Human Resources Management (HRM) Study Notes PDF

1.1 Define what human resources management (HRM) is and analyze how it relates to the management process and non-HR managers. Management is a process of: 1.​ planning, 2.​ organizing, 3.​ staffing, 4.​ leading, and 5.​ controlling organizational resources. -​ HRM refers to...

1.1 Define what human resources management (HRM) is and analyze how it relates to the management process and non-HR managers. Management is a process of: 1.​ planning, 2.​ organizing, 3.​ staffing, 4.​ leading, and 5.​ controlling organizational resources. -​ HRM refers to the management of people in organizations. -​ Strategic HRM involves linking HRM with strategic goals and objectives to improve business performance. -​ Increasingly, HR professionals are becoming strategic partners in strategy formulation and execution. -​ Activities of employee management, empowerment, training, and guidance are often shared between managers in the organization (executive and line managers) and HR professionals. -​ Therefore, line managers, executives, and HR managers are all influential in and influenced by effective human resources management. ​ 1.2 Explain how HRM has changed over time to include a higher-level advisory role. -​ Human resources activities involve making decisions about the HRM practices that the organization is focused on. -​ The current HR manager is expected to support the organization’s operational and strategic short-term and long-term goals. -​ The future of HR includes managing: -​ workforce growth, -​ new technologies, -​ remote/virtual/hybrid workers and -​ workplaces, and -​ DEI (diversity, equity, and inclusion) initiatives in a hypercompetitive and ever-changing workplace. -​ This will involve higher-order thinking, advanced forecasting, and communication skills, as well as strategic thinking. 1.3 Identify tools to help make evidence-based HRM decisions. -​ Evidence-based HRM means using the best available evidence in making decisions (from actual measurements, existing data, or research studies) about HRM practices. -​ Tools include the  -​ strategic map, -​ balanced scorecard, and -​ digital dashboard. 1.4 Describe professionalism and ethics in the HRM function. -​ There are professional designations in Canada that may be influential in building expertise and careers in management or HRM. -​ more specific designations are important to indicate specialized skill sets. -​ Both HR and non-HR managers need to take active steps to ensure ethical practices and procedures are implemented and practised in the workplace. 1.5 Discuss the internal and external environmental factors affecting HRM policies and practices, and explain their impact. -​ A number of external factors have an impact on HRM, including -​ labour market issues, -​ economic factors, -​ technology, -​ government, -​ globalization, and -​ environmental concerns. -​ Internal factors impacting HRM include -​ organizational culture, -​ organizational climate, and -​ management practices. 2.1 Explain how employment-related issues are governed in Canada. -​ The legal framework in Canada attempts to balance employee and employer rights using multiple overlapping legislative pieces, including -​ legislation aimed at protecting the general public (the Charter of Rights and Freedoms, human rights legislation) -​ more specific legislation (employment equity legislation, employment standards acts, and collective bargaining agreements). 2.2 Discuss at least five prohibited grounds of discrimination under human rights legislation and requirements for reasonable accommodation. -​ All jurisdictions prohibit discrimination on the grounds of -​ race, -​ colour, -​ sexual orientation, -​ religion or creed, -​ physical and mental disability, -​ sex, -​ age, and -​ marital status. -​ Employers are allowed to put in conditions related to employment that may discriminate, provided that these conditions are bona fide occupational requirements, as determined by the Meiorin test. -​ Employers are required to make reasonable accommodation for employees by adjusting employment policies and practices, so that no one is disadvantaged in employment on any of the prohibited grounds, to the point of undue hardship. -​ Employers have the legal duty to accommodate persons, and the employees have a responsibility to seek accommodation, cooperate in the process, exchange relevant information, and explore accommodation solutions together. 2.3 Describe behaviour that could constitute harassment, and explain employers’ responsibilities regarding harassment. -​ Harassment includes a wide range of behaviours that a reasonable person ought to know are unwelcome. -​ Employers and managers have a responsibility to provide a safe and healthy working environment. -​ If harassment is occurring and they are aware or ought to have been aware, they can be charged along with the alleged harasser. -​ To reduce liability, employers should establish harassment policies, communicate these to employees, enforce the policies, and play an active role in maintaining a work environment free of harassment. 2.4 Describe the purpose of employment equity programs and explain the role of minimums established in employment standards legislation. -​ Employment equity programs attempt to provide fair and equal employment opportunities to members of four designated groups: -​ women,  -​ Indigenous Peoples, -​ persons with disabilities, and -​ visible minorities. -​ The employment equity process is a deliberate process to support diversity and eliminate unintentional or systemic discrimination in the workplace. -​ It usually takes six months to set up and requires management and leadership championing to succeed. -​ Employment standards legislation (ESAs/LSAs) establishes minimum terms and conditions for workplaces in each jurisdiction, and violations of these terms are identified in a complaint-based process, whereby the appropriate ministry (e.g., Ministry of Labour in Ontario) will investigate violations once an employee files a complaint. 