HRA Chapter 1-6 PDF

Copyright © 2023 by Cengage Canada CHAPTER 1 The World of Human Resources Management Copyright © 2023 by Cengage Canada 1-2 Why Study Human Resources Management? – 1 Human Resources Management (HRM) − The process of managing human talent to achieve an organization’s objectives. − Bringing together different people to achieve common objectives. Copyright © 2023 by Cengage Canada 1-3 Why Study Human Resources Management? – 2 Work with people to help solve organizational issues Attract top-notch people to come to work with you and your firm Determine the right people to hire, so your team and company are a success Help and coach people, so they become top performers Make pay and reward decisions that may influence peoples’ lives Establish the strategic direction your firm should take Copyright © 2023 by Cengage Canada 1-4 Human Capital and HRM Human capital – knowledge, skills, and capabilities of individuals that have economic value to an organization − intangible − cannot be managed the way organizations manage jobs, products, and technologies Organizations must find ways to better use the knowledge of their workers. − Managers of all types must carry out the specific activities for a company to effectively do so. Copyright © 2023 by Cengage Canada 1-5 Figure 1.1 - Overall Framework for HRM Copyright © 2023 by Cengage Canada 1-6 Competitive Issues and Human Resources Management – 1 Issue 1: − Responding Strategically to Crisis, Changes, and Disruptions in the Local and Global Marketplace Issue 2: − Setting and Achieving Corporate Social Responsibility and Sustainability Goals Issue 3: − Advancing HRM with Technology Copyright © 2023 by Cengage Canada 1-7 Competitive Issues and Human Resources Management – 2 Issue 4: − Containing Costs While Retaining Top Talent and Maximizing Productivity Issue 5: − Responding to the Demographic and Diversity Challenges of the Workforce Issue 6: − Adapting to Educational and Cultural Shifts Affecting the Workforce Copyright © 2023 by Cengage Canada 1-8 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 1 COVID-19 and HRM − COVID-19 has resulted in one of the most extreme organizational changes in the past century and strategic planning has become even more important. − It has highlighted the need for a feeling of community and common objectives. HR Managers and Business Strategies − HR managers need an intimate understanding of their firm’s competitive business operations and strategies. Copyright © 2023 by Cengage Canada 1-9 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 2 Human resources managers need to understand the following: − Six Sigma − Reengineering − Downsizing − Outsourcing − Change management − Reactive change − Proactive change Copyright © 2023 by Cengage Canada 1-10 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 3 Six Sigma − A set of principles and practices, whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement Copyright © 2023 by Cengage Canada 1-11 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 3 Reengineering − The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed Copyright © 2023 by Cengage Canada 1-12 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 4 Downsizing − Planned elimination of jobs (“head count”) Outsourcing − Contracting out work that was formerly was done by employees A common denominator of these strategies is that they require companies to engage in change management Copyright © 2023 by Cengage Canada 1-13 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 5 Change Management − Systematic way of bringing about and managing organizational changes and changes on the individual level COVID-19 has placed new restrictions at work. Copyright © 2023 by Cengage Canada 1-14 Kurt Lewin’s Force Field Analysis Model Exhibit 15.1 Lewin’s Force Field Analysis Model. Access the text alternate for image. Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 6 Good HR managers know that they can be key players, when it comes to driving the business strategies of their organizations to make changes. Reactive change − Changes that occur after external forces have already affected performance Proactive change − Change initiated to take advantage of targeted opportunities Copyright © 2023 by Cengage Canada 1-16 Issue 1: Responding Strategically to Crisis, Changes, and Disruptions – 7 Competing, Recruiting, and Staffing Globally − Globalization: the trend to opening up foreign markets to international trade and investment − About 70–85 percent of the Canadian economy today is affected by international competition. Impact of Globalization − “Anything, anytime, anywhere” markets − Partnerships with foreign firms − Lower trade and tariff barriers Copyright © 2023 by Cengage Canada 1-17 Issue 2: Corporate Social Responsibility and Sustainability Goals HR's responsibilities include the development and implementation of corporate citizenship and good environmental management Corporate Social Responsibility − The responsibility of the firm to act in the best interests of the people and communities affected by its activities Sustainability − Closely related to corporate social responsibility − Doing business in a way that does as little harm to the environment and depletes as few natural resources as possible Copyright © 2023 by Cengage Canada 1-18 Issue 3: Advancing HRM with Technology – 1 Computer networks and “cloud computing” − unlimited amounts of data can be stored, retrieved, and used in a wide variety of ways. Collaborative software–allows workers anywhere, anytime to interface and share information with one another. It has changed how and where people and companies do business. Knowledge workers–responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving Copyright © 2023 by Cengage Canada 1-19 Issue 3: Advancing HRM with Technology – 2 Virtual learning Video conferencing platforms − Zoom, Webex, Teams, and Hangouts − COVID-19 broke down barriers and expedited the transformation process Automation and Artificial Intelligence − web robots/ chat bots (‘bots’) – affects blue-collar and routine jobs − plays a major part in the gig economy − platforms such as Uber and Lyft, algorithms are essential to allocate, monitor, and reward gig work Copyright © 2023 by Cengage Canada 1-20 Issue 3: Advancing HRM with Technology – 3 Human Resources Information System (HRIS) − A computerized system that provides current and accurate data for purposes of control and decision making Impact of HRIS: − Operational − Relational − Transformational Copyright © 2023 by Cengage Canada 1-21 Issue 3: Advancing HRM with Technology – 4 Operational − Automation of routine tasks, lower administrative costs, increased productivity, and faster response times; self- service access to information and training for managers and employees Relational − Online recruiting, screening, and pretesting of applicants Transformational − Training, tracking, and selecting employees, based on their record of skills and abilities; organization-wide alignment of “cascading” goals Copyright © 2023 by Cengage Canada 1-22 Issue 3: Advancing HRM with Technology – 5 Workforce (HR) analytics − process of gathering and analyzing data to improve a firm’s human resources management − big data is useful for recruitment and selection and a variety of other reasons such as performance appraisal and management, evaluate leadership behaviours, assess organizational climate and culture Copyright © 2023 by Cengage Canada 1-23 Competitive Issue 4: Containing Costs Organizations can take many approaches to lowering labour-related costs: − Downsizing − Furloughing − Outsourcing − Offshoring − Employee Leasing Copyright © 2023 by Cengage Canada 1-24 Issue 4: Containing Costs Downsizing: − Widespread throughout North America − Every major corporation has undergone some cycle of downsizing − Beginning in the 1990s, the layoffs began to affect white-collar in knowledge-intensive industries − In 2020 and 2021, COVID-19 resulted in many industries having to resort to downsizing Copyright © 2023 by Cengage Canada 1-25 Issue 4: Containing Costs Hidden Costs of a Layoff include: − Severance and rehiring costs − Accrued vacation and sick-day payouts − Pension and benefit payoffs − Potential lawsuits from aggrieved workers − Loss of institutional memory and trust in management − Lack of staffers when the economy rebounds − Survivors who are risk averse, paranoid, and political Copyright © 2023 by Cengage Canada 1-26 Issue 4: Containing Costs Benefits of a no-layoff policy: − A fiercely loyal, more productive workforce − Higher customer satisfaction − Readiness to snap back with the economy − A recruiting edge − Workers who aren’t afraid to innovate, knowing their jobs are safe Copyright © 2023 by Cengage Canada 1-27 Issue 4: Containing Costs Furloughing − An alternative to downsizing − A situation in which an organization asks or requires employees to take time off for either no pay or reduced pay − Gained widespread use since the COVID-19 pandemic − When the public learns that a company has used such a tactic, it can harm its recruiting efforts Copyright © 2023 by Cengage Canada 1-28 Issue 4: Containing Costs Outsourcing: − Employment relationship between companies and employees has shifted from relationship- based to transaction-based − Is one of the most prominent HR trends Offshoring (or global sourcing) – sending jobs to other countries Copyright © 2023 by Cengage Canada 1-29 Issue 4: Containing Costs Nearshoring – moving jobs closer to one’s home country Homeshoring – moving jobs to work-from home domestic independent contractors Copyright © 2023 by Cengage Canada 1-30 Issue 4: Containing Costs An alternative to downsizing, outsourcing, offshoring, and furloughing is employee leasing: − The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities), and contracting with that company to lease back the employees Copyright © 2023 by Cengage Canada 1-31 Issue 4: Containing Costs Productivity Enhancements: − Providing work flexibility can improve the productivity and motivation of valuable employees. Copyright © 2023 by Cengage Canada 1-32 Issue 5: Demographic and Diversity Challenges in the Workforce – 1 Almost half of the organizations surveyed reported that the biggest investment challenge facing them over the next 10 years is obtaining human capital and optimizing their human capital investments. Copyright © 2023 by Cengage Canada 1-33 Issue 5: Demographic