Chapter 1
The World of Human Resources Management
Human Resources Management
What is Human Resources Management (HRM)?
The process of managing human talent to achieve an organization’s objectives
Why study HRM?
• Establishing the strategic direction your firm should take
• attracting top-notch people to come to work for you and your firm
• determining the right people to hire so your team and company are a success
• helping and coaching people so they become top performers
• HRM as relevant to business/line managers as they are to managers in the HR
department.
• Great business plans, products, and services can easily be copied by your competitors.
Great personnel/people/talent cannot.
Overall framework for human resources management
1. Changes in marketplace and economy
Context of marketplace and
economy helps design the
appropriate business strategy
HR needs to be aligned to the
business strategy
Human resources managers
need to understand: Total
quality improvement,
Reengineering, Six Sigma,
Change management, Reactive
change, Proactive change
Competing, recruiting and
staffing globally
Many HR responsibilities have
either changed, increased in
importance, or have been
added since the COVID-19
outbreak.
2. Corporate Social Responsibility and Sustainability
https://www.rbc.com/community-social-impact/
3. Technology
Collaborative software –
google docs etc
Virtually classrooms and
meetings – Google meets
etc
Human Resources
Information Systems
(HRIS)
Data – Workforce
Analytics
4. Productivity and Cost Challenges
Downsizing
Outsourcing
Furloughing
Offshoring
Nearshoring
Employee
leasing
5. Leveraging Employee Differences – Diversity & Inclusion
Diversity is the uniqueness that each employee
brings to the workplace, and inclusion is the work
culture that allows these diverse employees to
integrate into every day work processes.
(Roberson, 2006).
What uniqueness
do you notice?
6. Educational and Cultural Shifts
Higher
education
Cultural
changes
The changing
nature of
work
Employee
rights
Changing
attitudes
towards work
Concern for
privacy
Balancing
work and
family
Responsibilities of HR manager
Collaboration between HR Manager and Business Manager
CHAPTER 1
The World of
Human Resources
Management
Copyright © 2020 by Nelson Education Ltd.
18
Learning Outcomes
Explain how human resources managers
and other managers can have rewarding
careers by helping their firms gain a sustainable
competitive advantage through the strategic
utilization of people.
Explain how good human resources practices
can help a firm’s globalization, corporate social
responsibility, and sustainability efforts.
Describe how technology can improve how
people perform their work and how they are
managed.
Copyright © 2020 by Nelson Education Ltd.
Learning Outcomes
Explain the dual roles human resource managers
have in terms of increasing productivity and
controlling costs.
Discuss how firms can leverage employee
differences to their strategic advantage and how
educational and cultural changes in the workforce
are affecting how human resources managers
engage employees.
Provide examples of the roles and competencies
of today’s human resources professionals.
Copyright © 2020 by Nelson Education Ltd.
Why Study Human Resources
Management?
Human Resources Management (HRM)
• The process of managing human talent to achieve an
organization’s objectives
Copyright © 2014 by Nelson Education Ltd.
Why Study Human Resources
Management?
• Establishing the strategic direction your firm should take,
attracting top-notch people to come to work for you and your
firm, determining the right people to hire so your team and
company are a success, and helping and coaching people so
they become top performers are goals as relevant to line
managers as they are to managers in the HR department.
• Great business plans, products, and services can easily be
copied by your competitors. Great personnel cannot.
Copyright © 2014 by Nelson Education Ltd.
Human Capital and HRM
Words to describe how important people are to organizations:
•
•
•
•
Human Resources
Human Capital
Intellectual Assets
Talent Management
Copyright © 2014 by Nelson Education Ltd.
Human Capital and HRM
• Human capital:
• knowledge, skills, and capabilities of individuals that have
economic value to an organization
• intangible
• cannot be managed the way organizations manage jobs,
products, and technologies
• Valuable
• Capital is based on company-specific skills
• Gained through long-term experience
• Can be expanded through development
Copyright © 2014 by Nelson Education Ltd.
Human Capital and HRM
Copyright © 2014 by Nelson Education Ltd.
Competitive Issues and
Human Resources Management
• Issue 1:
• Responding Strategically to Changes and Disruptions in the Local
and Global Marketplace
• Issue 2:
• Setting and Achieving Corporate Social Responsibility and
Sustainability Goals
• Issue 3:
• Advancing HRM with Technology
Copyright © 2014 by Nelson Education Ltd.
Competitive Issues and
Human Resources Management
• Issue 4:
• Containing Costs While Retaining Top Talent
and Maximizing Productivity
• Issue 5:
• Responding to the Demographic and Diversity
Challenges of the Workforce
• Issue 6:
• Adapting to Educational and Cultural Shifts Affecting the
Workforce
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
HR Managers and Business Strategy
• From administrative tasks to strategic partners
• Human resources managers need an intimate understanding of
their firm’s competitive business operations and strategies.
• “No change means chance.”
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
• Human resources managers need to understand:
•
•
•
•
•
•
Total quality improvement
Reengineering
Six Sigma
Change management
Reactive change
Proactive change
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
Six Sigma
• A set of principles and practices whose core ideas include
understanding customer needs, doing things right the first time, and
striving for continuous improvement
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
Reengineering
• The fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in cost, quality, service,
and speed
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
• Downsizing
• Planned elimination of jobs (“head count”)
• Layoffs
• Outsourcing
• Contracting outside the organization to have work done that
formerly was done by internal employees
• Offshoring (Global Sourcing)
• Business practice of sending jobs to other countries
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
• Change Management
• Systematic way of bringing about and managing
organizational changes and changes on the
individual level
• Reactive change
• Proactive change
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
Some changes are
reactive, such as
those experienced by
Volkswagen when it
was revealed the
company had cheated
on its vehicles’
emission tests.
Copyright © 2014 by Nelson Education Ltd.
Issue 1: Responding Strategically to Changes
and Disruptions in the Local and
Global Marketplace
Globalization
• Approximately 70–85 percent of the Canadian economy today
is affected by international competition.
Impact of Globalization
• “Anything, anytime, anywhere” markets
• Partnerships with foreign firms
• Lower trade and tariff barriers
Copyright © 2014 by Nelson Education Ltd.
Issue 2: Setting and Achieving Corporate
Social Responsibility and Sustainability Goals
Corporate Social Responsibility
• The responsibility of the firm to act in the best interests
of the people and communities affected by its activities
• Sustainability is closely related to corporate social
responsibility:
• Doing business in a way that does as little harm to the environment
and depletes as few natural resources as possible
Copyright © 2014 by Nelson Education Ltd.
Issue 3: Advancing HRM
with Technology
• Collaborative software that allows workers anywhere, anytime
to interface and share information with one another has
changed how and where people and companies do business.
• From Touch Labour to Knowledge Workers
• Knowledge Workers: Workers whose responsibilities extend
beyond the physical execution of work to include planning,
decision making, and problem solving
Copyright © 2014 by Nelson Education Ltd.
Issue 3: Advancing HRM
with Technology
Human Resources Information System (HRIS)
• A computerized system that provides current and accurate data
for purposes of control and decision making
• Workforce analytics is the process of gathering and analyzing
data to improve a firm’s human resources management.
Copyright © 2014 by Nelson Education Ltd.
