HRM Ch. 123456 HRM Textbook Notes PDF

**[HRM Textbook Ch. 1/2/3/4/5/6 Notes:]** **[Ch. 1: Strategic Human Resource Management]** **What is human resource management?** It's the leadership and management of people within an organization using systems, methods, processes, and procedures that identify, select, motivate, and enable emplo...

**[HRM Textbook Ch. 1/2/3/4/5/6 Notes:]** **[Ch. 1: Strategic Human Resource Management]** **What is human resource management?** It's the leadership and management of people within an organization using systems, methods, processes, and procedures that identify, select, motivate, and enable employees to achieve outcomes individually and collectively that enhance their contribution to the organization's goals. It also supports and enables organizations to meet short/long term economic, social, and environmental goals. **What is strategic human resource management?** - The process of integrating the strategic needs of an organization into the choice of HR systems and practices to support the overall mission, strategies, and performance - The **choice of HR tools** will depend on what the organization is trying to achieve - HR activities must align with and contribute to the **organization's strategies** - Each HR practice should **generate value** for the organization **A Model of Strategic HRM- There are five steps:** 1. **Organizational Mission, Goals, and Strategy Analysis** - **Mission statement:** - Statement outlining the purpose, long-term objectives, and activities the organization will pursue and the course for the future - 3 generic business strategies: - Cost leadership strategy: low-cost ex. Walmart - Differentiation strategy: create distinct quality product ex. Apple, Samsung - Focus strategy: focus on segment of market to satisfy low price or distinctive product ex. Automobile company selling high end parts to North American countries while selling cheap parts to less-developed countries 2. **Environmental Scan**: Continuous monitoring of major forces which are economic, technological, demographic, cultural, legal (labor laws, and looking at sister/brother company) - Economic forces: - There are four economic forces to consider: - **Economic cycles**- (ex. Recessionary periods, recruitment incline and decline depending on the industry, interest rates affecting employment rates) - Economic forces on local, national, international levels - Canadian economy goes through boom-and-bust cycles - Often linked to other economies - During recessionary periods, HR faces challenges - Layoffs, wage concessions, lower morale - During boom cycles, HR must consider - How to recruit and develop talent - **Global trade**-International trade has always been crucial to Canada's prosperity and growth - Canada ranks high among exporting nations - Canadian jobs and economic prosperity depend upon international trade - **Productivity improvement and innovation improvement:** - Productivity: Ratio of an organization's outputs to its inputs - Productivity improvement is essential for long-term success - For over a decade, U.S. productivity has been consistently outpacing Canada despite having lots of natural resources - Without innovation, productivity differences tend to increase - **Knowledge workers**: specialists - Extractive industries have (ex. Mining) - Industries relying on knowledge workers (education etc) - Technological forces: There are three critical technological forces - Connectivity and Work Design - Unprecedented degree of technology - Changed the way we work, play, study, and entertain ourselves - Access to information has affected the way organizations conduct business - Technology has brought flexibility - When and where work is carried out (e.g., telecommuting) - Knowledge Management - Process of capturing organizational knowledge and making it available for sharing and building new knowledge - Intranets and integrated information systems help store and access information quickly and accurately - Internet has a profound impact on HR activities - social networking sites, video-sharing, etc - Automation: automation of everything (ex. AI) - Organizations automate to: - Increase speed - Provide better service - Increase flexibility - Increase predictability in operations - Achieve higher standards of quality - May use robots to replace boring or hazardous jobs - Increased cybersecurity issues - Who has access to information? - Data and analytics: strategic aspect of the HR department - How to make accurate decision-making skills - Demographics: - Gender balance in the workforce - 47 % of workforce are women with an employment growth of 70% in the last 20 years - Raises importance of: - Childcare - Work-family balance - Dual career families - Employment equity - Shift towards knowledge workers - Shift from primary and extractive industries to service, technical, and professional jobs - All services combined currently account for more than 75 percent of the gross domestic product (GDP). - Knowledge workers have been the fastest growing type of workers - Need to attract, retain, and retrain - Educational attainment of workers - Aging population- reemploying those who are already in the workforce - Average age of workforce is increasing - Impending old age crisis - Generational