and Diversity Challenges in the Workforce – 1 Significant challenges are the demographic changes in Canada and elsewhere: − More diverse workforce − Aging workforce − Gender − More educated workforce Copyright © 2023 by Cengage Canada 1-34 Issue 5: Demographic and Diversity Challenges in the Workforce – 2 Diversity/Immigration Challenge − In 2019, India, China, the Philippines, Nigeria, and the United States made up the largest portion of new immigrants − In the midst of COVID-19, Canada announced in 2020 that it would welcome 1.2 million new immigrants between 2021 and 2023 in order to recover economically from the pandemic Copyright © 2023 by Cengage Canada 1-35 Issue 5: Demographic and Diversity Challenges in the Workforce – 3 Age Distribution − Imbalance in age distribution is having a significant effect. − Large portions of workforces are nearing retirement. Copyright © 2023 by Cengage Canada 1-36 Issue 5: Demographic and Diversity Challenges in the Workforce – 4 Gender Distribution − Women make up nearly half of the workforce in Canada. − Organizations must realize the value of diversity and inclusion in their workforce. − The current gender equality efforts often overlook the approximately 1.5 million adults in the United States and Canada who are transgender − Initiatives should address and improve the conditions for LGBTQ people. Copyright © 2023 by Cengage Canada 1-37 Figure 1.3 Composition of the Population of Canada (Millions) Copyright © 2023 by Cengage Canada 1-38 Issue 6: Adapting to Educational and Cultural Shifts Affecting the Workforce Education of the Workforce −According to the 2016 Census, more than half (54.0 percent) of Canadians aged 25 to 64 had a college or university diploma, up from 48.3 percent in 2006. Copyright © 2023 by Cengage Canada 1-39 Issue 6: Adapting to Educational and Cultural Shifts Affecting the Workforce Cultural and societal changes affecting the workforce Employee rights Privacy concerns of employees Changing nature of the job Changing attitudes toward work Balancing work and family Copyright © 2023 by Cengage Canada 1-40 Figure 1.4 Factors Related To The Best And Worst Places To Work Copyright © 2023 by Cengage Canada 1-41 The Partnership of Line Managers and Human Resources Departments Successful organizations combine the experience of line managers with the expertise of HR managers to develop and utilize the talents of employees. Line managers are non-HR managers, who are responsible for overseeing the work of other employees. Different types of human resources managers specialize in different HR functions. Copyright © 2023 by Cengage Canada 1-42 Responsibilities of the HR Manager The major activities for which an HR manager is typically responsible are: − Strategic advice and counsel − Service − Policy formulation and implementation − Employee advocacy − Business mastery − HR mastery − Change mastery − Personal credibility Copyright © 2023 by Cengage Canada 1-43 Competencies of the HR Manager Changes are taking place in the HRM profession, both in Canada and around the world. Human resource professionals must become more accountable to those they serve. Good human resource managers assist their organizations in gaining a sustainable competitive advantage over competitors. Copyright © 2023 by Cengage Canada 1-44 FIGURE 1.5 Human Resource Competency Model Copyright © 2023 by Cengage Canada 1-45 Independent Task: Do some research on… HRPA COMPETENCY FRAMEWORK SHRM COMPETENCY MODEL Copyright © 2023 by Cengage Canada 46 Copyright © 2023 by Cengage Canada CHAPTER 2 Strategy and Human Resources Planning Copyright © 2023 by Cengage Canada 2-2 Strategic Planning and Human Resources Strategic Planning − Procedures for making decisions about the organization’s long-term goals and strategies − Strategic plans have an external orientation (explain what this means) What is a strategy? Take a moment to do a bit of search and tell me what you find. STRATEGY – The unique advantage(s) organizations will have over a period of time in doing something. Copyright © 2023 by Cengage Canada 2-4 Strategic Planning and Human Resources Human Resources Planning (HRP) − The process of anticipating and providing for the movement of people into, within, and out of an organization (the full cycle). What is the relationship or connection between HRP and Strategic Planning? Strategic Human Resources Management (SHRM) − The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals Copyright © 2023 by Cengage Canada 2-5 High-Performance Work Systems (HPWS) Human resource practices that increase an organization’s ability to attract, select, hire, develop, and retain high-performing employees Employee involvement and a culture of commitment, rather than control, is stressed Importance of the quest for excellence and expects employees to be highly qualified, competent, and engaged in improving the organization Copyright © 2023 by Cengage Canada 2–6 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–7 Name the step in which HR has to help to establish a cultural foundation for the organization Copyright © 2023 by Cengage Canada 2–8 Step 1: Mission, Vision, and Values Mission − The basic purpose of the organization, as well as its scope of operations Strategic Vision − A statement about where the company is headed and what it can become in the future; clarifies the long-term direction of the company and its strategic intent Core Values (build company/ organizational culture) − The strong and enduring beliefs and principles that the company uses as a foundation for its decisions Copyright © 2023 by Cengage Canada 2–9 Step 2: External Analysis – 1 Environmental Scanning − Systematic monitoring of the major external forces influencing the organization Business environment − Economic and ecological changes − Technological changes − Demographic changes and labour market trends − Social changes − Legal and regulatory changes Copyright © 2023 by Cengage Canada 2-10 Step 2: External Analysis – 2 Competitive Environment (NOTE) − Customers − Rival firms − New entrants − Substitutes − Suppliers − Stakeholders Questions: How can HR Practitioners and Business Partners help a firm to maintain itself in a competitive environment?2-11 Copyright © 2023 by Cengage Canada Step 2: External Analysis – 3 Stakeholders − Key people and groups that have an interest in a firm’s activities and that can either affect them or be affected by them Primary stakeholders: investors, employees, customers, suppliers, and creditors Secondary stakeholders: the community in which the firm operates, the government, business groups, and the media Copyright © 2023 by Cengage Canada 2-12 HR’s External Supply of Labour Labour-supply changes affect hiring plans in the area where the organization is located or plans to locate HR must consider the implications of a maturing workforce for recruitment and replacement policies Copyright © 2023 by Cengage Canada 2-13 HR’s External Supply of Labour Other factors: migration in and out of the area, mobility of the population, firm’s demand for specific skills, unemployment rates, educational level of the workforce, government labour regulations, etc. Copyright © 2023 by Cengage Canada 2-14 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–15 Step 3: Internal Analysis – 1 A growing number of experts now argue that the key to a firm’s success is based on establishing a set of core capabilities Internal Analysis − Capabilities − Composition − Culture Copyright © 2023 by Cengage Canada 2-16 Step 3: Internal Analysis – 2 Core Capabilities − Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers Can consist of a combination of three resources: 1. processes 2. systems (technologies), and 3. people Value Creation is what the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted Copyright © 2023 by Cengage Canada 2-17 Sustaining a Competitive Advantage through People Four criteria: − The resources must be valuable. − The resources must be rare. − The resources must be difficult to imitate. − The resources must be organized. Different skill groups in any given organization can be classified, based on the extent to which they add strategic value and are unique to that organization. Copyright © 2023 by Cengage Canada 2-18 Figure 2.3 - Mapping Human Capital Copyright © 2023 by Cengage Canada 2-19 Corporate Culture Cultural audits - Audits of the culture and quality of work life in an organization − How do employees spend their time? − How do they interact with each other? − Are employees empowered? − What is the predominant leadership style of managers? − How do employees advance within the organization? − https://eplex.ilo.org/fixed-term-contracts-ftcs/ Copyright © 2023 by Cengage Canada 2-20 Assessing a Firm’s Human Capital Readiness: Gap Analysis Human Capital Readiness − Evaluating the availability of critical talent in a company and comparing it to the firm’s supply − Any difference between the number and quality of employees needed and employees available represents a gap that must be filled. Copyright © 2023 by Cengage Canada 2-21 Forecasting – 1 Managers must continually forecast both the needs and the capabilities of the firm for the future to do an effective job at strategic planning Forecasting involves: 1. forecasting the demand for labour 2. forecasting the supply of labour 3. balancing supply and demand considerations Copyright © 2023 by Cengage Canada 2-22 Figure 2.4 Model of HR Forecasting Copyright © 2023 by Cengage Canada 2-23 Forecasting – 2 Forecasting Labour Demand: − Quantitative approaches Trend Analysis: Forecasting labour demand based on an organizational index (such as sales) − Qualitative approaches Management Forecasts: opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs. N.B. Delphi Technique is also qualitative Copyright © 2023 by Cengage Canada 2-24 Forecasting – 4 Forecasting the Supply of Employees − Staffing tables Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements − Markov analysis A method for tracking the pattern of employee movements through various jobs Copyright © 2023 by Cengage Canada 2-25 Figure 2.5 Hypothetical Markov Analysis For A Retail Company Copyright © 2023 by Cengage Canada 2-26 Forecasting – 5 Quality of Fill: A metric designed to assess how well new hires are performing on the job [after, say a year] Skill Inventories: Files of personnel education, experience, interests, and skills that allow managers to quickly match