Issue 3: Advancing HRM
with Technology
Impact of Technology on HRM
• Operational: Automation of routine tasks, lower administrative
costs, increased productivity, and faster response times; selfservice access to information and training for managers and
employees
• Relational: Online recruiting, screening, and pretesting
of applicants
• Transformational: Training, tracking, and selecting employees
based on their record of skills and abilities; organization-wide
alignment of “cascading” goals
Copyright © 2014 by Nelson Education Ltd.
Issue 4: Containing Costs While Retaining
Top Talent and Maximizing Productivity
Organizations take many approaches to lowering
labour-related costs, including:
• Carefully managing employees’ benefits
• Downsizing
• Outsourcing
• Offshoring, Nearshoring, Homeshoring
• Employee Furloughing and Leasing
Copyright © 2014 by Nelson Education Ltd.
Issue 4: Containing Costs While Retaining
Top Talent and Maximizing Productivity
Hidden Costs of a Layoff:
• Severance and rehiring costs
• Accrued vacation and sick-day payouts
• Pension and benefit payoffs
• Potential lawsuits from aggrieved workers
• Loss of institutional memory and trust in management
• Lack of staffers when the economy rebounds
• Survivors who are risk averse, paranoid, and political
Copyright © 2014 by Nelson Education Ltd.
Issue 4: Containing Costs While Retaining
Top Talent and Maximizing Productivity
• Benefits of a No-Layoff Policy:
•
•
•
•
•
A fiercely loyal, more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who aren’t afraid to innovate, knowing their jobs
are safe
Copyright © 2014 by Nelson Education Ltd.
Issue 4: Containing Costs While Retaining
Top Talent and Maximizing Productivity
• Employee Leasing:
• The process of dismissing employees who are then hired by
a leasing company (which handles all HR-related activities),
and contracting with that company to lease back the
employees
Copyright © 2014 by Nelson Education Ltd.
Issue 5: Responding to the Demographic and
Diversity Challenges of the Workforce
• In a recent survey, almost half of the organizations surveyed
reported that the biggest investment challenge facing them
over the next 10 years is obtaining human capital and
optimizing their human capital investments.
Copyright © 2014 by Nelson Education Ltd.
Issue 5: Responding to the Demographic
and Diversity Challenges of the Workforce
Demographic Changes
Managing Diversity
• More diverse workforce
• Aging workforce
• Being aware of
characteristics common
to employees, while also
managing employees
as individuals
• More educated
workforce
Copyright © 2020 by Nelson Education Ltd.
Issue 6: Adapting to Educational and Cultural
Shifts Affecting the Workforce
Educational and Cultural Factors:
• Cultural and societal changes affecting the workforce
• Employee rights
• Privacy concerns of employees
• Changing nature of the job
• Changing attitudes toward work
• Balancing work and family
Copyright © 2014 by Nelson Education Ltd.
The Partnership of Line Managers and
Human Resources Departments
• Successful organizations combine the experience of
line managers with the expertise of HR managers to develop
and utilize the talents of employees.
• Line managers are non-HR managers who are responsible for
overseeing the work of other employees.
• Different types of human resources managers specialize in
different HR functions.
Copyright © 2014 by Nelson Education Ltd.
The Partnership of Line Managers and
Human Resources Departments
Responsibilities of the HR Manager
1.
2.
3.
4.
Advice and counsel
Service
Policy formulation and implementation
Employee advocacy
Competencies of the HR Manager
1.
2.
3.
4.
Business mastery
HR mastery
Change mastery
Personal credibility
Copyright © 2014 by Nelson Education Ltd.
HR Competency Model
Copyright © 2020 by Nelson Education Ltd.
49
Chapter 2
Strategy and HR Planning
What is strategic
planning?
What is human
resources planning?
What is the link
between strategic
and HR Planning?
Strategic Planning and Human Resources
• Strategic Planning
• Procedures for making decisions about the organization’s long-term
goals and strategies
• Human Resources Planning (HRP)
• The process of anticipating and providing for the movement of people
into, within, and out of an organization
• Strategic Human Resources Management (SHRM)
• The pattern of human resources deployments and activities that enable
an organization to achieve its strategic goals
Linking Strategic Planning and HRP
•
•
•
•
Strategic Analysis
What human resources are needed and what are available?
Strategic Formulation
What is required and necessary in support of the human resources
strategy?
• Strategic Implementation
• How will the human resources be allocated for structure, processes,
and human capital decisions?
Step 1: Mission, Vision, and Values
• Mission
• The basic purpose of the organization as well as its scope of
operations
• Strategic Vision
• A statement about where the company is headed and what it can
become in the future; clarifies the long-term direction of the company
and its strategic intent
• Core Values
• The strong and enduring beliefs and principles that the company
uses as a foundation for its decisions
Step 2: External Analysis
• Environmental Scanning
• The systematic monitoring of the major external forces influencing
the organization
• Economic and ecological changes: general, regional, and global
conditions
• Technological changes: information technology and automation
• Demographic changes and labour market trends: education, age,
composition, literacy, immigration
• Social changes: priorities toward work, childcare, eldercare
• Legal and regulatory changes: laws and rulings
Step 2: External Analysis
Step 3: Internal Analysis
Step 3: Internal Analysis
• Core Capabilities
• Integrated knowledge sets within
an organization that distinguish it
from its competitors and deliver
value to customers
• Can consist of a combination of
three resources:
(1) processes, (2) systems
(technologies), and (3) people
Value Creation
Cost/benefit scenario
What the firm adds to a
product or service by virtue
of making it; the amount of
benefits provided by the
product or service once the
costs of making it are
subtracted
Step 3: Internal Analysis
• Sustaining a Competitive
Advantage through People
• Four criteria:
• The resources must be valuable.
• The resources must be rare.
• The resources must be difficult to
imitate.
• The resources must be
organized.
Cultural Audits
Audits of the culture and quality of
work life in an organization
How do employees spend their
time?
How do they interact with each
other?
Are employees empowered?
What is the predominant
leadership style of managers?
How do employees advance
within the organization?