shift- how the new generation interacts and respond to workforce/ how do you engage workers in the workforce - Baby Boomers, Generation X, Generation Y, and Generation Next (Gen Z) are qualitatively different workers - Need to understand that people have different expectations from their workplaces - Generational diversity creates an interpersonal dynamic for all leaders - Cultural: - Diversity - Canadian society is a **cultural mosaic** - Canada encourages maintaining unique culture through co-existence vs. U.S. "melting pot" - Ethics - Ethical conduct of business is becoming an increasingly important issue ex. Enron who acted out of self-interest, creative accounting, security frauds - Managers should understand ethical perspectives and consider ethical implications 3. Analysis of Organizational Character and Culture - Human resource strategies should be formulated only after a careful look at the organization's structure - Employees, objectives, technology, size, age, unions, policies, successes, failures - Structure reflects the past and shapes the future - Each organization has a unique culture - Core beliefs and assumptions that are widely shared by all organizational members 4. **Choice and Implementation of Human Resource Strategies** - There should be a clear line of sight between HR strategy and corporate goals - HR must continuously focus on 5 groups of activities: 1. Planning Human Resources - Determine the demand and supplies needed for HR and review what processes, tools, and activities should be implemented 2. Attracting Human Resources - Act in filling these needs through ex. Recruitment and selection 3. Placing, Developing, and Evaluating Human Resources - Once placed and hired, they are going to need training for their new roles and then a clear evaluation bad hires can tell you a lot about the process of hiring (good? bad?) 4. Motivating Employees - Good performance needs to be rewarded ex. Compensation 5. Maintaining High Performance- what is the variable that impacts performance? Not just about meeting expectations/goals but looking at the gaps of causing low performance and how to resolve - Internal work procedures and organizational policies need constant revising/monitoring 5. Review, Education and Audit of Human Resource Strategies - HR Strategies should be examined periodically in consideration of changing factors (e.g., technology, environment) - Holistic review of HR strategies with the intention of identifying and correcting deficiencies called **Human Resource Audit.** - Human resource activities aimed at **productivity improvement, succession planning, and cultural change** are critical to competitive survival **The Organization of HRM:** - HR department in a small organization - Separate HR department emerges when HR activities become a burden - Often emerges as a small department or individual reporting to a middle-level manager A diagram of a company Description automatically generated - Large HR department - As the organization grows, the HR department usually grows in impact/complexity - Specialists are added - Vice President title **The service role of the HR department:** - Staff authority - HR departments are service departments - Authority to advise, not direct - Line authority - Possessed by managers of operating departments (i.e., authority to make decisions) - Functional authority - HR department may be provided authority to make decisions (e.g., deciding type of benefits) **Today's HR professional:** - Enormous growth in the number of HR managers - HR had been slow to evolve into a profession - Competencies for HR Managers: - Mastery of HRM Tools, Change Mastery, Personal Credibility - CCHRA is a collaborative effort of HR associations - Coordinates national designation - CPHR **[Ch. 5: Recruitment ]** Recruitment is the finding and attracting capable individuals for the positions that is available. - Recruiting is a two-way street: matching firms with jobs to people seeking jobs; It includes activities affecting an applicant's decision to **apply** and **accept** a position. - Recruiters are specialists within the HR department of large organizations. - What is the recruitment process? - Identify job openings - Review job specifications - Examine the desired characteristics of recruits - Determine recruitment methods - Obtain a pool of recruits - Maintain applicant interest during selection - Persuade chosen candidates to accept the job - Recruiters use **more than one method** to find suitable candidates for vacant job positions - Advertising - Walk ins - Referrals - Educational institutions/professional associations - Labour organizations Type of applicant more important than \# of applicants. Then what type of applicant is desired? Applicants who are highly skilled and motivated because they create a **competitive advantage**. Other recruitment decisions have profound implications for strategic success like **benefits of diversity**, **focusing on employee development**, and **investing resources into recruitment**. This is why it is important that recruitment is **strategic**. Where do you recruit people from? An organization has the choice to recruit **internally or externally**. +-----------------------------------+-----------------------------------+ | **Advantage to