Chapter 7 Managing Human Resources PDF

Chapter 7 Managing Human Resources Created by: Margaret Law, MacEwan University Copyright ©2022 McGraw Hill Ltd. 7- 1 Learning Outcomes LO1 Describe the legal framework of human resource management in Canada and why effectively managing diversity is good for business. LO2 Explain why strategic h...

Chapter 7 Managing Human Resources Created by: Margaret Law, MacEwan University Copyright ©2022 McGraw Hill Ltd. 7- 1 Learning Outcomes LO1 Describe the legal framework of human resource management in Canada and why effectively managing diversity is good for business. LO2 Explain why strategic human resource management and human resource planning can help an organization gain a competitive advantage. LO3 Describe the five components of human resource management and explain how they fit together with the strategy and structure of the organization. LO4 Explain the role of the human resource manager in dealing with workplace harassment. Copyright ©2022 McGraw Hill Ltd. 7- 2 Components of a Human Resource Management System Figure 7.2 Copyright ©2022 McGraw Hill Ltd. 7- 3 The Legal Framework of HRM in Canada • HR manager has responsibility to avoid: ➢ Intentional discrimination: deliberately using prohibited grounds, such as race, religion, and sex, when making employment decisions ➢ Unintentional discrimination: unfair practices and policies that that are unrelated to the job and have adverse impact on specific groups • Legislation 1. Canadian Labour Code 2. Employment Equity Act 3. Canadian Human Rights Act. Copyright ©2022 McGraw Hill Ltd. 7- 4 Canadian Labour Code • Minimum standards for employees in federally regulated businesses, such as banks, interprovincial trucking companies, and airlines • Conditions for hours of work, payment of wages, leaves, vacation, holidays, and more • Majority of employees regulated by provincial Employment Standards Acts Copyright ©2022 McGraw Hill Ltd. 7- 5 The Legal Framework of HRM in Canada • Employment Standards Act: ➢ Minimum standards provincial and territorial legislation ➢ Deals with: • • • • • • • • • Minimum age for employment Hours of work and overtime pay Minimum wages Equal pay Weekly rest-day General holidays with pay & annual vacations with pay Parental leave Individual and group terminations Whistleblower protection Copyright ©2022 McGraw Hill Ltd. 7- 6 Employment Equity Act • Requires: working conditions that are free of barriers, correction of disadvantage in employment for designated groups, and recognition that equality requires special measures and the accommodation of differences • Designated groups are women, Aboriginal peoples, people with disabilities, and members of visible minorities Copyright ©2022 McGraw Hill Ltd. 7- 7 Canadian Human Rights Act • Covers all businesses under federal jurisdiction • Each province and territory has its own human rights legislation • All jurisdictions prohibit discrimination on grounds of: ➢Race ➢Colour ➢Religion or creed ➢Physical or mental disability ➢Sex ➢Marital status ➢Age Copyright ©2022 McGraw Hill Ltd. 7- 8 Diversity, Equity and Inclusion • Diversity: differences among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, capabilities or disabilities, position, status, seniority, parental status, and so on • Equity: organizations must treat employees fairly and consistently, regardless of their differences • Inclusion: employees with different characteristics feel welcome and valued and can excel and thrive Copyright ©2022 McGraw Hill Ltd. 7- 9 Managing a Diverse Workforce • Effectively managing diversity can improve organizational effectiveness: ➢ closes the skills gap ➢ encourages cultural intelligence among employees ➢ increases employee engagement and collaboration ➢ ethical imperative; unfair treatment is also illegal Copyright ©2022 McGraw Hill Ltd. 7- 10 Strategic Human Resource Management • Human resource management: activities that managers engage in to attract and retain employees and to ensure they perform at a high level and contribute to accomplishing organizational goals ➢ Five major components: 1. Recruitment and selection 2. Training and development 3. Performance appraisal & feedback 4. Pay and benefits 5. Employee engagement Copyright ©2022 McGraw Hill Ltd. 7- 11 Human Resource Planning • Human resource planning: activities managers use to forecast current and future needs for human resources • Workforce planning: analyzing gap in current and future needs, developing strategies to meet needs and implementing and evaluating strategy ➢ Must be done prior to recruitment and selection: • Demand forecasts estimate the qualifications and numbers of employees an organization will need • Supply forecasts estimate the availability and qualifications of current employees now and in the future and those in external labour market Copyright ©2022 McGraw Hill Ltd. 7- 12 Human Resource Workforce Planning Cycle Figure 