job openings with employee backgrounds Replacement Charts: Listings of current jobholders and people who are potential replacements if an opening occurs Succession Planning: Process of identifying, developing, and tracking key individuals for executive positions Copyright © 2023 by Cengage Canada 2-27 Figure 2.6 An Executive Replacement Chart Copyright © 2023 by Cengage Canada 2-28 Assessing a Firm’s Human Capital Readiness: Gap Analysis Human Capital Readiness − Evaluating the availability of critical talent in a company and comparing it to the firm’s supply − Any difference between the number and quality of employees needed and employees available represents a gap that must be filled. Copyright © 2023 by Cengage Canada 2-29 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–30 Step 4: Formulating Strategy Strategy formulation: Providing input as to what is possible, given the types and numbers of people available. Moving from simple analysis to devising a coherent course of action Copyright © 2023 by Cengage Canada 2–31 Step 4: Formulating Strategy Conducting a SWOT and TOWS Analysis, is an important aspect of strategy formulation. SWOT Analysis − A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes − Using the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses Copyright © 2023 by Cengage Canada 2-32 Corporate Strategy – Domain Selection A firm's corporate strategy includes the markets in which it will compete, against who, and how. Some firms choose a concentration strategy that focuses on only a limited portion of the industry. Growth and diversification − Growth hinges on three related elements: 1. increased employee productivity, 2. a greater number of employees, and 3. employees developing or acquiring new skills Copyright © 2023 by Cengage Canada 2-33 Business Strategy – Domain Navigation Low-cost strategy: competing on productivity and efficiency − Keeping costs low to offer an attractive price to customers (relative to competitors) Differentiation strategy: competing on unique value added − Involves providing something unique and distinctive to customers that they value Copyright © 2023 by Cengage Canada 2-34 Functional Strategy: Ensuring Alignment Vertical Fit/Alignment − Focuses on the connection between the business objectives and the major initiatives in HR. [HR system fit all other element of the organizational environment; culture, structure, strategy etc.] Low cost strategy – policy of efficiency and reliability. Innovation strategy – policy and practice of creativity and innovation. Copyright © 2023 by Cengage Canada 2-35 Functional Strategy: Ensuring Alignment Horizontal Fit/Alignment − Aligning HR practices with one another internally to establish a configuration that is mutually reinforcing − Management looking at and seeing the HR functions in the same way; same objectives. [All HR policies, procedures, systems, process etc. are in alignment with each other. It provides consistency and coherence to employees; thus brings about stronger confidence.] Copyright © 2023 by Cengage Canada 2-36 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–37 Step 5: Strategy Implementation Strategy implementation: Making resource allocation decisions, including decisions related to structure, processes, and human capital Copyright © 2023 by Cengage Canada 2–38 Step 5: Strategy Implementation HRM is instrumental to almost every aspect of strategy implementation Figure 2.9 shows the classic McKINSEY 7-S framework “Hard S” category − strategy which lays out the route that the organization will take in the future − systems and processes to implement strategies “Soft S” category − shared values, or core values as a guiding parameter for strategic planning Copyright © 2023 by Cengage Canada 2-39 Figure 2.9 - The 7-S Model Copyright © 2023 by Cengage Canada 2-40 Taking Action: Reconciling Supply and Demand – 1 Organizations have many staffing options: − hiring full-time employees, having current employees work overtime, recalling laid-off workers, using temporary or contract employees, and outsourcing or offshoring Dealing with surplus employees − layoffs, attrition, and termination − layoffs are often based on seniority and/or ability − COVID-19 and the labour surplus Copyright © 2023 by Cengage Canada 2-41 Taking Action: Reconciling Supply and Demand – 2 Layoff Strategies: − Attrition: natural departure of employees through quits, retirements, and deaths − Hiring freeze: new workers are not hired as planned or workers who have left are not replaced Termination: initiated by an employer to separate an employee from the organization permanently − Severance pay: lump-sum payment given to terminated employees, is calculated on the basis of years Copyright © 2023 by Cengage Canada 2-42 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–43 Step 6: Evaluation and Assessment Firms must establish a set of “desired” objectives as well as metrics to monitor how well their organization delivered against those objectives. Benchmarking: The process of comparing the organization’s processes and practices to those of other companies Two categories of metrics: 1. Human capital metrics: Assess aspects of the workforce 2. HR metrics: Assess the performance of the HR function itself Copyright © 2023 by Cengage Canada 2-44 Figure 2.10: An Example of an HR Dashboard Copyright © 2023 by Cengage Canada 2-45 Measuring a Firm’s Strategic Alignment Balanced Scorecard (BSC) − A measurement framework that helps managers translate strategic goals into operational objectives The model has four related cells: 1. financial 2. customer 3. processes 4. learning Copyright © 2023 by Cengage Canada 2-46 Figure 2.11 Building the Metrics Model Copyright © 2023 by Cengage Canada 2-47 Ensuring Strategic Flexibility for the Future Organizational Capability − Capacity of the organization to continuously act and change in pursuit of sustainable competitive advantage Flexibility can be achieved in two primary ways: 1. Coordination Flexibility - The ability to rapidly reallocate resources to new or changing needs 2. Resource Flexibility - Having human resources who can do many different things in different ways Copyright © 2023 by Cengage Canada 2-48 Copyright © 2023 by Cengage Canada CHAPTER 3 Equity, Diversity, and Inclusion: The Legal Environment Copyright © 2023 by Cengage Canada 3-2 Linking Strategic Planning and Human Resources – HR as Strategic Business Partner Copyright © 2023 by Cengage Canada 2–3 The Canadian Human Rights Act (CHRA) – 1 Prohibited grounds of discrimination in employment include race, religion, sex, age, national or ethnic origin, physical handicap, and marital status. Copyright © 2023 by Cengage Canada 3-6 The Canadian Human Rights Act (CHRA) – 2 Bona fide occupational qualification (BFOQ) − A justifiable reason for discrimination based on business reasons of safety or effectiveness Copyright © 2023 by Cengage Canada 3-7 Employment Equity – 1 Employment equity is the employment of individuals in a fair and non-biased/ impartial manner. Question to ponder: Which types of discrimination do you think managers are most likely to have to deal with on a regular basis, and why? Copyright © 2023 by Cengage Canada 3-8 The Legal Framework – 1 The Canadian Charter of Rights and Freedoms: − guarantees some fundamental rights to every Canadian The Canadian Charter of Rights and Freedoms was borne out of the Constitution of Act of 1982. A 2007 case in British Columbia ruled that the Charter does protect the right to bargain collectively. It protects only the rights of government and public- sector employees, not private-sector employees. Copyright © 2023 by Cengage Canada 3-9 The Legal Framework – 2 (Slide from book) The Canadian Human Rights Act (CHRA) − every individual should have an equal opportunity with other individuals to make for himself or herself the life that he or she is able and wishes to have, consistent with his or her duties and obligations as a member of society, without being hindered in or prevented from doing so by discriminatory practices based on race, national or ethnic origin, colour, religion, age, sex, or marital status, or convictions for an offence for which a pardon has been granted or by discriminatory employment practices based on physical handicap Copyright © 2023 by Cengage Canada 3-10 The Legal Framework – 2 (Taken from Act) The Canadian Human Rights Act (CHRA) − https://laws-lois.justice.gc.ca/eng/acts/h-6/ Copyright © 2023 by Cengage Canada 3-11 The Canadian Human Rights Act (CHRA) – 3 Enforcement of the Canadian Human Rights Act − Canadian Human Rights Commission (CHRC) deals with complaints concerning discriminatory practices covered by the Act. − Figure 3.1 provides a complete listing of prohibited grounds of discrimination in Canada. − Individuals have a right to file a complaint if they feel they have been discriminated against. Copyright © 2023 by Cengage Canada 3-14 The Canadian Human Rights Act (CHRA) – 3 Figure 3.1 provides a complete listing of prohibited grounds of discrimination in Canada. − Disability (prohibition in all Canadian jurisdictions) − Sex (prohibition in all Canadian jurisdictions) − Race (prohibition in all Canadian jurisdictions) − Colour (prohibition in all Canadian jurisdictions) − Ethnicity (prohibition in all Canadian jurisdictions) − Origin (prohibition in all Canadian jurisdictions) − Age (prohibition in all Canadian jurisdictions) − Creed (prohibition in all Canadian jurisdictions) − Religion (prohibition in all Canadian jurisdictions) − Marital Status (prohibition in all Canadian jurisdictions) − Family Status (prohibition in all Canadian jurisdictions) − Sexual Orientation (prohibition in all Canadian jurisdictions) Copyright © 2023 by Cengage Canada 3-15 The Canadian Human Rights Act (CHRA) – 3 Figure 3.1 provides a complete listing of prohibited grounds of discrimination in Canada. − Records of offence − Ancestry − Income Sources/ Public Assistance − Gender Identity/ Expression − Political Opinion/ Belief − Citizenship/ Nationality − Social Disadvantage/ Condition − Language − Civil Status − Linguistic origin − Disfigurement Copyright © 2023 by Cengage Canada 3-16 The Enforcement of Provincial Human Rights Laws Provincial human rights laws are enforced in a manner very similar to that of the federal system. Employers tend to be small and medium-sized businesses, many of which lack an HR professional who is knowledgeable about human rights legislation. The majority of cases are resolved at the investigation stage. If no agreement can be reached, the case is presented to the province’s human rights commission. In this province, it is the Ontario Human Rights Commission. N.B.