Chapter 2: Management of Human Resources PDF

# Chapter 2: Management of Human Resources Managing human resources means attracting and retaining qualified employees. In large organizations, a department is specifically assigned to this task. Moreover, managers at all levels participate in activities that fall under human resource management....

# Chapter 2: Management of Human Resources Managing human resources means attracting and retaining qualified employees. In large organizations, a department is specifically assigned to this task. Moreover, managers at all levels participate in activities that fall under human resource management. ## Main Functions Human resource management includes three main functions: - Finding and selecting employees - Ensuring employee skills - Retaining employees and compensating their performance These functions can be grouped into eight steps that form the human resource management process (Figure 2.1). | **Process** | **Result** | |---|---| | **Planification of human resources** | **Skilled employees** | | **Recruitment** | **Selection** | | **Orientation** | **Qualified employees** | | **Formation** | **Employees offering high performance** | | **Evaluation of performance** | **Development of career** | **Compensation and social benefits** | ## Finding and selecting employees The primary role of the human resources department is to work with department managers to assess current structures and staffing levels, and to determine if they are efficiently managing their employees. Once structures and staffing levels have been determined, job descriptions are developed, verified, or updated so that they align with the roles and responsibilities. Subsequently, we can determine the number of candidates needed to perform the work along with the skills each candidate must possess. Human resources planning translate an organizations objectives in terms of personnel and ensure there are adequate number of individuals with suitable skills. Once this is completed, recruiting and selecting potential candidates can commence. ## Ensuring employee skills Skilled employees are the result of good basic training and suitable onboarding programs. ## Retaining employees and rewarding their performance Performance reviews allow for feedback and to revisit performance on a regular basis, comparing it with expected objectives. Financial compensation and benefits are the primary ways to compensate employees, although other methods are also used. ## Human Resource Management Process Effective human resource management is so important that it has an entire field of study dedicated to it - Human Resource Management (HRM). This chapter provides a brief introduction to some of its aspects. Most companies have an HR department that employs professionals in this area. However, many related tasks will still fall to the supervisor or manager. A practical understanding of HRM is necessary to properly manage employees. Figure 2.2 shows the eight basic steps of human resource management. Many of these steps are further explained in this chapter, with the central aim of having dedicated and skilled employees who are able and willing to achieve the organisation's goals successfully. ## Figure 2.2: Human Resource Management Process **Environment** <start_of_image> flowchart with steps: 1. **Planification of human ressources** 2. **Recruitment** 3. **Selection** 4. **Research and selection of skilled employees** - **Orientation and Formation** - **Evaluation of performance** - **Development of career** - **Compensation and social benefits** **Environment** - **Licencionement** - **Skilled employees with suitable skills and basic knowledge** - **Good relations between employees and the management-union committee** - **Skilled employees offering a good performance, capable of maintaining this performance for a long period** **Environment** The first three steps show how to choose the employees who will be hired. The following two steps in the centre describe how to bring new employees to the desired level of training and competence. Finally, the last three steps cover the management of performance to ensure that employee performance is monitored, rewarded, and improved through adequate follow-up. Human resource management must take into account constraints, and the internal and external policies of the organisation, including collective agreements, labour and employment regulations, the importance of workplace safety, shareholder and community expectations, and the organisational culture. ## Human Resource Planification Human resource planning is a budgetary process that evaluates the current and future need for staffing levels, as well as anticipated changes in personnel, to ensure staffing needs are met. Each position is described through a job description that explains the tasks to candidates. This is the stage where the skills needed for each position are defined so that they are clear at the time of hiring. Skills are described in a job analysis that provides recruiters with the type of candidate they are looking for. In many cases, when a position requires training or specialized skills, the recruitment process begins before the vacancy occurs. This way, the new employee is ready to start their work immediately. This approach is more expensive due to the surplus of staff during a certain period. However, savings can be made by avoiding productivity losses and overtime – which are often caused by a lack of staff. In any case, good human resource planning helps to determine when to recruit staff, allowing for the completion of all the preparatory work prior to hiring. Human resource planning, the link between the goals of an organisation and