Module 9: Human Resource Management Student Notes PDF

Module 9: Human Resource Management Topics for discussion 1. Human Resource Management (HRM) has become a critical business function in all organizations. What factors have contributed to this increased importance? 2. What are the steps in the Human Resource (HR) planning process and wh...

Module 9: Human Resource Management Topics for discussion 1. Human Resource Management (HRM) has become a critical business function in all organizations. What factors have contributed to this increased importance? 2. What are the steps in the Human Resource (HR) planning process and what activities do HR Managers perform in each step? 3. What is an Employee Value Proposition (EVP) and how does it support HR Managers throughout the employee life cycle? 4. What is the employee life cycle and what are the important considerations at each stage of the cycle? 5. What legislation is front of mind for business 2 2 Module 9: Human Resource Management Role and importance of Human Resource Management  Role and importance of human resource management (HRM) Figure: Figure 12.1, Understanding Canadian Business, 9th Cdn ed. © 2016 McGraw-Hill Education Limited 4 4 Role and importance of human resource management (HRM) Employee life cycle: 2. 1.Recr Onboar uit d 5. 3. Offboa Develo rd p 4. Retain 5 5 Role and importance of human resource management (HRM) HRM – external forces 1. Shift in employee attitudes toward work – reduced loyalty, increased leisure time, purpose, among others 2. Changing demographics 3. Skills gap/talent shortage 4. Globalization 5. Economy 6. Diversity 7. Legal 6 6 Role and importance of human resource management (HRM) HRM – internal forces 1. Organizational acknowledgement of people as most valuable resource – For many – largest, most expensive resource – Employee as customer “Employee value proposition” eNPS – employee Net Promoter Score 2. Align HRM strategy with business strategy – Data and analytics ROI – Communication – Culture ERG’s, early careers, executive talent development, social 7 7 committees  Test your knowledge Which of the following statements about human resource management opportunities and challenges is most accurate? A. The age composition of the labour force is becoming drastically younger.  B. Workers are becoming less loyal to their firms, resulting in higher turnover. C. Employers do not need to assess the external economy when creating HR policies. D. The number of workers who have received training in high tech fields far exceeds the number of job openings in these areas. 8 8 Module 9: Human Resource Management Steps in Human Resource Planning  Steps in human resource planning 1. Prepare human resource inventory 2. Prepare job analysis 3. Assess future human resource demand 4. Assess future human resource supply 5. Establish strategic plan Image source: neyro2008/iStock/Thinkstock 10 10  Steps in human resource planning 1. Prepare human resource inventory of the organization’s employees Who? What skills? Image source: robuart/iStock/Thinkstock 11 11  Steps in human resource planning 2. Prepare job analysis What work needs to be done? – Job description What skills are needed to do it? – Job specification Figure: Figure 12.2, Understanding Canadian Business, 11th Cdn ed. © 2022 McGraw-Hill Education Limited 12 12  Steps in human resource planning 3. Assess future human resource demand What skills will you need in the future? 4. Assess future human resource supply What skills will be available in the future – Internally » Training and development – Externally » Scan the environment Image source: ilyast/iStock/Thinkstock 13 13  Steps in human resource planning 5. Establishing a strategic plan – What is the plan to ensure you have the right skills, at the right time, in the right place? All HR activities – Assess training/development needs – Succession planning – Upskilling Image source: pulsar75/iStock/Thinkstock 14 14 Module 9: Human Resource Management Employer Brand Employer brand Employee Value Proposition (EVP) Employee Desired HR Strategy Value actions/behaviors Proposition (performance) EVP: Defines the exchange of value between employer and employee – Value the employees are expected to contribute – Value the employees can expect to receive in return 16 16 Employer brand Canada's Top 100 Employers (2024) (canadastop100.com) 17 17 Module 9: Human Resource Management Employee life cycle - HIRE Employee life cycle - HIRE Employee life cycle: 2. 1.Recr Onboar uit d 5. 