Forecasting: A Critical Element of Planning
• Forecasting involves:
• forecasting the demand for labour
• forecasting the supply of labour
• balancing supply and demand considerations
Example of Trend Analysis of HR Demand
BUSINESS
FACTOR
YEAR

(SALES IN THOUSANDS)
LABOUR
PRODUCTIVITY
(SALES/EMPLOYEE)
=
HUMAN RESOURCES
DEMAND
(NUMBER OF EMPLOYEES)
2000
$2,351
14.33
164
2001
$2,613
11.12
235
2002
$2,935
8.34
352
2003
$3,306
10.02
330
2004
$3,613
11.12
325
2005
$3,748
11.12
337
2006
$3,880
12.52
310
2007*
$4,095
12.52
327
2008*
$4,283
12.52
342
2009*
$4,446
12.52
355
*Projected figures
Figure 2.5
Delphi Technique
1) Define and Refine the Issue or Question
2) Identify the Experts, Terms, and Time Horizon
3) Orient the Experts
4) Issue the First-Round Questionnaire
5) Issue the First-Round Questionnaire Summary and the
Second Round of Questionnaires
6) Continue Issuing Questionnaires
Management Inventory - Database
Markov Analysis
Class Activity
70
Strategies for Dealing with a Labor Surplus
Strategy
Speed
Extent of
Human Suffering
1. Downsizing
Fast
High
2. Hiring Freeze
Fast
High
3. Demotions
Fast
High
4. Transfers
Fast
Moderate
5. Job sharing
Fast
Moderate
6. Buyout/ Retirement
Slow
Low
7. Natural attrition
Slow
Low
8. Retraining
Slow
Low
Strategies for Dealing with a Labor Shortage
Strategy
Speed
Reversibility
1. Overtime
Fast
High
2. Temporary employees
Fast
High
3. Outsourcing
Fast
High
4. Transfers
Slow
High
5. Turnover reductions
Slow
Moderate
6. New external hires
Slow
Low
7. Technological
innovations
Slow
Low
Step 4: Formulating Strategy
STRATEGY
FORMULATION
MOVING FROM SIMPLE
ANALYSIS TO DEVISING
A COHERENT COURSE
OF ACTION
Corporate Strategies
• Restructuring: Turn Around, Divestiture, Liquidation, Bankruptcy
• Growth: Incremental growth, International growth, M & A
• Maintenance: Status Quo
• All of the above have major HR implication around: HR Planning, Staffing,
Training, compensation
• Corporate strategy = domain selection
Business strategy by Michael Porter
Business Strategy
• Functional Strategy: Ensuring Alignment
• Vertical Fit/Alignment
• Focuses on the connection between the business objectives and the
major initiatives in HR
• Horizontal Fit/Alignment
• Aligning HR practices with one another internally to establish a
configuration that is mutually reinforcing
Step 5: Strategy Implementation
Step 6: Evaluation and Assessment
• Benchmarking
• The process of comparing the organization’s processes and
practices to those of other companies
• Human capital metrics
• Assess aspects of the workforce
• HR metrics
• Assess the performance of the HR function itself
CHAPTER 2
Strategy and Human
Resources Planning
Copyright © 2020 by Nelson Education Ltd.
81
Strategic Planning and
Human Resources
Strategic Planning
• Procedures for making decisions about the organization’s
long-term goals and strategies
Human Resources Planning (HRP)
• The process of anticipating and providing for the movement
of people into, within, and out of an organization
Copyright © 2020 by Nelson Education Ltd.
82
Strategic Planning and HR Planning
Strategic Human Resources Management
(SHRM)
• The pattern of human resources deployments and
activities that enable an organization to achieve its
strategic goals
Copyright © 2020 by Nelson Education Ltd.
1–83
83
Strategic Planning and HR Planning
• Strategy formulation:
– providing input as to what is possible given the types
and numbers of people available
• Strategy implementation:
– making resource allocation decisions, including decisions
related to structure, processes, and human capital
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1–84
84
Strategic Planning and HR Planning
Copyright © 2020 by Nelson Education Ltd.
1–85
85
Step 1: Mission, Vision, and Values
Mission
• The basic purpose of the organization as well as its
scope of operations
Strategic Vision
• A statement about where the company is headed and
what it can become in the future; clarifies the long-term
direction of the company and its strategic intent
Core Values
• The strong and enduring beliefs and principles that the
company uses as a foundation for its decisions
Copyright © 2020 by Nelson Education Ltd.
1–86
86
Linking Strategic Planning and HRP
Strategic Analysis
• What human resources are needed and what are available?
Strategic Formulation
• What is required and necessary in support of the human
resources strategy?
Strategic Implementation
• How will the human resources be allocated for structure,
processes, and human capital decisions?
Human Resources
Planning
Copyright © 2020 by Nelson Education Ltd.
Strategic
Planning
87
Step 2: External Analysis
Environmental Scanning
• The systematic monitoring of the major external forces
influencing the organization
1. Economic and ecological changes: general, regional, and global
conditions
2. Technological changes: information technology and automation
3. Demographic changes and labour market trends: education,
age, composition, literacy, immigration
4. Social changes: priorities toward work, childcare, eldercare
5. Legal and regulatory changes: laws and rulings
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88
Step 2: External Analysis
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89
Step 3: Internal Analysis
Culture
Capabilities
Internal
Analysis
Composition
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90
Step 3: Internal Analysis
Core Capabilities
• Integrated knowledge sets within an organization that
distinguish it from its competitors and deliver value to
customers
• Can consist of a combination of three resources:
(1) processes, (2) systems (technologies), and (3) people
Copyright © 2020 by Nelson Education Ltd.
1–91
91
Step 3: Internal Analysis
Value Creation
• Cost/benefit scenario
• What the firm adds to a product or service by virtue of
making it; the amount of benefits provided by the product
or service once the costs of making it are subtracted
Copyright © 2020 by Nelson Education Ltd.
92
Step 3: Internal Analysis
• Sustaining a Competitive Advantage
through People
• Four criteria:
1.
2.
3.
4.
The resources must be valuable.
The resources must be rare.
The resources must be difficult to imitate.
The resources must be organized.
Copyright © 2020 by Nelson Education Ltd.
93
Corporate Culture
Cultural Audits
• Audits of the culture and quality of work life in
an organization
o How do employees spend their time?
o How do they interact with each other?
o Are employees empowered?
o What is the predominant leadership style of managers?
o How do employees advance within the organization?
Copyright © 2020 by Nelson Education Ltd.
94
Forecasting: A Critical Element
of Planning
Forecasting involves:
• forecasting the demand
for labour
• forecasting the supply
of labour
• balancing supply and
demand considerations
Copyright © 2020 by Nelson Education Ltd.
95
Copyright © 2020 by Nelson Education Ltd.
19
Forecasting a Firm’s Demand
for Employees
Quantitative Methods
Forecasting Demand
Qualitative Methods
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97
Forecasting a Firm’s Demand
for Employees
Quantitative approaches
• Trend Analysis
– Forecasting labour demand based on an organizational
index (such as sales)
Qualitative approaches
• Management Forecasts
– opinions (judgments) of supervisors, department
managers, experts, or others knowledgeable about the
organization’s future employment needs
Copyright © 2020 by Nelson Education Ltd.
98
Forecasting the Supply of Employees:
Internal Labour Supply
• Staffing tables
• Markov analysis
• Skill/management inventories
• Replacement charts
• Succession planning
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99
Internal Demand Forecasting Tools
Skill Inventories
• Files of personnel education, experience, interests, and
skills that allow managers to quickly match job openings
with employee backgrounds
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100
Internal Demand Forecasting Tools
Replacement Charts
• Listings of current jobholders and people who are
potential replacements if an opening occurs
Succession Planning
• The process of identifying, developing, and tracking key
individuals for executive positions
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101
Assessing a Firm’s Human Capital
Readiness: Gap Analysis
Human Capital Readiness
• Evaluating the availability of critical talent in a company
and comparing it to the firm’s supply
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102
Step 4: Formulating Strategy
Strategy Formulation
• Moving from simple analysis to devising a coherent
course of action
SWOT Analysis
• A comparison of strengths, weaknesses, opportunities,
and threats for strategy formulation purposes
• Using the strengths of the organization to capitalize on
opportunities, counteract threats, and alleviate internal
weaknesses
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103
Step 4: Formulating Strategy
Growth and
Diversification
Mergers and
Acquisitions
Corporate
Strategy
Strategic Alliances
and Joint Ventures
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104
Business Strategy
Value Creation
• What the firm adds to a product or service by virtue of
making it; the amount of benefits provided by the product or
service once the costs of making it are subtracted
(value = benefits − costs)
– Low-cost strategy: competing on productivity
and efficiency
• Keeping costs low to offer an attractive price to customers
(relative to competitors)
– Differentiation strategy: competing on added value
• Involves providing something unique and distinctive to
customers that they value
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105
Business Strategy
Functional Strategy: Ensuring Alignment
– Vertical Fit/Alignment
• Focuses on the connection between the business
objectives and the major initiatives in HR
– Horizontal Fit/Alignment
• Aligning HR practices with one another internally to
establish a configuration that is mutually reinforcing
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106
Business Strategy
The use of parttime employees
helps contain
labour costs
at fast-food
restaurants.