(See sample application for employment in SLATE) Copyright © 2023 by Cengage Canada 3-17 Pay Equity Covered by all Canadian jurisdictions, either through explicit laws or policies, except Alberta. Illegal to discriminate on the basis of job content − helps address the discriminatory portion of the historical wage gap between men and women and to ensure that salary ranges reflect the value of the work performed Equal pay for work of equal value – pay equality Equal pay for work of comparable worth, or equal pay for work of comparable value – pay equity legislation Copyright © 2023 by Cengage Canada 3-18 Employment Equity – 1 Labour force statistics − changing patterns of immigration, rising labour force participation rates for women, and an aging population with a proportionally higher incidence of disabilities Equity means fairness and impartiality: − establish practices and policies to ensure equitable representation in the workforce Figure 3.2 (next slide) shows the workforce representation of the designated groups in the Canadian population. Copyright © 2023 by Cengage Canada 3-19 Figure 3.2 Representation of Designated Groups in the Labour Force Copyright © 2023 by Cengage Canada 3-20 Employment Equity – 2 Designated groups – Women, Indigenous people, persons with disabilities, and members of visible minorities, who have been disadvantaged in employment Copyright © 2023 by Cengage Canada 3-21 Status of Designated Groups – 1 Women − Under-represented as semi-professionals and technicians, as supervisors in trades, and in natural and applied sciences − Under-represented in management positions and as members of boards − female earnings lag behind those of men Copyright © 2023 by Cengage Canada 3-22 Status of Designated Groups – 2 Indigenous People − Many face major barriers to employment, which are often compounded by low educational achievement, lack of job experience, or language and cultural barriers. − Strategies to retain Indigenous individuals include inclusion practices, cultural awareness training, encouraging traditional practices and community and family obligations, offering professional development opportunities, and providing mentorship, coaching, and cohort programs. Copyright © 2023 by Cengage Canada 3-23 Status of Designated Groups – 3 People with Disabilities − At least 22% of Canadians aged 15 and over have a disability. − People with disabilities face attitudinal barriers, physical demands that are unrelated to job requirements, and inadequate access to the technical and human support systems that would make productive employment possible. Copyright © 2023 by Cengage Canada 3-24 Status of Designated Groups – 4 Members of Visible Minorities − Comprise about 22% of the labour force. − Visible minority groups vary in their labour force profiles and in their regional distributions. − Systemic barriers that negatively affect employment include culturally biased aptitude tests, a lack of recognition of foreign credentials, and excessively high language requirements. Copyright © 2023 by Cengage Canada 3-25 How May We Analyze/Interpret This Information? Benefits of Employment Equity Makes good business sense Contributes to the bottom line by broadening the base of qualified individuals for employment, training, and promotions Enhances an organization’s ability to attract and keep the best-qualified employees Enhances employee morale by offering special measures Improves the organization’s image in the community Copyright © 2023 by Cengage Canada 3-27 The Employment Equity Act (1995) Employers and Crown corporations that have 100 employees or more and that are regulated under the Canada Labour Code must implement employment equity and report on their results. The concept of employment equity is rooted in the wording of federal and provincial employment standards legislation, human rights codes, and the Charter Copyright © 2023 by Cengage Canada 3-28 Sexual Harassment – 1 Sexual harassment is unwelcome advances, requests for sexual favours, and other verbal or physical conduct of a sexual nature in the working environment. Copyright © 2023 by Cengage Canada 3-29 Sexual Harassment – 2 The two main sources of the employer’s duty to prevent harassment in the workplace are: 1. human rights legislation, which prevents harassment only on the basis of the designated grounds in the legislation (e.g., sex, race, religion); and 2. law obligation to treat workers with decency and respect Copyright © 2023 by Cengage Canada 3-30 Managing Diversity and Inclusion – 1 Diversity Management − The optimization of an organization’s multicultural workforce in order to reach business objectives Copyright © 2023 by Cengage Canada 3-31 Managing Diversity and Inclusion – 2 A diverse workforce does not necessarily equate to an inclusive workforce. Managing diversity is a broader, more inclusive concept. It involves ensuring that employees feel a sense of belonging and feel valued, respected, and encouraged to participate in the organization. Cultivating cultural intelligence is compulsory for a diverse workforce. Copyright © 2023 by Cengage Canada 3-32 Inclusionary Practices: Creating an Environment for Success Diversity initiatives should be taken slowly so that everyone can understand that this change is an evolutionary process and that expectations should be realistic. Individuals must fully understand the time, effort, commitment, and risk involved and the need for a systematic approach to diversity and inclusion. Figure 3.3 outlines some of the key factors in a diversity management strategy. Copyright © 2023 by Cengage Canada 3-33 Figure 3.4 Why Diversity Copyright © 2023 by Cengage Canada 3-34 Class Discussion Model of Diversity Management Strategy The Implementation of Employment Equity in Organizations – 1 The process generally involves six main steps: 1. Senior management commitment 2. Data collection and analysis 3. Employment systems review 4. Establishment of a workplan 5. Implementation 6. Follow-up process that includes evaluation, monitoring, and revision Copyright © 2023 by Cengage Canada 3-36 The Implementation of Employment Equity in Organizations – 2 Step 1: Senior Management Commitment and Assignment of Accountable Senior Staff Step 2: Data Collection and Analysis − an internal workforce profile is an important tool and it helps determine where a company stands relative to its external workforce. − profiles must be based on stock data and flow data Stock data: Data showing the status of designated groups in occupational categories and compensation levels Flow data: Data that provide a profile of the employment decisions affecting designated groups Copyright © 2023 by Cengage Canada 3-37 The Implementation of Employment Equity in Organizations – 3 Step 2: Data Collection and Analysis (cont’d) − Underutilization – Designated groups that are not utilized or represented in the employer’s workforce proportional to their numbers in the labour market − Concentration – Designated groups whose numbers in a particular occupation or level are high relative to their numbers in the labour market Copyright © 2023 by Cengage Canada 3-38 The Implementation of Employment Equity in Organizations – 4 Step 3: Employment Systems Review − Means by which employers carry out personnel activities such as recruitment, hiring, training and development, promotion, job classification, discipline, and termination − Systemic Barriers in Employment Practices: Systemic discrimination: The exclusion of members of certain groups through the application of employment policies or practices based on criteria that are not job related Copyright © 2023 by Cengage Canada 3-39 The Implementation of Employment Equity in Organizations – 5 Step 3: Employment Systems Review (continued) − Special Measures and Reasonable Accommodation Reasonable accommodation involves adjusting employment policies and practices so that no individual is denied benefits, disadvantaged with respect to employment opportunities, or blocked from carrying out the essential components of a job because of race, colour, sex, or disability. Copyright © 2023 by Cengage Canada 3-40 The Implementation of Employment Equity in Organizations – 6 Step 4: Establishment of a Workplan − A narrative statement or summary of the conclusions drawn from the examination of the workforce analysis forms part of the employment equity workplan. Step 5: Implementation − Each strategy should be designed to meet the needs of the particular organization Step 6: Evaluation, Monitoring, and Revision Copyright © 2023 by Cengage Canada 3-41 Copyright © 2023 by Cengage Canada CHAPTER 4 Job Analysis and Work Design Copyright © 2023 by Cengage Canada 4-2 Relationship of Job Requirements and HRM Functions - LO1 Job − A group of related activities and duties Position − The different duties and responsibilities performed by only one employee So, note that there can be one job but several positions linked to that job. Jobs may have different levels as well. Job Family − A group of individual jobs with similar characteristics Copyright © 2023 by Cengage Canada 4-3 Relationship of Job Requirements and HRM Functions - LO1 Do a quick search on how to differentiate between: job duties tasks responsibilities Copyright © 2023 by Cengage Canada 4-4 Relationship of Job Requirements and HRM Functions - LO1 Job Family: “…groups of jobs that are similar in the field/profession of the work and core accountabilities” (DePaul University, 2023). https://offices.depaul.edu/human-resources/compensation/ job-family-framework/Pages/job-families.aspx#:~:text=A %20job%20family%20is%20a,seen%20within%20the%20job %20family. Copyright © 2023 by Cengage Canada 4-5 Relationship of Job Requirements and HRM Functions - LO1 Job Family - “A job family is a group of positions [jobs] that involve work in the same functional occupation and have related core knowledge and background requirements. The family structure is based on function and not organizational structure. Currently, career progression is most often seen within the job family” (DePaul University, 2023). https://offices.depaul.edu/human-resources/compensation/job-family-framework/Pages/job- families.aspx#:~:text=A%20job%20family%20is%20a,seen%20within%20the%20job%20family. Copyright © 2023 by Cengage Canada 4-6 Relationship of Job Requirements and HRM Functions - LO1 (example). Copyright © 2023 by Cengage Canada 4-7 Relationship of Job Requirements and HRM Functions - LO1 (example). Copyright © 2023 by Cengage Canada 4-8 Relationship of Job Requirements and HRM Functions - LO1 (example). Copyright © 2023 by Cengage Canada 4-9 Relationship of Job Requirements and HRM Functions - LO1 Think for a moment and then: Give me an example of a job, a position, and a job family. Copyright © 2023 by Cengage Canada 4-10 Gathering Job Information Common methods of analyzing jobs are through: − Interviews − Questionnaires: The job analyst may circulate questionnaires to be filled out individually by jobholders and managers. Used to obtain data on job duties and tasks performed, as well as physical and mental demands for each individual employee, who works in the area. − Observation − Diaries Discuss the advantages and disadvantages of each of these sources. Are there specific situations in which you might choose one over the other? Why? Copyright © 2023 by Cengage Canada 4-11 Gathering Job Information Discuss the advantages and disadvantages of each of these sources in relation to information gathering. Are there specific situations in which you might choose one over the other? Why?  