tests Interviews 3 Copyright © 2015 by Nelson Education Ltd. 11-18

Topics Employers Should Avoid
Gender, marital status, or family status Citizenship 2. Source of income 9. Physical or mental disability 3. Previous names 10. Sexual orientation 4. Next of kin 11. Workers’ Compensation 5. Dependants and child care 12. Language ability 6. Age and date of birth 13. Educational institutions 7. Previous address 14. Religious beliefs The first selection devices that most job applicants encounter when seeking a job are application forms and résumés. Both contain similar information about job applicants, such as name, address, job/educational history, and so on. An organization's application form often asks for information already on the résumé, as most organizations prefer to collect information in their own format for entry into a human resource information system. Employment-related laws apply to application forms just as they do all selection devices. Application forms may ask applicants about valid, job-related information. However, application forms commonly ask applicants to report non-job-related information such as marital status, maiden name, age, date of high school graduation. The slide shows the kinds of information that companies may not request in application forms, job interviews, or any other part of the selection process. Résumés pose problems for companies but in a different way. Studies show that as many as 1 out of 3 job applicants falsifies some information on his/her résumé. Items most frequently falsified include job responsibilities, job titles, previous salary, and length of employment on previous jobs. Other frequently falsified information includes educational background, academic degrees, and university or college majors and minors. Managers should verify information collected via résumés and application forms by comparing them with any additional information collected during interviews and other stages of the selection process. Source: Adapted from resource_and_employment/pre_employment_inquiries.asp with the permission of the Alberta Human Rights Commission. 3.1 Copyright © 2015 by Nelson Education Ltd. 11-19

References and Background Checks
Not always provided by previous employers 96 percent of companies conduct background checks 80 percent of companies conduct criminal record checks Making background checks more effective: Dig deeper for more information. Get permission in writing. Document all checks. Consider hiring private investigators. 3.2 Copyright © 2015 by Nelson Education Ltd. 11-20

Interviews Unstructured Interviews Free-flow of questions Structured Interviews Interviewer uses standard set of prepared questions Semi-structured Interviews Some structure combined with interviewer judgment Unstructured interviews: interviewers are free to ask applicants anything they want, and studies show they do. Unstructured interviews work half as well as structured interviews in accurately predicting which job applicants should be hired. Structured interviews: standardized interview questions prepared ahead of time, so applicants are asked the same job-related questions. There are four kinds of questions typically asked in structured interviews: situational questions behavioural questions background questions job-knowledge questions Semi-structured interviews: lie between structured and unstructured interviews. A major part of a semi‑structured interview (perhaps as much as 80 percent) is based on structured questions. How well do interviews predict future job performance? Contrary to what you've probably heard, evidence shows that even unstructured interviews do a fairly good job. When conducted properly, structured interviews can lead to more accurate hiring decisions than can unstructured interviews. The validity of structured interviews can rival that of cognitive ability tests. Since interviews are especially good at assessing applicants' interpersonal skills, they work well together with cognitive ability tests. 3.4 Copyright © 2015 by Nelson Education Ltd. 11-22

Questions in Structured Interviews
Situational Questions Behavioural Questions Background Questions Job-Knowledge Questions Situational questions ask applicants how they would respond in a hypothetical situation (e.g., “What would you do if ”). This type of question is more appropriate when hiring new graduates, who are unlikely to have encountered real-work situations because of their limited experience. Behavioural questions ask applicants what they did in previous jobs that was similar to what is required for the job for which they are applying (e.g., “In your previous jobs, tell me about ”). This type of question is more appropriate when hiring experienced individuals. Background questions ask applicants about work experience, education, and other qualifications (e.g., “Tell me about the training you received at ”). Job-knowledge questions ask applicants to demonstrate job knowledge (e.g., nurses, “Give me an example of a time when one of your patients had a severe reaction to medication. How did you handle it?”) 3.4 Copyright © 2015 by Nelson Education Ltd. 11-23

Guidelines for Conducting Effective Structured Interviews
FIRST PART: PLANNING THE INTERVIEW Provides guidelines for conducting effective structured employment interviews Copyright © 2015 by Nelson Education Ltd. 11-24