4.1 Define talent management, and explain what talent management–oriented managers do. -​ Employers today often view all the staff-train-reward activities as part of a single integrated talent management process. -​ Talent management is the holistic, integrated, and results- and goal-oriented process of planning, recruiting, selecting, developing, managing, and compensating employees. -​ Taking a talent management perspective means keeping in mind that the talent management tasks are parts of a single interrelated talent management process; making sure talent management decisions such as staffing and pay are goal directed; using the same “profile” for formulating recruitment plans for a job that is used for making selection, training, appraisal, and payment decisions; thus integrating all the talent management functions. 4.2 Define job analysis and explain multiple uses of job analysis in HR decisions. -​ In any organization, work has to be divided into manageable units and ultimately into jobs that can be performed by employees. -​ The process of organizing work into tasks that are required to perform a specific job is known as job design. -​ The term job means a group of tasks and duties. -​ Several employees may have the same job. -​ The collection of tasks and responsibilities performed by one person is known as a position. -​ Job analysis is the foundation for most human resources management in an organization. -​ identifying the job tasks, -​ specifications, -​ KSAs (knowledge, skills, abilities), and -​ competencies required for the job.  -​ This aids in human resource planning, recruitment and selection, compensation, performance management, labour relations, training, development, and restructuring aspects of human resources management. 4.3a Identify the steps in job analysis, and describe the evolution of job analysis. Job analysis involves six steps: (1) collect background information, (2) select the representative positions and jobs to be analyzed, (3) collect data, (4) review the information collected with the incumbents and their supervisors, (5) develop job descriptions and job specifications, and (6) communicate and review on an ongoing basis. 4.3b Describe and evaluate multiple methods of collecting job analysis information. Techniques used to gather job analysis data include -​ interviews, -​ questionnaires (including the PAQ and FJA), -​ direct observation, -​ participant diaries/logs, and the -​ National Occupational Classification (NOC) 4.3c Explain how to write a job description and job specifications. -​ A job description is a written statement of what the jobholder actually does, how they do it, and under what conditions the job is performed. -​ While there is no standard format, most descriptions contain sections that cover -​ job identification, -​ a job summary, -​ a listing of responsibilities and duties, -​ the job incumbent’s authority, and -​ performance standards. -​ It may also contain information regarding the job’s working conditions and the job specifications. -​ The job specification involves examining the duties and responsibilities and answering this question: “What human traits and experience are required to do this job?”  -​ Some employers use statistical analyses to identify predictors or human traits that relate to success on the job. 4.4 Describe the evolution of job design and how organizational structure influences job design. Organizations have largely evolved from basic work simplification and industrial engineering to more dynamic work, which includes jobs that are enlarged, enriched, and rotational. Organizational structure refers to formal relationships among jobs, indicating the chain of command and reporting structures. Three common types of organizational structure are 1.​ bureaucratic, 2.​ flat, and 3.​ matrix. The structure often indicates how specific or broad each job is and how it adds value to the organization. 4.5 Explain the three reasons why competency-based job analysis has become more common. Competency-based job analysis—focusing on how the job is done (the behaviours required) more than on task requirements—has become more common for three reasons. 1.​ traditional job descriptions may not be appropriate in organizations with flexible jobs. 2.​ describing the job in terms of the skills, knowledge, and competencies the worker needs is more strategic. 3.​ competency-based job analysis supports the employer’s performance management process. 5.1 Define human resources planning (HRP) and discuss its strategic importance. Human resources planning (HRP) is the process of reviewing HR requirements to ensure that the organization has the required number of employees with the necessary skills to meet its strategic goals. Forecasting future labour demand and supply is a critical element of the strategic planning process. HRP and strategic planning become effective when a reciprocal and interdependent relationship exists between them. 5.2 Briefly discuss the four strategies used to forecast internal human resources supply and three types of market conditions assessed when forecasting external human resources supply. Four strategies used to forecast internal HR supply are 1.​ Markov analysis, skills and 2.​ management inventories, 3.​ replacement charts and summaries, 4.​ succession planning. Forecasting external HR supply requires an assessment of -​ general economic conditions, -​ labour market conditions, and -​ occupational labour conditions. 5.3 Describe four quantitative and two qualitative techniques used to forecast human resources demand. Four quantitative techniques for forecasting future HR demand are -​ trend analysis, -​ ratio analysis, -​ scatterplots, and -​ regression analysis. Two qualitative techniques used to forecast demand are the -​ nominal group technique and the -​ Delphi technique. 5.4 Explain how organizations deal with both a surplus and a shortage of human resources. Strategies to manage a labour surplus include a -​ hiring freeze; -​ downsizing through attrition; -​ early retirement buyout programs; reduced hours through job sharing, part-time work, work sharing, or reduced workweeks; leaves of absence; and termination of employment. Strategies to manage a human resources shortage include internal and external solutions, such as -​ hiring employees, -​ employee transfers and -​ promotions, and -​ retention programs. 