Selection - McMaster University PDF

Selection Dr. Helen Chen Agenda Overview of selection practice Attributes of effective selection system Selection methods in details What is Selection? From a pool of applicants, the process of identifying individuals with the necessary KSAOs, who are best able to fulfill the requirements of...

Selection Dr. Helen Chen Agenda Overview of selection practice Attributes of effective selection system Selection methods in details What is Selection? From a pool of applicants, the process of identifying individuals with the necessary KSAOs, who are best able to fulfill the requirements of the job. Things to Know about Selection It is a decision process The goal is to make the best “prediction” Typically involves several key steps Utilizes multiple tools (methods) Steps in the Selection Process Attributes of Effective Selection Methods Phrenology, anyone? The detailed study of the shape and size of the cranium as a supposed indication of character and mental abilities. Standards for Evaluating a Selection System 1. Reliability 2. Validity (includes Generalizability) 3. Practicality 4. Legality / Fairness 8 Selection Assessment and Job Performance Good Job Performance Applicant pool Poor Low High Performance on Selection Assessments Selection Assessment and Job Performance Selection Assessment Cutoff Line Good Performance Poor Performance Not Selected Selected Outcome of Selection Assessments Selection Assessment and Job Performance Selection Assessment Cutoff Line Good Performance Performance Cutoff Line Poor Performance Low High Performance on Selection Assessments Selection Assessment and Job Performance Selection Assessment Cutoff Line False Negatives True Positives Good Performance Performance Cutoff Line Poor Performance True Negatives False Positives Not Selected Selected Selection Assessment and Job Performance False Negatives True Positives Good Performance Poor Performance True Negatives False Positives Not Selected Selected Avoiding False Positives False Negatives True Positives Good Performance Performance Cutoff Line Poor Performance True Negatives False Positives Not Selected Selected Avoiding False Negatives False Negatives True Positives Good Performance Performance Cutoff Line Poor Performance True Negatives False Positives Not Selected Selected Can you do BOTH: Reduce false negatives AND false positives? Selection as Prediction Prediction is probabilistic in nature Are not perfectly accurate Will result in some inaccurate classifications and decisions Want to maximize “hits” and minimize “misses” You can’t entirely avoid both, but using measures with high validity can help 17 Standards for Evaluating a Selection System 1. Reliability 2. Validity (includes Generalizability) 3. Practicality 4. Legality / Fairness 18 Reliability Definition: Refers to the consistency of scores produced by a measure 2 important types of reliability 1. Test-retest reliability – “Stability” Would you get similar score if you take a test twice? 2. Inter-rater reliability – “Equivalence” Do 2 or more raters agree when rating the same behaviour? Particularly important for interviews, resume screening 19 Validity Definition: the validity of any measure is the degree to which it measures what it is supposed to. In the selection context, it reflects the appropriateness of the inferences (about future job performance) made based on scores of selection tool (i.e., predictive validity) Various “types” of validity 1. Content validity 2. Criterion-related validity 20 Content Validity Does the selection tool assess the most important KSAOs required by the job? Job analysis establishes job’s “content domain” For each KSAO, does the instrument effectively measure that particular attribute? 21 Criterion-Related Validity Does one’s assessment score relate to the outcome of interest (i.e., the criterion) ? In selection: The extent to which a selection tool predicts job performance; or significantly correlates with, important elements of behaviors at work Other contexts: For example: High school grades  university GPA 22 Implications of Validity Perfect but not realistic False Negatives True Positives Success 5 Invalid Measure Likely Scenario: valid 3 Failure 1 True Negatives False Positives Not Selected Selected Outcome of Selection Assessments Practicality / Utility Considerations of Cost, utility Time to develop and implement Capability of the users (administration) of the tool Applicant reactions 24 Legality / Fairness Indicators include: Standardization in administration Employment equity and human rights considerations 25 Selection Methods Selection Methods Standard Other Screening Tool Testing Assessment Application Aptitude/Achievement Interviews Resumes/Cover Letter Physical ability Work samples Screening interview Cognitive ability Job performance Biodata Personality tests Simulations Background checks Honesty/Integrity tests Situational judgment Reference checks Drug and alcohol testing Assessment center Medical exam Validity of Various Assessment Tools The Interview Most widely used selection technique 2 main types: Unstructured Structured In practice, can vary along continuum Unstructured Interview Open-ended questions, various topics Different questions for different candidates No clear guidelines for evaluating interviewees Interviewers make decision based on “gut feeling” Subject to undesired influences Poor reliability and low validity 30 Structured Interview 3 distinguishing features: 1.Job-related questions 2.Predetermined scoring system / rating scale 3.Standardized - same approach for all applicants 2 types: situational and behavioural 31 Situational Interview Presents candidate with a situation and ask “What would you do …?” Rationale for situational interview “intention predicts future behaviour” Potential Limitations Possible for candidate to guess the best answer Behavioural intention may not equal behaviour 32 Behaviour Description Interview Candidate is asked to describe a specific situation (that actually had happened in the past) which relates to a specific KSAO Example: Tell me about a time when you had to work on a team with someone you didn’t get along with. Rationale for behavioural interview “past behaviour is the best predictor of future behavior” Potential Limitation of behavioural interview Past mistakes may not be repeated Requires more interviewer