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107
Step 5: Strategy Implementation
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108
Step 5: Strategy Implementation
Reconciling Supply and Demand
• Balancing demand and supply considerations
– Forecasting business activities (trends)
– Locating applicants
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109
Step 5: Strategy Implementation
Reconciling Supply and Demand
• Organizational downsizing, outsourcing, offshoring
– Reducing “head count”
• Making layoff decisions
– Seniority or performance?
– Collective agreements
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110
Step 6: Evaluation and Assessment
Benchmarking
• The process of comparing the organization’s processes
and practices to those of other companies
• Human capital metrics
– Assess aspects of the workforce
• HR metrics
– Assess the performance of the HR function itself
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111
Measuring a Firm’s Strategic Alignment
Balanced Scorecard (BSC)
• A measurement framework that helps managers
translate strategic goals into operational objectives
•
•
•
•
financial
customer
processes
learning
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112
Measuring a Firm’s Strategic Alignment
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113
Ensuring Strategic Flexibility
for the Future
Organizational Capability
• Capacity of the organization to continuously act and
change in pursuit of sustainable competitive advantage
Coordination Flexibility
• The ability to rapidly reallocate resources to new or
changing needs
Resource Flexibility
• Having human resources who can do many different
things in different ways
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114
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115
Employee Turnover Rates
Computing the Turnover Rate
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116
Employee Absenteeism Rates
Computing Absenteeism Rates
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117
Chapter 3
Equity, Diversity and Inclusion
Definitions
• Diversity… is about the individual. It is about the variety of unique
dimensions, qualities, and characteristics we all possess.
• Inclusion… is about the collective. It is about creating a culture that
strives for equity and embraces, respects, accepts, and values
difference.
• “Diversity is the mix; Inclusion is making the mix work.
• (source: Andrés T. Tapia).
Equal, Equitable and Inclusive
What are the dimensions of Diversity?
Dimensions of diversity.
Personality
Adapted from: Marilyn
Loden and Judy Rosener,
Workforce America!
(Business One Irwin,
1991).
Canadian Centre for Diversity and Inclusion
123
Dimensions of diversity.
Gender Identity
Age
Gender
Expression
Personality
Race and
Ethnicity
Sexual Orientation
Internal Dimensions
Place of Origin
Introvert/Extrovert
Mental/Physical
Ability
Thinking Styles
Adapted from: Marilyn
Loden and Judy Rosener,
Workforce America!
(Business One Irwin,
1991).
Gender
Canadian Centre for Diversity and Inclusion
124
Dimensions of diversity.
Appearance
Income
Religion and
Beliefs
Recreational Habits
Caregiver Responsibilities
Gender Identity
Age
Gender
Expression
Personality
Race and
Ethnicity
Educational
Background
Sexual Orientation
External
Dimensions
Internal Dimensions
Place of Origin
Introvert/Extrovert
Gender
Mental/Physical
Ability
Work Experience
Language/Accent
Thinking Styles
Geographic Location
Communication
Style
Adapted from: Marilyn
Loden and Judy Rosener,
Workforce America!
(Business One Irwin,
1991).
Relationship and
Marital Status
Canadian Centre for Diversity and Inclusion
125
Dimensions of
diversity.
Title
Appearance
Income
Gender Identity
Gender
Expression
Personality
Race and
Ethnicity
Sexual Orientation
Place of Origin
Management
Status
Educational
Background
Internal Dimensions
Introvert/Extrovert
Union Affiliation
Religion and
Beliefs
Recreational Habits
Caregiver Responsibilities
Age
Work Location
Organizational
Dimensions
External
Dimensions
v
Gender
Mental/Physical
Ability
Business Unit
Work Experience
Language/Accent
Thinking Styles
Field/Sector
Professional
Associations
Geographic Location
Communication
Style
Adapted from: Marilyn
Loden and Judy Rosener,
Workforce America!
(Business One Irwin,
1991).
Reporting
Structure
Relationship and
Marital Status
Seniority
Pay Band
Canadian Centre for Diversity and Inclusion
126
Dimensions of
diversity.
Title
Appearance
Income
Gender Identity
Gender
Expression
Personality
Race and
Ethnicity
Sexual Orientation
Place of Origin
Mental/Physical
Ability
Business Unit
Organizational
Dimensions
External
Dimensions
v
Gender
Work Experience
Language/Accent
Thinking Styles
Cultural
Events
Management
Status
Educational
Background
Internal Dimensions
Introvert/Extrovert
Union Affiliation
Religion and
Beliefs
Recreational Habits
Caregiver Responsibilities
Age
Political
Systems
Work Location
Field/Sector
Professional
Associations
Geographic Location
Communication
Style
Adapted from: Marilyn
Loden and Judy Rosener,
Workforce America!
(Business One Irwin,
1991).
Reporting
Structure
Relationship and
Marital Status
Seniority
Pay Band
Laws/
Legislation
Global
Dimensions
Generational
Events
Economic
Systems
World
Events
The Business Case for Diversity
Employer of Choice
• Access to new labour pool
• Reputational benefits
• Reflects company values
• Innovation and creativity
• Compliance with laws
Business of Choice
• Competitive advantage
• Economic effectiveness
• Marketing opportunities
• Economic effectiveness
• Enhance customer satisfaction
Model of diversity management strategy
Employment Equity Act
• https://laws-lois.justice.gc.ca/eng/acts/e-5.401/page-1.html
• Purpose of Act
• The purpose of this Act is to achieve equality in the workplace so that no person
shall be denied employment opportunities or benefits for reasons unrelated to
ability and, in the fulfilment of that goal, to correct the conditions of disadvantage in
employment experienced by women, Aboriginal peoples, persons with disabilities
and members of visible minorities by giving effect to the principle that employment
equity means more than treating persons in the same way but also requires
special measures and the accommodation of differences.
https://www.canada.ca/en/public-service-commission/services/appointment-framework/employment-equitydiversity/employment-equity-groups.html
https://www.canada.ca/en/employment-socialdevelopment/corporate/portfolio/labour/programs/employment-equity/tools-resources.html
https://www.employmentequitychrc.ca/en/about-employment-equity-act
https://www.scotiabank.com/content/dam/scotiabank/canada/en/documents/ScotiabankEmploymentEquityReport2020.pdf
Employment Law
What are the sources
of Laws?
What are the sources of Employment Law?