6.1 Define recruitment and discuss the increasing use of employer branding. Recruitment is the process of searching out and attracting qualified job applicants. -​ begins with the identification of a position that requires staffing -​ concludes when résumés or completed application forms are received. In order to manage the increasing talent shortage, proactive employers are trying to obtain a competitive advantage in recruitment by establishing themselves as employers of choice through employer branding. 6.2 Explain the recruitment process and the importance of applicant tracking. The recruitment process has 4 steps. 1.​ job openings are identified through HR planning or a manager’s request. 2.​ job description and job specifications are reviewed to determine the job requirements. 3.​ appropriate recruiting source(s) and method(s) are chosen. 4.​ using these strategies, a pool of qualified candidates is generated. applicant tracking systems (ATS) 6.3 Analyze the internal recruitment strategies of job posting and job slotting, including the importance of human resources records and skills inventories. human capital theory, internal candidates have accumulated firm-specific knowledge, so hiring internal candidates can be beneficial to both the employee and employer. Internal recruitment offers an opportunity for transfer or promotion of existing employees and the methods to access internal candidates include job posting and job slotting. This also requires mining human resources records or using skills inventories. 6.4 Identify at least 10 methods used for external recruitment. External recruitment can be multifaceted. Traditional networking includes -​ cold calls, -​ print advertising, -​ employee referrals, and -​ former employees who have remained in contact with the organization. Organizations can gain access to large pools of candidates through relationships formed during -​ open houses and job fairs, -​ professional and trade associations, -​ labour organizations, and -​ military personnel. Online recruitment includes -​ internet-based job boards,  -​ corporate websites, and -​ social networking sites. Agency recruitment includes -​ ESDC, -​ executive search firms, and -​ private employment agencies. Recruitment of non-permanent staff can come from temporary help agencies and contract workers. 7.1 Define selection and discuss its strategic importance. Selection is the process of choosing among individuals who have been recruited to fill existing or projected job openings, with an aim of hiring the “best” candidate. Given that the quality of the company’s human resources is often a competitive advantage in achieving the company’s strategic objectives, selection of employees has considerable strategic importance. Those individuals selected will be implementing strategic decisions and, in some cases, creating strategic plans. Thus, the successful candidates must fit with the organization’s strategic direction. 7.2 Describe considerations in the preliminary applicant screening. The selection ratio is the ratio of the number of applicants hired to the total number of applicants and is a key consideration when conducting preliminary applicant screening. Data analytics can help determine which criteria to focus on in the initial screening process, while crowdsourcing empowers existing employees to help in the screening process. 7.3 Define reliability and validity, explain their importance in selection techniques, and describe at least four types of selection tests. Reliability (the degree to which selection techniques are dependable, consistent, and stable) and validity (which relates to accuracy) of selection tests and interviews are critically important for selecting the best candidate effectively and satisfying legal requirements. The different types of tests used for selection include tests of -​ cognitive abilities (including intelligence tests, -​ emotional intelligence tests, and tests for specific cognitive abilities), -​ job-specific tests (including tests of motor or physical abilities, -​ work sampling, achievement tests, and micro assessments), -​ tests of personality and interests, and -​ physical examination tests (including substance abuse testing and polygraph tests). 7.4 Describe the major types of selection interviews by degree of structure, type of content, and manner of administration. Selection interviewing can be unstructured, structured, or semi-structured. The content varies between situational interviews (focus on future behaviour) and behavioural interviews (focus on past behaviour). Interviews can be administered on a one-on-one basis, sequentially, or by using a panel. Video and phone-based interviews are also increasingly used. 7.5 Describe four ways to improve an employer’s background checking process and explain how selection decisions are made. Reference checking is an important source of information about job candidates. Failure to check references can lead to negligent or wrongful-hiring lawsuits. Four ways to improve an employer’s background checking process are -​ asking for phone references, -​ looking for red flags, -​ asking open-ended questions, and -​ aiming for “360” reference checking. When providing references, the legal concept of qualified privilege means that the reference giver is protected from litigation if honest, fair, and candid references are given, even if negative information is imparted about the candidate. Providing falsely positive references can lead to charges of negligent misrepresentation by subsequent employers. Fear of litigation has led some Canadian companies to adopt a policy of “no references” or to confirm only a former employee’s position and dates of employment. A supervisory interview or realistic job preview is often used when the eligible candidate pool is reduced to the top two to three candidates. To make the hiring decision, information from the multiple selection techniques used must be combined, and the applicant who is the best fit with the selection criteria must be identified. 8.1 Explain the purpose of onboarding programs and describe special considerations for onboarding. Onboarding provides new employees with basic background information (such as computer passwords and company rules) they need to do their jobs. Ideally, it should also help them become emotionally attached to and engaged in the firm. When developing and executing onboarding programs, an organization needs to identify which staff will be responsible for the orientation clearly, consider integrating executives differently than other employees, keep the employee handbook clear since it is considered a binding legal document, and evaluate the onboarding program to identify the effectiveness of the program. 