Internal** | **Disadvantage to Internal** | +===================================+===================================+ | - is familiar with the | - lead to internal rivalry and | | organization and its work | competitiveness for higher | | culture | position | | | | | | - less diversity preventing | | | creative solutions from | | - already know that they are a | emerging; no 'new blood' | | good 'fit' in the | | | organization which is an | - poor morale (possible | | indicator for future success | turnover) of employees not | | | promoted | | - improves employee morale and | | | motivation | | +-----------------------------------+-----------------------------------+ +-----------------------------------+-----------------------------------+ | **Advantage to External** | **Disadvantage to External** | +===================================+===================================+ | - acquire skills and knowledge | - newcomers may not fit and | | not available within the | take a long time learning | | organization | about the organization and | | | work culture | | - newer ideas to solve emerging | | | problems | - can be expensive to recruit | | | externally | | | | | | - lowered morale and motivation | | | of current employees | +-----------------------------------+-----------------------------------+ There are **constraints** to the recruitment process: due to organization, recruiter, and external environment. We will look at 8 categories of recruitment constraints:  Policies can cause a **constrain** because they seek to achieve uniformity, economies and economic benefits. - **(Organizational Policies) Promote from within policies**: give employees the first opportunity to facilitate growth and retention and increase morale - **Compensation policies**: pay ranges aim to attract new staff while maintaining the viability of organization; can address ripple effect of wage compressions - **Employment status policies:** restrict temporary or part time workers. Recruiters thus must reject all these applicants who don't seek fulltime and even those who moonlight by having a second job are out of the equation. - **International Hiring policies:** foreign jobs staffed with local citizens to reduce expenses on relocation, and if in high positions, minimizes charges of economic exploitation. - **Human resource plans: which jobs should be filled by external vs. internal recruiting?** - is another factor recruiters consider because the plan outlines which jobs should be filled by recruiting externally and which ones should be filled internally. Such a plan helps recruiters because it summarizes future recruiting demands. - Another constraint recruiters must deal with is their reliability on their past success called **recruiter habits**. It can eliminate time consuming deliberations; they perpetuate their past mistakes or obscure more effective alternatives. - Fourth constraint is: **environmental conditions** such as labor force, employment rates, pace of economy, shortages in specific skills etc. - **Leading economic indicators:** Organizations like statistics Canada , social development of Canada, or science and economic development Canada are all indicators that predict the future of the economy which can help recruiters make an informed decision and alter their recruiting strategies if necessary. - **Predicted vs. actual sales**: recruiting efforts may need to be changed to predicted and actual sales. - **Employment statistics:** business conditions decline due to a change in employment, measures by the recruiters need to take place - **Job requirements:** managers are looking for the best employees, but seeking out the best is expensive. Moreover, if the HR department cannot show that a high degree of experience is needed then experience may be an artificial requirement that discriminates against some applicants. For some people in some jobs, 10 years of experience is another way of saying 1 year of experience 10 times. - **Costs:** careful human resource planning and forethought by recruiters can minimize recruiting expenses and recruiting for several job openings simultaneously may reduce the cost per recruit. - **Inducements:** monetary, nonmonetary or even intangible incentives like flextime, high quality of life, gym memberships, daycare centres available, used by a firm to attract recruits. **Applying for a job:** When applying for jobs, applicants will submit a CV (resume) which will be scanned through an **ATS: applicant tracking system** which enables a good match between **job requirements** and **applicant characteristics** which enlarges the recruitment pool. Second way to apply is through **job application forms**. Not redundant to the CV because it collects information in a **uniform manner (personal data, employment status, education and skills, work history, references, signature line)** and make it easier for recruiters to **compare information**. **Recruitment methods: How do you let job seekers know that you have a position open at the company?