expertise 33 Standard Tests Cognitive Ability Test measure a variety of mental abilities such as memory, reasoning, verbal, mathematical, spatial Strong predictor of success in jobs; Validity increases with job complexity Good generalizability, predicts across jobs, organizations Personality Inventory Traits identified as job-related “Big-5” model Conscientiousness predicts performance across most jobs (validity =.3) Job Performance & Work Samples More direct than other measures Job Performance Assessing someone actually performing job Work samples Perform parts of job - job tasks; role plays, simulations Selection Decisions Who Makes the Selection Decision? Immediate manager or supervisor Human resources professional Work team or other panels Selection Decisions Multiple-hurdle model Eliminates some candidates at each stage Compensatory model A very high score on one assessment can make up for a low score on another Hiring algorithm Mathematical model that predicts which job candidates are most likely to be high-performers Final Thought Selection (together with other staffing practices) has a positive bottom-line effect (Huselid, 1995) Formal selection tools other than interview are under-utilized in Canadian organizations (Kelloway, Catano & Day, 2011) A selection system that is informed by research and based on evidence can ensure legality of the employment practice Selection system signals how organizations value the people they hire Training & Development Agenda Overview of Training & Development Training: A System View and Key Considerations Employee Development & Career Management Definitions Training: Planned effort by an organization to facilitate employees’ learning of job-related knowledge, skills, and behaviors. Development: combination of activities that help employees prepare for the future of their careers. Why Training and Development Legislative requirement Job requirement Remedial, correct performance issues Maybe used as a reward Strategic Importance of Training and Development T&D expenditures % of payroll: EU 3%; US 2% (ASTD, 2010); Canada 1.5% (Canadian Conference Board, 2018) 3 top strategic goals (Cotsman & Hall, 2018) Enhancing individual employee performance Improving organizational performance Developing organizational leaders Definitions (Con’t) Training: Planned effort by an organization to facilitate employees’ learning of job-related knowledge, skills, and behaviors. Development: combination of activities that help employees prepare for the future of their careers. Learning: a relatively permanent change in behavior and human capabilities produced by experience and practice Performance: Actions or behaviors relevant to the organization’s goals; measured in terms of each individual’s proficiency. Training: System View & Key Considerations Instructional System Design, Delivery & Needs Analysis Evaluation Implementation Organization Training Objective Evaluation Criteria analysis Training Content Evaluation Design Task Analysis Training Method Person Analysis *Learning Principle* Training Needs Analysis Training Objective and Content Three components of effective training objectives: 1. What employee is expected to do; quality or level of performance; and conditions to apply 2. Performance standards that are measurable 3. Resources needed to carry out the desired performance or outcome Meaningful content: 1. Learning content should make use of concepts, terms and examples familiar to the learners. 2. Learning context should be as similar to the work environment Training Delivery Methods Training Delivery: Presentation Method Characteristics: learners primarily received information Pros: Can be standardized; efficiency; Cons: Limited interactivity with learners; lack of opportunity for practice; limited feedback for learners Examples: Asynchronous Learning. Presentation of material through various channels. Lecture. Instructor-led classroom instruction, supplemented with materials. Distance (Virtual) Learning. Instructor-led instruction in the online environment. Training Delivery: Hands-on Method Characteristics: learners are active participants in learning Pros: built-in practice opportunities; learning occurs in a realistic environment; skills more ready to be applied Cons: complex design; high cost of development; Examples: On-the-job Training. Practicing skills on the job, guided by an experienced person Simulation. Learning occurs in an environment that mimic real life situations Technology-based Interactive Learning. Interactive e-Learning, Virtual reality, Games, etc.. Group Learning Characteristics: group of learners share ideas and experiences; learning in a team environment Pros: interactive; targets individual skills improvement as well as team effectiveness Cons: many variables involved; less controlled learning environment Examples: Experiential Program. Teams complete a set of activities together. Team Training/Cross-training. Team members are trained in a coordinated manner. Action Learning. Team works on an actual business issue with built-in learning objectives. Choosing Training Method 1. Based on needs assessment that identifies the desired learning outcomes 2. Training method has a large effect on reaction, learning, and behavioral change outcome 3. It is the match between the training method and the desired learning outcomes that matters 4. Practical considerations: budget, time, operational constraints, etc  Training Methods and Learning Outcome (Belcourt, Singh, Snell & Morris, 2020)  ROI Results Behavior The “Transfer Problem” Learning Reaction/Satisfaction Can We Solve the Transfer Problem? Trainee characteristics Trainability: ability and motivation to learn Training design: learning principles Active practice Mastery: extent to which task can be performed with limited attention Fidelity: extent to which what is trained is similar to what is required on the job Work environment Opportunity to use learned capabilities Supervisor and manager support (*Baldwin & Ford, 1988) Employee Development and Career Management Concepts Development: activities undertaken that help employees perform effectively in their current or future job and company Career management: system to retain and motivate employees by identifying and providing opportunities to meet their development needs Career Management Systems  Career Management Systems Action Data Feedback