its staffing needs, is a process that aims to: - Hire the right number of employees to complete the work. With too few employees, work may not be done, while having too many employees increases unnecessary costs. - Find the best people with the skills to complete the work. - Ensure that employees are in the right place at the right time. The human resource planning process includes three steps: - Evaluation of the current situation - Evaluation of future needs - Development of a development plan for future needs ### Evaluating the current situation Evaluation of the current situation involves a review of the current state, which is achieved by creating the following documents: - An inventory of human resources, listing employees and relevant details, including their experience, training, skills, and learning. - A job analysis describing the requirements and responsibilities of the position, as well as the skills needed to meet them. - A job description outlining the tasks and responsibilities of the job, along with the working conditions. - A job specification outlining the type of person being sought for the role, including their training, experience, skills, and other necessary qualities. These documents reflect the organisation's current HR needs and how they are being met. Analysing this data shows the gap in existence between an organisation's workforce and its needs in terms of work skills. This allows for the necessary steps to be taken to reduce the gap. ### Evaluating future needs Evaluating future needs is about assessing future staffing requirements based on objectives that may cause demand for personnel and the creation of new roles. This is also when the budget is reviewed to include recruiting and compensation costs for any new roles. The goal is to identify the discrepancy between the skills needed to fill a role and the current workforce. The approach is to determine which roles are affected, depending on the time of year. ### Developing a Development plan Developing a plan to handle future needs is relatively straightforward because these potential needs have been determined and documented when analysing and describing the roles. Recruitment and selection activities can be planned to address staff shortages. Training plans can also be developed to bridge skills gaps. It is not always necessary to hire new employees to address a skills gap, especially if the gap is more about skills than staff numbers. Alternative solutions include training existing employees to gain new skills, allowing employee progression, redeploying existing employees, or changing employee responsibilities and tasks for some roles. Each option has its own advantages and impacts on employee morale, motivation, productivity, and the economy. ## Production Capacity planning Production capacity planning ties closely to human resource planning. It starts by assessing daily, weekly, monthly, and annual production levels. Based on this assessment, a plan is created to make sure that the necessary resources are in place for each period to meet production planning requirements. These resources include: - Tangible resources, such as tools and materials. - Intangible resources, such as training. - A plan for staffing based on the skills needed for each stage of the plan. In some cases, a production capacity plan is developed from the bottom up, starting by listing staff availability for each period and then planning the production level that can be achieved by each person. This is common in maintenance departments because they do not always have the flexibility in their budget to hire additional employees. Work is prioritised based on available staff, and tasks are postponed if needed to bridge staffing gaps due to holidays, training, or anticipated absences. ## Recruitment and Selection Recruitment is about finding candidates who meet the job description. Where to find these good candidates is the first question to ask. Several factors influence this choice: - What are the required skills and experience? - What are the timelines and available resources for the recruitment activities? - How much emphasis is placed on the need to increase workplace diversity? Figure 2.3 shows several sources of recruitment along with the pros and cons of each. | **Source** | **Advantages** | **Disadvantages** | |---|---|---| | Internal research | Inexpensive, Improves employee morale, Familiarity with the organisation | Limited resources, Lack of diversity | | Advertising | Wide reach, Potential to target specific groups | High number of unqualified candidates, Lack of diversity | | Employee Referral | Referrals can be very skilled candidates, knowledge of the organisation | Low diversity | | Canada Job Bank | Free, Publicly accessible | Candidates may be unqualified or poorly trained | | Private recruitment agencies | Many contacts, Good screening, Short-term guarantee | Very expensive | | School placement | Large pool of candidates | Limited to apprenticeship positions | | Temporary employment agencies | Temporary response to needs | Expense, Limited knowledge of the organisation's goals | The tasks and responsibilities of the position will influence the recruitment process. The higher the level of responsibility required for a position, the more extensive the search process will be - which usually means it takes longer to fill the position. ## Selection process Once a pool of candidates has been selected, a selection process is used to determine which candidates will receive a job offer. The first step is to create a list of hiring criteria, including qualifications and expectations, by involving supervisors and managers. The list clearly defines the qualities being sought