3. Offboa Develo rd p 4. Retain 19 19  Employee life cycle - HIRE Recruitment Activities used to obtain a sufficient number of the right people at the right time Qualified candidates for the job Cost of bad hire: “at least 30 percent of the employee's first- year earnings” Image source: neyro2008/iStock/Thinkstock 20 20 https://www.forbes.com/sites/falonfatemi/2016/09/28/the-true-cost-of-a-bad-hire-its-more-than-you-think/  Employee life cycle - HIRE Steps 1. Communicate opportunity 2. Screen applicants 3. Interview applicants 4. Verification 5. Select candidate 6. Negotiate contract 7. Hire employee and prepare for onboarding Image source: liravega/iStock/Thinkstock 21  Employee life cycle – HIRE – Communicate Opportunity Figure: Figure 12.3, Understanding Canadian Business, 9th Cdn ed. © 2016 McGraw-Hill Education Limited 22 22  Employee life cycle - HIRE – Communicate Opportunity Promoting and reassigning employees Advantages – Cost effective Search time and effort Training time and effort – Employee morale Disadvantages – Talent pool – Competition Image source: Jorgenmac/iStock/Thinkstock 23 23  Employee life cycle – HIRE - Screening The screening process involves: – Reviewing applications – Conducting initial interviews – Conducting employment tests directly related to the job Outcome: manageable list of applicants to move to next step Image source: liravega/iStock/Thinkstock 24 24  Employee life cycle – HIRE - Interviewing Interview considerations – Logistics – Questions – Evaluation criteria – Preparing the interviewer(s) Image source: liravega/iStock/Thinkstock 25  Employee life cycle – HIRE Highlighting your culture Competition – Challenges for small business – EVP/employer brand 26 26 mage source: https://www.shopify.ca/careers/culture  Employee life cycle – HIRE - Verification Verification – Conducting employment tests – Confirming background information – Establishing trial (probationary) periods Image source: liravega/iStock/Thinkstock 27 27  Employee life cycle – HIRE – Selection Selection – Managing diversity Corporate cultures should embrace diversity – Better serve customers – Enhanced skill set – Greater innovation and creativity – Review of hiring and promotion practices Unconscious bias Image source: Google 28 28  Employee life cycle – HIRE – Negotiate Contract Closing the deal – Employment contract Image source: neyro2008/iStock/Thinkstock 29 29 Employee life cycle – HIRE – Prepare for Onboarding Prepare Employment Documents Set Up Work Environment Coordinate Start Date and Orientation Schedule Prepare training and This Photo by Unknown Author is licensed under CC BY-SA-NC integration plan 30 30  Employee life cycle – HIRE – Prepare for Onboarding Contingent workers:workers who do not have regular, full-time employment – Part-time workers – Temporary/seasonal workers – Co-op students – Interns Employer perspective flexibility cost Worker perspective fill gaps b/w perm jobs Image source: bobaa22/iStock/Thinkstock flexibility 31 31  Test your knowledge Which of the following workers would be the best example of a contingent worker? A. An assembly line worker who belongs to a union and has 17 years of seniority.  B. A worker hired to help work at a manufacturing plant for a few weeks during the firm's peak production season. C. An elementary school teacher who just received tenure. D. An electrical engineer who frequently travels out of the country to the various manufacturing facilities owned and operated by his firm. 32 32  Test your knowledge Which of the following statements about recruiting is most accurate?  A. It is important for a firm to recruit and hire people who are not only skilled but who also fit in with the firm's culture and leadership style. B. Recruiting internally will almost always result in better qualified applicants than recruiting externally. C. Small firms generally have a strong advantage when it comes to recruiting. D. One advantage to using external sources when recruiting is that this approach tends to result in 33 33 higher morale among the firm's existing Module 9: Human Resource Management Employee life cycle - TRAIN Employee life cycle - TRAIN Employee life cycle: 2. 1.Recr Onboar uit d 5. 3. Offboa Develo rd p 4. Retain 35 35  Employee life cycle - TRAIN Training and development Initiatives to improve productivity by increasing an employee’s ability to perform Should evaluate effectiveness of training Training vs. Image source: totallyPic.com/iStock/Thinkstock development 36 36  Employee life cycle - TRAIN Training and development activities Employee orientation (onboarding) On-the-job training Apprentice programs Off-the-job training Online training Vestibule training Job simulation Image source: robuart/iStock/Thinkstock 37 37  Employee life cycle - TRAIN Leadership development Managers need special training – Human relation skills Communication, planning, and team building – Conceptual skills Strategic thinking, problem solving and decision making Most management training programs include: – On-the-job coaching – Understudy positions – Job rotation – Off-the-job courses and training Image source: robuart/iStock/Thinkstock 38 38  Employee life cycle - TRAIN Networking: establishing/maintaining contacts to grow and develop Image source: Varijanta/iStock/Thinkstock 39 39  Employee life cycle - TRAIN Performance appraisal Feedback on progress against a set of standards Identify long term development goals Recent considerations: Timing and frequency