Goal Setting Planning & Gathering Follow-up Employee Identify opportunities Identify what needs Identify goals and Identify steps and and needs to improve are realistic to method for timetable to reach Responsibilities develop development goal Provide assessment Communicate Ensure the Identify resources Organization information to expectation and development goal is employee needs to Responsibilities identify development where employee fit in aligned with reach development needs the long term plan organization vision goal Succession Planning Identifying, developing, and tracking employees who are capable of moving into different positions Key benefits prepares future leaders and builds “bench strength” minimizes disruptions when key employees leave helps plan development experiences attracts and retains employees High “Potential”: - Outstanding performance - Accomplishments …what is “potential”? Human Resources Management & Labour Relations Lucy Djelalian Pepper Commerce 2BC3  Performance Management ° What is Workplace Performance? Observable behavior that contributes to the accomplishment of an organization’s goal ° What is Performance management? Process of ensuring that employee behaviour is congruent with organizational goals 2  Purposes of Performance Management Helps organization achieve strategic objectives Strategic Links employees’ behaviour with the organization’s goals Provides information for day-to-day decisions Administrative e.g. salary and recognition Supports hiring decisions Basis for developing employees Developmental Builds awareness of strengths and areas for improvement. Chapter 7 7  Criteria for Effective Performance Management The extent to which the performance management system has: 1. Strategic Congruence - elicits job performance that is consistent with the company’s strategy, goals and culture 2. Validity - assesses all of the relevant – and only the relevant – aspects of job performance 4  Validity and the Criterion Problem Job Actual, or performance “true” job measure performance Contamination Validity Deficiency 5  Criteria for Effective Performance Management 3. Reliability - is free from random error 4. Acceptability - The extent to which a performance measure is deemed to be satisfactory or adequate to those who use it. 5. Specificity - gives detailed guidance to employees about what is expected of them and how they can meet these expectations 6  Four Approaches to Measuring Performance 1. Comparative 2. Attributive 3. Behavioural 4. Results 7  Comparative Approach ° The Comparative Approach requires the rater to compare an individual’s performance to that of others. ° Different methods include: Ranking including simple ranking or alternation ranking Forced distribution method Paired comparison method 8  Example: Forced Distribution ° Raters (managers) must assign a certain % of employees into categories ° Example: High performers – 20% performance rewards, developmental opportunities Middle performers – 70% feedback to become high performer Low performers – 10% feedback, specific improvement goals; termination 9  Forced Distribution ° Potential Benefits Avoids problem of inflated ratings Fosters performance-oriented culture Identifies high-potential employees Increase in organizational performance - poor performers improve or are let go ° Potential Disadvantages % may not represent actual distribution of performance May over-reward some and punish others Could result in competitive, fearful culture 10  Attributive Approach ° Attributive Approach - extent to which person possesses attributes that contribute to job / organizational success ° Most widely used method is the graphic (points) rating scale Needs Attribute Outstanding Excellent Good Poor improvement Teamwork 5 4 3 2 1 Leadership 5 4 3 2 1 11  Limitations of Attributes / Traits ° Measurement of attributes may not be clearly linked to the organization’s strategy. ° Subjective – different perceptions of attributes such as “fairness” or “dependability” 12  Behavioural Approach ° Behavioural Approach – attempts to define the behaviours an employee must exhibit to be effective in the job ° Examples include: Critical Incidents Behaviourally-Anchored Rating Scales (BARS) Behavioural Observation Scale (BOS) 13  Results Approach ° Results Approach - focus on what is accomplished / produced. Measurable, “objective” results of one’s work. The purpose is to reduce subjectivity Management by objectives (MBO) – goals/targets become performance standard E.g., Output - $ sales, units sold Quality – # of complaints, errors, commendations 14  So, what should actually be measured in PA? ° Behaviour & Results 1. Behaviour Because it is what the person does Provides basis for feedback 2. Results Because they represent the outcomes 3. Context To diagnose if results were actually due to behaviour 15  Choosing a Source ° Managers - used most frequently ° Peers - useful in jobs with great autonomy ° Subordinates - upward Feedback ° Self ° Customers ° Multisource or 360–Degree Feedback 16  Guidelines for Providing Performance Feedback 1. Should occur frequently – not once/year 2. Choose neutral and private venue 3. Encourage subordinate response to evaluation Hear their side of story 4. Praise good performance; discuss poor performance. 17  Guidelines for Providing Performance Feedback 5. Take problem-solving approach Minimize criticism Diagnose cause; address barriers 6. Focus feedback on behaviour or results, not on the person 7. Agree on specific goals & follow-up 18 PERFORMANCE MANAGEMENT Lecture Segment 2: Discipline & Dismissal Dr. Aaron Schat 1  Segment Outline ⁃ Discipline Preventive, Corrective, Progressive Considerations in discipline ⁃ Dismissal Criteria for dismissal ”Just cause” Wrongful dismissal Constructive dismissal Guidelines for terminating employees  Employee Discipline ⁃ Discipline involves training/feedback that enforces organizational rules ⁃ Preventive Discipline Action taken prior to an infraction to encourage employees to follow the rules – e.g., communicate expectations Goal is to facilitate self-discipline ⁃ Corrective Discipline Action that follows a rule infraction and seeks to discourage further infractions - & deter others  Progressive Discipline ⁃ Type of corrective discipline ⁃ Small penalty with 1st violation; stronger penalties if violation occurs again Goal is to provide opportunity for