•
•
•
•
There are three main sources:
Statutes law: Legislation passed by government
Constitution law: The Charter of Rights and Freedom
Common law: judge-made law
Copyright © 2019 Emond Publishing. All rights reserved.
Common Law
• Common law is the law that has developed from court decisions, or case law
• The common law operates on the basis of precedent, or decisions made by
previous courts in similar circumstances
• The principle of stare decisis means that decisions made by higher courts are
binding on lower courts in the same jurisdiction and in similar situations
• A decision is considered persuasive if it is from another jurisdiction or from a
court of the same or lower level
• Cases may be distinguishable, meaning that the facts or elements of a case
are so different that the principle of a previous decision should not apply
138
What are Laws?
What are Employment
Laws?
Why are they passed?
Why are they amended?
What is a Statute?
A statute is a law passed by the federal or provincial government. Statutes are
sometimes referred to as “legislation” or “acts”.
Employment laws are a set of laws that deal with the rights of employees and the
responsibilities of employers: Employment law covers a wide range of issues from
pension plans and retirement, to occupational safety, to discrimination in the
workplace.
Why do statutes change?
• Statutes (also called legislation) are laws passed by federal and provincial
governments
• Impetus for employment legislation:
• Politics – Ford government – Bill 47, Making Ontario Open for Business Act,
2018
• Demographic Shifts – aging population, and protections under the OHRC
(2006)
• Social Values – shifts in public policy; protection of vulnerable groups and
righting wrongs – Pay Equity Act (1987)
• Technology – privacy legislation
Name any significant current
demographic trend and discuss the
effect that it might have on
employment law in the future?
How Statues and Regulations Are Made?
• Public Bill – Cabinet Minister
(jurisdiction for subject matter of
bill)
• Private Members’ Bill – MPPs
– often tabled to spark debate or
to score political points (lesser
chance of being passed)
• Private Bill – non-public, more
administrative matters
• Regulations – “delegated
legislation”
How a bill becomes a statute
A bill becomes a statute once it
receives royal assent. A statute
may come into force in one of
three ways:
On royal assent: the statute
comes into force without the need
for additional steps;
On a particular date: the statute
itself names the date on which it
comes into force; or
On proclamation: the statute
comes into force on a date to be
announced later. Different
sections of the statute may come
into force at different times.
Where our legal system comes from?
• https://www.justice.gc.ca/eng/csj-sjc/just/03.html
What levels of Government Can Pass Employment
Related Statutes?
• Canada is a federal state with three levels of government: federal, provincial, and
municipal.
• Constitution Act, 1867 divided powers between federal and provincial governments.
• Only about 10% of Canadian workers governed by federal employment legislation
Division of Power: Federal Versus Provincial
• Shared responsibility: agriculture, immigration, pensions (Canada
Pension Plan overseen by federal government but applies to
provinces as well)
• Federal privacy legislation (Personal Information Protection and
Electronic Documents Act – PIPEDA) applies to some provinces
• Employment Insurance Act – federal legislation that applies equally
to provinces
• https://www.canada.ca/en/services/jobs/workplace/federally-regulated-industries.html
Division of Power: Federal or Provincial?
Class Discussion
- Toronto District School Board
- Tim Horton’s
- Scotiabank
- Sheridan College
- Alliance Pipeline Ltd.
- Air Canada
- Rogers Communications Inc.
-Whole Foods Market
-Mackie Moving Systems Corporation
-Pizza Pizza
-University Health Network (Toronto
General, Princess Margaret, etc.)
-Oak Park Pet Hospital
-Sirius XM Canada Inc.
-Nuclear Waste Management
Corporation
-Home Depot of Canada Limited
Federal Employment Laws
https://www.canada.ca/en/canadian-heritage/services/rights-workplace.html
• Canada Labour Code
• https://laws-lois.justice.gc.ca/eng/acts/l-2/
• Canadian Human Rights Act
• https://laws-lois.justice.gc.ca/eng/acts/h-6/page1.html
• Employment Equity Act
• https://laws-lois.justice.gc.ca/eng/acts/e5.401/FullText.html
• Personal Information Protection and Electronic
Documents Act (PIPEDA)
• https://www.priv.gc.ca/en/privacy-topics/privacylaws-in-canada/the-personal-informationprotection-and-electronic-documents-act-pipeda/
• Canada Pension Plan
• https://laws-lois.justice.gc.ca/eng/acts/c8/index.html
• Employment Insurance Act
• https://laws-lois.justice.gc.ca/eng/acts/e-5.6/
Ontario Employment Laws
• https://www.labour.gov.on.ca/english/es/
Employment Standards Act, 2000
Human Rights Code
Labour Relations Act, 1995
Occupational Health and Safety
Act
Workplace Safety and Insurance
Act, 1997
Accessibility for Ontarians with
Disabilities Act, 2005
Pay Equity Act
Sources of Employment Law
Common Law – the Court System
Why are Employment Laws important in the
workplace?
Who are the stakeholders that are impacted
by the laws and how?
Employer
Human Rights
Manager
Importance of
Employment
Law to
Human
Resources
Risk Management
Society
External Impact
Responsibility
Employee
Canadian Human Rights Act
Section 7
It is a discriminatory practice, directly or indirectly,
(a) to refuse to employ or continue to employ any individual, or
(b) in the course of employment, to differentiate adversely in relation
to an employee,
on a prohibited ground of discrimination.
Discrimination
• Every person has a right to equal treatment with respect to services,
goods and facilities, without discrimination because of race,
ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex,
sexual orientation, gender identity, gender expression, age, marital
status, family status or disability. R.S.O. 1990, c. H.19, s. 1; 1999,
c. 6, s. 28 (1); 2001, c. 32, s. 27 (1); 2005, c. 5, s. 32 (1); 2012, c. 7,
s. 1.
• https://www.ontario.ca/laws/statute/90h19
Direct Discrimination versus Systemic Discrimination
“Discrimination is a distinction which, whether intentional or not,
… has an effect ….”
Direct – on its face, the policy, practice, direction is
discriminatory
Systemic (or indirect) – on its face, the policy, practice, direction applies
equally to every employee but its effect is discriminatory
Human Rights Law in Ontario
1962 First Human Rights
Statute in Ontario and
Canada
6 prohibited grounds – race,
creed, colour, nationality,
ancestry, and place of origin
Current Human Rights Code
prohibits discrimination on
16 grounds
The Ontario Human Rights Code
http://www.ohrc.on.ca/en/o
ntario-human-rights-code
WAS DISCRIMINATION
EVER LEGAL IN
CANADA?
IF SO, HOW LONG AGO?
Was discrimination ever legal in Canada?
FREEDOM OF COMMERCE
ECLIPSES HUMAN RIGHTS
CHRISTIE V THE YORK
CORPORATION, 1940 SCR
139
HTTPS://SCCCSC.LEXUM.COM/SCCCSC/SCCCSC/EN/ITEM/8489/INDEX.D
O
Not Protected under the OHRC
• Language, although it may be an element of discrimination on the
basis of race, colour, ethnic origin, place of origin, or ancestry
• Physical appearance, unless it touches on a prohibited ground
• Political opinion, although the 2012 case of Al-Dandachi v SNCLavalin Inc has opened the door to a possible broadening of the
interpretation of political opinion as an element of creed
• Social Condition
• Genetic Characteristics
• Police Records
• Immigration Status
BFOR or BFOQ
• What is Bona fide occupational requirement (BFOR) or
qualification (BFOQ)
Meiorin Case – Landmark
• https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/1724/index.do
• A three-step test should be adopted for determining whether an employer has established, on a
balance of probabilities, that a prima facie discriminatory standard is a bona fide occupational
requirement (BFOR).