8.2 Discuss how to maximize the effectiveness of the training process. Training is a learning process. To maximize efficiency at the start of the training, trainees should be provided with an overall view of the material presented that should be organized logically, the similarity between the training situation and work situation should be maximized, trainees should be motivated through positive feedback and realistic scenarios, and trainees’ expectations about the event should be set accurately before the training begins. 8.3 Identify and describe the five steps in the training process: needs analysis, instructional design, validation, implementation, and evaluation. Two techniques for assessing training needs are 1.​ task analysis to determine the training needs of employees who are new to their jobs and 2.​ performance analysis to appraise the performance of current employees to determine whether training could reduce performance problems. Traditional training techniques include -​ on-the-job training, -​ apprenticeship training, -​ informal learning, -​ job instruction training, -​ classroom training, -​ audiovisual techniques, -​ programmed learning, and -​ simulated training. Three types of e-learning are -​ computer-based training, -​ online training, and -​ electronic performance support systems. In evaluating the effectiveness of a training program, four categories of outcomes can be measured: -​ reaction, -​ learning, -​ behaviour, and -​ results. 8.4 Explain common types of training for special purposes. Today’s organizations often provide training for special purposes, including literacy training, diversity training, customer service training, training for teamwork, and training for first-time supervisors/managers. 9.1 List and briefly discuss the importance of the steps in leading organizational change. Managers have to execute organizational change programs when facing economic, competitive, or other challenges. These may aim at changing the company’s strategy, culture, structure, technologies, or the attitudes and skills of the employees. Often, the trickiest part of organizational change is overcoming employees’ resistance to it. With that in mind, steps in an effective organizational change program include -​ establishing a sense of urgency, -​ mobilizing commitment, -​ creating a guiding coalition, -​ developing and communicating a shared vision, -​ helping employees make the change, -​ consolidating gains, -​ reinforcing new ways of doing things, and -​ monitoring and assessing progress. Organizational development involves action research, which means collecting data about a group and feeding the information back to the employees to analyze it and develop hypotheses about the problems. 9.2 Discuss new approaches to career development, and analyze the factors that affect career choices. Career planning and development involves the deliberate process through which a person becomes aware of personal career-related attributes and the lifelong series of activities that contribute to their career fulfillment. New approaches to career development are less focused on stage of life (which was historically largely age based), and more involved in identifying occupational orientation: realistic, investigative, social, conventional, enterprising, and artistic. In addition, skills and aptitudes can be identified, as can career anchors: -​ technical/functional, -​ managerial competence, -​ creativity, -​ autonomy, -​ security, service/dedication, -​ pure challenge, or -​ lifestyle. The focus on life trajectories involves reframing career development from traits and states to context, from prescriptive to process, from linear to non-linear from scientific to narrative, and from descriptive to modelling. In this evolution, organizations can benefit from becoming learning organizations that use behaviour modelling, including -​ role-playing, -​ simulations, -​ management games, and -​ mentoring opportunities. 9.3 Recommend how to manage transfers and promotions more effectively. Employers need to address employee life cycle career management issues. Most notably, promotions can provide opportunities to reward exceptional performance, and to fill open positions with tested and loyal employees. Several decisions loom large in any firm’s promotion process: Is seniority or competence the rule? How should we measure competence? Is the process formal or informal? Vertical, horizontal, or other? Equity-seeking groups (e.g., women, visible minorities) still experience relatively less career progress in organizations. Bias and more subtle barriers are often the cause. In general, the employer’s promotion processes must comply with all the same anti-discrimination laws as procedures for recruiting and selecting employees or any other HR actions. Transfers and retirements are other important career life cycle issues. 9.4 List and briefly discuss four management or leadership development methods. Management development is any attempt to improve managerial performance and is aimed at preparing employees for future jobs with the organization. Managerial on-the-job training methods include developmental job rotation, mentoring, coaching, and action learning. Basic off-the-job techniques include case studies, role-playing, management games, outside seminars, college/university-related programs, and in-house development centres. Learning in leadership positions comes largely from job experience and much less from mentors, coaches, or formal training. However, companies attempt to develop leadership talent through individualized executive coaching. 