corrective action ⁃ For example: Verbal warning / reprimand Written reprimand (goes on file) Stronger penalties – e.g., suspension … Up to and including termination ⁃ But, serious misconduct may be grounds for immediate termination 4  Considerations re: Discipline ⁃ Government legislation E.g., can’t discipline a worker who is asserting rights protected by law ⁃ Collective bargaining agreements ⁃ Due process – procedural justice/fairness How is discipline done? E.g., allow for employee to respond to charges ⁃ Hot-stove rule Warning/predictable, immediate, consistent, impersonal 5  Employee Dismissal ⁃ Employer may terminate nonunion employee at any time if “just cause” exists In unionized environments - collective agreement may contain provisions regarding grounds and process for termination ⁃ In absence of just cause, there must be “reasonable notice” or compensation in lieu of notice 6  What is Just Cause? ⁃ Dismissal that is warranted by employee behavior Behaviour that may undermine the operation or reputation of the organization i.e., employer has legally defensible reason to terminate without notice or pay in lieu of notice ⁃ Burden is on employer to demonstrate just cause ⁃ Economic factors do not constitute just cause 7  What is Just Cause? 1. Serious misconduct Theft, assault, harassment, intoxication, etc. 2. Willful disobedience of reasonable order Insubordination 3. Conflict of Interest When employee has multiple interests that may  bias Activities that compromise or compete with employer’s business interests 4. Poor performance Employer must demonstrate that goal was performance improvement See next slide 8 Requirements re: Dismissal for Poor Performance Document Show that Document Reasonable & employee’s Evidence employee continued objective failure to of was failure to performance meet warnings given time, meet standards performance training, etc standard standard 9  Wrongful Dismissal ⁃ Without just cause, OR ⁃ Without reasonable notice, OR ⁃ Without compensation in lieu of notice 10  What is Reasonable Notice? ⁃ Period of time employee is entitled to before having employment/pay terminated – when there is no just cause ⁃ Purpose – to provide time for employee to find employment ⁃ Can be time or pay in lieu of notice ⁃ Statutory minimum (from ESA) 1 week per year of service 11  What is Reasonable Notice? ⁃ More notice if… Older ; longer tenure; more seniority Higher level job Unfavourable labour market 12 Pay in lieu of notice ≠ Severance pay 13  Severance Pay ⁃ Compensation given for loss of seniority and job-related benefits, when employer ends employment of long-term employee Different than pay in lieu of notice - which focuses on time to find new employment ⁃ Who qualifies for severance pay? In Ontario – according to ESA Employed with employer for 5+ years Employer has payroll of > $2.5 million 14  Severance Pay ⁃ Severance pay not required if: Employee refuses offer of “reasonable alternative employment” Employment ends because of misconduct Employment ends but employee retires on full pension See ESA for other unique exceptions 15  Calculating Severance Pay ⁃ Severance = Pay for regular week of work X # of years employment ESA max = 26 weeks of pay 16  Constructive Dismissal ⁃ Is a form of “wrongful dismissal” that is not dismissal, per se ⁃ Employer makes a significant change to a fundamental term of employment without employee’s actual or implied consent E.g., Pay cut; Reduced hours of work; Demotion - reduced authority/status of position; Forced relocation 17  Constructive Dismissal ⁃ Employee should resign soon after change (under 3 months) AKA “Disguised dismissal”; “quitting with cause” As if employee is forced to quit By not resigning, the employee indicates his/her acceptance of the new employment conditions ⁃ If agreed to, it’s not constructive dismissal Must be unilateral to be CD 18 19  Considerations re: “Firing” Employees ⁃ Where? Neutral location – HR department, conference room ⁃ When? Avoid Fridays Because employment, health services unavailable on weekends 20  Considerations re: “Firing” Employees ⁃ How? Compassion - “how would I like to be treated?” Be clear, honest, and tactful Prepare, rehearse, discuss with colleagues Get to the point early in meeting  Considerations re: “Firing” Employees ⁃ What else? Have necessary information ready Including severance pay, benefits How you will handle inquiries from future employers Escort/ Security ? Arrange transportation home Notify other staff 22  Compensation Lecture Segment 1: Fundamentals of Compensation Dr. Aaron Schat 1  Lecture Segment 1 Outline ⁃ What is Compensation? Total Rewards Strategic considerations ⁃ Establishing a Pay Structure in Organizations Market forces Job Evaluation Pay grades and pay ranges  What is Compensation? ⁃ Compensation reflects the value that employees receive for contributing their time and energy to a company ⁃ Referred to as total rewards or total compensation because it reflects range of value that employees receive Including both monetary and non-monetary elements 3  Total Rewards / Compensation Development / Employee Compensation Benefits Work / Life Career Recognition Opportunities Wage/Salary Insurance Flexibility Recognition & Training (dental, Care for Appreciation programs Pay for medical, etc.) dependents programs Tuition Performance Pension Health & (Service reimbursement Vacation Wellness awards, peer Job rotation recognition) Succession planning  Total Rewards ⁃ Optimal compensation strategy is one that is aligned with organizational strategy ⁃ One that contributes to… Attracting, retaining, motivating work force ⁃ Compensation is largest cost category in many organizations Needs to be deployed strategically May not be lowest cost If higher pay drives higher performance Compensation as investment 5  Total Rewards ⁃ Key strategic considerations 1. What mix of total rewards should be used? Fixed vs variable Base, benefits, pay-for-performance, etc. 2. What criteria should determine pay? The job, individual KSAOs, market forces, performance…?  What is fair pay? ⁃ How do you evaluate whether you are being paid fairly? 7  What is fair pay? Equity theory We evaluate fairness by comparing to others Two types of social comparisons – external and internal External equity How does my pay compare with what I could make elsewhere? Compare pay to similar job in other organizations Internal equity How does my pay compare to my coworkers’ pay? Pay relative to job, ability, effort, contribution, etc.  