Interviews  Questionnaires  Observation  Diaries Copyright © 2023 by Cengage Canada 4-12 Relationship of Job Requirements and HRM Functions – 1 - LO1 Job Analysis is the “bedrock” of HRM. What does this suggest? Strategic HRP (Chapter 2) Recruitment Selection Training and Development Performance Management Compensation Management Legal Compliance Copyright © 2023 by Cengage Canada 4-13 Figure 4.1 - Job Analysis: The Cornerstone of HRM Functions - What is this saying? Copyright © 2023 by Cengage Canada 4-14 Relationship of Job Requirements and HRM Functions – 2 Recruitment − Recruiters need to know the job specifications for the positions they are to fill, before they can find capable employees for an organization. − Job specification A statement of the needed knowledge, skills, abilities, and other characteristics/ factors (KSAO) of the person, who is to perform the job − The job spec. serves an essential role in the recruiting function: it provides a basis for attracting qualified applicants and discouraging unqualified ones. See Highlights in HRM 4.1 for examples of job specifications Copyright © 2023 by Cengage Canada 4-15 Relationship of Job Requirements and HRM Functions – 3 Selection − Job description A statement of the tasks, duties, and responsibilities of a job to be performed − According to Human Resource Council for the Nonprofit Sector in Canada (HRCC), job descriptions must be reviewed annually to ensure they are congruent with the organization's strategic direction and structure Copyright © 2023 by Cengage Canada 4-16 Relationship of Job Requirements and HRM Functions – 4 Training and development − Discrepancies between a jobholder's knowledge, skills, abilities, and other factors (KSAOs) and the requirements in the job description and specification provide clues to training needs. Performance appraisal − Job description requirements serve as the criteria for evaluating the performance of the job holder. Compensation management Legal compliance Copyright © 2023 by Cengage Canada 4-17 Job Analysis – LO2 Job analysis – the process of obtaining information about jobs by determining the duties, tasks, or activities of jobs − sometimes called the cornerstone of HRM because the information it collects serves so many HRM functions A job analysis should also outline the tools needed to do the job, the environment and times at which it needs to done, the people with whom it needs to be done, and the outcome or performance level it should produce. Small companies do not typically have job descriptions for employees. What are the advantages and limitations of not having job descriptions? Copyright © 2023 by Cengage Canada 4-18 Copyright © 2023 by Cengage Canada 4-19 Figure 4.1 - Job Analysis: The Cornerstone of HRM Functions - What is this saying? Copyright © 2023 by Cengage Canada 4-20 Figure 4.2-The Process of Job Analysis What do you understand from this model? Copyright © 2023 by Cengage Canada 4-21 Controlling the Accuracy of Job Information A job analyst should be alert for employees, who tend to exaggerate the difficulty of their jobs to inflate their egos and their paycheques (see Ethics in HRM, p. 142). Care must be taken to ensure that all important facts about the job are included. The National Occupational Classification (NOC) is a composite of the Canadian labour market. − The purpose of the NOC is to compile, analyze, and communicate information about occupations. This information can be used for employment equity, HR planning, and occupational supply-and-demand forecasts and analyses. Copyright © 2023 by Cengage Canada 4-22 Ethics in HRM, p. 142 Copyright © 2023 by Cengage Canada 4-23 Copyright © 2023 by Cengage Canada 4-24 Job Descriptions Why is it important to have job descriptions in an organization? Why do we need them to be clear and specific? Copyright © 2023 by Cengage Canada 4-25 Job Descriptions Review and Critique Job descriptions tend to vary in appearance and content from one organization to another − Job Title: Indicates job duties and organizational level − Job Identification Section: Distinguishes job from all other jobs − Job Duties, or Essential Functions, Section: Indicate responsibilities entailed and results to be accomplished − Job Specification Section: Skills required to perform the job and physical demands of the job − Other (signature etc.) Copyright © 2023 by Cengage Canada 4-26 Job Description and Specification Review Copyright © 2023 by Cengage Canada 4-27 Job Description and Specification Review Copyright © 2023 by Cengage Canada 4-28 Job Description and Specification Review Copyright © 2023 by Cengage Canada 4-29 Problems with Job Descriptions If they are poorly written, using vague rather than specific terms, they provide little guidance to the jobholder. They are sometimes not updated as job duties or specifications change. They may violate the law by containing specifications not related to job success. They can limit the scope of activities of the jobholder, reducing organizational flexibility. Copyright © 2023 by Cengage Canada 4-30 Problems with Job Descriptions Think for a moment and then tell me how organizations can be proactive in avoiding some of these problems with job descriptions? Copyright © 2023 by Cengage Canada 4-31 Approaches to Job Analysis (Group Task) Job analysis serves to justify job descriptions and other HRM selection procedures. Popular methods/approaches to job analysis: − Position Analysis Questionnaire (PAQ) System − The Critical Incident Method − Task Inventory Analysis − Functional Job Analysis (FJA) − Competency-Based Analysis Copyright © 2023 by Cengage Canada 4-32 Approaches to Job Analysis Position Analysis Questionnaire (PAQ) System − A questionnaire covering 194 different tasks that, by means of a five-point scale, seeks to determine the degree to which different tasks are involved in performing a particular job − The PAQ can be use across job family and organizations to analyzed jobs − A sample page from the PAQ covering 10 elements of the Information Input Division is shown in Figure 4.3. Copyright © 2023 by Cengage Canada 4-33 Approaches to Job Analysis The Critical Incident Method − job analysis method by which important [critical] job tasks are identified for job success; employee’s behavior that are critical to the job. − Job Analyst would write about 5 to 10 critical task statements for each job being studied. Copyright © 2023 by Cengage Canada 4-34 Approaches to Job Analysis Task Inventory Analysis − An organization-specific list of tasks and their descriptions used as a basis to identify components of jobs − Goal: a detailed list of task statements that are applicable to all jobs. E.g. “Inventories current supplies to maintain stock levels.” Copyright © 2023 by Cengage Canada 4-35 Approaches to Job Analysis Functional Job Analysis − approach that uses an inventory of the various types of work activities that can constitute any job. − The functions are basic activities (worker functions) that are used to describe what workers do regarding “information, people, and things” within an organization system. E.g. co- ordinate the work of people and supervise them. Copyright © 2023 by Cengage Canada 4-36 Approaches to Job Analysis Competency-Based Analysis − jobs can be defined in terms of tasks, duties, processes, and skills [KSAs] necessary for job success − assumption discounts technological advances which are often so accelerated that jobs as they are defined today may be obsolete tomorrow − E.g. interpersonal and intrapersonal skills, decision-making abilities, conflict resolution skills, self-leaderships and motivation skills, adaptability Copyright © 2023 by Cengage Canada 4-37 Job Design – L03 Job Design − An outgrowth of job analysis that improves jobs through technological and human considerations to enhance organization efficiency and employee job satisfaction Figure 4.4 illustrates how job design is a combination of four considerations: (1) the organizational objectives the job was created to fulfill; (2) behavioural concerns that influence an employee’s job satisfaction; (3) industrial engineering considerations; and (4) ergonomic concerns Copyright © 2023 by Cengage Canada 4-38 Figure 4.4 Basis for Job Design Copyright © 2023 by Cengage Canada 4-39 Motivational Considerations – 1 Job enrichment model and the job characteristics model are popular as ways to increase the job satisfaction of employees. Fulfills the high motivational needs of employees, such as self-fulfillment and self-esteem, while achieving long-term job satisfaction and performance goals. Job enrichment: − enhancing a job by adding more meaningful tasks and duties to make the work more rewarding or satisfying Copyright © 2023 by Cengage Canada 4-40 Motivational Considerations – 1 Is there any who is familiar with job enrichment? Do you recognize it as a pervasive activity? Job enrichment: − enhancing a job by adding more meaningful tasks and duties to make the work more rewarding or satisfying Copyright © 2023 by Cengage Canada 4-41 Motivational Considerations – 2 Job