** - **Direct Inquiries:** - Walk-ins are job seekers who arrive at the human resource department seeking to drop of a resume. - Write ins are job seekers who send a written inquiry by either mailing in their resume or completing a job application online. - **Employee referrals** mean that employees with hard-to-find job skills may know others who do the same work. Also, these referred employees are likely to have similar work values and habits compatible with the company. - **Advertising:** It is an effective and common method for recruiting. Allow recruiters to reach a wider audience. - cost is determined by the size of the advertisement, modality, and location and distribution - layout, design, and copy of an advertisement should reflect the image and character of the company - **Blind ads**: job ads that do not identify the employer. Why? Secretly recruiting to replace a current employee can't be done with traditional big ads. It can also reduce bias, so job seekers apply because of the job description rather than the reputation of the company. - **Digital recruiting:** cost-effective distribution of information to many people at one time and displays JD/JS needed which minimizes time for weeding out unqualified job seekers. This is not always great for the less educated or older job seekers as they may not have access to the internet. - **Social media**: - Recruiters can post their opportunities and seek applicants using tools like LinkedIn - Recruiters can seek information about candidates and prospective candidates through social networking - **Employment and social development Canada**: department of the government of Canada responsible for developing, managing, delivering social programs and services. - **Jobs and the workplace**: help Canadians find work, explore skills, and training possibilities - **Job Bank**: comprehensive database of thousands of jobs and work opportunities available across Canada. - **Private Employment agencies**: may be necessary when the employer needs only a few people and on a temporary/irregular basis. Approach is to recruit through advertising. - **Professional search firms**: more specialized than placement agencies. Usually recruit only specific types of human resources for a fee paid by the employer. The difference between this and agencies is their approach; firms actively seek out recruits from among the employees of other companies. These firms have a greater understanding of niche requirements for companies in specific industries (more for senior/executive roles) - **Educational institutions**: for entry level openings. - **Professional associations and labor organizations**: many associations conduct placement activities to help new and experienced professionals get jobs - **Canadian Force**s: trains personnel in almost every profession imaginable. - **Temporary Help Agencies**: source of supplemental workers for temporary work-during vacations, peak seasons, illnesses. - **Departing employee**: employees who must leave due to external factors are asked to stay through renegotiations by outbidding the other companies offer which is called **buy-back**. - **Job fairs**: trade show style fairs with many employers showcasing their companies and jobs to potential recruits. - **Contract workers**: contract workers are useful when the work is of limited duration so the firm can avoid fixed salary commitments; employer pays a flat fee. - **Recruitment Abroad**: this might be an expensive investment for the company **How do recruiters choose which method to use? There are six questions to use:** 1. How many recruits are needed? a. Some sources of advertising will produce larger numbers of applicants while other will not. 2. What is the skill level required? b. If there is a need for high skills and experience, a niche recruiting might be needed which in this case would require a professional search firm. 3. What sources are available in that industry and geographic region? c. What sources are available in that industry and geographic region? 4. What has worked in the past? 5. How much is the budget? d. Limited amount that can be used. 6. Are there labour agreements in place that specify? e. collective agreements that might lead a recruiter to choose internal or external **How do you know you picked the right recruiting method/strategy? Evaluate the recruitment function.** - **Cost per hire:** not only direct costs of the hire (recruiters salaries, cost of advertisements, consultants' fees) but also apportioned costs and overheads (time of operating personnel, stationery, rent). Previous recruiting activities could serve as useful benchmarks. YET, this could ignore the quality of hire. - **Quality of Hires and Cost:** quality of people hired from various sources - **Offers-applicants ratio**: Ratio between the \# of job offers extended the total number of applicants calculated indicates the overall effectiveness of the recruiting method. - **Time lapsed per Hire**: the time it takes to fill the position provides an effective evaluation of the method. **[Ch.6: Selection]** What is selection? A series of specific steps used to decide **which recruits should be hired**. Selection process **begins when recruits apply for employment** and **ends with the hiring decision or when the offer is made.