CHAPTER 8: HUMAN RESOURCE MANAGEMENT © John Wiley & Sons Canada, Ltd. John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest Business Leadership: Management

CHAPTER 8: HUMAN RESOURCE MANAGEMENT

© John Wiley & Sons Canada, Ltd.

Business Leadership: Management FundamentalsJohn R. Schermerhorn, Jr., Barry Wright, and Lorie Guest

o Describe human resource management

o Explain how organizations attract a quality workforce

o Explain how organizations develop and maintain a quality workforce

PLANNING AHEAD —

CHAPTER 8 LEARNING

GOALS

• Major human resource management responsibilities:– Attracting a quality workforce

• Human resource planning, recruitment, and selection

– Developing a quality workforce• Employee orientation, training and

development, and performance appraisal.– Maintaining a quality workforce

• Career development, work-life balance, compensation and benefits, employee retention and turnover, and labour-management relations.

© John Wiley & Sons Canada Ltd.

HUMAN RESOURCE MANAGEMENT

• Strategic human resource management mobilizes human capital through the HRM (human resource management) process to best implement organizational strategies.


GLOBAL HUMAN RESOURCE MANAGEMENT

• Challenges in managing a global workforce– Keeping track of expertise– Availability of visas for foreign workers


GLOBAL HUMAN RESOURCE MANAGEMENT (CONT’D)

• Discrimination in employment– Occurs when someone is denied a job or job

assignment for reasons that are not job relevant• Employment equity – The right to employment without regard to race,

color, national origin, religion, gender, age, sexual orientation, pregnancy or physical or mental ability

– Canadian Human Rights Act of 1977


LEGAL ENVIRONMENT OF HUMAN RESOURCE MANAGEMENT


TABLE 8.2 A SAMPLE OF PROHIBITED GROUNDS OF EMPLOYMENT DISCRIMINATION IN CANADA

• Current legal issues in HRM

– Sexual harassment

– Equal pay and comparable worth

– Pregnancy discrimination

– Legal status of independent contractors

– Workplace privacy


CURRENT LEGAL ISSUES IN HR MANAGEMENT

• Human resource planning analyzes an organization’s HR needs and how to best fill them

• Steps in the HR planning process:– Step 1: review organizational mission,

objectives, and strategies– Step 2: review HR objectives and strategies– Step 3: assess current HR needs– Step 4: forecast HR needs– Step 5: develop and implement HR plans


HUMAN RESOURCE PLANNING


FIGURE 8.3 STEPS IN STRATEGIC HUMAN RESOURCE PLANNING

• The foundation of human resource planning is job analysis– The orderly study of job facts to determine just

what is done, when, where, how, why, and by whom in existing or potential new jobs

• Job analysis provides information for developing:– Job descriptions: details the duties and

responsibilities of a job holder– Job specifications: lists the qualifications required

of a job


HUMAN RESOURCE PLANNING (CONT’D)

• Recruitment:

– Activities designed to attract a qualified pool of job applicants to an organization

– Steps in the recruitment process:

• Advertisement of a job vacancy

• Preliminary contact with potential job candidates

• Initial screening to create a pool of qualified applicants


RECRUITMENT TECHNIQUES

• Recruitment methods:– External recruitment: candidates are sought from

outside the hiring organization– Internal recruitment: candidates are sought from

within the organization– Traditional recruitment: candidates receive

information only on most positive organizational features

– Realistic job previews: candidates receive all pertinent information


RECRUITMENT TECHNIQUES (CONT’D)

• Selection:– Choosing from a pool of applicants the person or

persons who offer the greatest performance potential

• Selection Steps:– Completion of a formal application form– Interviewing– Testing– Reference checks.– Physical examination– Final analysis and decision to hire or reject


SELECTION TECHNIQUES


FIGURE 8.4 STEPS IN THE SELECTION PROCESS: THE CASE OF A REJECTED JOB APPLICANT

Step 1: Application Forms

• Declares individual to be a job candidate

• Documents applicant’s personal history and qualifications.

• Personal résumés may be included

• Applicants lacking appropriate credentials are rejected at this step


STEPS IN THE SELECTION PROCESS

Step 2: Interviews

• Exchange of information between job candidate and

key members of the organization

• Opportunity for job candidate and organizational

members to learn more about each other


STEPS IN THE SELECTION PROCESS (CONT’D)

• How to succeed in a telephone interview:– Be prepared ahead of time– Take the call in private– Dress professionally– Practice your interview voice– Have reference materials handy– Have a list of questions ready– Ask what happens next



Step 3: Employment Tests• Used to further screen applicants by gathering

additional job-relevant information• Common types of employment tests:

• Intelligence• Aptitude• Personality• Interests



• Criteria for selection devices:

– Reliability:

• The selection device is consistent in measurement

– Validity:

• There is a demonstrable relationship between a person’s score or rating on a selection device and his/her eventual job performance



• Behaviourally-oriented employment tests:

– Assessment centre:

• Evaluates a person’s performance in simulated work situations

– Work sampling:

• Evaluates a person’s performance on actual job tasks



Step 4: Reference and Background Checks• Inquiries to previous employers, academic advisors,

coworkers and/or acquaintances regarding applicant’s:– Qualifications– Experience– Past work records