characteristics model: − job design theory that purports that three psychological states (experiencing meaningfulness of the work performed, responsibility for work outcomes, and knowledge of the results of the work performed) of a jobholder result in improved work performance, internal motivation, and lower absenteeism and turnover Copyright © 2023 by Cengage Canada 4-42 Motivational Considerations – 3  Meaningfulness  Skill variety Job Outcomes of the work  Task identity  Improved work performed  Task performance  Responsibility for significance  Increased work outcomes Internal  Autonomy  Knowledge of the motivation  Feedback  Lower results of the work performed absenteeism and turnover Copyright © 2023 by Cengage Canada 4-43 Motivational Considerations – 4 Employee Empowerment: − A technique of involving employees in their work through the process of inclusion − Encourages employees to become innovators and managers of their own work and involves them in their jobs in ways that give them more control and autonomous decision-making capabilities (see Highlights in HRM 4.2) − Job crafting: employees mould their tasks to better fit their individual strengths, passions, and motives Copyright © 2023 by Cengage Canada 4-44 Industrial Engineering Considerations Industrial engineering: A field of study concerned with analyzing work methods and establishing time standards Ergonomic Considerations − Ergonomics: An interdisciplinary approach to designing equipment and systems that can be easily and efficiently used by human beings − Equipment design must consider the physical abilities of operators to use the equipment and to react through vision, hearing, and touch to the way the equipment operates Copyright © 2023 by Cengage Canada 4-45 Ergonomic Considerations Copyright © 2023 by Cengage Canada 4-46 Job Crafting and Job Carving Job crafting is a self-driven pursuit to change aspects of an individual's own position to improve the fit between the job and their needs, skills, and preferences. − produces increased engagement, decreased burnout, and increased well-being Job carving involves crafting, adapting, or tailoring a job to support an individual with a disability and concurrently address the needs of an employer. Copyright © 2023 by Cengage Canada 4-47 Employee Involvement Groups-LO4 An outgrowth of job analysis that improves jobs through technological and human considerations to enhance organization efficiency and employee job satisfaction. Working in a group has been shown to enhance collaboration and increase synergy in the workplace. Employee involvement groups (EIG) and employee teams are examples of this type of group-based management. Copyright © 2023 by Cengage Canada 4-48 Figure 4.5 The Dynamics of Employee Involvement Groups Copyright © 2023 by Cengage Canada 4-49 Employee Teams – 1 Employee teams − logical outgrowth of employee involvement and the philosophy of empowerment − an employee contributions technique whereby work functions are structured for groups rather than for individuals and team members are given discretion in matters traditionally considered management prerogatives, such as process improvements, product or service development, and individual work assignments Copyright © 2021 by Cengage. 4-50 Employee Teams – 2 Teams can operate in a variety of structures, each with different strategic purposes or functional activities. Copyright © 2023 by Cengage Canada 4-51 Employee Teams – 3 Figure 4.7 describes common team forms, including self-directed and high-performance teams. Typical team functions include setting work schedules, managing inventory, and purchasing equipment or services. Virtual teams use advanced computer and telecommunications technology to link team members who are geographically dispersed, often worldwide − became the norm during the COVID-19 pandemic Copyright © 2023 by Cengage Canada 4-52 Employee Teams – 4 A virtual team setting makes it harder to get the teams to bond and foster open dialogue, more difficult for informal leaders to surface, and easier to result in misunderstandings. Copyright © 2023 by Cengage Canada 4-53 Employee Teams – 5 TeamBuilding, a company in Ontario that supports corporate teambuilding activities, had a major increase in business following the global COVID-19 pandemic. Maintaining a company culture within a remote team requires a significant amount of work and planning. Although virtual teams have many benefits, they are not without problems. Copyright © 2023 by Cengage Canada 4-54 Employee Teams – 6 Characteristics of successful teams: − commitment to shared goals and objectives; − motivated and energetic team members; − open and honest communication; − shared leadership; − clear role assignments; − climate of cooperation, collaboration, trust, and accountability; and − recognition of conflict and its positive resolution. Copyright © 2023 by Cengage Canada 4-55 Flexible Work Schedules – 1 Not a true part of job design because job tasks and responsibilities are not changed Compressed Workweek: shortening the number of days in the workweek by lengthening the number of hours worked per day Flextime − flexible working hours that permit employees the option of choosing daily starting and quitting times, provided that they work a set number of hours per day or week Copyright © 2023 by Cengage Canada 4-56 Flexible Work Schedules – 2 Job Sharing: The arrangement whereby two part- time employees perform a job that otherwise would be held by one full-time employee − usually work three days a week Telecommuting: The use of personal computers, networks, and other communications technology to do work in the home that is traditionally done in the workplace − Highlights in HRM 4.3 discusses working from home during the COVID-10 pandemic. Copyright © 2023 by Cengage Canada 4-57 Copyright © 2023 by Cengage Canada CHAPTER 5 Expanding the Talent Pool: Recruitment and Careers Copyright © 2023 by Cengage Canada 5-2 Strategic Aspects of Recruiting – 1 Recruitment is an ongoing process, not just a reactive matter when a position needs to be filled [explain this for me; what do you understand from the statement]. The COVID-19 pandemic forced organizations to rapidly adapt to a virtual world. What were some of your observations/ What did organizations do to fill vacancies/ gaps in the organization? Copyright © 2023 by Cengage Canada 5-3 Strategic Aspects of Recruiting – 1 At the pandemic’s start, recruitment slowed, while organizations assumed a “wait and see” approach. COVID-19 resulted in significant changes to the recruitment process. What changes did we see/ experience? What are some major factors that could affect recruitment in an organization? Copyright © 2023 by Cengage Canada 5-4 Strategic Aspects of Recruiting – 2 Employee profiles: − Profiles of workers [employees] are developed by studying an organization’s top performers to recruit similar types of people Decisions about talent need to be considered within the context of a business’s strategies and priorities. A firm's (a) recruiting abilities, whether to recruit externally or internally, (b) the labour market for the types of positions it is recruiting for, including global labour markets, and (c) the strength of a firm's employment "brand" are all broad factors that can influence its recruiting strategy. Copyright © 2023 by Cengage Canada 5-5 Who Should Do the Recruiting? HR recruiters or generalists (large firms) Managers and/or supervisors (smaller firms) Work teams Recruiting Process Outsourcing (RPO) − outsourcing an organization’s recruiting function to an outside firm − sometimes use RPO providers when they need to hire a lot of employees or hire employees quickly Copyright © 2023 by Cengage Canada 5-6 Should a Firm Recruit Internally or Externally? Most managers try to follow a policy of filling job vacancies above the entry-level position through promotions and transfers. There are advantages and disadvantages to using these two approaches. What could these be? Copyright © 2023 by Cengage Canada 5-7 Labour Markets – 1 The state of the labour market can have a significant impact/ effect on a company's recruiting plans [explain this for me]. During periods of high unemployment, organizations may be able to maintain an adequate supply of qualified applicants from unsolicited résumés and their internal labour markets. Copyright © 2023 by Cengage Canada 5-8 Labour Markets – 1 Internal labour markets: − Labour markets in which workers are [sometimes] hired into entry-level jobs and higher levels are filled from within − We can look at this from a macro prospective (country-level) as well as a micro prospective (organizational-level). [Please share your thoughts with me] Copyright © 2023 by Cengage Canada 5-9 Labour Markets – 2 Area from which applicants are to be recruited − Tight market: high employment, few available workers − Loose market: low employment, many available workers Regional and Global Labour Markets − Factors determining the relevant labour market − Global sourcing: The business practice of searching for and using goods and services from around the world Copyright © 2023 by Cengage Canada 5-10 Branding Branding is an organization’s efforts to help existing and prospective workers understand why it is a desirable place to work. − can help attract and retain top potential employees Some organizations have incorporated employer branding as a significant component of their human resources management strategy. Although word of mouth is the most effective, using social media in employer branding campaigns can help develop a positive brand image. Copyright © 2023 by Cengage Canada 5-11 Your Questions for Personal Reflection out of Class 1. Who should do the recruiting for an organization? 2. What are employee profiles and how are they developed? 3. Should a firm recruit internally or externally? 4. Explain recruitment process outsourcing 5. What do we know about the internal labour market? 6. What is global sourcing and how is it done? 7. What is meant by Employers Branding? 