** The steps involve matching the employment needs of the organization and the applicant. **Strategic significance of Selection:** A group of blue and white text Description automatically generated  - Selection involves identifying candidates from the pool of applicants and choosing the best one who fits the requirements using applications, tests and interviews. - How does selection affect the overall organization's effectiveness? An organization's overall effectiveness and success depends on the quality and calibre of the employees hired. - Results of job analysis help an organization to identify job duties, specifications, and performance standards. A mismatch between these and the selection criteria will not only result in poor hires but will also expose the organization to possible lawsuits from job applicants who believe that they have been discriminated. **Selection ratio:** is the relationship between the number of applicants hired and the total number of applicants available. \# of applicants hired = selection ratio Total number of applicants **Steps in the selection process:** 1. **Preliminary reception of applicants** a. Initial contact with applicants b. When applicants 'walk in' a preliminary (courtesy) interview begins which helps recruiters weed out the misfits (ex. Not willing to travel for a salesperson job with a firm requiring considerable travel) i. Great way for employer to brand the company because it can give off good impressions c. Write- ins often receive letter or email of acknowledgement d. Much of this, however, has disappeared in many organizations with the increasing use of internet recruitment 2. **Applicant screening** e. Goal: Remove applicants that don't meet the standard requirements or qualifications; whittle the application process down f. **Weighted application blank (WAB):** ensure application is useful and meets legal requirements ii. a selection tool/ technique provides means of identifying which of these aspects reliably distinguish groups of satisfactory or unsatisfactory job incumbents and calculated for success scores. iii. cost effective; may be particularly valuable for job positions where large number of applicants apply for a few positions g. **Biographical information blank (BIB):** a questionnaire that applicants complete relating to their personal history and life experiences ex. Hobbies, family relations, values, reactions to stressful events etc. this is to determine low and high performers. One of the ways to weed out resume frauds by checking if there is consistency with their answers. iv. Cons: Not able to verify these answers, applicants view it as invasive, turn off applicants 3. **Administration of employment tests**: Employment tests are useful for obtaining relatively objective information that can be compared with information pertaining to other applicants and present job holders. Employment tests are devices that asses the match between applicants and job requirements. Ex. Math test for bookkeepers. - Personality tests: Big 5, MBTI v. Allude to job performance, training performance, absenteeism, counterproductive work behaviors - Ability tests: aims to predict which job applicants have the skills, knowledge, and ability to do the job. - Knowledge tests: measure a person's information or knowledge about job requirements. - Performance tests: measure the ability of applicants to do some parts of the work for which they are to be hired. - Situational judgement test: applicants are placed into hypothetical job scenarios and asked to select a behavioral response. - Computer interactive performance tests: applicant's abilities such as a reaction time, ability to concentrate, ability to work under different time pressures are measured ex. MBA = GMAT - Assessment centres: measure an applicant's honesty and trustworthiness by using polygraphs or lie detectors. - The use of these tests should be guided by their reliability and validity. - **Reliability:** consistency of the evidence - May become low because the questions were ambiguous, interpreted different on the second try, hard or boring, external factors like smell, noise, feeling ill. - **Validity:** accuracy of the evidence; relationship between test results and performance - Accumulate **empirical and rational evidence** because if the test rejects specific groups of people (race, sex, religion etc) it violates human rights. We call this **differential validity**: test validation process aimed at discovering the validity of test for various sub-groups (ex. Female) - Empirical approaches: - Predictive validity (?) - Concurrent validity (?) - Rational approaches: - Content validity - Construct validity - Differential validity - **Validity generalization:** apply validity results amassed from many individual validity studies to guide test choices for a current organization and job. 4. **Employment interview:** supervisors should have input into the final hiring decision. The role of HR is to provide the supervisor with the best applicants applicable. 5. **Realistic job previews:** allow the potential employee to understand the job setting to understand the job setting before the hiring decision is made- often showing him or her the type of work, equipment, working conditions involved h. High light the positive and negative i. Tends to reduce employee turnover 6. **Verification of references:** Personal references -- those that attest to the applicant's sound character- but only has positive traits about the candidate thus not commonly used. **Employment references** differ from personal references because they discuss the **applicant's work history and background checks.