Chapter 10
Managing Human Resources
and Labour Relations
Prepared by
Norm Althouse
University of Calgary
Copyright © 2011 by Nelson Education Ltd.
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Learning Outcomes
1 Discuss the human resource management process, and how human resource
needs are determined.
2 Explain how firms recruit applicants.
3 Summarize how firms select qualified applicants.
4 List some of the types of training and development programs organizations offer
their employees.
5 Show how performance appraisals are used to evaluate employee performance.
6 Analyze the various methods for compensating employees.
7 Explain how labour–management relations are different in a unionized
environment.
Chapter 10
8 Describe some of the key laws and federal agencies affecting human resource
management and labour relations.
9 List some of the trends and issues affecting human resource management and
labour relations.
Copyright © 2011 by Nelson Education Ltd.
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Human Resource Challenges
 Competition for a limited number of employees
 Employees are struggling to balance their home and work
lives
 Managers are challenged to manage and communicate with
employees around the globe
 A diverse and multicultural workforce requires better
workplace communication and training
 Technology is impacting decision making, communication,
and business operation
Chapter 10
 Human resource laws are dictating many aspects of the
employee-employer relationship
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Human Resource Success Factors
 Attracting and hiring the best employees
 Equipping employees with the skills needed to excel
 Compensating employees fairly
 Motivating employees to reach their full potential
Managing (and interacting with) people will probably be
the most stressful and difficult part of your future career
Chapter 10
“L'enfer, c'est les autres”
Hell is other people
Jean Paul Sartre
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Human Resource Management
Chapter 10
Human Resource
Management
(HRM)
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The process of hiring, developing,
motivating, and evaluating employees
to achieve organizational goals
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Chapter 10
Human Resource Management Process
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Human Resource Planning
Chapter 10
Job Analysis
A study of the tasks required to do a particular job well
Job Description
The tasks and responsibilities of a job
Job Specification
A list of the skills, knowledge, and abilities a person
must have to fill the job
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Human Resource Planning and Forecasting
Determine the number of people
needed by some future time
Chapter 10
The HR
Demand
Forecast
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Estimate the number of people
currently involved who will be
available to fill jobs at
some future time
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Chapter 10
Human Resource Planning Process
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Employee Recruitment
Internal Labour Market
External Labour Market
Follow a policy of promotion from within
Find and attract qualified applicants
from the external sources
Chapter 10
Electronic
Job Boards
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Advertising
Search
Firms
Job Fairs
Open
Houses
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Recruitment
Chapter 10
–
External recruiting: managers look outside the firm for people
who have not worked at the firm before.
• Managers advertise in newspapers, hold open houses, recruit
at universities, and on the Internet.
– External recruitment is difficult since many new jobs
have specific skill needs.
– A multi-prong approach to external recruiting works best.
– Internal Recruiting: positions filled from within the firm.
• Internal recruiting has several benefits:
– Workers know the firm’s culture but may not have new
ideas.
– Managers likely already know the candidates.
– Internal advancement can motivate employees.
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
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Honesty in Hiring
 Managers may be tempted to over-rate the
attractiveness of the job and firm.
–
–
Recruits will not work for dishonest
employers
Research indicates this is a poor strategy.
 Realistic Job Preview: provides an
accurate overview of the job.
Chapter 10
–
Avoids having to hire, train, and then lose
workers.
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Chapter 10
Employee Selection
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Selection Process
After a pool of applicants are identified,
qualifications related to the job requirements are
determined:
•
Chapter 10
•
Background Information: includes education, prior
employment, college major, etc.
Interview: almost all firms use one of two types:
– Structured interview: managers ask each person the
same job-related questions.
– Unstructured interview: held like a normal conversation.
– Usually structured interviews preferred; bias is possible.
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Selection Process
Testing: includes testing of ability, personality,
physical ability, and performance
Chapter 10

» Ability test: assess if applicant has right skills for the
job.
» Personality test: seek traits relevant to job
performance.
» Physical ability test: assesses whether applicant has
physical ability to do job tasks
» Be sure test is a good predictor of job performance.
Performance Tests: measure job performance.
» Typing speed test is one example.
» Assessment Center: candidates assessed on jobrelated activities over a period of a few days.
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Selection Process
• References: outside people provide candid
information about candidate.
– Can be hard to get accurate information
– Sometimes they want to get rid of someone
– Usually phone – written comments = lawsuits!
Chapter 10
“You will be very lucky if you can get
Josephine Smith to work for you………”
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Selection Devices
Quality of Selection Devices as Predictors
Position
Selection
Devices
Senior
Manag.
2
Mid-Lower
Managers
2
 Written Tests
1
1
2
3
 Work Samples
--
--
4
4
 Assessment Center
5
5
--
--
 Interviews
4
3
2
2
 Application Reviews
3
3
3
3
 Reference Checks
1
1
1
1
 Physical Exams
1
1
1
2
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 Application Forms
High-Tech Routine
Workers Operatives
2
2
Note: Scale is 5 (highest) to 1 (lowest) and a dash = N/A.
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Chapter 10
Employee Training and Development
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Employee Training and Development
employee orientation
on-the-job
Examples of
Types of Training
and Development
job rotation
apprenticeship
Chapter 10
mentoring
Off-thejob
training
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programmed instruction
simulation
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Chapter 10
Performance Planning and Evaluation
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Employee Compensation and Benefits
Hourly wages
Salaries
Types of
Compensation
Piecework & commission
Accelerated commission schedule
Bonus
Chapter 10
Profit sharing
Benefits
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Chapter 10
Job Changes within the Organization
Promotion
An upward move to a position with
more authority, responsibility, and pay.
Transfer
A horizontal move to a position with
about the same salary and
organizational level.
Demotion
The downgrading or reassignment
of an employee to a position
with less responsibility.
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Chapter 10
Separations
Layoff
Temporary separation of an employee.
Arranged by employer.
Termination
Permanent separation of an employee.
Arranged by employer.
Resignation
Permanent separation of an employee.
Arranged by employee.
Retirement
Separation of an employee at the end of
his or her career.
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Labour Relations Terms
Chapter 10
labour union
organization that represents workers in dealing
with management
collective bargaining
process of negotiating labour agreements
national union
a union that consists of many local unions,
operating nationally
local union
units of a national union, representing workers in a
specific location
shop steward
elected union official – represents members to
management
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Chapter 10
Negotiating Labour Agreements
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Common Issues in Collective Bargaining
 Union Security
 Management Rights
 Wages/Benefits
 Job Security and Seniority
 Grievance Procedures
Chapter 10
 Arbitration/Mediation
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Chapter 10
Strategies for Unions and Employers
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Chapter 10
Legislation Affecting HR Management
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Trends in Human Resource Management
Employee Diversity and Competitive Advantage
Outsourcing HR and Technology
Chapter 10
Organizational Culture and Hiring for Fit
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