Chapter 11 Managing Human Resource Systems Learning Outcomes After reading this chapter, you should be able to: 1. Explain how different employment laws affect human resource practice. 2. Explain how companies use human resource planning and recruiting to find qualified job applicants. 3. Describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers. Copyright © 2015 by Nelson Education Ltd. 11-2 Learning Outcomes After reading this chapter, you should be able to: 4. Describe how to determine training needs and select the appropriate training methods. 5. Discuss how to use performance appraisal to give meaningful performance feedback. 6. Describe basic compensation strategies and discuss the four kinds of employee separations. Copyright © 2015 by Nelson Education Ltd. 11-3 The Human Resource Management Process Copyright © 2015 by Nelson Education Ltd. 11-4 Employment Legislation: What Is It All About? • Federal and provincial legislation • Covers human rights and employment standards • Labour relations, health and safety, and employment equity • The Canadian Labour Code – The Constitution Act of 1867 (formerly known as the British North America Act) • The Canadian Charter of Rights and Freedoms (1982) 5 1 Copyright © 2015 by Nelson Education Ltd. 11-5 Summary of Major Federal Employment Laws Constitution Act (BNA) of 1867 Sets out basic federal and provincial responsibilities Canadian Charter of Sets out the 15 basic Rights and Freedoms areas of freedoms in Canada Canadian Human Prohibits Rights Act discrimination on a number of grounds 1.1 Copyright © 2015 by Nelson Education Ltd. 11-6 Summary of Major Federal Employment Laws Canadian Labour Code Lays out responsibilities of each province and provides national guidelines Employment Equity and Pay Equity Legislation Workers Compensation Act (Manitoba) 1.1 Requires equal pay for equal work Provincial act that lays out safety standards Copyright © 2015 by Nelson Education Ltd. 11-7 Employment Discrimination and BFOQ BFOQ: Bona Fide Occupational Qualification •An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, only if they are “reasonably necessary to the normal operation of that particular business” 1.2 Copyright © 2015 by Nelson Education Ltd. 11-8 Employment Discrimination and BFOQ • • • • Unfair discrimination Intentional or unintentional Based on race, religion, ethnic origin Falls under the Charter of Rights and Freedoms • Leads to investigations by one of the provincial or territorial Human Rights Commissions 1.2 Copyright © 2015 by Nelson Education Ltd. 11-9 Canadian Human Rights Commission Beyond the Book Guide to Understanding the Canadian Human Rights Act: Canadian Human Rights Commission Duty to Accommodate/Undue Hardship: Canadian Human Rights Commission Copyright © 2015 by Nelson Education Ltd. 11-10 Workplace Harassment • Workplace harassment is – prohibited by several laws, both federal and provincial – does not have to be sexual in nature, although it commonly is • Harassment can also mean that someone is bullying you about your work or tormenting you simply because you are a man or a woman. • Expressing stereotypes about one gender or the other, for example, can be a form of harassment. 1.3 Copyright © 2015 by Nelson Education Ltd. 11-11 Sexual Harassment • A form of discrimination in which unwelcome sexual advances, requests for sexual favours, or other verbal or physical conduct of a sexual nature occurs while performing one’s job – Quid pro quo cases: requests for sexual acts are linked to economic outcomes (i.e., keeping a job) 1.3 Copyright © 2015 by Nelson Education Ltd. 11-12 Sexual Harassment: What Companies Should Do 1. 2. 3. 4. Respond immediately to reports. Engage in a quick and fair investigation. Create a sexual harassment policy. Communicate this policy (i.e., zero tolerance). 5. Establish clear reporting procedures. 6. Provide an impartial, nonthreatening avenue for employees to access. 7. Be aware of federal, provincial, and municipal laws. Copyright © 2015 by Nelson Education Ltd. 11-13 Recruiting Recruiting is the process of developing a pool of qualified job applicants. Job Analysis and Recruiting Internal Recruiting External Recruiting 14 2 Copyright © 2015 by Nelson Education Ltd. 11-14 Job Analysis and Recruiting • Job Analysis – A purposeful, systematic process for collecting information on the important work-related aspects of a job • Job Description – A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job • Job Specifications – A written summary of the qualifications needed to successfully perform a job 2.1 Copyright © 2015 by Nelson Education Ltd. 11-15 Internal and External Recruiting Internal Recruitment • “Promotion from within” • Improves employee morale and motivation • Reduces employer time and cost • Internal advertising is in the form of a job posting • Career path: a planned sequence of jobs Copyright © 2015 by Nelson Education Ltd. 11-16 Internal and External Recruiting External Recruitment • Advertising • Employee referrals • Walk-ins • Outside organizations • Employment services • Special events • Internet job sites Copyright © 2015 by Nelson Education Ltd. 11-17 Selection 3 Application Forms and Résumés References and Background Checks Selection Tests Interviews Copyright © 2015 by Nelson Education Ltd. 11-18 Topics Employers Should Avoid 1. Gender, marital status, or family status 8. Citizenship 2. Source of income 9. Physical or mental disability 3. Previous names 10. Sexual orientation 4. Next of kin 11. Workers’ Compensation 5. Dependants and child care 12. Language ability 6. Age and date of birth 13. Educational institutions 7. Previous address 14. Religious beliefs Source: Adapted from http://www.albertahumanrights.ab.ca/publications/bulletins_sheets_booklets/sheets/human resource_and_employment/pre_employment_inquiries.asp with the permission of the Alberta Human Rights Commission. 