** **Lack of candour in reference letters** may be due to a variety of reasons, including fear of legal reprisal, legal requirements to show reference letters. 7. **Contingent assessments:** contingent assessment will be included in the selection process. This occurs when candidate has been selected and receive a job offer provided, they pass the test; medical and health evaluation, driving information, and drug tests. Yet this could be discrimination thus, these evaluations should come AFTER they have been hired. 8. **Hiring decision:** Marks the end of the selection process. The HRIS is updated and retains applications for the future. Again, decisions are made by higher up based on who had the best interview. There are three approaches to making this decision. j. **Subjective approach**: clinical approach, decision maker looks at the scores received by the various applicants on the predictors, evaluates all, and comes to an overall judgement k. **Multiple cut-off approach**: evaluated on a pass-fail basis. Rejected if any one of their predictor scores falls below a set minimum score. The deficiency in one predictor cannot be compensated by superior performance on another. l. **Compensatory approach**: higher score on a predictor may compensate for a low score on another. Good to use when some of the predictors are expensive (e.g., expensive assessment centre evaluation, inviting job candidates from abroad) After selection: when drawing up the employment contract, pay attention to: 1. **Specify probationary period if applicable**: it's a misconception that everyone is subject to probationary periods 2. **Clearly specify start date and terms of employment**: it's a competitive market so secure your candidate so that they are not contacted by their previous employer or a new employer. 3. **Specify reasonable restrictive covenants**: confidentiality of information and noncompete clauses should be reasonable, specific, explicit. 4. **Ensure that termination procedures are legally enforceable**: make sure they meet the provincial minimum employment standards. **Dispositioning of Applicants:** - Throughout the selection process, there will be applicants the organization no longer wishes to pursue - The organization's decision should be communicated with these applicants at the earliest possible opportunity - Applicants who are hired should have their applications stored on the HRIS **Employment Interview:** formal, indepth, face-to-face, phone or video conference between an employer and a job applicant to assess the appropriateness of the applicant for the job under consideration. Most widely used selection technique: - Allows a personal impression - Opportunity to sell a job to a candidate - Opportunity to answer candidate's questions - Effective public relations tool - Popular due to flexibility and creates a two-way exchange - Flaws relates to varying reliability and validity Types of interviews: - Panel interview: all interviewers meet with an applicant at the same time - One to one - Group interview  A screenshot of a survey Description automatically generated Interview Process: Five stages 1\. **Interview preparation:** Develop specific questions and answers. Needs to be able to explain job duties, performance standards, pay, benefits, and other areas of interest. Ex. How do your skills and career goals match with our organizational activities? 2\. **Creation of Rapport**: The interviewer is one of the first representatives of the company with whom the applicant talks to. It is up to the interviewer to create a relaxed rapport with the recruit. This can be done through body language such as a smile, handshake, posture. 3\. **Information exchange**: heart of the interview; interviewer may ask the applicant if they have a question first to make a two-way conversation to help create a relaxed rapport. 4\. **Termination of Interview:** set candidate expectations at the start of the interview. Complete this step through body language ex. Sitting up or erect and asking, "Do you have any final questions?" Let. Them know the next step which is a call or email. 5\. **Evaluation**: After the interview, take note of the interviewee's answers onto the scoring guide and questions they asked. - Caution must be exercised to avoid some common **interviewer errors:** mistakes like biases and domination that reduce the validity and usefulness of the job interview. - Halo effect - Leading questions - Stereotypes - Interviewer domination - Contrast errors - **Interviewee's error**: may be trying to cover job-related weaknesses or nervousness - Paying games - Talking too much - Boasting - Not listening - Being unprepared **Evaluating the selection:** Quality and productivity of the workforce - Are supervisors/peers satisfied with hires? - Are training costs increasing? - Are managers spending too much time managing new hires? - Are grievances, absences, and turnover too high? Costs incurred are at a level appropriate to the organization. Ultimate success of the hiring process is their quality and productivity in the organization. Are they performing and meeting the goals of the organization? Are they contributing to the MVV?