• 1. The employer must show that it adopted the standard for a purpose rationally connected to the
performance of the job. The focus at the first step is not on the validity of the particular standard, but
rather on the validity of its more general purpose.
• 2. The employer must establish that it adopted the particular standard in an honest and good faith
belief that it was necessary to the fulfilment of that legitimate work-related purpose.
• 3. The employer must establish that the standard is reasonably necessary to the accomplishment of
that legitimate work-related purpose. To show that the standard is reasonably necessary, it must be
demonstrated that it is impossible to accommodate individual employees sharing the characteristics
of the claimant without imposing undue hardship upon the employer.
•
EXERCISE: BFOR OR NOT?
Consider each of the following situations and decide whether they represent a bona fide occupational
requirement. Ask yourself and the others: Is the workplace rule reasonable? Is it made in “good faith”? Be
prepared to justify your answer.
1. A requirement that staff in a men’s locker room at a health club be men?
2. Male employees must be clean shaven?
3. Childcare workers must be women?
4. An employer who wishes to hire school bus drivers can require that applicants have no convictions for
careless driving?
5. Customer preferences indicate that they do not want to deal with women?
6. A women’s shelter advertises for support counselors and states that applications will only be accepted for
women?
Sexual Harassment
WHAT IS SEXUAL HARASSMENT ?
WHAT ARE THE CONSEQUENCES OF SEXUAL HARASSMENT IN THE
WORKPLACE?
HOW CAN COMPANIES CREATE A WORK ENVIRONMENT THAT IS
FREE OF SEXUAL HARASSMENT?
Copyright © 2014 Emond Montgomery Publications. All rights reserved.
168
CHAPTER 3
Equity and Diversity
in Human Resources
Management
Copyright © 2020 by Nelson Education Ltd.
169
Chapter Objectives
Explain the reasons for equity-related legislation.
Identify the legal framework, including the Charter
and human rights legislation.
Describe pay equity and strategies for
implementing it.
Discuss the Employment Equity Act with respect to
its origins, its purpose, and its continued
enforcement and the implementation of
employment equity in organizations.
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170
Chapter Objectives
Discuss sexual harassment as an employment
equity issue.
Explain and give examples of diversity
management.
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171
Employment Equity
• The employment of individuals in a fair and nonbiased manner
• Designated Groups
– Women, members of visible minorities, Indigenous
people, and persons with disabilities who have been disadvantaged in
employment
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Employment Equity
Status of designated groups:
•
•
•
•
Women
Indigenous people
People with disabilities
Members of visible
minorities
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Employment Equity
Benefits
• Broaden base of qualified individuals
• Enhance organization’s ability to attract and keep the
best-qualified employee
• Enhance employee morale
• Improve organization’s image in the community
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The Legal Framework
• The Canadian Charter of
Rights and Freedoms
• The Canadian Human
Rights Act (CHRA)
• Provincial laws
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175
The Legal Framework
• Bona Fide Occupational Qualification (BFOQ)
– A justifiable reason for discrimination based on
business reasons of safety or effectiveness
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The Enforcement of
Provincial Human Rights Laws
•
•
•
•
File a written complaint
Investigation and submission of report
If complaint is substantiated, settlement
If no agreement, then a tribunal
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Pay Equity
• Illegal to discriminate on the basis of job content
• Equal pay for work of equal value
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The Employment Equity Act (1995)
• Organizations regulated under the Canada Labour Code
• More than 100 employees
• Federal Contractors Program
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Implementation of Employment
Equity in Organizations
Step 1: Senior Management Commitment and
Assignment of Accountable Senior Staff
Step 2: Data Collection and Analysis
• Stock data
• Flow data - Data that provide a profile
of the employment decisions affecting
designated groups
• Self-identification questionnaire
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Implementation of Employment
Equity in Organizations
Step 2: Data Collection and Analysis (cont’d)
•
Underutilization
• Designated groups that are not utilized or represented
in the employer’s workforce proportional to their
numbers in the labour market
•
Concentration
• Designated groups whose numbers in a particular
occupation or level are high relative to their numbers
in the labour market
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181
Implementation of Employment
Equity in Organizations
Step 3: Employment Systems Review
• Systemic discrimination
• The exclusion of members of certain groups
through the application of employment policies or
practices based on criteria that are not job related
• Special measures
• Reasonable accommodation
• Attempt by employers to adjust the working
conditions or schedules of employees with
disabilities or religious preferences
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Implementation of Employment
Equity in Organizations
Step 4: Establishment of a Workplan
Step 5: Implementation
Step 6: Evaluation, Monitoring, and Revision
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183
Sexual Harassment
Sexual Harassment
• Unwelcome advances,
requests for sexual
favours, and other verbal
or physical conduct of a
sexual nature in the
working environment
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184
Managing Diversity
Diversity Management
• The optimization of an organization’s multicultural
workforce in order to reach business objectives
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185
Managing Diversity
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186
Managing Diversity
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Managing Diversity – Benefits
• Better utilization of talent
• Increased marketplace understanding
• Enhanced creativity
• Increased quality of team problem solving
• Greater understanding in leadership positions
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188
Chapter 4
Job Analysis – The cornerstone of HRM
Learning Objectives
Job Analysis and its use
in HRM functions
Conducting job analysis
Job design and factors
influencing it
Work Schedules and
employee contributions
Definitions
• Job - A group of related activities and duties
• Position - The different duties and responsibilities performed by only
one employee
• Job Analysis - A job analysis is the process of obtaining information
about jobs by determining the duties, tasks, or activities of jobs.
• Outcomes – job description and specification
Copyright © 2020 by Nelson Education Ltd.
Popular
methods:
Position Analysis Questionnaire
(PAQ) System
The Critical Incident Method
Approaches
to Job
Analysis
Task Inventory Analysis
Functional Job Analysis (FJA)
Competency-Based Analysis
What is job descriptions?
Discussion
What is job specification?
Is this required by law in a
company?
Definitions
• Job description - A statement of the tasks, duties, and responsibilities
of a job to be performed
• Job specification - A statement of the needed knowledge, skills, and
abilities of the person who is to perform the job
• Not required by law
https://publications.gc.ca/site/eng/308147/publication.html
http://www12.edsc.gc.ca/sgpe-pmps/servlet/sgpp-pmps-pub?lang=eng&curjsp=p.5bd.2t.1.3ls@eng.jsp&curactn=dwnld&pid=87&did=1&_ga=2.215163667.584177646.1494332836-354999446.1494332805
Problems with Job Descriptions
If they are poorly written,
using vague rather than
specific terms, they provide
little guidance to the jobholder.
They are sometimes not
updated as job duties or
specifications change.
They may violate the law by
containing specifications
not related to job success.
They can limit the scope of
activities of the jobholder,
reducing organizational
flexibility.