8. What are some characteristics the help us to identify a “good” employer brand? Copyright © 2023 by Cengage Canada 5-12 Internal Recruitment Channels Internal Job Postings Identifying Talent Through Performance Appraisals Skill Inventories Replacement Charts Employee Development Plan N.B. They all have advantages and disadvantages to consider. Copyright © 2023 by Cengage Canada 5-13 Recruiting Internally – 1 Internal Job Postings–a quick way to find qualified employees, who are interested in a position Identifying Talent Through Performance Appraisals − 9-box Grid: A comparative diagram that includes appraisal and assessment data to allow managers to easily see an employee’s actual and potential performance − Figure 5.1 shows an example of a 9-box grid. Copyright © 2023 by Cengage Canada 5-14 Figure 5.1-An Example of a 9-Box Grid Copyright © 2023 by Cengage Canada 5-15 Recruiting Internally – 2 Skill Inventories and Replacement Charts − Skill inventories/ (skills bank) help track an employee's education, previous work experience, vocational interests, specific abilities and skills, compensation history, and job tenure to see how they can be used most effectively. − Replacement charts are an important tool for succession planning. Towards identify talent bench. [please remind me what replacement chart is] − More firms are electronically capturing the qualifications of each of their employees. Copyright © 2023 by Cengage Canada 5-16 Copyright © 2023 by Cengage Canada 17 Copyright © 2023 by Cengage Canada 18 External Recruitment Channels Advertisements Walk-ins, unsolicited applications, and résumés The Internet, social networking, and mobile recruiting Job fairs Employee referrals Re-recruiting Executive search firms / Headhunters Educational institutions Professional associations Employment Agencies (Private, Public, or Temporary) Employee Leasing Labour Union N.B. They all have advantages and disadvantages to consider. 5-19 Copyright © 2023 by Cengage Canada Recruiting Externally – 1 Advertisements − Advantage is reaching a large audience of possible applicants. − AI can help prescreen applicants with video, interviewees and psychometric profiling assessments. Walk-ins, unsolicited applications, and résumés Copyright © 2023 by Cengage Canada 5-20 Recruiting Externally – 2 The Internet, social networking, and mobile recruiting − Most commonly used search tactic by job seekers and recruiters. − Recruiters are using big data, robots, and software to find the best candidates. − Appcast trawls the Internet looking for candidates who are well suited for a job. − Passive job seekers: people who are not looking for jobs but could be persuaded to take new ones given the right opportunity Copyright © 2023 by Cengage Canada 5-21 Recruiting Externally – 3 The Internet, social networking, and mobile recruiting − The process of recruiting candidates using their mobile devices is known as mobile recruiting. − Experts recommend that whatever social networking platform a company uses, it should have a mobile application. − Using social networks is an inexpensive way to recruit people compared to print ads. − A potential drawback is that some groups are less likely to be "wired." Copyright © 2023 by Cengage Canada 5-22 Recruiting Externally – 4 Job fairs − recruiters set up booths, meet with prospective applicants, and exchange employment information Employee referrals − word-of-mouth recommendations are the way most job positions are filled − hiring relatives is referred to as nepotism Re-recruiting − the process of keeping track of and maintaining relationships with former employees to see if they would be willing to return to the firm Copyright © 2023 by Cengage Canada 5-23 Recruiting Externally – 5 Executive search firms (often called “headhunters”) − help employers find the right person for a job Educational institutions − source of young applicants with formal training but relatively little full-time work experience − colleges and universities are typically the primary source for technical and managerial positions − internships are a way for firms to try out students who want to work in their fields Copyright © 2023 by Cengage Canada 5-24 Recruiting Externally – 6 Professional associations − Many offer a placement service to members as one of their benefits Labour unions − Source of applicants for blue-collar and some professional jobs Public employment agencies − Each province maintains an employment agency that administers its employment insurance program Copyright © 2023 by Cengage Canada 5-25 Recruiting Externally – 7 Private employment and temporary agencies − Charging a fee allows private employment agencies to tailor their services to their clients' specific needs. Employee leasing − The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees Copyright © 2023 by Cengage Canada 5-26 Improving the Effectiveness of Recruiting – 1 HR managers have a lot of tools available to them to gauge their efforts and improve their company's recruiting practices: − Realistic Job Previews (RJP) − Surveys − Recruiting Metrics Quality-of-Fill Statistics Time to Fill Yield Ratios Costs of Recruitment Copyright © 2023 by Cengage Canada 5-27 Improving the Effectiveness of Recruiting – 2 Realistic Job Previews (RJP) − Informing applicants about all aspects of the job, including both its desirable and undesirable facets − Some companies are taking their RJPs online Copyright © 2023 by Cengage Canada 5-28 Improving the Effectiveness of Recruiting – 2 Surveys − Survey managers about how satisfied they are with the process − Candidates, who declined job offers can provide useful information about why they did not accept the firm's offer Copyright © 2023 by Cengage Canada 5-29 Recruiting Metrics – 1 Recruiters should keep statistics on the sources from which candidates are recruited and hired. Quality-of-fill statistics: Quality of hire = (PR + HP + HR) / N PR = Average job performance rating of new hires HP = % of new hires reaching acceptable productivity with acceptable timeframe HR = % of new hires retained, after one year N = number of indicators Copyright © 2023 by Cengage Canada 5-30 Recruiting Metrics – 1 Calculate the Quality-of-fill statistics: QoH index = ?% Quality of hire = (PR + HP + HR) / N PR = Average job performance rating of new hires (80/100 or 80%) HP = percentage (%) of new hires reaching acceptable productivity with acceptable time frame (70%) HR = percentage (%) of new hires retained after one year (90%) N = number of indicators -------- QoH index = (XXXXX)/Z = Y% for new employees hired during the year Copyright © 2023 by Cengage Canada 5-31 Recruiting Metrics – 2 Time to Fill: − The number of days from when a job opening is approved to the date the candidate is selected. − Figure 5.3 shows an example of how the time- to-fill metric is calculated. Copyright © 2023 by Cengage Canada 5-32 Figure 5.3- Time-to-Fill Calculations Copyright © 2023 by Cengage Canada 5-33 Recruitment Ratios Lead to Hire ratio Recruiting Metrics – 2 Yield Ratios: − The percentage of applicants, from a recruitment source, that make it to the next stage of the selection process. During 1 month, 1,250 visitors clicked on a link to the job, and 200 of them completed the application form and applied (leads). From the 200, 20 were invited to an interview (shortlisted candidates). What is the yield ratio? 1. What is the Yield ratio: (X / Y) x 100% = ? 2. What is the Visitor lead ratio? (Do further research) 3. What is the Lead to Hire ratio? (Do further research) N.B. The Yield ratio formula would also allow you to measure visitor to lead or lead to hiring ratios. Copyright © 2023 by Cengage Canada 5-35 Recruiting Metrics – 3 Cost of Recruitment (Per Employee Hired): = SC = source cost AC = advertising costs, total monthly expenditure (example: $32,000) AF = agency fees, total for the month (example: $21,000) RB = referral bonuses, total paid (example: $2,600) NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0) H = total hires (example: 119) What is the cost of recruitment? ------------ Cost of recruitment (per employee) = (XXXXX)/Y = $ZZZZ Copyright © 2023 by Cengage Canada 5-36 Recruiting Metrics – 4 Acceptance rate − The percentage of applicants, who accept a firm’s jobs, after being offered them. Applicant tracking system (ATS) − A system recruiters use to post job openings, screen résumés and uploaded profiles, contact via email potential candidates for interviews, and track the time, costs, and other metrics related to hiring people. Copyright © 2023 by Cengage Canada 5-37 Retention: How Do We Keep Our Talent? Retaining employees is important once you have attracted them to your organization. High turnover, lowers morale among a company's employees and reduces productivity. Task: Search the internet for a formulae for (a) retention rate and (b) turnover rate. https://www.netsuite.com/portal/resource/articles/human-resources/employee-r etention-turnover.shtml According to one study, the primary cause of turnover is poor leadership. [“People leave bad managers; not the organization”] − Supervisors must show concern for and empathy for their employees. − They must also assist employees in growing and developing. − It takes a lot of time, cost, effort, and other resources to recruit, so try to retain as best as you can. Copyright © 2023 by Cengage Canada 5-38 Targeted Recruitment – 1 Workplace diversity is a growing trend. Targeted recruitment involves developing recruitment strategies that meet diversity goals. How does “Employer Branding” fit in here? Targeted strategy consists of creating a pre-planned plan to promote job openings in specific locations. Advantages: − sends message that an organization is a good place to work for traditionally marginalized groups. Who are these? − important in today's climate where diversity is an essential component of employer branding. Copyright © 2023 by Cengage Canada 5-39 Targeted Recruitment – 2 Obstacles, setbacks, and barriers that some groups face. An organization may do something as simple as rewriting job descriptions and including only the most integral aspects of the job. Another key strategy involves community outreach and working with certain organizations and focus groups. Recruiting software is available that specializes in targeted marketing. Copyright © 2023 by Cengage Canada 5-40 Career Management: Developing Talent over Time The goal is to match individual and organizational needs. − Figure 5.4 depicts how HR structures are related to some of the most important aspects of the career management process. Copyright © 2023 by Cengage Canada 5-41 Figure 5.4-HR’s Role in Career Management Copyright © 2023 by Cengage Canada 5-42 Career Management: Developing Talent over Time Blending the goals of individual employees with the goals of the organization. − Figure 5.5 