Establishing Pay Structure Pay Structure External Equity: Internal Equity: Market Job Forces Evaluation  Market Forces What is necessary to attract qualified individuals from the labour market? Salary surveys Provides salary information (range, medians, percentiles) By region, industry, etc. Custom survey by consultant Public sources: Payscale; Job Bank; Robert Half Salary Guide Allows benchmarking pay against competitors  Job Evaluation ⁃ Job Evaluation Process of determining the relative worth of jobs within an organization Reflected in different pay levels Purpose is to foster internal pay equity Equal pay for work of equal value Point method is most popular approach to Job Evaluation  Point Method of Job Evaluation ⁃ Establishes job values by assigning points to each job based on “compensable factors” Job characteristics that the organization values and are reflected in pay levels ⁃ Skill, effort, responsibility, working conditions Factors are weighted – based on organizational values Each level is defined Jobs are rated - points assigned  Job Evaluation example Compensable Level 1 Level 2 Level 3 Level 4 Points Factor Responsibility (Weight = 40%) 120 - For $ 10 20 30 40 resources - For people 20 40 60 80 Skill (Weight = 20%) 60 - Education 10 20 30 40 - Experience 5 10 15 20 Effort (Weight = 17%) 50 - Mental 8 16 24 32 - Physical 4 18 12 18 Work Conditions (Weight = 23%) 70 - Hazards 5 25 45 70 13  Pay Grade ⁃ Job Evaluation point totals are used to form pay structure Jobs with similar points are assigned to similar pay grade ⁃ Pay Grade: A grouping of jobs of similar worth/value to the organization ⁃ Indicate pay ranges for various jobs Different jobs may have similar pay Principle of pay equity – equal pay for work of equal value ⁃ An individual’s actual pay level may vary within the grade’s pay range, depending on Qualifications Experience/tenure Performance  Shelf Stocker Cashier Store Baker Store Butcher Produce Manager Store Manager Pay Grades – Grocery Store Example 15  Summary ⁃ Job evaluation and market considerations influence an organization’s pay structure Primarily based on the relative worth / value of jobs in the organization ⁃ But what about paying individuals for their unique contributions to organizational performance? Incentive pay or pay for performance UNIT 8: Compensation Lecture Segment 2: Pay for Performance Dr. Aaron Schat 1  Lecture Segment 2 Outline ⁃ Motivation & Pay Motivational value of money Self-Determination Theory Autonomous vs controlled motivation ⁃ Pay for Performance Pay for Performance plans Incentive vs sorting effects Side effects of incentives  Compensation ⁃ Compensation reflects the value that employees receive for contributing their time and energy to a company ⁃ Segment 1 Total rewards Focused on pay for worth of jobs ⁃ In this segment, we will focus on pay for performance 3  Total Rewards / Compensation Development / Employee Compensation Benefits Work / Life Career Recognition Opportunities Wage/Salary Insurance Flexibility Recognition & Training (dental, Care for Appreciation programs Pay for medical, etc.) dependents programs Tuition Performance Pension Health & (Service reimbursement Vacation Wellness awards, peer Job rotation recognition) Succession planning  Pay-for-Performance ⁃ Any type of financial reward provided when certain specified performance results occur Goal: to motivate and reward superior performance / productivity ⁃ Based on motivational value of money – that $ can influence behaviour  Does money motivate? ⁃ Do you think you would achieve higher grades if you received $ for them? ⁃ Would you be attracted to a job that provides pay incentives for effective performance? 6  Does money motivate? ⁃ The “Yes” view: People will be more willing to behave in particular ways if doing so results in (more) money Get job, work harder, work more, do better, etc. “Money is the crucial incentive… no other incentive or motivational technique even comes close to money with respect to its instrumental value” (Locke et al., 1980) 7  Does money motivate? ⁃ The “Critical” view: ⁃ Harvard Business Review article (Pfeffer, 1998) Called idea that people are primarily motivated by money a “myth” ⁃ Dan Pink (see TED talk, “The puzzle of motivation”) Suggests incentive pay is not effective for enhancing performance on creative tasks ⁃ “A substantial body of research has demonstrated, both in experimental and field settings, that large external rewards can actually undermine intrinsic motivation” (Pfeffer, 1998, p. 216) 8  Self-Determination Theory Intrinsic ⁃ Do activity for its own sake; inherently satisfying Motivation Integrated ⁃ Do activity because it is part of your sense of self – Regulation becomes habitual Identified ⁃ Do activity because you identify with its value, meaning Regulation Introjected ⁃ Do activity to avoid guilt – because you “should” Regulation External ⁃ Do activity to obtain reward or avoid punishment Regulation ⁃ Do not pursue behaviour – success is unlikely, Amotivation impossible – “no point in trying” 9  Self-Determination Theory Intrinsic Motivation Integrated Autonomous Motivation Regulation Behaviour is internally driven Identified Regulation Introjected Regulation Controlled (extrinsic) Motivation External Regulation – Behaviour is externally driven Amotivation 10  Self-Determination Theory Intrinsic Motivation Integrated Autonomous Motivation Regulation ⁃ Goal attainment Identified ⁃ Task persistence Regulation ⁃ Higher performance ⁃ Better well-being 11  Self-Determination Theory Introjected Regulation Controlled Motivation Inconsistent goal striving External Regulation Less persistence Impaired performance Reduced well-being 12  Why? ⁃ Why the different effects of autonomous and controlled motivation? ⁃ Satisfaction of 3 human psychological needs Autonomy agency; to act in harmony with sense of self Competence mastery Relatedness connectedness to others 13 What does this mean for $ and motivation? ⁃ Pay for performance  reward for performance achievement ⁃ According to SDT, if the behaviour is done solely to obtain reward, it is “externally regulated” Not optimal for sustained persistence, performance, or wellbeing What does this mean for $ and motivation? ⁃ Should organizations avoid using