Training Training Needs Training Methods Training Evaluation 4
Training: providing opportunities for employees to develop the job-specific skills, experience, and knowledge needed to do their jobs and improve performance. Needs assessment: the process of identifying and prioritizing the learning needs of employees. Needs assessments are conducted by identifying performance deficiencies, listening to customer complaints, surveying employees and managers, or formally testing employees' skills and knowledge. Note: Training should never be conducted without first performing a needs assessment. Sometimes training is not needed or isn't needed for employees. To choose the best method, consider the number of factors, such as the number of people to be trained, the cost of training, and the objectives of training. If a training objective is to impart information or knowledge to trainees, you should use films and videos, lectures, and planned readings. In bank security guard training, for example, trainees would hear/see/read what to do in case of a robbery. Look at Exhibit 11.7 in the text on how to determine the best method given the training objective. After selecting the training method and conducting the training, the last step is to evaluate the training. Training can be evaluated in four ways: reactions, how satisfied trainees were with the program; learning, how much employees improved their knowledge/skills; behaviour, how much employees changed their on-the-job behaviour because of the training; or results, how much the training improved job performance, such as increased sales/quality, or decreased costs. 27 4 Copyright © 2015 by Nelson Education Ltd. 11-27

Evaluating Training Reactions How satisfied trainees were with the program Learning How much employees improved their knowledge or skills Behaviour How much employees actually changed their on-the-job behaviour Results How much training improved job performance After selecting the training method and conducting the training, the last step is to evaluate the training. Training can be evaluated in four ways: reactions, how satisfied trainees were with the program; learning, how much employees improved their knowledge/skills; behaviour, how much employees changed their on-the-job behaviour because of the training; or results, how much the training improved job performance, such as increased sales/quality, or decreased costs. A study by the Canadian Society for Training and Development shows that a training budget as small as $680/employee can increase a company’s total return on investment by 6 percent. 4.3 Copyright © 2015 by Nelson Education Ltd. 11-29

Performance Appraisal
70 percent of employees are dissatisfied with the performance appraisal process in their companies. 90 percent of human resource managers are dissatisfied with the performance appraisal systems used by their companies. Measuring Job Performance Sharing Performance Feedback 30 5 Copyright © 2015 by Nelson Education Ltd. 11-30

Measuring Job Performance: Common Rating Errors
Central Tendency All workers are rated as being “average.” Halo Error All workers are rated as performing at the same level in all parts of their jobs. Leniency Error All workers are rated as performing at a high level. errors is that they often don't spend enough time gathering and reviewing performance data. 5.1 Copyright © 2015 by Nelson Education Ltd. 11-31

Accurately Measuring Job Performance
Improving Job Performance Measurements Objective Performance Measures Quantifiable outcomes: output, scrap, waste, sales, customer complaints, or rejection rates Subjective Performance Measures Graphic rating scales Behavioural observation scales 5.1 Copyright © 2015 by Nelson Education Ltd. 11-32

Subjective Performance Appraisal Scales
Subjective performance measures require someone to judge or assess a worker’s performance. The most common kind of subjective performance measure is a graphic rating scale (the top half of Exhibit 11.8). Graphic rating scales are widely used because they are easy to construct. However, they are very susceptible to rating errors. A popular alternative to the graphic rating scale is the behavioural observation scale, which requires raters to rate the frequency with which workers perform specific behaviours representative of the job dimensions critical to a successful job performance. The bottom half of Exhibit 11.8 shows a behavioural observation scale for two important job dimensions for a retail salesperson: customer service and money handling. Notice that each dimension lists several specific behaviours characteristic of a worker who excels at that dimension of the job performance. (Normally, a scale would list seven to twelve items/dimensions, not three as in the exhibit.) Also notice that the behaviours are good behaviours, meaning that they indicate good performance, and that the rater is being asked to judge how frequently an employee engaged in those good behaviours. The logic behind the behavioural observation scale is that better performers engage in good behaviours more often. 5.2 Copyright © 2015 by Nelson Education Ltd. 11-33

Keeping Qualified Workers: Compensation
Job Evaluation Determines market value and worth of the job Pay Variability Piecework, commission, profit sharing, employee stock ownership plans, stock options Pay Structure Hierarchical or compressed 35 6.1 Copyright © 2015 by Nelson Education Ltd. 11-35

Foreign Workers Foreign workers in many parts of the world end up in low-paying jobs that disappear at the whim of the employer, with little in the way of security or benefits. © Rogerio Bernardo/Dreamstime.com/Coin images © 2013 Royal Canadian Mint - All Rights Reserved/ Images des pièces © 2013 Monnaie royale canadienne - Tous droits réservés. Copyright © 2015 by Nelson Education Ltd. 11-36

