Canadian Human Resources Management – A strategic Approach Chapter 1 – Strategic Human Resource Management What is Human Resources Management? - organizations bring people together in a coordinated manner in order to accomplish a goal(s) or objective(s) that could not otherwise be accomplished by a single individual HRM - is the leadership and management of people within an organization using systems, methods, processes, and procedures that identify, select, motivate, and enable employees to achieve outcomes individually and collectively that enhance their contribution to the organization’s goals. Organizational goals – and organization’s short- and long-term outcomes that HR management aims to support and enable - May be categorized into economic (e.g., profit, shareholder), social (e.g., ethical practices), and environmental (e.g., reduction of carbon footprint) The difference between HRM and a Human Resource Department Although HRM is central to all organizations, not all organizations have a dedicated human resources department. - HRM focusses on what leader and managers should do regarding organizing human resource systems. Policies, and procedures. - human resource department is a specialized group with the primary focus od ensuring the most effective use of human resource systems across an organization to enhance employee performance and accomplish organizational goals - When a change is made to one activity or system, it often has an impact on another activity. - Example, and organizations acts to prevent long-term employees in order to prevent them from leaving, they may spend fewer dollars in recruiting and hiring new employees. Making Human Resource Management Strategic - HRM must operate within the framework of the organization - HRM activities must contribute to the organization’s goals and performance. - strategic HRM seeks to recognize that the choice of HR tools will depend on what the organization is trying to achieve. - HR activities must align with and contribute to the organization’s strategies - Walmart uses the slogan “Save money. Live Better.”10 As a result, Walmart tends to follow a low-cost strategy. Target’s slogan, on the other hand, is “Expect more. Pay less.”11 As a result, Target tends to follow a value-based strategy. - each HR practice should generate value for the organization Strategic human resource management – integrating he strategic needs of the organization’s choice of HRM systems and practices to support the organization’s overall mission, strategies, and performance. It is a value driven, proactive focus on how best to deploy HR practices and activities to enable an organization of any size to achieve its goals. Example, Costco Wholesalers has a strategy based partly on high volume and value-based sales. To support this strategy, it has few people on the retail floor to help shoppers and instead employs a large number of cashiers to process orders more quickly. This could be compared to Holt Renfrew, which has a strategy based partly on high quality and high-value products. As such, Holt Renfrew employs proportionately more sales associates, to assist shoppers in product choice, and fewer cashiers. Gamification – the use of rules, competition, and teamwork to encourage engagement by mimicking games (e.g., Points system that allows employees to exchange points for gifts and charity or transfer to fellow employees.) Understanding the Strategic Human Resource Management process - To be effective, HRM strategy and system should be formulated after careful consideration of an organization’s environment, mission and objectives, strategies, and internal strengths and weaknesses, including its culture. - There are five major steps: Step 1: Organizational Mission goals, and strategy analysis mission statement – outlines the purpose and long-term objectives of the organization. - there are three generic business strategies: cost leadership, differentiation, or focus. 1. Cost leadership - strategy to gain competitive advantage through lower costs of operations and lower prices for products. Aggressively seek efficiencies in production and use tight controls especially in managing costs. Example, Dollarama. 2. Differentiation strategy – aims to gain competitive advantage by creating a distinct product or offering a unique service. Example, Apple. 3. Focus strategy – to gain competitive advantage by focussing on the needs of a specific segment of the total market. Example, An automobile manufacturer sells its sport utility vehicles primarily in North America because of the local demand. The same firm sells its smaller and fuel-efficient economy car in less-developed countries because consumers there have lower disposable income or require smaller vehicles. - regardless of an organization’s strategic direction, HR are required to formulate and fulfill the organization’s strategies. Step 2: Environmental Scan - involves the continuous monitoring of economic, technological, demographic, and cultural forces. - The major forces facing an Canadian organization especially those affecting HRM are: 1. economic (e.g., recession) 2. technological (e.g., automation) 3. demographic (e.g., workforce composition) 4. cultural (e.g., ethnic diversity) 5. legal (e.g., changing laws) Economic forces – economic factors facing Canadian business today including global trade forces and the force to increase one’s own competitiveness and productivity levels. - There are 4 critical economic forces: 1. Economic cycles - Canadian economy goes through boom-and-bust cycles which is often linked to other economies. Although may not be the same for the entire country, for example, the oil and gas sector in Alberta. - For instance, human resource managers face special challenges during a recessionary period, as they often have to carry out the unpleasant task of planning, communicating, and implementing employee layoffs or terminations. - during boom period Hr must consider how to recruit and develop talent 2. Global trade - international trade has always been crucial to Canada’s prosperity and growth - Canada ranks high among exporting nations due to our small population and large natural resources. - Canadian job and economic prosperity depend upon international trade. - Canada is not as competitive as it was ranking 12th on Global competitiveness. 