illustrates how the organization's goals and needs should be linked with the individual career needs of its employees in a way that improves worker effectiveness and satisfaction while also achieving the firm's strategic objectives. Copyright © 2023 by Cengage Canada 5-43 Figure 5.5-Blending the Needs Copyright © 2023 by Cengage Canada 5-44 Identifying Career Opportunities and Requirements – 1 Begin with a competency analysis Identify job progressions and career paths (refer to Figure 5.6) − job progressions: hierarchy of jobs a new employee might experience, ranging from a starting job to jobs that successively require more knowledge and/or skill − career paths: lines of advancement in an occupational field within an organization Copyright © 2023 by Cengage Canada 5-45 Figure 5.6-Typical Line of Advancement in HR Management Copyright © 2023 by Cengage Canada 5-46 Identifying Career Opportunities and Requirements – 1 Track career stages Copyright © 2023 by Cengage Canada 5-47 Identifying Career Opportunities and Requirements – 2 Recognize Different Career Paths − Promotion: A change of assignment to a job at a higher level in the organization − Transfer: Placement of an individual in another job for which the duties, responsibilities, status, and remuneration are approximately equal to those of the previous job − Relocation services: provided to an employee, who is transferred to a new location (help in moving, selling a home, etc.) − Outplacement services: provided by organizations to help terminated employees find a new job Copyright © 2023 by Cengage Canada 5-48 Employers Identifying Career Opportunities and Requirements – 3 Consider dual career paths for employees. Consider the boundaryless career. [watch a video on this boundaryless career on your own] Help employees progress beyond career plateaus: − a situation in which, for either organizational or personal reasons, the probability of moving up the career ladder is low Companies with international divisions can encourage employees to take assignments abroad or take sabbaticals. Copyright © 2023 by Cengage Canada 5-49 Career Development Initiatives – 1 There are many tools available to help employees advance their careers: − Career planning workbooks and workshops − Career counselling – discussing with employees their current job activities and performance, personal and career interests and goals, personal skills, and suitable career development objectives Some organizations are attempting to retain young managers with high potential by providing a fast-track program that allows them to advance faster than those with lower potential. Copyright © 2023 by Cengage Canada 5-50 Career Development Initiatives – 2 Mentoring/reverse mentoring − Informal mentoring goes on daily within every type of organization. − Reverse mentoring a program whereby younger employees are called on to mentor older employees and executives about social media trends, new technology, and marketplace trends − The top 10 myths about mentors are shown in Figure 5.8. Copyright © 2023 by Cengage Canada 5-51 Figure 5.9-Mentoring Functions Copyright © 2023 by Cengage Canada 5-52 Career Development Initiatives – 4 Networking − The process of establishing mutually beneficial relationships with other businesspeople, including potential clients and customers Career self-management training − Two objectives: (1) helping employees learn to continuously gather feedback and information about their careers, and (2) encouraging them prepare for mobility Copyright © 2023 by Cengage Canada 5-53 Copyright © 2023 by Cengage Canada CHAPTER 6 Employee Selection Copyright © 2023 by Cengage Canada 6-2 Begin with a Job Analysis Job specifications help identify the knowledge, skills, abilities, and other characteristics (KSAOs) that lead to superior performance. Remind me what the “other characteristics” are. Remind me what makes up the job description aspects of a “job description and specification” document Managers use selection methods, such as interviews, references, [background checks], and pre-employment tests to measure applicant KSAOs against the attributes required for the job. Copyright © 2023 by Cengage Canada 6-3 Overview of the Selection Process Recruitment: the process by which organizations look for people to fill job vacancies. Question: What process comes between these two; recruitment and selection? ---- Screening Selection: choosing individuals, who have relevant qualifications to fill existing or projected job openings. Copyright © 2023 by Cengage Canada 6-4 Please take a moment to review this diagram Catano, V. M., Wiesner, W. H., Hacket, R. D., & Belcourt, M. (2019). Recruitment and selection in Canada (7th ed.). Nelson Education Limited. 6-5 Initial Screening Initial screening includes cover letters and résumés, application forms, and Internet checks, work experience, social media networks, career fairs, virtual job auditions, and phone screening etc. Copyright © 2023 by Cengage Canada 6-6 Cover Letters And Résumés Reviewed first with an eye toward, who can be eliminated because they do not have the skills, abilities, education, or experience outlined in the job advertisement. Evaluating résumés can be a subjective process. Bias can also enter the process. Many firms are now using software to scan résumés to find qualified applications (Applicant Tracking Systems (ATS). Copyright © 2023 by Cengage Canada 6-7 Internet Checks and Phone Screening Before inviting applicants for a face-to-face interview, HR professionals and hiring managers will frequently search ["Google“] their names. The disadvantage of conducting internet searches is that applicants' privacy is at risk, as is the possibility of bias and discrimination. It is also difficult to verify the truthfulness of information posted on the internet. Question: Are there any advantages to searching? Copyright © 2023 by Cengage Canada 6-8 Internet Checks and Phone Screening Video résumés: − short video clips that highlight applicants’ qualifications beyond what they can communicate on their résumé Copyright © 2023 by Cengage Canada 6-9 Overview of the Selection Process HR managers typically make the final decision about hiring people in their unit/[organization]. Selection is toward and includes that final hiring decision. In the process of selecting, organizations may either “hit” or “miss”. Please explain these terms for me. Copyright © 2023 by Cengage Canada 6-10 Figure 6.1-The Goal of Selection: Maximize “Hits” and Avoid “Misses” Copyright © 2023 by Cengage Canada 6-11 The Selection Process The number of steps in the selection process, as well as their order, will vary depending not only on the organization, but also on the type and level of job to be filled. Each step should be assessed in terms of how it contributes to the overall process. Not all applicants are qualified and will go through all of these procedures. Some may be rejected following the preliminary examination. Figure 6.2 depicts the typical components of the selection process. Copyright © 2023 by Cengage Canada 6-12 Figure 6.2-Steps in the Selection Process Copyright © 2023 by Cengage Canada 6-13 Obtaining Reliable and Valid Information Whether a position is filled internally or externally, it is critical that the information obtained be reliable, valid, and legal, while also protecting the privacy of applicants. Copyright © 2023 by Cengage Canada 6-14 Obtaining Reliable and Valid Information − Reliability: The degree to which interviews, tests, and other selection procedures yield comparable data over time [consistency] − Validity: The degree to which a test or selection procedure measures a person’s attributes [validation/ is it what it is said to be?] Copyright © 2023 by Cengage Canada 6-15 Obtaining Reliable and Valid Information Negligent misrepresentations by: Employers Executive Search Firms Employment Agency Prospective employees Give me examples of the types of negligence listed above and say what redress is available. Copyright © 2023 by Cengage Canada 6-16 Figure 6.3 - Selection Method Validity Table Copyright © 2023 by Cengage Canada 6-17 Application Forms Provide a quick and systematic means of obtaining a variety of information about the applicant. − provide information for deciding whether an applicant meets the minimum requirements for experience, education, and training − It is a source for reference checks One type of application form, the weighted application bank (WAB), involves a more objective and statistical approach to analyzing data. Another type of form, biodata, has been shown to correlate with on-the-job success. Copyright © 2023 by Cengage Canada 6-18 Copyright © 2023 by Cengage Canada 19 Application Forms Application Blanks Weighted Application Blank (WAB) Biographical information Blank (BIB) Copyright © 2023 by Cengage Canada 6-20 Employment Interviews Depending on the type of job, applicants may be interviewed by one person, members of a work team, or other individuals in the organization. Researchers have raised doubts about interview validity but it is still a mainstay of selection because: − (1) it is practical when there are only a small number of applicants; − (2) it serves other purposes, such as public relations; and − (3) interviewers maintain faith and confidence in their judgments. Copyright © 2023 by Cengage Canada 6-21 Figure 6.4 - Variables in the Employment Interview Copyright © 2023 by Cengage Canada 6-22 The Structure of Interviews Nondirective/Unstructured Interview − An interview in which the applicant is allowed the maximum amount of freedom in determining the course of the discussion, while the interviewer carefully refrains from influencing the applicant’s remarks. Question: What advantages and disadvantages may exist here? Copyright © 2023 by Cengage Canada 6-23 The Structure of Interviews Semi-structure interviews – A process that allows for probe Structured Interview − An interview in which a set of standardized questions with an established set of answers is used Copyright © 2023 by Cengage Canada 6-24 Types of Structured Interviews Situational Interview − An interview in which an applicant is given a hypothetical incident and asked how they would respond to it Behavioural Description Interview (BDI) − An interview in which an applicant is asked questions about what they did in a given situation; assesses their behaviours Experienced

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