in a candidate. There are several ways to assess these qualities, including: - **Resumes:** Resumes are a common source of candidate information. Resumes are generally reviewed to separate candidates who are likely to be suitable for the position. These results are somewhat subjective, so it is important to move beyond the appearance of resumes to focus on their content. - **Application forms:** Application forms are used almost everywhere to gather basic information about a candidate. However, they are not always considered to be very effective. - **Pre-employment tests and interviews:** Pre-employment tests and interviews should be conducted. - **Background checks:** Background checks are conducted to verify a candidate's history, including reference checks. This helps to confirm the information gathered from applications and interviews. - **Medical exams:** Medical exams can be used to ensure that a candidate meets the physical requirements of the job. To minimize costs, these exams are usually conducted at the end of the recruitment process, after a conditional job offer has been made. Background checks are widely used by two-thirds of Canadian employers. It is estimated that 15% of job applicants provide false information in their resume or job application. It is therefore worth contacting previous employers to verify the information provided. Candidate evaluations and interview results are subjective, which is why it's good practice to call references. Reference checks, usually conducted by phone, also provide someone else's opinion on a candidate's performance. This is also a form of protection for those conducting interviews. Reference checks should include a series of standard questions to ensure that as much information as possible is gathered about each candidate. Typically, candidates are asked to provide two or three work references and at least one personal reference. Two or three references from previous supervisors and at least one from a previous acquaintance are usually provided. Effective recruitment and selection methods are vital to the success of an organisation. Hiring employees who possess the skills and abilities to successfully complete the tasks required for a role will contribute to sustained, high performance in a company. Ineffective recruitment and selection methods can lead to two costly errors: - Highly qualified candidates who would make excellent employees are not attracted to the job or are rejected during the selection process. - Unskilled or disruptive candidates are hired. Problems with these employees can be extremely difficult to resolve, and the negative consequences may continue for years. ## Summary of factors influencing organisation success The success of an organisation depends on several key characteristics, including: - Employees are dedicated to the goals of the organisation because they are happy with their job and their work environment. - They have the skills they need to successfully complete tasks because they were hired based on their skills, training, qualifications, and experience, but also because they have received further training after being hired. - They are enthusiastic and willing to work with managers to achieve goals. - They will remain loyal long enough for their experience and maturity to benefit the organisation. ## Legal and Ethical Constraints Several factors in the organisation’s environment limit the recruitment process, and these constraints aim to protect the rights of candidates and current employees: - In organisations where a union represents employees, bargaining agreements may, or may not, include clauses covering the hiring of new employees. This means that there may be limits on the source of new hires, and the union may have a say in setting the hiring criteria. - There are also strong ethical considerations, usually reflected in internal organisational policies, that aim to prevent unjustified discrimination during the hiring process. Legislation on human rights adds further requirements to prevent discrimination. The law states that candidates must be qualified to do the job, which means that unqualified candidates will not be hired. However, this introduces the concept of workplace essentials. These are job-related skills that a candidate must demonstrate to be considered for a role. It is considered unethical, and often illegal, to refuse to offer a job based on factors other than workplace essentials. While essential skills are not absolute for all jobs, they do vary depending on the nature of the role. For example, if a company is hiring a model to showcase men’s clothing, the essential qualification is that the candidate is male. However, most other types of jobs require the candidate to be free of discrimination based on gender, which is prohibited by law. Figure 2.4 shows legally protected grounds for discrimination in each Canadian province and territory. While there are some differences between these jurisdictions, there are also shared guidelines. To avoid discrimination, many organisations are proactive in acknowledging their social responsibilities. This includes developing and implementing internal policies and practices, which may be stricter than those outlined by law. These policies can include equity programs that offer benefits for certain minority groups, enabling them to gain a better shot at securing a job. Organisations can also implement hiring quotas to maintain a diverse workforce, even though this is a controversial measure due to the potential for discrimination against those who are not part of a minority group. Minoroity groups include people based on: - Race - Religious beliefs - Language - Gender - Physical disabilities - Cultural or economic background ## Pre-employment tests In most cases, candidates are not tested for the required skills, knowledge, or attributes. However, this practice is becoming more common. A variety of tests are available, each one evaluating a specific aspect of a candidate, which can be helpful for certain jobs. However, testing can be time-consuming and expensive. It should only be used for jobs where the nature of the work makes it worth the investment. ### Written tests Written tests, similar to school exams, assess a candidate’s specific knowledge. Examples of tests used include reading comprehension, math, physics, mechanics, skills and knowledge in administration, spatial awareness, ethics, and intelligence. Experts are often hired to administer and interpret these tests to ensure maximum effectiveness. Written tests have been criticized, as the skills or lack of skills demonstrated by a test may not reflect a candidate’s performance on the job. For example, many mechanics working with stationary machinery do well on theoretical exams but struggle with practical application. Some excel at exams but find it difficult to apply the theory in practice. Intelligence tests, in particular, are highly controversial because there is a weak correlation between test results and job performance in many professions. Tests designed to reveal personality traits, such as ethical tests, are also controversial. Some candidates see through such tests and easily pass, while others may not provide answers that truly reflect who they are. However, research shows that ethical tests are effective at reducing the number of dishonest or unethical employees. The results show a decrease in theft, absenteeism, and disciplinary problems. ### Performance simulation tests In a performance simulation test, a candidate is assessed based on their performance in a simulated environment. This accurately reflects the real-world tasks of the job and demonstrates the candidate’s talents. Research indicates that performance simulation tests are the most reliable, even though they are complex, time-consuming, and expensive to implement. A common type of performance simulation test involves having the candidate perform one or two tasks that represent the majority of the overall job. This technique is often used for new supervisors. In this test, the candidate is given a variety of documents representing the mail they would receive in their new role. They are then asked to sort and process the mail, within a given timeframe. This tests the candidate’s ability to prioritize tasks, make decisions, and manage multiple tasks. In a complex variation of performance simulation, candidates are given a series of more difficult exercises spread out over multiple days. These exercises are usually only used for those applying for management positions. They are often administered by professional assessors or psychologists to get the most accurate evaluation possible. ### Personality tests Personality tests assume that an individual's personality traits will play a significant role in how well they adapt to different job roles and work environments. This means they are a predictor of whether a person will be a good fit for a specific job. Knowing personality traits can help determine if someone will be satisfied with their job and perform well. A common personality test is the Myer-Briggs Type Indicator (MBTI). Over 2 million people take this test every year in the United States. The test involves answering 100 questions, each describing a scenario or situation. Responses are used to categorize a candidate based on one of two options for each of four personality dimensions. This results in 16 different personality types. These types indicate how a person is likely to perform in their work environment, manage their role, and interact with other employees and supervisors. The four personality dimensions are: - *Social Interaction:* Extroversion or introversion. Extroverted individuals are outgoing and confident, while introverted individuals prefer to work alone and are comfortable with a limited range of experiences. - *Ways of obtaining information:* Sensing or intuition. Individuals who rely on sensing prefer a structured and routine-based environment. They are patient and meticulous, with a strong sense of detail. Intuitive individuals prefer to rely on a broader perspective and can solve problems quickly. They are open to new experiences. - *Decision making:* Thinking or feeling. Individuals who make decisions based on feelings are caring and sociable. They expect to be treated the way they treat others. Those who make objective decisions are logical and structured. They may be less influenced by the feelings of others. - *Lifestyle:* Judging or perceiving. Those who prefer perceiving are flexible and spontaneous. They gather a lot of information before making a decision and are more likely to initiate tasks or projects. Individuals who prefer judging are structured and organised. They require less information and prefer to complete tasks or projects. Figure 2.5 shows four of the 16 possible combinations based on the MBTI test: | **Type** | **Description** | | -------- | -------- | | INFJ | (Introversion, Intuition, Feeling, Judging): This personality is quiet, strong, conscientious, and sensitive to others. They succeed through perseverance, originality, and the desire to complete tasks. They are respected for their principles.