10.1 Explain the strategic value and importance of performance management. Performance management is a broad, strategic activity encompassing all activities (e.g., goal setting, career management, pay for performance, training and development, and disciplinary actions) associated with improving employee performance across the organization. It helps align employee productivity with the organization’s strategic objectives while establishing goals and supporting a high-performance organizational culture. Performance appraisals encompass the whole process of evaluating an employee’s past and present job performance against their performance standards. To develop ethical and legal guidelines for performance management, job performance standards should be linked to job descriptions, raters and employees should be provided with defined job standards, subjective ratings should be paired with objective ratings, formal appeal mechanisms should be provided, and the outcome of performance evaluations should be focused on corrective guidance. 10.2 Discuss the five steps in the performance management process. The five steps in the performance management process are (1) defining performance expectations and goals, (2) providing ongoing feedback and coaching, (3) conducting performance appraisal and evaluation discussions, (4) determining performance rewards/consequences, and (5) conducting development and career opportunities discussions. 10.3 Describe five performance appraisal methods and the pros and cons of each. There are a number of performance appraisal methods. Graphic rating scales are simple to use and facilitate comparison of employees, but the performance standards are often unclear and bias can be a problem. Alternation ranking is a simple method that avoids central tendency, but it can be unfair if most employees are doing well. Paired comparison ensures that all employees are compared with each other, but it can also be unfair if most employees are performing similarly. Narrative forms provide concrete information to the employee but are time-consuming and can be subjective. The forced distribution method ensures differentiation of performance ratings but can be demotivating for employees classified as less than average. The critical incident method is very specific about the employee’s strengths and weaknesses. It forces the supervisor to evaluate employees on an ongoing basis, making it difficult to compare employees. BARS is very accurate, but is difficult and time-consuming to develop. MBO ties performance ratings to jointly agreed-upon performance objectives, but it is time-consuming to administer. 10.4 Discuss the major problems inhibiting effective performance appraisals. Appraisal problems to be aware of include unclear standards, the halo effect, central tendency, leniency or strictness, appraisal bias, the recency effect, and the similar-to-me bias. 10.5 Discuss the various sources of performance appraisal, including the 360-degree appraisal. There are various sources of performance appraisal, including the employee, their manager or supervisor, their subordinates, their co-workers, their customers, or multiple stakeholders combined via the 360-degree approach. 11.1 Discuss the strategic importance of total rewards. A total rewards approach considers individual reward components as part of an integrated whole to determine the best mix of rewards that are aligned with business strategy and provide employee value, all within the cost constraints of the organization. Strategic alignment refers to the extent to which rewards support outcomes that are important to achieving the organization’s strategic objectives. How an organization compensates its employees must include legal considerations (including the employment and labour standards acts, workers’ compensation laws, human rights acts, mandatory pension plans, and pay equity acts), union influences, rewards, and equity considerations. 11.2 Explain the concept of equity in pay and how an organization can address feelings of inequity. Equity theory of motivation suggests that people are motivated to maintain a balance between their contributions or effort and how they are rewarded for their contributions or efforts. An imbalance between an individual’s input and output of effort or contributions creates tension, which motivates the individual to alter their input to achieve balance. There are four equity considerations in compensation: external equity, internal equity, individual equity, and procedural equity. Pay equity is intended to address systemic gender discrimination as measured by the wage gap, which includes full-time working women. Pay equity requires equal pay for female-dominated jobs of equal value to male-dominated jobs (where value is determined through job evaluation). 11.3 Explain in detail each of the three stages in establishing pay rates. Establishing pay rates involves three stages: job evaluation (to ensure internal equity), conducting wage/salary surveys (to ensure external equity), and combining job evaluation and salary survey results to determine pay rates. Job evaluation is aimed at determining the relative worth of jobs within a firm. It compares jobs with one another based on their content, which is usually defined in terms of compensable factors, such as skill, effort, responsibility, and working conditions. Jobs of approximate equal value are combined into pay grades for pay purposes. Salary surveys collect data from other employers in the marketplace who are competing for employees in similar kinds of positions. The wage curve shows the average market wage for each pay grade (or job). It illustrates what the average wage for each grade should be and whether any present wages or salaries are out of line. 11.4 Describe the elements of compensation for competency-based pay and special positions: executives, managers, and professionals. Compensating professional, management and executive employees presents a unique concern, given their high level of impact on firm performance and the fact that their job performance is highly dependent on the performance of others. Thus, compensable factors generally focus on problem-solving, job scope, creativity and expertise. At the top or executive level, traditional job evaluation is less effective. Instead, the organization determines top management or executive pay based on an understanding the job’s complexity, the employer’s ability to pay, and the need to be competitive in attracting top talent. More employers are moving from paying jobs based on their intrinsic duties toward paying jobs based on the competencies the job requires. Competency-based pay plans (also known as “pay for knowledge”) provide employee compensation based on the skills and knowledge they are capable of using, rather than the job they currently hold. 12.1 Discuss the impact of money as a means to incentivize employee motivation, and compare fixed and variable pay plans and the appropriate use of each. When designing effective financial incentive plans, it’s important to understand the relationship between money and motivation. A job needs to satisfy a person’s higher-level needs as well as intrinsic and extrinsic needs. Rewards can be used as a behaviour-modification–based approach to help change behaviour through rewards and recognition contingent on performance. 