Terminating Employees
More than 473,200 Canadian workers were fired from their jobs in the first half of 2009 during the worldwide economic and banking crisis. © Mark Von Holden/FilmMagic/Getty Images 6.2 Copyright © 2015 by Nelson Education Ltd. 11-37

Terminating Employees
What protection does the employer and employee have? Be sure to consult the provincial Employment Standards Act for layoff and termination laws. The Ministry of Ontario has a very informative website: Ontario Employment Standards Act 6.2 Copyright © 2015 by Nelson Education Ltd. 11-38

Downsizing: Guidelines for Conducting Layoffs
Provide clear reasons for the layoffs. Get information to avoid laying off employees with critical skills. Train managers in how to tell employees. Give employees the bad news early in the day. Provide outplacement services and counselling. Communicate with survivors. Downsizing is the planned elimination of jobs in a company. Whether it’s because of cost cutting, declining market share, over-aggressive hiring and growth, it is estimated that companies will eliminate 1 million to 1.9 million jobs a year. Two-thirds of companies that downsize downsize a second time within the year. Does downsizing work? Downsizing is supposed to lead to higher productivity and profits, better stock performance, and increased organizational flexibility. Studies show that it doesn't. Results show that the best strategy is to conduct effective human resource planning and avoid downsizing altogether. Downsizing should always be used as a measure of last resort. If companies find themselves in financial or strategic situations where downsizing is required for survival, they should train managers on how to break the news to downsized employees, have senior managers explain in detail why downsizing is necessary, time the announcement so employees hear it from the company and not from other sources, such as TV/newspaper reports. Companies should do everything to help downsized employees find jobs. One of best ways to do this is to use outplacement services that provide employment-counselling services for employees faced with downsizing. Outplacement services include advice and training in preparing résumés and getting ready for job interviews, and identifying job opportunities in other companies. Companies need to pay attention to the employees who are remaining after layoffs occur. These are people who are left behind wondering if they’re next. Source: M. Boyle, “The Not-So-Fine Art of the Layoff,” Fortune, 19 March 2001, 209.) 6.3 Copyright © 2015 by Nelson Education Ltd. 11-39

Retirement Early Retirement Incentive Programs (ERIPs)
Offer financial benefits to employees to encourage them to retire early Phased Retirement Employees transition to retirement by working reduced hours over a period of time before completely retiring. Outplacement Services Employment-counselling services offered to employees who are losing their jobs because of downsizing one-eighth of its employees, almost all of whom were senior faculty or senior administrators. This unexpected response to the ERIP offer represented a change that would normally occur over 10 years. 40 6.4 Copyright © 2015 by Nelson Education Ltd. 11-40

Employee Turnover Loss of employees who voluntarily choose to leave the company Functional Turnover (encouraged) The loss of poor-performing employees Dysfunctional Turnover (discouraged) The loss of high-performing employees Employee turnover: the loss of employees who voluntarily choose to leave a company. Most companies try to keep the rate of employee turnover low to reduce recruiting, hiring, training, and replacement costs. Not all kinds employee turnover is bad for organizations. Turnover can be good. Functional turnover: the loss of poor-performing employees who choose to leave an organization. Functional turnover gives an organization a chance to replace poor performers with better replacements. In fact, one study found that simply replacing poor-performing leavers with average replacements would increase the revenues produced by retail salespeople in an upscale department store by $112,000 per person per year. Dysfunctional turnover: the loss of high performers who choose to leave is a costly loss to an organization. Employee turnover should be carefully analyzed to determine who’s choosing to leave an organization: good and/or poor performers. If a company is losing too many high performers, managers should determine the reasons/find ways to reduce the loss of valuable employees. A company may have to raise salary levels, offer enhanced benefits, and improve working conditions to retain skilled workers. One of the best ways to influence functional and dysfunctional turnover is to link pay directly to performance. A study of four sales forces found that when pay is strongly linked to performance via sales commissions and bonuses, a poor performer is more likely to leave (i.e., functional turnover). Poor performers are more likely to stay when paid large, guaranteed monthly salaries and small sales commissions and bonuses. 41 6.5 Copyright © 2015 by Nelson Education Ltd. 11-41

Managing Human Resource Systems

Similar presentations

Presentation on theme: "Managing Human Resource Systems"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Managing Human Resource Systems

Similar presentations

Presentation on theme: "Managing Human Resource Systems"— Presentation transcript:

Similar presentations

About project

Feedback