| | ESTJ | * (Extroversion, Sensation, Thinking, Judging): This personality is direct and sometimes insensitive. They are practical, unconcerned and unhurried. They welcome whatever comes their way. They thrive when working with concrete objects that can be assembled and dismantled. | | ISFP | (Introversion, Sensation, Feeling, Perception): This personality is sensitive, kind, modest, shy, calm, and friendly. They dislike unpleasantness and will do what is necessary to avoid it. They are loyal and laid back. | | ENTJ | (Extroversion, Intuition, Thinking, Judging): This personality is warm, friendly, openminded, and determined. They are skilled at completing tasks that require intelligence and reasoning. However, they may overestimate their capabilities. | ## Interview Techniques Most organisations conduct interviews to help select new hires. An interview is a face-to-face meeting between a candidate and one or more interviewers. The candidate responds orally to questions about the job. Interviews can be an effective way to determine the best candidate for a role. While they take time and resources, interviews are less costly than other selection methods that have a similar reliability. This makes them very common. Research indicates that interviews are effective when used to assess intelligence, motivation, and workplace skills. However, they are much less effective at assessing other qualities. The interview process does have limitations, which can negatively impact results and even make the process counterproductive. Some of these limitations include: - Interviewer bias can skew the results. - Interviewers may lack the skills to interpret what they hear. - Unclear interview questions can be detrimental to candidates. - The interview setting can be less than ideal (uncomfortable seats, poor lighting or temperature) which can disadvantage a candidate. - Interviewer fatigue: Interviewers can become complacent as the process continues, which can affect the ranking of candidates. - Poor note taking or lack of recall: Interviewers may forget what was said or fail to take notes, which makes it difficult to accurately assess candidate performance. - Inconsistent questioning: Interviewers may ask different questions to each candidate, which may make comparing results difficult. - Candidate anxiety: If the interview is too formal, candidates may not perform well because they are intimidated. Interview problems are easily avoided by carefully selecting interviewers and training them in interview techniques and logistics. Poorly conducted interviews can lead to well-qualified candidates being rejected, or the hiring of underqualified candidates. This is because interviewers have either over-focused on improving their interviewing techniques, or they have let their attention drift to other matters. To ensure a successful interview, make sure to: - Carefully select the interview team and provide training. - Use questions that highlight job requirements, and ask all candidates the same questions. - Develop a rating system for candidate responses (for example, a numerical ranking system for each answer). - Be prepared to answer candidate questions about the job, working conditions, and tasks. Structure the interview to allow time for these questions at the end. - Ensure a comfortable and familiar environment, so that each candidate feels relaxed. - Structure the interview to ensure a smooth flow of information, and to allow the right amount of time (candidates should be speaking for 90% of the interview). - Start the interview on a casual and friendly note, to help the candidate relax. - Explain the interview process to the candidate. - As the interview progresses, take detailed notes, but focus on recording what is said, and refrain from passing judgment. - Explain the next steps (Will the company contact them? If so, how, when, and by whom?) - Before concluding the interview, review your notes and agree on a final assessment of the candidate’s apparent qualifications. It’s helpful to assign a numerical rating to candidates to ensure that they are ranked consistently. ## Interview Challenges and Tips There are some ongoing challenges with the amount of information interviewers should have on a candidate before the interview takes place. If a candidate is known by an interviewer prior to the interview, there is a greater chance that interviewer bias could occur due to pre-existing perceptions about the candidate's skills. However, having some prior knowledge about a candidate can be helpful as it can provide more context and insight into their responses. Some organisations require the interview team to review resumes before the interview takes place, and to refrain from interviewing anyone they know personally. Though, in some cases, the standard practice is for interviewers to conduct interviews without any prior knowledge. Another consideration is the number of interviewers on the panel. The more people on the panel, the more complex their perspectives will be. A larger panel allows for a wider range of perspectives, and provides more opportunity for candidates to meet their future colleagues or subordinates. However, having a large panel can also be expensive and difficult to manage, especially considering the cost of bringing everyone together in one location. A large group of interviewers can also make a candidate feel overwhelmed and anxious, potentially impacting their performance. It is standard to have a team of six interviewers, but it is now common to have a panel of just two or three. ### Structured and Behavioural Interviews Traditional interviews focus on a candidate's basic skills, knowledge, and qualifications for the role. However, this may not be the best way to determine who is the strongest candidate. It’s safe to assume that a candidate with a certain educational qualification or work experience will also have the required knowledge or skills for the role. Often, any gaps