3. Productivity and innovation improvement Productivity - the ratio of a firm’s outputs (goods and services) divided by its inputs (people, capital, material, energy) - Productivity improvement is essential for long-term success. Example, a restaurant may seek to increase productivity by using fewer ingredients in recipes. - a major challenge facing Canadian managers is optimizing productivity while maintaining a high quality of engaged work life for the employees. - For over a decade, U.S. productivity has been consistently outpacing Canada - Without innovation, productivity differences tend to increase - If Canada is to improve—even maintain—its competitiveness, innovation on two fronts, namely people management and technology, are a must. 4. Knowledge workers – members of occupations generating, processing, analyzing, or synthesizing ideas and information (such as scientist or management consultants). - Extractive industries (e.g., mining and fishing) have decreased - Industries relaying on knowledge workers (e.g., education, healthcare, tourism, trade, public administration) have increased. Technological Forces 1. Connectivity and work design - Connectivity influences organizations, and the way people work. Changed the way we work, play study, entertain ourselves. - Access to information has affected the way organizations conduct business - Technology has brought flexibility - when and where work is carried out (e.g., telecommuting/remote work) - increased cybersecurity concerns. 2. Automation – the shift toward converting work that was traditionally done by hand to being completed by mechanical or electronic devices. - Organizations automate to: - increase speed - provide better service - increase flexibility - increase predictability in operations - achieve higher standards of quality - may use robots to replace boring or hazardous jobs - negative union attitudes towards mechanization are a barrier to the introduction of tech in the workplace 3. Data and analysis - The role of data and analytics have shifted due to AI/ML and rapidly increasing computing power - intranets and integrated information systems help store and access information quickly and accurately - information management systems capturing digital information about employees gives rise to human resource data analysis. Demographic forces 1. Gender balance - 47% of the workforce assigned female at birth - Participation rate of biologically female in health care and professional, scientific, and technological services continue to grow - more women than men work part-time. 2. Educational attainment of workers Educational attainment – the highest educational level attained by and individual worker, employee, group, or population. - 46% of Canadians aged 16 or over fall below adequate levels of literacy which can reduce overall productivity levels and may also contribute to safety violations. 3. Aging population - Average age of workforce in increasing (i.e., impending “old age crisis”) - Aging workers now must wait until 67 to claim old-age security 4. General shift - Although differences within groups may be wider than the differences between groups, some managers find benefit through understanding that not all generations view the world through the same lens that they do. Example, While Generation X are not averse to hard work, that place a premium to work-life balance and like to be active in decision making. - Baby Boomers, generation X, generation Y (Millennials), and Generation Z and sone Generation Alpha, are all in the workforce. - Different people have different expectations from their workplace. - Generational diversity creates an interpersonal dynamic for all leaders. Cultural forces – challenges facing a firm’s decision makers because of cultural differences among employees or changes in core cultural or social values occurring at the larger societal level. 1. Diversity and social justice - Canadian society a cultural mosaic – the Canadian ideal of encouraging each ethnic, racial, and social group to maintain its own cultural heritage, forming a national mosaic of different cultures. - Canada encourages maintaining unique cultures and heritage vs. U. S. “melting pot” - continued inequalities articulated by social justice advocates for indigenous, black, and other racialized people of color attributes to systemic bias. - social justice becomes central to diversity, equity, and inclusion initiative in the workplace. 