7.4 Copyright ©2022 McGraw Hill Ltd. 7- 13 Outsourcing • Outsourcing: using outside suppliers and manufacturers to produce goods and services • Two reasons for outsourcing: 1. Increased flexibility, especially when forecasting HR needs is difficult, fluctuating or difficult to find 2. Lower cost to organization • • • No benefits for employees Extend contracts only when work is needed No investment in training Copyright ©2022 McGraw Hill Ltd. 7- 14 Advantages and Disadvantages of Outsourcing Human Resources Examples • Computer software companies outsourcing programming work to India Advantages Disadvantages • Takes advantage of lower labour costs • Lose control over the quality of goods and services. • Provides flexibility by allowing the company to focus on core competencies • Companies hired to do the work have less knowledge of organizational practices, procedures, and goals. • Contracting out activities to companies that specialize in HRM • Reduces costs: when a • Outsourced employees have less company outsources, it commitment to an organization does not have to than do regular, full-time provide benefits to fullemployees. time workers or invest • Crowdworkers in training • The potential to eliminate performing tasks members’ jobs creates resistance for the gig to outsourcing by labour unions. economy Table 7.1 Copyright ©2022 McGraw Hill Ltd. 7- 15 Job Analysis • Job analysis: process of identifying: ➢ the tasks, duties, and responsibilities that make up a job (the job description) ➢ the knowledge, skills, and abilities needed to perform the job (the job specifications) • Includes an analysis of the skill variety, task identity, task significance, degree of autonomy, and the degree to which doing the job itself provides the worker with feedback Copyright ©2022 McGraw Hill Ltd. 7- 16 Job Analysis • Personal replacement charts: graphic illustrations of current positions, who holds them, and whether they have the skills and qualifications necessary for succession planning • Job analysis: can be completed through observation, interviews, questionnaires Copyright ©2022 McGraw Hill Ltd. 7- 17 Components of Human Resource Management 1. 2. 3. 4. 5. Recruitment and selection Training and development Performance appraisal and feedback Pay and benefits Employee engagement Copyright ©2022 McGraw Hill Ltd. 7- 18 Recruitment • Recruitment: activities that managers use to develop a pool of qualified candidates for open positions ➢ External recruiting: • Looking outside organization (e.g., advertising in newspapers, open houses, career fairs, job sites, etc.) • Informal networks, employment agencies ➢ Internal recruiting: • Looking at existing employees to fill open positions • Employees want either lateral moves (job changes that entail no major changes in responsibility or authority levels) or promotions Copyright ©2022 McGraw Hill Ltd. 7- 19 Advantages and Disadvantages of External and Internal Recruitment External Recruitment Advantages Disadvantages Internal Recruitment Advantages Disadvantages Access to a large labour pool Current employees may feel bypassed Promotions or lateral moves boost levels of employee motivation and morale A limited pool of candidates Newcomers have a fresh approach to problems High costs of training Candidates are already familiar with the organization, thus reducing the costs of orientation and training Set in the organization’s existing ways, thus resistant to change Tend to have up-to- Uncertainty of fit Managers know internal Use existing/old date knowledge of and performance candidates’ skills and technology new technology abilities and actual behaviour on the job Copyright ©2022 McGraw Hill Ltd. 7- 20 Table 7.2 The Selection Process • Selection tools must be valid and reliable: ➢ Valid selection technique: test or tool that measures the candidates’ likely success or failure in performing the job ➢ Reliable selection technique: yields consistent results when repeated over time Copyright ©2022 McGraw Hill Ltd. 7- 21 Selection Techniques Figure 7.6 Copyright ©2022 McGraw Hill Ltd. 7- 22 Background Information and Reference Checks • From job applications and from resumés • Background checks to verify that the background information prospective employees provide is accurate (and also to uncover any negative information such as crime convictions) • References from former employers or other knowledgeable sources who know the applicant’s skills, abilities, and other personal characteristics Copyright ©2022 McGraw Hill Ltd. 7- 23 Interviews • Interviews: ➢ Structured interview → standard set of questions asked in set sequence and evaluated based on predetermined answers ➢ Unstructured interview → unplanned questions asked as points of interest arise in the conversation ➢ Three types of interview questions: • Situational → ask candidates how they would deal with specific situation in future • Behavioural → ask candidates to