Copyright © 2020 by Nelson Education Ltd.
http://www.cic.gc.ca/english/immigrate/skilled/noc.asp
http://www.cic.gc.ca/english/immigrate/skilled/noc.asp
What is Competency?
6-206
© McGraw-Hill Ryerson Ltd., 2013
Competencies
Underlying, broadly applicable knowledge, skills, and behaviours
that form the foundation for successful work performance
(exhibited by excellent performers more consistently than
average performers)
6207
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208
Figure 4.13: Example of a Competency from a Competency Dictionary
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209
Figure 4.14: A Competency Profile for an HRSDC Citizen Service Agent
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210
Copyright © 2016 by Nelson Education Ltd.
Steps in Developing a Competency-Based Management Framework
1. Obtain executive-level support, including sufficient human and financial resources
2. Review the organization’s mission, vision, and values statements
3. Adopt a competency definition that meets the needs of the organization
4. Determine the HR functions for which competencies will be used
5. Determine the architecture of the competency model
6. Develop the competency dictionary
7. Define the profiling methodology
8. Identify reliable and valid assessment strategies to determine employee competency profiles
9. Document all steps in the development and implementation of the system and the rationale for key
decisions
10.Evaluate the system on an ongoing basis to ensure that the competency profiles continue to predict
successful job performance
211
http://hrdesignations.ca/HRPA-Professional-HR-Competency-Framework.pdf
6-214
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215
CHAPTER 4
Job Analysis
and Work Design
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216
Relationship of Job Requirements
and HRM Functions
Job
• A group of related activities and duties
Position
• The different duties and responsibilities performed by
only one employee
Job Family
• A group of individual jobs with similar characteristics
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217
Relationship of Job Requirements
and HRM Functions
Job specification
• A statement of the needed knowledge, skills, and abilities
of the person who is to perform the job
Job description
• A statement of the tasks, duties, and responsibilities of
a job to be performed
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Relationship of Job Requirements
and HRM Functions
• Strategic HR planning
• Recruitment
• Selection
• Training and development
• Performance appraisal
• Compensation management
• Legal compliance
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219
Relationship of Job Requirements
and HRM Functions
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220
Job Analysis
• A job analysis is the process of obtaining information
about jobs by determining the duties, tasks, or activities
of jobs.
• A job analysis should also outline the tools needed to
do the job, the environment and times at which it needs
to done, the people with whom it needs to be done, and
the outcome or performance level it should produce.
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Job Analysis
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222
Gathering Job Information
•
•
•
•
Interviews
Questionnaires
Observation
Diaries
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223
Approaches to Job Analysis
Popular methods:
• Position Analysis Questionnaire (PAQ) System
• The Critical Incident Method
• Task Inventory Analysis
• Functional Job Analysis (FJA)
• Competency-Based Analysis
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Job Descriptions
Job Title
• Indicates job duties and organizational level
Job Identification Section
• Distinguishes job from all other jobs
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225
Job Descriptions
Job Duties, or Essential Functions, Section
• Indicate responsibilities entailed and results to be
accomplished
Job Specification Section
• Skills required to perform the job and physical demands
of the job
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226
Problems with Job Descriptions
1. If they are poorly written, using vague rather than
specific terms, they provide little guidance to the
jobholder.
2. They are sometimes not updated as job duties or
specifications change.
3. They may violate the law by containing specifications
not related to job success.
4. They can limit the scope of activities of the jobholder,
reducing organizational flexibility.
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227
Job Design
Job Design
• An outgrowth of job analysis that improves jobs through
technological and human considerations to enhance
organization efficiency and employee job satisfaction
Behavioural Concerns
• The job enrichment model and the job characteristics
model: two methods designed to increase the job
satisfaction of employees.
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Job Design
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229
Job Enrichment
• Increasing the level of difficulty and responsibility of
the job
• Allowing employees to retain more authority and control
over work outcomes
• Providing unit or individual job performance reports
directly to employees
• Adding new tasks to the job that require training and
growth
• Assigning individuals specific tasks, enabling them to
use their particular competencies or skills
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230
Job Characteristics Model:
Designing Jobs to Motivate Employees
Job
Characteristics

Skill variety

Task identity

Task significance

Autonomy

Feedback
Job
Outcomes
Psychological
States

Meaningfulness of
the work performed

Improved work
performance

Responsibility for
work outcomes

Increased Internal
motivation

Knowledge of the
results of the work
performed

Lower absenteeism
and turnover
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Job Design
Industrial Engineering Considerations
• A field of study concerned with analyzing work methods
and establishing time standards
Ergonomic Considerations
• An interdisciplinary approach to designing equipment
and systems that can be easily and efficiently used by
human beings
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Job Design
Many companies willingly
invest in ergonomically
designed workstations
because they protect
the health and productivity
of employees.
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233
Designing Work for Groups
and Teams
• An outgrowth of job analysis that improves jobs through
technological and human considerations to enhance
organization efficiency and employee job satisfaction
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Designing Work for Groups
and Teams
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235
Designing Work for Groups
and Teams
Employee Involvement Groups (EIGs)
• Groups of employees who meet to resolve problems or
offer suggestions for organizational improvement
• Also known as quality circles (QCs)
• Success with EIGs requires:
–
–
–
–
Comprehensive training for group members
Recognition of the group’s contributions
Continuing input and encouragement by management
Use of a participative/democratic leadership style
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Employee Teams
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Employee Teams
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Virtual Team
• A team with widely
dispersed members linked
together through
computer and
telecommunications
technology
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Characteristics of Successful Teams
• Commitment to shared goals and objectives
• Motivated and energetic team members
• Open and honest communication
• Shared leadership
• Clear role assignments
• A climate of cooperation, collaboration, trust, and
accountability
• The recognition of conflict and its positive resolution
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Benefits of Employee Teams
• Increased integration of
individual skills
• Better performance (quality
and quantity) solutions to
unique and complex
problems
• Reduced delivery time
• Reduced turnover and
absenteeism
• Accomplishments among
team members
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Flexible Work Schedules
Compressed Workweek
• Shortening the number of days in the workweek by
lengthening the number of hours worked per day
Flextime
• Working hours that permit employees the option of
choosing daily starting and quitting times, provided
that they work a set number of hours per day or week
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Flexible Work Schedules
Job Sharing
• The arrangement whereby two part-time employees
perform a job that otherwise would be held by one
full-time employee
Telecommuting
• The use of personal computers, networks, and other
communications technology to do work in the home
that is traditionally done in the workplace
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Chapter 5
Expanding The Talent pool: Recruitment and Careers
Learning Outcomes
Recruitment and
Selection
Recruitment Strategy
and Process
Employment Branding
Internal and external
recruitment
Improving recruitment
methods
Employee career
management
Recruitment and Selection
Recruitment: the generation of
an applicant pool for a position
or job in order to provide the
required number of qualified
candidates for a subsequent
selection or promotion process
Applicant pool: the set of
potential candidates who may
be interested in, and who are
likely to apply for, a specific job
Selection: The process of
choosing individuals who have
relevant qualifications to fill
existing or projected job
openings
Selection
Recruitment
Recruitment Strategy
Conduct job analysis
Prepare job description
and specification
Know Your Candidate and
the labor market
Make the company
attractive – Employment
Branding
Design a marketing
campaign – multi pronged
– internal and external
Devise a system to collect
/ store interested
candidates applications –
Tech – Applicant Tracking
System
Be sensitive – focus on a
great candidate
experience
Evaluate the effectiveness
Covered in Chapter 4
Know Your
Candidates
• Why is it important to know what
your candidates are thinking?