performance rewards? No! ⁃ Incentives are associated with higher performance (Shaw & Gupta, 2015) But, should encourage autonomous motivation as well Can include well structured incentives ⁃ For example: Receiving reward for individual performance achievement – autonomy, competence Receiving reward for group performance – competence, relatedness  Pay-for-Performance ⁃ Any type of financial reward provided when certain specified performance results occur Goal: to motivate and reward superior performance / productivity Includes: Pay for Individual performance Pay for team/unit performance Pay for organizational performance  Pay-for-Performance ⁃ Various programs Merit Pay, Bonuses & other incentives Ownership - Stocks and stock options Profit sharing, Gainsharing ⁃ Key considerations: What / whose performance is rewarded? Individual, team, or organizational performance? Timing of reward One-time bonus vs on-going raise? Immediate or deferred? Does performance incentive pay replace or supplement base salary? i.e., Pay at risk?  Pay for Individual Performance ⁃ Piecework plan Employees receive a certain rate for each unit produced ⁃ Commission Pay as percentage of sales ⁃ Standard hour plan Extra pay for work that is completed in less than “standard” amount of time ⁃ Merit pay Increase in base pay connected to performance appraisal rating ⁃ Performance bonus Like merit pay, but bonus is not added to base pay  Pay for Team / Unit Performance Gainsharing ⁃ Bonus for productivity, cost improvements of business unit Portion of gains are shared with employees ⁃ E.g., Scanlon Plan, Rucker Plan, Improshare Different productivity standards, sharing formulas ⁃ Requires an organizational culture characterized by… Good employee – management cooperation Openness to employee input Company financial information is shared with employees  Pay for Team / Unit Performance ⁃ Team Bonuses / Awards Rewarding members of a team for achieving a goal or particular performance level  Pay for Organizational Performance ⁃ Profit Sharing Pay / bonus as % organizational profits Not added to base pay Contains costs in times of low profitability ⁃ Stock ownership / Stock options Granting shares or share options to employees Portion of salary as shares or share options ⁃ Purpose is to encourage employees to take organizational perspective  Pay for Performance ⁃ How does Pay-for-Performance affect motivation and performance? ⁃ Incentive effects Increase in behaviour because of reward ⁃ Sorting effects PfP is attractive to some; not to others People apply, don’t apply, quit, etc. Over time, people will stay in jobs where the pay “fits” their preferences 22  Pay for Performance ⁃ Lazear (1986) study of glass installation company ⁃ Switched from salary to individual incentives Productivity increased by 44% 50% of gains came from individual performance improvement 50% from sorting - some people left; replaced by more productive workers 23  Side Effects of Pay-for-Performance ⁃ Caution “…people do what you pay them to do; not what you ask them to do” (Hicks Waldron, CEO of Avon) Can encourage counterproductive behaviour ⁃ Bus drivers (HBR article) At bus stop during rush hour; near-empty buses drove by Why? Because drivers were rewarded for arriving at destinations on time If they were running late, they wouldn’t pick up passengers Loss of revenue during peak times 24  Side Effects of Pay-for-Performance ⁃ Green Giant Rewarded employees for removing insects from vegetables ⁃ Pacific Gas & Electric Company Crews detected and repaired gas leaks 2010 explosion killed 8, destroyed 38 homes Investigation suggested incentive system played role Bonuses to supervisors whose crews kept costs down Fewer leaks = lower costs 25  Concluding Comments ⁃ Best compensation system is one that aligns employee behaviour with organizational strategy ⁃ By ensuring compensation… Attracts and retains capable workforce Addresses employees’ financial and psychological needs Motivates and appropriately incentivizes behavior that supports organizational goals 26 Human Resources Management & Labour Relations Lucy Djelalian Pepper Commerce 2BC3  Introduction ° Every year, businesses spend billions of dollars as a result of worker accidents and injuries. ° Common causes of workplace injuries include… ° Why should organizations care? Because they have a legal, ethical and moral duty to provide a safe and healthy environment. But also… impact on bottom line 2  H&S Then … ° Until early 20th Century, employers took little responsibility for worker safety ° Assumption of risk was prevailing doctrine When worker accepts job, worker accepts risks associated with job Accidents = fault of the worker 3  … and Now ° Comprehensive H&S legislation emerged in 1970s Influenced by 1976 Report of Royal Commission on the Health and Safety of Workers in Mines Introduced the Internal Responsibility system Commission articulated 3 principal rights of workers 1. Safety first and safety always 2. Safety is everyone’s responsibility 3. Safe work is efficient work 4  H&S Legislation ° Federal and Provincial or Territorial legislation ° Concerned with identification, evaluation and control of hazards in the work environment Chemicals; Ergonomic; Health; Physical and Psychosocial ° Goals of legislation Ensure safe and healthy working conditions and provide penalties for violators “Shared responsibility” for employers and employees 5  Employer Duties and Responsibilities ° Take steps to implement measures to create and maintain a safe and healthy workplace ° Provide health and safety devices, equipment, and apparel ° Conduct inspections / Maintain equipment and immediately report all critical injuries ° Appoint competent supervisors ° Train and educate supervisors and workers ° Create health and safety policies and committees.  Employee Responsibilities ° Duty to follow safety practices and procedures, comply with health and safety instructions and take all necessary reasonable precautions to ensure their own and others’ health and safety at work. ° Cooperate in fulfilling everyone’s duties and responsibilities under the legislation and report health and safety hazards, contraventions and accidents to the employer.  