in these areas are role-specific and can be addressed through on-the-job training. The most important factor in selecting the right candidate is their behaviour, which is much harder to change than knowledge or skills. Behavioral issues can be more problematic than a lack of knowledge or skills. So, it's common to focus on behavioural questions rather than technical questions, which is why this type of interview is called a Behavioural Descriptive Interview (BDI) or Behavioural Method of Selection (BMS). BDI and BMS interviews follow these principles. - Past behaviour is a predictor of future behaviour. - The more recent the past behaviour, the better it predicts future behaviour. - Past behaviour that has been consistent for a long period is a better predictor of future behaviour than behaviour that has been exhibited for a short period. The questions asked in this interview style often present a scenario that is common in a specific type of work. The candidate is asked to recall a time when they experienced this scenario and to describe their actions. Candidates should answer based on their work experience, and their most recent experience is preferred (within the past six months). However, candidates with limited work experience may use a different example to illustrate their response. The key is to provide an example demonstrating their ability to handle the situation. For each interview question, there is a specific behaviour or personality trait that interviewers are seeking. If the response does not provide this information, interviewers will ask clarifying questions to gauge the candidate's behaviour. The extent to which the candidate’s behaviour approaches the ideal is rated using a numerical scale (for example, ratings of 1 to 7, 1 to 3, 1 to 4, or 0 to 4). For example, if the behaviour to be assessed is effective management of safety issues, the question asked could be: "If you noticed a colleague was doing something unsafe, what did you do?" On a 1 to 7 scale, a 7 would indicate the candidate acknowledged the danger, took immediate action to stop it, and explained to the colleague why it was unsafe. A score of 4 would indicate that the candidate recognized the danger and followed safety procedures, but did not fully stop or address the dangerous activity immediately. A score of 1 would indicate that the candidate did not notice the danger, or they chose to ignore it. Other scores would fall between 1 and 7 based on the level of response. Candidates should be trained to provide a thorough response using the STAR method: - **S:** Describe the **Situation**. - **T**: Describe the **Task**. - **A**: Describe the **Action**. - **R**: Describe the **Results**. This structured framework ensures that answers are comprehensive. When comparing candidates, consider the following: - Clearly and precisely define the required behaviour for each score, or at least a range of possible scores. - Select a consistent rating method. The strongest candidate is the one with the highest average score, and set a minimum score to be achieved for a candidate to be considered, based on all responses. - Interviewers must carefully review the candidate's responses before moving to the next question. All responses should be noted carefully. - If a candidate cannot recall this specific experience, acknowledge that is acceptable. Do not use it as a negative judgement against them. Instead, move on to the next question. To ensure a successful interview, interviewers should use clear and concise sentences. They can ask follow-up questions as needed. ## Performance Evaluation and Behaviour Evaluations Even if a plan for the organisation’s goals is in place (Planning), the work is organised (Organisation), and the employees are hired, trained, and motivated (Leadership), things can go wrong. Employee performance reviews are used to assess actual employee performance compared to the stated objectives, and then to take appropriate action. One aspect of performance evaluations is the evaluation of employee behaviour. ### Behaviour Evaluation Managers are the primary people responsible for determining whether their employees are meeting their goals and behaving appropriately within the organisation. #### Direct supervision Direct Supervision involves closely monitoring employee work on an ongoing basis, and addressing issues as they arise. Others call this "Management by Wandering Around." Good managers find out more about what's happening in their workplace through direct observation than by reading reports or attending meetings. The best approach is for managers to develop a positive relationship with their employees. Many minor issues can be addressed before they become serious problems. This is also a good opportunity to acknowledge positive contributions from employees. Managers should recognize that employees may behave negatively if they feel like they are being micromanaged. A manager will be more effective in addressing these behaviours if they are supportive, empathetic, and receptive to feedback. #### Performance Reviews Formal performance reviews are a common practice to help employees assess their personal performance and progress towards a set of agreed-upon expectations. These reviews involve the employee and their supervisor working together to establish individual goals and expectations. Performance objectives are typically related to certain aspects of the employee’s work, including safety, training, skills development, technical skills, and behaviour. At the end of each year, the employee and their supervisor meet to discuss the goals established for the year, and to assess how the employee’s actual performance has measured up. It is important