2. Ethics - Ethical conduct of business is becoming an increasingly important issue - managers should understand ethical perspectives and consider ethical implications Step 3: Analysis of Organizational Character and Culture - HR strategies should be formulated only after a careful look at the organizations structure. Organizational Structure – the product of all of an organization’s features and how they are arranged – people, objectives, technology, size, age, and policies. - structures reflect the past and shapes the future - For example, sometimes objectives can be achieved in several acceptable ways. This idea, often overlooked, is called equifinality, which means there are usually many paths to any given objective. The key to success is choosing the path that best fits the organization’s character. - each organization as a unique culture – core beliefs and assumptions that are widely shared by all organizational members Step 4: Choice and Implementation of Human Resource Strategies - there should be a clear line of sight between HR strategy and corporate goals - Strategic choice and implementation involves identifying, securing, organizing, and directing the use of resources both within and outside the organization. - Similarly, the strategic human resource plan needs to integrate with other plans in the organization. - In formulating strategies the HR department must continueously focus on the following five major groups of activities: 1. Planning Human Resources (a systematic review of the current state of human resource practices in an organization and the identification of needed human resource processes, tools, and activities.) 2. Attracting HRs (filing apparent gaps in either people or practices) 3. Placing, developing, and evaluating HR (new employees need to be orientated with he organizations policies and procedures) 4. Motivating Employees (people leave their bosses not their organizations) 5. Maintaining high performance * HR must continuously focus on the following activities: 1. Identifying opportunities, risks, and challenges 2. Making data-informed decisions aligned to strategy 3. Optimizing for high performance Step 5: Review, Evaluation, and Audit or HR strategies - HR Strategies should be examined periodically in consideration of changing factors (e.g., technology, environment) human resource audit – an examination of the human resource policies, practices, and systems or a firm to eliminate deficiencies and improve ways to achieve goals. - Human resource activities aimed at productivity improvement, succession planning, and cultural change are critical to competitive survival - It almost invariably uncovers better ways for the department to contribute to societal, organizational, and employee objectives. This, in turn, clarifies the human resource department’s duties and responsibilities. - It ensures timely compliance with legal requirements. - It discloses how well managers are meeting their human resource duties. The Organization of HRM - HR department in a small organization: - separate HR department emerges when HR activities becomes a burden - often emerges as a small department or individual reporting to middle-level manager - Large HR department: - as the organization grows, the HR department usually grows in impact/complexity - specialists are added - Vice-President title The Service Role of the Human Resource Department - Although HR are organizational strategic partners, HR departments continue to be a service and support department. They exist to assist employees, managers, and the organization. - HR department have staff authority – authority to advise, but not to direct others. - Staff managers on the other hand have line authority – authority to make decisions about production, performance, and people. - HR managers advice line authority who provide details of performance, interview candidates, and use information by HR to make final decision. - In a highly technical or extremely routine situation HR departments may be given Functional authority – authority that allows staff experts to make decisions and take action normally reserved for line managers. Today’s HRM Professional - enormous growth in the number of HR managers - HR has been slow to evolve into a profession - Furthermore, human resource professionals need to be well versed in data-driven decision making and financial operations - Competencies for HR managers: - strategy; engagement; labour and employee relations; learning and development; human resource metrics, reporting, and financial management; professional practice, workforce planning, and talent management; health, wellness, and safe workplaces; and total rewards - The nationally recognized designation in HR is called the CPHR (Chartered Professional in Human Resources) for all Canadians except in Ontario, which has the Certified Human Resources Professional (CHRP) designation Chapter 4 Legal Requirements and Diversity, Equity, and Inclusion - Three types of pillar legislation exist at both federal and provincial levels: employment and labour standards, human rights legislation, and privacy legislation. - top of the pillars is where each organization will have to write down and adopt their own policies like workplace harassment and violence. LO1 Which employment Laws Apply? - First step for HR is to determine which laws apply to the organization. Three questions can guide HR regarding the laws to abide by. Questions 1 is the person an employee of the company or an independent contractor? - employees are governed by employment standards and have rights to vacation pay, statutory holidays, overtime pay, and the notice or severance pay in lieu of notice upon termination, and the right to collect employment insurance benefits. Question 2 is the organization provincially or federally regulated? - Federal employment laws cover approx. 