Employee Rights ° Right to refuse dangerous work without penalty Exceptions: If the risk is a normal condition of the work If refusal puts others at risk ° Right to know about hazards in the workplace E.g., WHMIS ° Right to participate in identifying & correcting problems 8  Enforcement of Occupational H&S Regulations ° Westray Mine Disaster, May 1992 ° Explosion in coal mine, 26 miners killed ° Investigation revealed disregard of safety by management Methane gas not managed appropriately due to cost and time pressures ° Led to Bill C-45 – “Westray Bill” (2004) Amendment to criminal code – criminal liability of senior officers of corporation that neglect duty of care ° Recent case: Metron Construction Corporation 9  Workplace Violence ° Any act in which a worker is abused, threatened, intimidated or assaulted in the course of their employment ° Goes beyond physical acts of violence  Types of Workplace Violence ° Based on assailant’s relationship with target ° Type I: no legitimate relationship Enters workplace to commit criminal act (theft) Accounts for 85% of workplace homicides ° Type II: legitimate relationship Aggressive act committed during an interaction e.g., customer, client, patient Account for about 60% of nonfatal assaults 11  Types of Workplace Violence ° Type III: assailant is current or former employee Targets a coworker or supervisor Related to both individual and organizational characteristics Examples: Pierre LeBrun and Theresa Vince ° Type IV: assailant has ongoing or previous relationship with an individual employee E.g., domestic violence spilling over into workplace 5% of workplace homicides Example: Lori Dupont 12  How common is workplace aggression? ° Overall 19% of women and 13% of men reported that they had experienced harassment 13% women and 10% men reported verbal abuse 6% women and 5% men reported humiliating behaviour 4% women and less than 1 % men reported sexual harassment ° Source of Aggression 53% of women said a client or customer was responsible for the harassment For men, the most common source of harassment was from their supervisor or manager at 39% 35% of men and 34% of women were harassed by a colleague 13  Costs to the organization ° Damage to targets / witnesses Physical illness, psychological symptoms Demotivation Reduced performance Absenteeism ° Legal costs Litigation & settlements from victim claims Litigation & settlements from the accused harasser - claims of wrongful termination 14  Costs to the organization ° Wasted manager time Time spent disciplining Time dealing with victimized coworkers ° Organizational Performance Reduced innovation, creativity Less internal cooperation, citizenship Turnover; Impaired ability to recruit 15  Bill C-168 ° Amendment to the OH&S Act (Ontario) ° Came into effect June 15, 2010 Now known as Section 32 of OH&S Act ° Purpose: To protect workers from violence and harassment ° How? Increase employer’s responsibility to deal with violence and harassment 16  Bill C-168 – General Requirements 1. Develop written policies with respect to violence and harassment 2. Post policies in organizations with more than 5 employees and review annually; Provide training to employees re: policy 3. Conduct risk assessments and communicate the results. This includes the evaluation of workplace conditions to identify potential risks – from internal & external sources 17  Bill C-168 – General Requirements 4. Take steps to mitigate risks 5. Provide information to workers about an individual with a history of violence and 6. Allow workers to refuse unsafe work where workplace violence is likely to endanger their safety 18  Job-Related Risk Factors for Exposure to Workplace Aggression (LeBlanc & Kelloway, 2002) ° Working alone ° Working evenings or nights ° Handling valuables, guns, weapons, or dispensing drugs ° Exercising care or physical control over others ° Having contact with individuals under the influence of substances ° Being responsible for care of others ° Interacting with frustrated individuals Decisions that result in denial of a service/request 19  Bill C-168 Employer Obligations ° Employer obligations if become aware of violence/ harassment Investigate incident Immediate assistance for victim Discipline aggressor Safety, security measures Follow through – respond & prevent 20  Situational / Organizational Predictors ° Physical conditions Crowding, heat, noise, etc. ° Perceived injustice ° Layoffs, downsizing ° Strict / abusive supervision ° Failure to address aggression / mistreatment Lack of a policy / enforcement 21  Consequences of Aggression ° Physical Injury, death, somatic symptoms ° Psychological Fear, anger, depression, anxiety Reduced job satisfaction, commitment ° Behavioural Substance abuse, aggressive behaviour Reduced job performance, absenteeism, quitting 22  Workplace Violence: Employer Practices to Prevent Workplace Violence 1. Secure top management commitment and worker participation. 2. Develop a workplace violence prevention policy and program. 3. Identify all factors that contribute to workplace violence. 4. Assess the potential for violence in the workplace. 5. Develop and implement systematic controls.  Workplace Violence: Employer Practices to Prevent Workplace Violence 6. Monitor, review and revise workplace prevention measures. 7. Develop and implement written emergency notification procedures. 8. Attempt to resolve all cases of workplace violence. 9. Provide thorough information, instruction and training on workplace violence. 10. Implement zero-tolerance workplace violence policy LABOUR RELATIONS Lecture Segment 1: Introduction to Unions Dr. Aaron Schat 1  Lecture Segment 1 Outline ⁃ What is a union? ⁃ Why do workers join or certify a union? ⁃ Union density ⁃ Union organizing / certification ⁃ Organizational approaches to Labour Relations 2  What is a Union? ⁃ Have you and a coworker ever approached your boss/employer to ask about a change in policy or practice? E.g., change in pay, longer break, more flexible schedule or other schedule change, etc.? ⁃ Have you ever arranged with 1 or more other students to meet with a professor to express a concern about a course; to ask for an extension; etc.? 3  What is a Union? ⁃ An organization with the legal authority to Represent workers Negotiate the terms and conditions of employment with the employer Administer the collective agreement ⁃ Collective agreement Contract negotiated between union and employer outlining terms and conditions of employment Establishes “work rules”: wages, hours of work, and working conditions 4 Why do workers join or certify a union? 