12.2 Explain how to use incentives for various groups of employees, including all employees, professional employees, operational employees, teams/groups, sales employees, senior managers, and executives. Merit pay, profit-sharing plans, employee share purchase/stock ownership plans, and gainsharing plans are examples of organization-wide incentive plans that are usually made available to all employees. Merit pay is an increase in base pay (fixed) that is tied directly to individual performance. Profit-sharing plans provide a share of company profits to all employees in the organization. The problem with such plans is that sometimes the link between a person’s efforts and rewards is unclear. Stock purchase plans provide a vehicle for employees to purchase company stock with their own and sometimes employer contributions. Gainsharing plans engage employees in a common effort to achieve a company’s productivity objectives in which incremental cost savings are shared among employees and the company. Professional workers can be incentivized with dual career ladders and social recognition, while operational employees can be recognized using piecework compensation, or the differential piece-rate plan. Senior management employees often receive a short-term incentive, usually in the form of an annual bonus linked to company or divisional profits. Long-term incentives are intended to motivate and reward top management for the firm’s long-term growth and prosperity, and to inject a long-term perspective into executive decisions. Salary plans for salespeople are effective when the main sales objective is finding new clients or servicing accounts. The main disadvantage of salary plans is that pay is not tied to performance. Commission plans attract high-performing salespeople who see that performance will clearly lead to rewards. The problem with straight commission plans is that there is a tendency to focus on “big-ticket” or “quick-sell” items and to disregard long-term customer relationships. 12.3 Explain under what conditions it is best to use an incentive plan. Incentive plans are particularly appropriate when units of output are easily measured, employees can control output, the effort–reward relationship is clear, work delays are under employees’ control, and quality is not paramount. Employee recognition plans are growing in popularity as a cost-effective method of retaining employees by praising their achievements. Recognition has the most impact when it is sincerely and meaningfully provided by the supervisor in a public presentation format. 13.1 Explain the strategic role of employee benefits. The strategic importance of employee benefits is increasing in the post-job-security era. When benefits are aligned with business strategy, they can help attract and retain the right people to achieve business objectives. 13.2 Describe five government-mandated benefits. Government-mandated benefits include employment insurance (EI), pension plans, workers’ compensation, paid time off (including maternity and paternity leave, breaks, and vacations), and pay on employment termination. Employees and employers must abide by the rules associated with the benefits. Employers deduct EI and pension contributions at the source of payment. 13.3 Discuss five types of voluntary healthcare-related employee services or benefits offered to employees. Employers assist with ensuring that employees’ basic short- and long-term healthcare needs are met by offering additional healthcare benefits. These include life insurance, short-term disability or sick leave plans, long-term disability, and mental health benefits. The costs can be assumed by the employer completely, shared between the employer and employee, or transferred directly to the employee. 13.4 Describe the two categories of pension plans and legal considerations in the development of pension plans. The two categories of pension plans are defined benefit plans and defined contribution plans. Defined benefit plans provide a benefit based on a formula related to years of service, and the employer assumes the investment risk associated with the pension fund assets. Defined contribution plans provide for specified contributions to a pension fund by the employer. The benefit will vary depending on the rate of return on the pension fund assets (employees assume the investment risk). Legal considerations include membership requirements, retirement age, funding, vesting, and portability. 13.5 Discuss five types of employee-specific benefits and identify the impact of these benefits on the employee–employer relationship. Employee-specific benefits are voluntary, but employers often feel that they must provide these benefits to attract and retain talent. These include family-friendly benefits (such as childcare facilities), flexible work schedules (such as telecommuting), job-related services (such as educational subsidies), non-job-related personal services (such as counselling services), and executive perquisites. 