10% of Canadian employees who work in federally regulated industries including communications, interprovincial or international transportation, banks, postal services, and the federal gov. - Canada labour code covers minimum employment standards (e.g., minimum wage, termination provisions) – also applies to businesses in the territories, first nation reserves, and certain crown corporations. - Other 90% fall under provincial legislation, and the employment laws of the province. - each province has employment regulations (Legally enforceable rules developed by governmental agencies to ensure compliance)—one for unionized and one for nonunionized employees. Question 3 is the employee unionized or nonunionized? - Each province has its own employment standards act that defines the minimum standards for wages, vacation days, and termination provisions for nonunionized employees. - unionized employees are covered under provincial labour laws—act as set rules for how unions and employers will organize collectively bargain to determine the minimum employment standards. - some employees are exempt from employment laws including farmers, municipal police, inmates, politicians, temp election workers, family members working in family business. LO2 Human rights legislation - employment-related laws and regulations are limited in scope—confined to a single HR activity. - human rights is an exemption as it affects nearly all HR functions: planning, recruiting, selection, training, compensation, and labour relations. The Canadian Charter of Rights and Freedom - part of the Constitution Act of 1982: - freedom of conscience and religion - freedom of thought, belief, opinion, and expression, including freedom of the press and other media communication - freedom of peaceful assembly - freedom of association - When person or group challenges that their rights were infringed upon, may settle through a dispute resolution process or heard by an administrative board or tribunal (An administrative body for dispute resolution that has authority in a specific area), or court. section 1 of the Charter – guarantees rights and freedoms “subject only to such reasonable limits prescribed by law as can be demonstrably justified in a free and democratic society” Section 2 – guarantees freedom of association, important aspect in industrial relations, especially unions. Section 15 – the equity rights—been delayed to allow federal government and the provinces to create or change laws to ensure compliance with he Charter. - Charter applies to individuals dealing with federal and providential governments and agencies under their jurisdiction—but far reaching as every law can be challenged. The Canadian Human rights Act - Human rights legislation provide equal employment opportunities and prohibits discrimination on all prohibited grounds Canadian Human Rights Act – governs federally regulated employees Provincial Human rights Laws - govern provincially regulated employees Discrimination Defined Discrimination – “the practice of treating one person or group of people less fairly than other people or groups”. - most frequently: disability (56%), sex, ethnic origin and race Direct Vs Indirect (Systemic) Discrimination - in some situation direct intentional discrimination is acceptable - e.g., fashion catering to women will be allowed to advertise for female models, religious schools allowed to limit hiring to members of their faith - Bona fide occupational requirement (BFOR) - indirect (systemic discrimination) takes place is there is no intention to discriminate, but the system, arrangement, or policies allow it to happen. - e.g., minimum height and weight requirements for employment in police forces. Minimum scores on employment tests, word-of-mouth hiring. Limited accessibility of buildings and facilities - more difficult to detect and fight because requires special efforts to deal with - Human rights Commissions (CHRC) has taken steps to define and detect the causes and sources of systemic discrimination Case Examples by Protected Group Status - to prevent discrimination employers must provide employees with reasonable accommodation up to point of undue hardship (when accommodation is not possible because of cost or create a health and safety risk) Race and color - both race and color are often involved. Can be intentional and unintentional National or Ethnic Origins - often indirect but on some occasions clear Religion - employee has a duty to accommodate an employee’s religious practice, unless those practices present undue hardship to the employer Age - older workers may be victims of indirect or subtle discrimination - Human rights legislation prevents age discrimination against anyone 18 or 19 years older (and younger) discrimination against younger workers is hard to prove as age and years of experience go hand in hand. Sex - Human rights act prevents discrimination on the basis of sex - unlawful to have separate policies for men and women such as reserving jobs for only men or women unless employer is able to prove that standards are necessary. Sexual orientation - - federal gov extended medical and dental benefits to same-sex partners of its employees back in 1996. - Same year Canadian Human Rights act added sexual orientation as a prohibited ground of discrimination gender identity - 2017 senate passed bill c-16 which prohibits discrimination on the basis of gender identity and expression Marital Status - partners who apply ot work in the same organization as their partner Family Status - employers may have duty to accommodate employees with child care obligations unless such accommodations results in undue hardship disability - principle of reasonable accommodation was established Pardoned convicts - Canadian Human rights act prohibits discrimination against convicted person if a pardon has been issues for the offense after 5 years following release, parole, or the completion of a sentence. - people who were refused employment on the basis of their arrest record without