• Can better inform potential employer• Can enhance candidate’s credibility



Step 5: Physical Examinations

• Ensure applicant’s physical capability to fulfill job

requirements

• Basis for enrolling applicant in life, health, and

disability insurance programs

• Drug testing is done at this step



Step 6: Final Decision to Hire or Reject

• Best selection decisions will involve extensive

consultation among multiple parties

• Selection decision should focus on all aspects of the

candidate’s capacity to perform the designated job



• Orientation:– Set of activities designed to familiarize new

employees with their jobs, coworkers, and key aspects of the organization

• Socialization:– Process of influencing the expectations,

behaviours, and attitudes of a new employee in a way considered desirable by the organization


DEVELOPING A QUALITY WORKFORCE


TRAINING AND DEVELOPMENT

Training:• A set of activities

that provides the opportunity to acquire and improve job-related skills

On-the-job training:• Job rotation• Coaching• Mentoring• Modelling

Off-the-job training:• Management

development

Performance management systems ensure that:

• Performance standards and objectives are set

• Performance results are assessed regularly

• Actions are taken to improve future performance potential


PERFORMANCE MANAGEMENT

Performance appraisal:

– Formally assessing someone’s work accomplishments and providing feedback

– Purposes of performance appraisal:

• Evaluation: lets people know where they stand relative to objectives and standards

• Development: assists in training and continued personal development of people


PERFORMANCE MANAGEMENT (CONT’D)

Graphic rating scales:– Uses checklists of traits or characteristics to

evaluate performance

– Relatively quick and easy to use

– However, issue of questionable reliability and

validity


PERFORMANCE APPRAISAL METHODS

Behaviourally anchored rating scales (BARS):

– Describes actual behaviours that exemplify various levels of performance achievement in a job

– More reliable and valid than graphic rating scales

– Helpful in training people to master important job skills


PERFORMANCE APPRAISAL METHODS (CONT’D)


FIGURE 8.7 SAMPLE BEHAVIOURALLY ANCHORED RATING SCALE FOR PERFORMANCE APPRAISAL

Critical-incident techniques:– Keeping a running log or inventory of effective

and ineffective behaviours– Documents success or failure patterns



• Multi-person comparisons:

– Formally compare one person’s performance with that of one or more others

– Types of multi-person comparisons:

• Rank ordering

• Paired comparisons

• Forced distributions



• Alternatives to supervisory appraisal:– Peer Appraisal:• Occurs when people who work regularly and

directly with a jobholder are involved in the appraisal

– Upward Appraisal:• Occurs when subordinates reporting to the

jobholder are involved in the appraisal– 360° Feedback:• Occurs when superiors, subordinates, peers,

and even internal and external customers are involved in the appraisal of a jobholder’s performance


OTHER APPRAISALS

• Work-life balance:

– How people balance career demands with personal and family needs

– Progressive employers support a healthy work-life balance

– Contemporary work-life balance issues:

• Single parent concerns

• Dual-career couples concerns

• Family-friendliness as screening criterion used by candidates


MAINTAINING A QUALITY WORKPLACE

• Compensation and benefits:– Base compensation:• Salary or hourly wages


MAINTAINING A QUALITY WORKPLACE (CONT’D)

• Pay for performance:– Paying people for performance is consistent with:• Equity theory• Expectancy theory• Reinforcement theory

– Merit pay: • Awards a pay increase in proportion to individual

performance contributions• Provides performance contingent reinforcement• May not succeed due to weakness in performance

appraisal system or lack of consistency in application


COMPENSATION AND BENEFITS

• Incentive compensation systems:– Skill-based pay:• Links pay to the number of job-relevant skills

an employee masters– Bonus pay plans:• One-time or lump-sum payments based on the

accomplishment of specific performance targets or some extraordinary contribution


COMPENSATION AND BENEFITS (CONT’D)

• Incentive compensation systems:– Profit-sharing plans:• Some or all employees receive a proportion of

net profits earned by the organization

– Gain-sharing plans:

• Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity

– Employee stock ownership plans:

• Employees own stock in the company that employs them



• Fringe benefits:

– Include non-monetary forms of compensation

• Flexible Benefits:

– Help in choosing a set of benefits within a dollar amount

• Family-friendly benefits:

– Help in balancing work and non-work responsibilities

• Employee assistance programs:

– Help employees deal with troublesome personal problems



• Retention and turnover:

– Replacement is the management of promotions, transfers, terminations, layoffs, and retirements

– Replacement decisions relate to:

• Shifting people between positions within the organization

• Retirement

– Including early retirement incentive programs

• Termination

• Wrongful dismissal


RETENTION AND TURNOVER

• Labour unions deal with employers on the workers’ behalf

• Labour contracts specify the rights and obligations of employees and management regarding:– Wages– Work hours– Work rules– Seniority– Hiring– Grievances– Other conditions of employment


LABOUR-MANAGEMENT RELATIONS

• Collective Bargaining: – Process of negotiating, administering, and

interpreting a labour contract

• Two-Tier Wage System: – Pays new hires less than workers already

doing the same work with more seniority


LABOUR-MANAGEMENT RELATIONS (CONT’D)


FIGURE 8.9 THE TRADITIONAL ADVERSARIAL VIEW OF LABOUR-MANAGEMENT RELATIONS


Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.

COPYRIGHT