13.6 Explain how to set up a flexible benefits program and cost considerations in benefits plan management. The flexible benefits approach allows employees to put together their own benefit plan, subject to total cost limits and the inclusion of certain compulsory items. The employer first determines the total cost for the benefits package. Then a decision is made as to which benefits will be compulsory (such as Canada/Quebec Pension Plan, workers’ compensation, and employment insurance). Then other benefits are selected for inclusion in the plan, such as life insurance, health and dental coverage, short- and long-term disability insurance, and retirement plans. Sometimes, vacations and employee services are included as well. Then employees select the optional benefits they prefer with the money they have available to them under the total plan. Health insurance costs are rising because of expensive new drugs, rising drug use by an aging population, reductions in coverage under provincial healthcare plans, benefits fraud, and costs of retiree healthcare commitments. These costs can be reduced in multiple ways: -​ By increasing the portion of healthcare costs paid by employees -​ By publishing a restricted list of the drugs that will be paid for under the plan -​ By implementing health and wellness promotion plans -​ By using risk-assessment programs -​ By minimizing benefits fraud -​ By offering health services spending accounts 14.1 Analyze the responsibilities and rights of employees, supervisors, and employers under occupational health and safety legislation. Employers, supervisors, and employees are held jointly responsible for maintaining the health and safety of workers, including participation on joint health and safety committees. Employers are responsible for “due diligence”—taking every reasonable precaution to ensure the health and safety of their workers. Supervisors are responsible for ensuring workplace policies are well communicated and adhered to by employees, and that employees’ concerns are dealt with in a safe and systematic manner. Employees are responsible for protecting their own health and safety and that of their co-workers. Employees have the right to know about workplace safety hazards, the right to participate in the occupational health and safety process, and the right to refuse unsafe work. The Workplace Hazardous Materials Information System (WHMIS) is a Canada-wide, legally mandated system designed to protect workers by providing crucial information about hazardous materials and substances in the workplace. WHMIS requires labelling of hazardous material containers, material safety data sheets, and employee training. 14.2 Analyze in detail three basic causes of accidents. There are three basic causes of accidents—chance occurrences, unsafe conditions, and unsafe acts on the part of employees. In addition, three other work-related factors—the job itself, the work schedule, and the psychological climate—also contribute to accidents. 14.3 Describe how accidents at work can be prevented. One approach to preventing accidents is to reduce unsafe conditions by identifying and removing potential hazards. Another approach to improving safety is to reduce unsafe acts—for example, through selection and placement, education and training, positive reinforcement, top-management commitment, and monitoring work overload and stress. 14.4 Discuss at least six major employee health issues at work, and recommend how they should be handled. Substance abuse is an important and growing health problem among employees. Techniques to deal with this challenge include discipline, discharge, in-house counselling, and referrals to an outside agency. Stress, depression, burnout, and PTSD are other potential health problems at work. Job stress can be reduced by ensuring that employees take breaks each day, providing access to counselling, and giving employees more control over their jobs. Repetitive strain injuries occur as a result of repetitive movements, awkward postures, and forceful exertion. Ergonomics is very effective at reducing RSIs. Workplace toxins can be carcinogenic, and some governments are providing workers’ compensation benefits to workers with job-related cancer. Employees who smoke have reduced productivity and greater health costs. Governments across Canada have increasingly banned workplace smoking. Violence against employees is a serious problem at work. Steps that can reduce workplace violence include improved security arrangements, better employee screening, and workplace violence training. Employee wellness programs aim to improve employees’ health and reduce costs for sickness and disability claims, workers’ compensation, and absenteeism. Wellness initiatives include physical fitness programs, smoking cessation programs, relaxation classes, and heart health monitoring. 15.1 Define employee relations and employee engagement. Employee engagement is a positive, fulfilling, work-related state of mind characterized by vigour, dedication, and absorption. Organizational factors such as senior leadership, opportunities for learning and development, and company image and reputation are the primary influencers of engagement. Outcomes of employee engagement include improvements in recruiting, retention, turnover, individual productivity, customer service, customer loyalty, growth in operating margins, increased profit margins, and revenue growth rates. 15.2 Describe forms of voluntary turnover and explain the costs associated with employee turnover. Voluntary turnover is employee-initiated termination of the employment relationship. Quits (resignations) can be a function of work or non-work-related causes. Retirements indicate an employee’s decision to leave the workforce due to their desire to retire. In both cases, the employer loses the ability to control the quantity and quality of employee exits. Turnover can be very costly for the organization. The costs can be organized into four distinct categories: separation costs, vacancy costs, replacement costs, and training costs. 15.3 Analyze three core legal risks associated with involuntary turnover via layoffs and explain the concepts of dismissal for just cause and progressive discipline. Dismissal for just cause allows employers to terminate the employment of individuals who fail to meet organizational requirements or abide by workplace expectations. The principle of progressive discipline indicates that employers must have a clear policy in place for workplace violations, which increases penalties for repeated violations. Organizational policies must be consistently applied and clearly communicated to be legally defensible. Employees who are dismissed without just cause must be provided with reasonable notice. This means paying them for several weeks or months in addition to the legally required notice period on termination. Failure to provide this can result in differing perspectives on how much reasonable notice the employee is entitled to, and this confusion can result in an employee-initiated lawsuit. 