3.1 Copyright © 2015 by Nelson Education Ltd. 11-19 References and Background Checks • Not always provided by previous employers • 96 percent of companies conduct background checks • 80 percent of companies conduct criminal record checks • Making background checks more effective: – Dig deeper for more information. – Get permission in writing. – Document all checks. – Consider hiring private investigators. 3.2 Copyright © 2015 by Nelson Education Ltd. 11-20 Selection Tests Selection Tests • • • • • • 3.3 Specific ability Cognitive ability Biographical data Personality Work sample Assessment centres Copyright © 2015 by Nelson Education Ltd. 11-21 Interviews • Unstructured Interviews – Free-flow of questions • Structured Interviews – Interviewer uses standard set of prepared questions • Semi-structured Interviews – Some structure combined with interviewer judgment 3.4 Copyright © 2015 by Nelson Education Ltd. 11-22 Questions in Structured Interviews Situational Questions Behavioural Questions Background Questions Job-Knowledge Questions 3.4 Copyright © 2015 by Nelson Education Ltd. 11-23 Guidelines for Conducting Effective Structured Interviews FIRST PART: PLANNING THE INTERVIEW Copyright © 2015 by Nelson Education Ltd. 11-24 Guidelines for Conducting Effective Structured Interviews SECOND PART: CONDUCTING THE INTERVIEW Copyright © 2015 by Nelson Education Ltd. 11-25 Guidelines for Conducting Effective Structured Interviews THIRD PART: AFTER THE INTERVIEW Copyright © 2015 by Nelson Education Ltd. 11-26 Training Training Needs Training Methods Training Evaluation 27 4 Copyright © 2015 by Nelson Education Ltd. 11-27 Five Myths of Training Copyright © 2015 by Nelson Education Ltd. 11-28 Evaluating Training Reactions Learning Behaviour Results 4.3 How satisfied trainees were with the program How much employees improved their knowledge or skills How much employees actually changed their on-the-job behaviour How much training improved job performance Copyright © 2015 by Nelson Education Ltd. 11-29 Performance Appraisal • 70 percent of employees are dissatisfied with the Measuring performance appraisal process Job in their companies. Performance • 90 percent of human resource managers are dissatisfied with the Sharing performance appraisal Performance systems used by their Feedback companies. 30 5 Copyright © 2015 by Nelson Education Ltd. 11-30 Measuring Job Performance: Common Rating Errors Central Tendency •All workers are rated as being “average.” Halo Error •All workers are rated as performing at the same level in all parts of their jobs. Leniency Error •All workers are rated as performing at a high level. 5.1 Copyright © 2015 by Nelson Education Ltd. 11-31 Accurately Measuring Job Performance Improving Job Performance Measurements • Objective Performance Measures – Quantifiable outcomes: output, scrap, waste, sales, customer complaints, or rejection rates • Subjective Performance Measures – Graphic rating scales – Behavioural observation scales 5.1 Copyright © 2015 by Nelson Education Ltd. 11-32 Subjective Performance Appraisal Scales 5.2 Copyright © 2015 by Nelson Education Ltd. 11-33 What to Discuss in a Performance Appraisal Feedback Session 5.2 Copyright © 2015 by Nelson Education Ltd. 11-34 Keeping Qualified Workers: Compensation Job Evaluation • Determines market value and worth of the job Pay Variability • Piecework, commission, profit sharing, employee stock ownership plans, stock options Pay Structure • Hierarchical or compressed 35 6.1 Copyright © 2015 by Nelson Education Ltd. 11-35 • Foreign workers in many parts of the world end up in low-paying jobs that disappear at the whim of the employer, with little in the way of security or benefits. Copyright © 2015 by Nelson Education Ltd. © Rogerio Bernardo/Dreamstime.com/Coin images © 2013 Royal Canadian Mint - All Rights Reserved/ Images des pièces © 2013 Monnaie royale canadienne - Tous droits réservés. Foreign Workers 11-36 © Mark Von Holden/FilmMagic/Getty Images Terminating Employees 6.2 More than 473,200 Canadian workers were fired from their jobs in the first half of 2009 during the worldwide economic and banking crisis. Copyright © 2015 by Nelson Education Ltd. 11-37 Terminating Employees • What protection does the employer and employee have? – Be sure to consult the provincial Employment Standards Act for layoff and termination laws. – The Ministry of Ontario has a very informative website: Ontario Employment Standards Act 6.2 Copyright © 2015 by Nelson Education Ltd. 11-38 Downsizing: Guidelines for Conducting Layoffs 1. Provide clear reasons for the layoffs. 2. Get information to avoid laying off employees with critical skills. 3. Train managers in how to tell employees. 4. Give employees the bad news early in the day. 5. Provide outplacement services and counselling. 6. Communicate with survivors. Source: M. Boyle, “The Not-So-Fine Art of the Layoff,” Fortune, 19 March 2001, 209.) 6.3 Copyright © 2015 by Nelson Education Ltd. 11-39 Retirement • Early Retirement Incentive Programs (ERIPs) – Offer financial benefits to employees to encourage them to retire early • Phased Retirement – Employees transition to retirement by working reduced hours over a period of time before completely retiring. • Outplacement Services – Employment-counselling services offered to employees who are losing their jobs because of downsizing 40 6.4 Copyright © 2015 by Nelson Education Ltd. 11-40 Employee Turnover • Loss of employees who voluntarily choose to leave the company • Functional Turnover (encouraged) – The loss of poor-performing employees • Dysfunctional Turnover (discouraged) – The loss of high-performing employees 41 6.5 Copyright © 2015 by Nelson Education Ltd. 11-41