to highlight areas of exceptional performance and those that haven’t been achieved. This process should be objective and based on daily or weekly performance data from the supervisor, giving the employee a clear picture of their overall performance. Performance reviews often involve the use of a structured form, sometimes including a scoring scale. The scoring scale may include general descriptions, traits, or specific behaviours. These forms can link to the organization’s goals and illustrate a method known as “Management by Objectives”. ### Disciplinary Action When an employee’s performance fails to meet expectations, or when workplace standards or regulations are not followed, managers or supervisors may need to implement disciplinary actions. Disciplinary actions are a set of rules used by a manager to address non-compliance. Most organizations have policies and guidelines that outline the steps to be taken when handling a disciplinary issue. This process generally involves the supervisor, as well as senior managers and the Human Resources department. It is paramount that all disciplinary issues are carefully documented because details can be easily forgotten or misrepresented later. Disciplinary issues fall into four categories: - **Absences:** Absenteeism, tardiness, and excessive use of medical absences. - **Workplace behavior:** Insubordination, alcohol or drug use, abuse of medical leave, the refusal to use safety equipment, or failing to follow workplace safety policies. - **Dishonesty:** Theft, lying, or falsifying information. - **Activities outside of work:** Working for a competitor, criminal behaviour, or engaging in any other prohibited activity. A disciplinary approach known as "the hot stove rule" is used to create a system of consequences for inappropriate behaviour. A hot stove provides immediate, predictable, and consistent consequences. The "hot stove rule" has four key aspects: - **Immediacy:** Consequences should be immediate. The effectiveness of disciplinary action decreases as the gap between the infraction and the consequence grows. - **Warning:** Supervisors should make sure employees understand the rules and the consequences of breaking them. - **Consistency:** The response to an infraction should always be consistent. - **Impersonality:** Disciplinary action should address the rule that was broken, not the employee. Many organisations also offer employee assistance programs. These programs can either be suggested by a supervisor or be brought to the employee’s attention so that they can access the program directly. These programs represent an investment in the workforce, as they provide valuable support to employees. ## Managing Diversity Managing diversity requires an understanding of the different cultural communities (ethnicities or religious groups) in the workplace. This new reality requires tact and thoughtful consideration to avoid potential conflict. ### Cultural Styles Matrix Several common ideas across various theories about cultural styles are outlined below. - Managers should have a good understanding of their employees. - Individuals have different needs and desires; the motivation of each employee is closely tied to how their needs and desires have been met. - Individuals see and process reality differently. It’s important to consider these differences. - The management style needs to be adaptable to the unique circumstances of each individual. The Cultural Styles Matrix, developed by David Merrill and Roger Reid, is designed to help supervisors understand the perceptions and needs of employees. This is done by assessing the behaviour of each individual. The goal is to determine their dominant cultural style. Two dimensions are used to define cultural style. These dimensions lead to four possible combinations: - **Assertion:** The degree to which someone is more likely to “impose” their ideas or to “ask” or “request” their ideas. Those who rely heavily on “imposing” tend to be more directorial. Those who rely more heavily on “asking” or “requesting” tend to be more conciliatory. - **Reaction:** The degree to which someone’s emotions are observable. Some people are more likely to directly express their emotions. Others are more likely to hold back their emotions. Figure 2.6 shows the four resulting cultural styles based on these dimensions. ## Figure 2.6: Cultural Styles Matrix **Less Reaction** | | Less Assertion | More Assertion | |-------------------------|------------------------------|-----------------------------| | Less Reaction | **Analytical Style** | **Driver Style** | | More Reaction | **Amiable Style** | **Expressive Style** | **More Reaction** **Analytical Style:** Those with an analytical style have a low level of both assertion and reaction. They tend to be logical and conservative, preferring facts over people. **Driver Style:** Those with a driver style have a high level of assertion, with a low level of reaction. They focus on getting the job done. They tend to be impatient, detached, and sometimes stubborn. **Amiable Style:** Those with an amiable style have a low level of assertion, with a high level of reaction. They tend to be cooperative and collaborative. They are detail-oriented and methodical in their work. **Expressive Style:** Those with an expressive style have a high level of both assertion and reaction. They are often charismatic leaders. They are creative, enthusiastic, and intuitive. They can be seen as flamboyant. By gaining a deeper understanding of cultural style, managers can adjust their leadership styles to meet their employees’ needs. This helps to gain a more comprehensive understanding of what motivates employees and how to successfully work with them.