15.4 Explain the six steps in the termination interview and describe how risks from wrongful dismissal lawsuits can be minimized. The six steps in the termination interview are to plan the interview carefully, get to the point, describe the situation, listen until the person has expressed their feelings, discuss the severance package, and identify the next step. While employees can initiate wrongful dismissal lawsuits on their own accord, organizations can take a few steps to reduce their exposure to wrongful dismissal lawsuits. This includes establishing clear rules and regulations for just-cause dismissals, avoiding claims of for-cause dismissal when no cause exists, mediating potential lawsuits, and reviewing claims carefully. Additionally, if an employee feels that the manner in which the downsizing was executed or the decisions used were unfair, they may file a lawsuit for bad-faith damages. If the judicial system feels that the manner in which the termination was conducted significantly violated the employer–employee relationship or was negative for the employee, additional punitive damages may be awarded. 16.1 Discuss why employees unionize and the concept of union security. Employees unionize to benefit from a legally identified entity that can negotiate on behalf of many employees. Generally, employees in unionized companies secure higher pay and better working conditions. Employee disengagement is also correlated with the propensity to unionize. 16.2 Explain three trends in the labour movement in Canada and describe the purpose of Canadian labour laws. Canada’s unionization rates have been relatively stable, with increases to white-collar and service sector jobs to balance out reductions in manufacturing and blue-collar jobs. Global competition has forced unions to negotiate concessions. Demographic changes mean that unions must simultaneously meet the needs of an aging workforce as well as that of a young, diverse workforce. Canada’s labour laws provide a common set of rules for fair negotiations and ensure the protection of public interest by preventing the impact of labour disputes from inconveniencing the public. Tripartite labour relations boards across the country administer labour relations laws. These laws try to balance employees’ rights to engage in union activity with employers’ management rights. 16.3 Outline the five steps in the labour relations process, including organizing the campaign, conducting collective bargaining, and establishing grievance procedures. There are five steps in the LR process: (1) employees’ decision to seek collective representation, (2) the union organizing campaign, (3) official recognition of the union, (4) negotiation of a collective agreement, and (5) day-today contract administration. The union organizing process involves five steps, which typically include (1) employee and union contact, (2) an initial organizational meeting, (3) the formation of an in-house organizing committee, (4) an organizing campaign, and (5) the outcome—certification, recognition, or rejection. There are three basic ways in which a union can obtain recognition as a bargaining unit for a group of workers: (1) voluntary recognition, (2) the regular certification process, and (3) a prehearing vote. The three stages in the collective bargaining process are preparation for negotiations, face-to-face negotiations, and obtaining approval for the proposed contract. Two possible additional steps are third-party assistance if talks break down and a strike/lockout or interest arbitration if the parties arrive at a bargaining impasse. Typical steps in a grievance procedure involve presenting a written grievance to the worker’s immediate supervisor, then to an HR/LR specialist, then to senior management, and finally to an arbitrator for final and binding rights arbitration. 17.1 Describe the influence of intercountry differences on the workplace. Intercountry differences include cultural factors (such as power distance, individualism versus collectivism, and gender egalitarianism), economic systems (including labour cost factors), and legal systems. These affect IHRM in a variety of ways. 17.2 Explain how to improve global assignments through employee selection and compensation planning. Global relocation strategies must consider effective selection, training, compensation, labour relations, and performance appraisals for expatriates and global managers. Selection for global assignment should align with the organization’s staffing policy (ethnocentric, polycentric, and geocentric). It can result in the selection of expatriates, locals (citizens of the countries where they are working), or third-country nationals (citizens of a country other than the parent or the host country). In reference to compensation, the balance sheet approach allows the employer to estimate expenses for income taxes, housing, and goods and services and pay supplements to the expatriate in such a way as to maintain the same standard of living that they would have had at home. 17.3 Describe the main considerations in repatriating employees from abroad. Repatriation problems are common but can be minimized. They include the often well-founded fear that the expatriate is “out of sight, out of mind” and difficulties in reassimilating the expatriate’s family back into home-country culture. Suggestions for avoiding these problems include using repatriation agreements, assigning a home-country sponsor or mentor, offering career counselling, keeping the expatriate plugged in to home-office business, building in return trips, providing financial support to maintain the expatriate’s home-country residence, and offering reorientation programs to the expatriate and their family. 17.4 Discuss challenges immigrants to Canada face and identify the role of multiple stakeholders in ensuring successful integration of talent in Canada. Newcomers to Canada face a variety of challenges associated with securing full employment. Specifically, a lack of Canadian work experience, poor transferability of foreign credentials, and a lack of language skills in English or French are seen as the greatest barriers to employment for newcomers, according to both immigrants and employers. These barriers result in significant underemployment of immigrants or a skills mismatch, which further exacerbates the skills shortage that employers experience.