describe how they reacted to specific situation in the past • Worker-requirements questions → assess candidates’ willingness to perform under prevailing job conditions Copyright ©2022 McGraw Hill Ltd. 7- 24 Examples of Interview Question Types Figure 7.7 Copyright ©2022 McGraw Hill Ltd. 7- 25 Tests • Written tests – two main types: ➢ Ability tests → assess extent to which applicants possess skills necessary for job performance ➢ Personality tests → measure personality traits and characteristics relevant to job performance • Physical ability tests → measure physical strength and stamina • Performance-simulation tests → measure job applicants’ performance on actual job tasks Copyright ©2022 McGraw Hill Ltd. 7- 26 Typical Steps in the Hiring Process Figure 7.8 Copyright ©2022 McGraw Hill Ltd. 7- 27 Training and Development • Orientation: introduction to the culture, norms, policies, values, vision and mission of the organization ➢ Training: teaches organizational members how to perform current jobs and acquire knowledge / skills ➢ Development: builds worker’s knowledge / skills to enable them to take on new duties and responsibilities • Needs assessment: determines which employees need training or development and what types of skills or knowledge they need to acquire Copyright ©2022 McGraw Hill Ltd. 7- 28 Training and Development Methods Online Delivery Using videoconferencing • Saves time and reduces costs E-Learning Using interactive simulations or games • Key aspects of the work situation and job tasks are duplicated as closely as possible in an artificial setting On-the-Job Training Using actual work situations • Keeps up to date with changes in goals, technology, products, or customer needs and desires Mentoring Using an experienced member of an organization who provides advice and guidance to a less experienced member • Formal and informal channels give trainees varied work experiences Diversity Training Using films, focus groups, forums, role play, experiential exercises, and group exercises • Uncovers biases, stereotypes, and systemic racism VR Training Interactive programs run on VR headsets and computers or mobile devices that allow employees to interact and role-play with avatars designed to mimic customers or other key stakeholders • Creates greater focus and highly memorable, impactful experiences without the potential risk of real-world consequences. Figure 7.9 Copyright ©2022 McGraw Hill Ltd. 7- 29 Diversity Awareness Training 1. 2. 3. 4. 5. Provides accurate information about diversity Uncovers personal biases and stereotypes Assesses personal beliefs, attitudes, and values Overturns inaccurate stereotypes and beliefs Develops an atmosphere where people feel free to share their differing perspectives 6. Improves understanding of others who are different from oneself Copyright ©2022 McGraw Hill Ltd. 7- 30 Performance Appraisal & Feedback • Performance appraisal → evaluation of employees’ job performance and contributions to their organization • Performance feedback → process through which managers share performance appraisal information with subordinates, give subordinates an opportunity to reflect on their own performance, and develop, with subordinates, plans for the future • Contribute to effective management of HR in two ways: ➢ Important information on which to base HR decisions (e.g., raises, bonuses, promotions, etc.) ➢ Encourages high levels of employee motivation and performance Copyright ©2022 McGraw Hill Ltd. 7- 31 Types of Performance Appraisals • Trait Appraisal: assess subordinates on personal characteristics relevant to job performance • Behaviour Appraisal: assess how workers perform their jobs – actual actions and behaviours exhibited on job • Graphic Rating Scale Method: score employee on specific characteristics that reflect performance levels • Results Appraisal: appraise performance by the results or the actual outcomes of work behaviours Copyright ©2022 McGraw Hill Ltd. 7- 32 Who Appraises Performance? Figure 7.11 Copyright ©2022 McGraw Hill Ltd. 7- 33 Who Appraises Performance? • 360-Degree Performance Appraisals → provides appraisals from a variety of people in a position to evaluate a manager’s performance: ➢ Peers ➢ Subordinates ➢ Superiors ➢ Clients Copyright ©2022 McGraw Hill Ltd. 7- 34 Effective Performance Feedback • Managers must provide their subordinates with performance feedback: ➢ Formal appraisals → conducted at set times of the year and based on predetermined performance dimensions / measures ➢ Informal appraisals → unscheduled appraisals of ongoing progress and areas for improvement • Purpose of performance feedback? ➢ Helps determine how to distribute pay raises and bonuses ➢ To encourage high levels of motivation and performance Copyright ©2022 McGraw Hill Ltd. 7- 35 Effective Performance Feedback • Guidelines for giving effective performance feedback: ➢ Be specific and focus on behaviours or outcomes