conviction are not covered on the Human rights act as it does not address this issue Administration of the Canadian Human Rights Act - administration of the Canadian Human Rights act lies in the hands of the Canadian Human Rights Commission (CHRC). - investigate and resolve allegations of discrimination in employment and provision of services within the federal gov. - Administers the Employment Equity Act - Commission is not tribunl and cannot rule on a case but can recommend tribunal to hear case if it cannot come to a resolution - there are some remedies available to the tribunal to settle a case: - Stop discriminatory practice - restore rights, opportunities, and privileges denied to victim - compensate the victim for wages lost and my expenses incurred as a result of the discriminatory practice - compensate the victim for pain and suffering - develop and implement employment equity programs to equalize for certain groups that have suffered from discriminatory practice in the part. - a person who fails to comply or obstructs investigation may be fined 50,000 LO3 Employment Equity Act - Federal law to remove employment barriers and to promote equity of the members of four designated groups: women, persons with disability, members of visible minorities, and indigenous people. - Act requires employers with 100 or more employees under federal jurisdiction to develop and submit annual plans setting goals and timetable for progress. - nearly all HR functions are affected by employment equity plans: - HR plans must contain unneeded requirements that exclude members of protected classes - job descriptions plans must reflect the organizations employment equity goals - selection of applicants must use screening devices that are job-relevant and non-discriminatory - training and development opportunities must be made available for all workers. - performance appraisal must be free from biases and discrimination - compensation programs must be based on skills, performance, and or seniority and cannot discriminate against jobholders in other respects. Employment Equity Programs Employment equity programs – are a means for improving the opportunities of a group through the elimination, reduction, or prevention of discrimination. - developed by employers to remedy past discrimination or to prevent discrimination in the future. - mandatory equity programs take place mainly in federal level while provincial level it is voluntary - companies with 100 or more employees bidding on contracts for goods and services 1 mill or more are subject to employment equity criteria listed in the Act. - HR group should adhere to the guidelines as suggested: - step 1: Exhibit commitment. CEO/president of company should support the program. May forcefully apply company officials to make raises, bonuses, and promotions - step 2: Appoint a director. One member should be responsible for equity issues, commonly the vice-pres. of HR. - Step 3: Publicize commitment. Ineffective unless publicized internally and externally through “an equal opportunity employer” on company stationery and employment ads - step 4: survey the workforce. Hr needs to know composition of the employer’s workforce compares with the composition of the workforce in the labour market. underutilization – when company has smaller proportion of protected class members than is found in the labour market concentration – when protected class members are concentrated in a few departments, out of proportion with their presence in the labour market. - step 5: develop goals and timetables. - step 6: Design specific programs. Remedial programs – correct problems that already exist Active programs – goes beyond instructing supervisors about new hiring policies, it means going to high school areas with minorities, approaching community leaders in such areas for assistance, inviting residents to attend information sessions etc. prevention programs – are proactive, involves assessment of HR policies and practices which need to be eliminated. - step 7: establish controls. To evaluate c=success, monthly, quarterly, and yearly benchmarks should be reported directly to the director of the program and to CEO Pay equity - women are 25-54 earn about 87% as much per hour as male employees, gap has shrunk by 10% since 1981 - only Quebec and Ontario have laws covering public and private sector policies on equal pay - Hr is responsible to make sure that wage and salary systems do not discriminate against the basis of sex Reverse Discrimination - usually arises when an employer seeks to hire of promote a member of a protected group over an equally qualified candidate who is not a member of a protected group. - put HR in a difficult position as it is responsible for eliminating concentration and underutilization but giving preference to members of priority groups raises questions about whether HR is being fair LO4 Privacy legislation - personal information is data about an identifiable individual. It can mean information about: - race or national or ethnic origin - religion - age or martial arts - medical, education, or employment history “ - finances - DNA - identifying number such as social insurance or driver’s licence numbers - views or opinions about a person as a employee - information that is generally not considered personal information: - information that is not about an individual because it is too weak (e.g., postal code) - information about an organization such as business - information rendered anonymous, as long it is not linked back to identifiable info - certain info about public servants such as their title name, position and title - a person’s business contact infor that