5  Why do workers join or certify a union? ⁃ Pay, working conditions, treatment, etc. are deemed to be unfair or do not meet expectations ⁃ Belief in value and effectiveness of collective vs individual voice ⁃ Closed or Union Shop provisions Closed shop - person must be union member before being hired Union shop – all existing and future employees must join and be members of union 6  Union Density Statistics About 75% of public sector; 17% of private sector Canada USA (30%) China (10%) (45%) Uganda Japan Sweden Iceland (1.5%) (17%) (67%) (90%) 7  Unionization in Canada ⁃ Density has been relatively consistent around 30% since late 1990s ⁃ Composition has changed Private sector density has decreased Accounted for 30% in 1970s; about 17% now Greater proportion of women Women comprised about 10% of union members in 1970s; about 30% now Due to increased density in public and service sectors 8  How do workers become unionized? ⁃ Certification Process by which union is designated as exclusive bargaining agent of a group of employees ⁃ Key steps – see timeline 9  Union Certification Process LRB would supervise Initial meetings of workers, Organizing Certification/ union reps Campaign Ratification vote Minimum % Apply to Labour Certification if signed Relations Board 50% +1 of membership (LRB) to voters vote in cards – 35-51% schedule vote favour % depends on jurisdiction 10  Union Organizing Campaign ⁃ After a vote has been scheduled but before the vote has occurred ⁃ During a campaign, the union and employer often try to convince workers to vote for their ”side” Some actions are prohibited by labour law i.e., referred to as “Unfair labour practices” 11  Unfair Labour Practices by Employer during Organizing ⁃ TIPS – acronym Threats of consequences if union gets in Intimidating employees Promises if employees vote against union Surveillance of or discrimination against members involved in organizing 12  Employer Rights during Organizing ⁃ Employer can: Inform employee of their rights Correct untrue or misleading information Inform employees of responsibilities that may be associated with union membership Dues, picketing, loss of income during strike, etc. 13  Unfair Labour Practices by Unions ⁃ A union or its representatives cannot: Demand that employer bargain with union when union is not the certified bargaining agent Recruit during work hours Intimidate or coerce an individual who is opposing the union Threaten or engage in illegal strikes 14  Labour Relations Strategy ⁃ How employer deals with unions/unionization Continuum Cooperation Conflict Union Union Union Acceptance Substitution Avoidance / Suppression 15  Labour Relations Strategy ⁃ Cooperation / Acceptance Union is viewed as employees’ legitimate representative Union may become certified by employer voluntarily recognizing the union (except in Quebec) E.g., Magna & CAW (now Unifor) Characterized by integrative bargaining 16  Integrative (Interest-Based) Bargaining ⁃ Assumption – interests are complimentary ⁃ Mutual gains ⁃ Focus on interests/priorities – problem-solve to achieve them Rather than fight over positions 17  Labour Relations Strategy ⁃ Union Avoidance - Union Suppression Goal: avoid unionization or oppose union “hardball” tactics Unfair labour practices Adversarial Distributive bargaining 18  Distributive (Positional) Bargaining ⁃ Assumption – Interests are in conflict ⁃ Adversarial; Win-lose ⁃ Demands and concessions, rather than mutual gains ⁃ E.g., auto workers, teachers 19  Labour Relations Strategy ⁃ Union Substitution Goal is to remove incentive to join union Provides what unions would provide – fair wages, conditions, etc. E.g., Dofasco (Arcellor Mittal) 20  Labour Relations Strategy ⁃ An organization’s Labour Relations strategy is influenced by various factors: Organization’s history Philosophy and values of founder and leadership over time View of workers, management rights, etc. Social and national context Labour laws can strengthen or undermine likelihood of union formation and representation 21  Segment 1 Summary ⁃ Unions Primary role is to represent the interests of a group of workers in negotiating terms and conditions of employment To ensure fair treatment of workers ⁃ International variation in union representation ⁃ Process of certification Legal rights and limitations of employers and unions ⁃ The Labour Relations strategy of an organization can have a significant effect on the relationship between the organization and its workforce  LABOUR RELATIONS Lecture Segment 2: Labour Legislation in Canada Dr. Aaron Schat 1  Agenda ⁃ Fundamentals of Labour Legislation Right to join union Unfair labour practices Contract negotiation Strikes & lockouts Contract administration 2  Fundamentals of Canadian Labour Legislation ⁃ Canada Labour Code; Labour Relations Act ⁃ Right to join a union Workers have right to join a union and participate in its activities ⁃ Exclusions from union membership Vary by jurisdiction, but generally include: Managerial employees Agriculture, hunting, and trapping Certain professions – e.g., architects, dentists, doctors, engineers, lawyers, etc. 3  Fundamentals of Canadian Labour Legislation ⁃ Prohibition against unfair labour practices Applies to both union and employer ⁃ Contract negotiation Duty to bargain in good faith Conciliation/Mediation 3rd party (e.g., representatives from the Labour Relations Board) facilitate negotiation Required in most provinces before strike or lockout can occur 4  What if no agreement is reached? ⁃ Strike Workers withhold labour ⁃ Lockout Workers prevented from working Both a strike by workers, or a lockout by the employer, are strategies aimed at compelling the other side to submit to their bargaining demands ⁃ Alternatives 5  Alternatives to Strike / Lockout ⁃ Interest Arbitration Alternative to strikes/lockouts (in public sector) 3rd party considers both sides and creates an agreement ⁃ Final offer selection Only if both sides have agreed to this in lieu of strike or lockout Both sides submit final offers Arbitrator selects one to implement 6  Fundamentals of Canadian Labour Legislation ⁃ Contract administration & interpretation Strikes and lockouts are illegal during the term of a collective agreement Grievance arbitration provisions Involves 3rd party making decision re: a grievance Decision is binding and cannot be appealed 7