Emphasis Image source: pialhovik/iStock/Thinkstock 40 40 Employee life cycle - TRAIN Information obtained from performance appraisals can be used to make decisions: Short term – Identify training needs – Recognize achievements – Judge effectiveness of orientation process Long term – Promotions/succession planning – Compensation - Support – Terminating workers development – Evaluate hiring process 41 41  Employee life cycle - TRAIN Steps to consider in the performance appraisal process Establish standards Communicate standards Evaluate performance Discuss results Take corrective action/next steps Image source: pialhovik/iStock/Thinkstock 42 42  Test your knowledge The information contained in performance appraisals helps managers: A. write job descriptions. B. compute the firm's overall performance in terms of a rate of return on investment. C. evaluate job applicants.  D. make decisions about promotions, compensation, training, and firing. 43 43 Module 9: Human Resource Management Employee life cycle - RETAIN Employee life cycle - RETAIN Employee life cycle: 2. 1.Recr Onboar uit d 5. 3. Offboa Develo rd p 4. Retain 45 45  Employee life cycle - RETAIN 46 46 Image source: https://nteu254.org/2016/02/17/train-people-well-enough-so-they-can-leave-but-treat-them-well-enough-so-  Employee life cycle - RETAIN Compensation Tool to attract (and retain) qualified employees Significant operating cost Well-designed compensation package will: Attract the right talent Incentive to do best work Keep valued employees – Maintain competitive position in marketplace Sense of financial security Image source: leosapiens/iStock/Thinkstock 47 47  Employee life cycle - RETAIN Pay equity Internal (fairness) External (competitive) Legal = Equal pay for work of equal value – Skill, effort, responsibility, and working conditions Image source: Branchegevara/iStock/Thinkstock 48 48  Employee life cycle - RETAIN Pay systems Salary Hourly wage or daywork Piecework system Commission plans Bonus plans Profit-sharing plans Gain-sharing plans Cost-of-living allowances (COLAs) Stock options Image source: leosapiens/iStock/Thinkstock 49 49 Employee life cycle - RETAIN Benefits provide additional compensation to employees Financial: – Federal or provincial legislation – Legally required benefits – Other benefits – Cafeteria-style fringe benefits plan Non-financial – Perks 50 50  Employee life cycle - RETAIN Perks - flexibility Flex-time plans – adjust when you work – Core hours – Compressed work week Telecommuting / Hybrid work Job sharing Image source: Tcmake_photo/iStock/Thinkstock 51 51  Employee life cycle - RETAIN Perks – workplace wellness programs Sunlife-Ivey Canadian Wellness Return on Investment Study – Reduced absenteeism – Still great debate about increased productivity and cost savings Organizations get creative! e source: https://blog.hootsuite.com/5-secrets-for-a-better-work-life-balance/: 52 52  Employee life cycle - RETAIN Image source: https://www.inc.com/larry-kim/top-11-reasons-why-people-stay-at-their-jobs.html 53 53  Test your knowledge Flex Corporation has a cafeteria style benefit plan for its employees. This means that employees of Flex Corporation: A. receive free food at the organization’s. B. are offered a benefit package that is the same no matter your role or title within the organization.  C. can choose which benefits they want up to a certain dollar amount. D. select between participating in on the job training or offsite training at a school of their choice. 54 54 Module 9: Human Resource Management Employee life cycle - EXIT Employee life cycle - EXIT Employee life cycle: 2. 1.Recr Onboar uit d 5. 3. Offboa Develo rd p 4. Retain 56 56 Employee life cycle - EXIT Exits Require management too (offboarding) Turnover is costly Ambassador Types of exits – Quit – End of term – Retirement – Termination 57 57  Employee life cycle - EXIT Losing employees (quit) Learn about their reasons for leaving (exit interview) – Feedback on the effectiveness of your HR strategy – Turnover Rate Image source: jesadaphorn/iStock/Thinkstock 58 58  Employee life cycle - EXIT Retiring employees 1. Loss of knowledge 2. Succession planning – No mandatory retirement age – Golden handshake Image source: jesadaphorn/iStock/Thinkstock 59 59  Employee life cycle - EXIT Terminating employees Downsizing and restructuring (“Right-sizing”) With or without cause – Legal considerations severance, notice – Covering of duties – Mitigating internal and external damage – Minimizing legal risks – Protecting your assets Non-compete or solicitation clauses Image source: chiarabramuzzo/iStock/Thinkstock 60 60 Module 9: Human Resource Management Effects of legislation on HRM  Laws affecting human resource management Pay equity Employment equity Accessibility Health and safety – Violence and harassment HR’s job now more complex and challenging Image source: A7880S/iStock/Thinkstock 62 62 For next class 10: n d l e a o du ment M age Man ershiper 8 ea d h ap t L e ad C R 63 63