an organization collects for the purpose of communicating with he person related to their employment - two federal privacy laws enforced by the Office of the privacy Commissioner of Canada - the privacy Act – relates to a person’s right to access and correct personal information that the Gov of Canada hold about them. - The personal information protection and electronic documents act (PIPEDA) – which sets rules for how privacy sector organizations collect, use, and disclose personal information in forprofit, commercial activities across Canada LO5 Workplace Policies - a healthy organization will not just meet minimal legal standards but will also promote positive workplace through workplace policies. - current and effective HR policies serve many purposes - outline expectations in the workplace, defining acceptable an unacceptable behaviours in the workplace - meeting statutory requirements such as workplace violence policy in Ontario - outline on how to address complaints, problems, and grievances - helping to protect employees from their colleagues poor behaviour - helping train and develop employees - outline break, vacation, and statutory holidays LO6 Types of HR Policies harassment policy - also called respectful workplace policies or code of conduct policies this outlines desired treatment of employees in an organizations. - verbal abuse of threats - unwelcome remarks, jokes, innuendo, taunting displays of pornographic racist or other offensive derogatory picture - unwelcome invitation or request - practical jokes that cause awkwardness or embarrassment - leering or other gestures - condescension or paternalism - unnecessary physical contact - physical assault - ostracism is a form of bullying and should be included in harassment policies - cyberbullying is a growing concern. Study conducted in 10 countries found that 53% believe workplace privacy has eroded due to social media sexual harassment is usually specifically addressed in harassment policy. Human rights tribunal identified three characterises of sexual harassment 1. Encounters must be unsolicited by complainant, unwelcome to complainant, and known to the respondent to be unwelcome 2. Must either continue despite complainant’s protest, if conduct stops complainants’ protests must have led to negative employment consequences 3. The complainant’s cooperation must be due to employment-related threats of promises - 52% of Canadian women report being subject to sexual harassment at work during their lifetime, with 28% reporting being subject to non-consensual touching. - half responders reported harassing or violent behaviour by cp-worker, while ¾ experiences harassment reported issue 41% said no attempt was made to resolve the issue Attendance, leave and Break Policies - attendance policies communicate employee’s start times, procedures for informing their supervisor of unscheduled absences or late arrivals, and discipline for unexcused absence. - Leave policies should outline the organizations rules and procedures regarding holidays, vacation, sick leave, study leave, and any other time-off benefits - should also cover leaves required by laws e.g., COVID, voting leave, domestic violence leave. - meal and break period policy communicates the frequency and duration of breaks, and any additional rules or restrictions relating to them Occupational Health and Safety - these policies should outline reporting procedures for work-related injuries and processes for investigating incidents - applicable occupational health and safety acts will require employers to have specific policies in place if certain workplace hazards exist Workplace violence - define unacceptable forms of behaviour in the workplace - need to abide by jurisdictional laws which may include posting requirements, listing specific example of prohibited violent conduct, and explaining workplace responsibilities for violence prevention Remote Workers Policy - will outline the jobs and workers who are eligible to work remotely, and limitations on remote work, and how remote workers will be monitored. Should include check-in procedures for remote workers working alone. Technology use policy - may choose what is appropriate or inappropriate use of the equipment - should outline what is acceptable on an employee’s break time at the workplace, or during off-hours away from the worksite. - should outline what the company-owned equipment can be used for personal purposes, and describe inappropriate uses. - may also relate to employees using their personal devices and issues related to theft, privacy, monitoring need to be considered Social media Policy - guideline for employees who post social media or respond to social media using their work related social media account or personal account - may address how social media use is controlled in the workplace, guide treatment of confidential information, and describe disciplinary measures for policy violation - clearly set employee expectations - protect brand reputation - increase employee engagement and advocacy Substance use policy - addictions to substances is considered a disability in Canada therefore employers need to think through reasonable accommodation and undue hardship in their particular work connect as part of the policy - review of workplace substance abuse policies in Canada by the Canadian Centre on Substance abuse and Addiction indicates that the best policies make clear that substance impairment will not be tolerated but will encourage a supportive environment for workers afflicted by substance abuse issues. Confidentiality Policy - indicate the type of information that employees should keep confidential, which may