that are correctable and within worker’s ability to improve ➢ Focus on problem-solving and solution-finding, not criticizing ➢ Express confidence in worker’s ability to improve ➢ Provide performance feedback both formally and informally ➢ Praise instances of high performance and areas of job in which employee excels ➢ Avoid personal criticisms and treat subordinates with respect ➢ Agree to a timetable for performance improvements Copyright ©2022 McGraw Hill Ltd. 7- 36 Pay and Benefits • Pay includes base salaries, pay raises, bonuses ➢ Determined by characteristics of organization and the job and levels of performance • Benefits include sick days, vacation days, medical / life insurance, etc. ➢ Based on membership in an organization not level of job Copyright ©2022 McGraw Hill Ltd. 7- 37 Pay Level and Structure • Pay level: how an organization’s pay incentives compare to other firms in the industry employing similar kinds of workers ➢ Managers must decide to offer relatively low, average or high wages • Pay structure: clusters jobs into categories based on relative importance to organization and its goals, level of skills required, and other characteristics Copyright ©2022 McGraw Hill Ltd. 7- 38 Benefits • Mandatory benefits vary across provinces ➢ Organizations required to pay into workers’ compensation, social insurance and employment insurance • At their discretion, employers provide additional benefits: ➢ Extended health insurance, dental insurance, vacation time, pension plans, life insurance, flexible working hours, companyprovided daycare, employee assistance and wellness programs • Cafeteria-style benefit plans: allow employees to choose the best mix of benefits for them Copyright ©2022 McGraw Hill Ltd. 7- 39 Employee Engagement • Employee engagement: activities to ensure that fair and consistent treatment of all employees ➢ Requires cooperation between managers and an HR employee relations representative ➢ Company policies must be followed and problems dealt with efficiently and effectively ➢ Employee attitude surveys measure worker’s likes and dislikes of job / working conditions ➢ Employee assistance programs (EAPS) help employees cope with personal issues that interfere with job performance Copyright ©2022 McGraw Hill Ltd. 7- 40 Labour Relations • Labour relations: activities to ensure an effective working relationship with the labour unions that represent their employee’s interests ➢ Process of labour relations: Figure 7.13 Copyright ©2022 McGraw Hill Ltd. 7- 41 Labour Relations • Collective bargaining: negotiations between the labour union and the employer • Collective agreement: mutually acceptable set of provisions that govern working conditions between a union and an employer for a set period of time Copyright ©2022 McGraw Hill Ltd. 7- 42 Trends in Labour Relations • In 2015, total workers paying union dues was 4.83 million • In Canada, approximately 40% of public service workers are unionized vs. only 7% in United States • Impact of labour relations: ➢ HR department expands to include a labour relations specialist ➢ Managers lose decision-making power as union leaders increase participation in issues affecting members ➢ Reward power is lessened, as pay levels and pay structures are set out in the terms of the collective agreement ➢ HR managers keep paper records of employee assignments and behaviours, as this is crucial at grievance and arbitration hearings Copyright ©2022 McGraw Hill Ltd. 7- 43 Harassment in the Workplace • Workplace harassment: any behaviour directed toward an employee that is known to be or ought to be known to be offensive and unwelcome • Two common forms: ➢ Abuse of authority: when legitimate power vested in a position is used improperly to influence behaviour of an employee ➢ Sexual harassment: unwelcome behaviour of a sexual nature that negatively affects work environment or leads to adverse jobrelated consequences Copyright ©2022 McGraw Hill Ltd. 7- 44 Forms of Sexual Harassment • Quid pro quo sexual harassment: asking or forcing an employee to perform sexual favours in exchange for some reward or to avoid negative consequences • Hostile work environment sexual harassment: employees are faced with an intimidating, hostile or offensive work environment because of their gender ➢ E.g., lewd jokes, sexually oriented comments, displays of pornography, sexually oriented remarks about someone’s physical appearance Copyright ©2022 McGraw Hill Ltd. 7- 45 Steps Managers Can Take to Eradicate Workplace Harassment 1. Develop and clearly communicate a workplace harassment policy endorsed by top management 2. Use a fair complaint procedure to investigate charges of sexual harassment 3. When it has been determined that harassment has taken place, take corrective actions as soon as possible 4. Provide workplace harassment education and training to all employees, including managers Copyright ©2022 McGraw Hill Ltd. 7- 46