include information about trade secrets, non-public information, and even information about wages and working conditions. - they should also include consequences for violating confidentiality and provide specific example of the confidential material in question Diversity, Equity, and inclusion in the Canadian Workplaces - Hr holds primary responsibility for diversity, equity, and inclusion. - 22.3% of the total population are visible minorities Challenges for diverse workers - Challenges such as stereotyping, the old boys’ network, the glass ceiling, and “from pet to threat”. - multiple people may share commonalities in their background dimensions but grouping people can result in stereotyping. - many women hindered by the lack of access to the old boy’s network – set off informal relationships among male managers increased career advancement opportunities for men and reinforcing a male culture. - 25% of execs at financial services in Canada are women, placing Canada third in the world behind Norway and Sweden. - 19.5% of C-suite exec positions and 24.5% of board suite are held by women in Canada - 23% of board seats in manufacturing and mining, oil, and gas were held by women - board diversity, only 6.2% are visible minorities, and less than 1% are indigenous - glass ceiling – an invisible but real obstruction to career advancement of women and people of visible minorities resulting in frustration, career dissatisfaction, and increased turnover. - “from pet to threat” – a shared experience by many black women is that the managers, mentors, and sponsors who once supported them later undermine them because they are perceived to be a threat or competition. LO7 Strategic Importance of Diversity Diversity, equity, and inclusion – diversity is recognizing the presence of differences, equity is ensuring access to the same opportunities, and inclusion is about welcoming and valuing all people. Changing workforce - Gov of Canada responded to the Truth and Reconciliation Commission’s Call to Action 92 by urging Canadian corporate sector to adopt the United nations Declaration on the Rights of Indigenous peoples as a reconciliation framework and to apply its principles, norms, and standards: 1. commit to meaningful consultation, building respectful relationships, obtaining consent of indigenous people before proceeding with economic development projects 2. ensure Aboriginal peoples have equitable access to jobs, training, and education opportunities in the corporate sector. 3. provide education for management and staff on the history of indigenous peoples. Including the history of the legacy of residential schools. Importance of Human Capital - “intellectual capitalism”, knowledge workers may be the key to success or failure of the firm. Therefore, importance of human capital is critical. Diversity as a competitive advantage - diverse employees can provide insight on how to meet the needs of diverse customer groups - study by the Canadian Institute of Diversity and Inclusion revealed that only about 19% of employers are measuring the impact, efficiency, or return on investment of their diversity initiatives. Increasing role of work teams - Diversity alone cannot explain firm performance—resources, capabilities, and core competencies are stronger predictors of performance. However, diversity that enhances these variables is associated with petter performance. LO8 Diversity, Equity and inclusion Initiatives - many organizations are moving from strictly diversity and employment equity towards leveraging inclusion. - because managing diversity requires first a label or classification of a person along a dimension of diversity (older, female, gay etc.). - inclusion leapfrogs this labelling and moves right into creating practices and conditions where all employees are able to contribute effectively regardless of their differences - for organizations moving towards an inclusive environment first step is to articulate the ideal future state the organization would achieve through inclusion - current policies, procedures, rules, systems etc. have to be examined for their appropriateness for an inclusive culture - senior management commitment to inclusion is one of the most important elements of ensuring success of inclusion efforts. - changes in internal systems and procedures must be communicated to all members - monitoring ensures that qualitative and quantitative indices of change are available to the management, the union, and the workforce. - diversity and inclusion audits – audits to cover underlying dimensions, causes, interdependencies, and progress-to-date on diversity and inclusion matters Diversity, equity, and inclusion training - training programs aimed at importing new skills to motivate and manage a diverse, fair, and inclusive workforce. - experts suggest two types of training: awareness and skill-building training. - awareness training – focus on creating an understanding of the need for managing and valuing diversity, equity, and inclusion - skill-building training – educates employees on specific cultural differences and how to respond to differences in the workplace. Alternate work arrangements - non-traditional work arrangement (e.g., flextime, telecommuting) that provide more flexibility to employees while meeting organizational goals Apprenticeships - similar to mentoring programs except they relate to junior-level or technical jobs and often involve working with prospective employees before they formally join the organization Support groups - groups of employees who provide emotional support to a new employee who shares a common attribute in the group (e.g., racial or ethnic membership).