• What do you do with this
information?
Labour Market
Area from which applicants
are to be recruited
• Tight market: high
employment, few
available workers
• Loose market: low
employment, many
available workers
Factors determining the
relevant labour market:
• Skills and knowledge
required for a job
• Level of compensation
offered for a job
• Reluctance of job seekers
to relocate
• Ease of commuting to
workplace
• Location of job (urban or
nonurban)
Global Labour Markets
Why Recruit Globally?
• To develop better products via a global workforce
• To attract the best talent wherever it may be
International Recruiting Issues
•
•
•
•
•
•
Local, national, and international laws
Different labour costs
Different pre-employment and compensation practices
Cultural differences
Security
Visas and work permits
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Recruitment Process - Operational
Position
Vacancy/
Position
People Planning
Vacancy
Company
policy/process
Candidate
Experience
Staff Request
process
Approval
Process
Internal or
External
Campaign
Value of
Mobility
Evaluate
-levels /message
Selection
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Admin
Process Approval
Ideas –
Internal and
External
Recruitment
Entry Level HR Generalist
Internal and
External
Sources
Internal
External
Internal Job Posting
Identifying Talent based on
Performance Appraisal
Skills inventories
Management Inventories
Replacement Charts
Succession Management
Advertisements
Walk Ins
Internet, Social Media etc
Job fairs
Employee Referrals
Rerecruiting
Search firms – Executive,
Staffing etc
Campus – colleges,
universities
Professional Associations –
HRPA, CPA
Labour Unions
ESDC
https://www.forbes.com/advisor/business/best-applicant-tracking-systems/
Improving the Effectiveness
of Recruiting
Careers
CHAPTER 5
Expanding the Talent Pool:
Recruitment and Careers
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Strategic Aspects of Recruiting
• Decisions about talent
• The broad factors that can affect a firm’s recruiting
strategy include a firm’s recruiting abilities.
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Who Should Do the Recruiting?
• HR recruiters or generalists (large firms)
• Managers and/or Supervisors (smaller firms)
• Work teams
• Recruiting Process Outsourcing (RPO)
– The practice of outsourcing an organization’s recruiting
function to an outside firm
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Should a Firm Recruit Internally
or Externally?
• Most managers try to follow a policy of filling job
vacancies above the entry-level position through
promotions and transfers.
• There are advantages and disadvantages to both.
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Labour Markets
• Internal labour markets
– Labour markets in which workers are hired into
entry-level jobs and higher levels are filled from within
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Labour Markets
Labour Market (regional and global)
• Area from which applicants are to be recruited
o Tight market: high employment, few available workers
o Loose market: low employment, many available
workers
• Factors determining the relevant labour market
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Regional and Global Labour Markets
• Why recruit globally?
– To develop better products via a global workforce
– To attract the best talent wherever it may be
• International recruiting issues
–
–
–
–
–
–
Local, national, and international laws
Different labour costs
Different preemployment and compensation practices
Cultural differences
Security
Visas and work permits
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Branding
An organization’s efforts to help existing and prospective
workers understand why it is a desirable place to work
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Recruitment Channels
Recruiting Internally
• Internal job postings
• Identifying talent through performance appraisals
– 9-box grid
• Skills inventories and replacement charts
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Recruitment Channels
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Recruitment Channels
Recruiting Externally
• Advertisements
• Walk-ins, unsolicited applications, and résumés
• The Internet, social networking, and mobile recruiting
• Job fairs
• Employee referrals
• Re-recruiting
• Executive search firms
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Recruitment Channels
Recruiting Externally (cont’d)
• Educational institutions
• Professional associations
• Labour unions
• Public employment agencies
• Private employment and temporary agencies
• Employee leasing
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Improving the Effectiveness
of Recruiting
Surveys
Recruiting Metrics
Effectiveness
of
Recruitment
Realistic Job Previews
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Realistic Job Previews (RJP)
• Informing applicants about all aspects of the job, including
both its desirable and undesirable facets
• Some companies are taking their RJPs online
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Recruiting Metrics
• Quality-of-fill statistics
• Quality of hire = (PR + HP + HR) / N
– PR = Average job performance rating of new hires
– HP = % of new hires reaching acceptable productivity
with acceptable time frame
– HR = % of new hires retained after one year
– N = number of indicators
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Recruiting Metrics
Time to Fill
• The number of days from when a job opening is
approved to the date the candidate is selected
Yield Ratios
• The percentage of applicants from a recruitment source
that make it to the next stage of the selection process
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Costs of Recruitment
Cost of Recruitment (Per Employee Hired):
SC AC  AF  RB  NC

H
H
SC = source cost
AC = advertising costs, total monthly expenditure (example: $32,000)
AF = agency fees, total for the month (example: $21,000)
RB = referral bonuses, total paid (example: $2,600)
NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)
H = total hires (example: 119)
Cost to hire one employee = $467.23
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Costs of Recruitment
Acceptance rate
• The percentage of applicants who accept a firm’s jobs
after being offered them
Applicant tracking system (ATS)
• A system recruiters use to post job openings, screen
résumés and uploaded profiles, contact via email
potential candidates for interviews, and track the time,
costs, and other metrics related to hiring people
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Career Management:
Developing Talent over Time
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Career Management:
Developing Talent over Time
The goal is to match individual and organizational needs.
• the employee role
• the organizational role
Blending the goals of individual employees with the goals
of the organization
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Career Management:
Developing Talent over Time
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Identifying Career Opportunities
and Requirements
• Begin with a competency analysis
• Identify job progressions and career paths
• Track career stages
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Identifying Career Opportunities
and Requirements
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Recognize Different Career Paths
• Promotion
– A change of assignment to a job at a higher level in the
organization
• Transfer
– Placement of an individual in another job for which the
duties, responsibilities, status, and remuneration are
approximately equal to those of the previous job
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Recognize Different Career Paths
• Consider dual career paths for employees
• Consider the boundaryless career
• Help employees progress beyond career plateaus
– A situation in which, for either organizational or personal
reasons, the probability of moving up the career ladder
is low
• Companies with international divisions can encourage
employees to take assignments abroad or take sabbaticals.
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Career Development Initiatives
• Career planning workbooks and workshops
• Career counselling
• Mentoring/reverse mentoring
• Networking
• Career self-management training
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Chapter 6
Employee Selection
Selection
• Selection
• The process of choosing individuals who
have relevant qualifications to fill existing or
projected job openings.
• Selection Considerations
• Person-job fit: job analysis identifies required
individual competencies (KSAOs) for job
success.
• Person-organization fit: the degree to which
individuals are matched to the culture and
values of the organization.
Examples from Sujay’s
work and life experience
How is the initial screening
of candidates done?
Initial Screening
Cover letters and résumés,
including name-blind
résumés
Internet checks and phone
screening
Video résumés: short video
clips that highlight
applicants’ qualifications
beyond what they can
communicate on their
résumé
Application forms
Online applications
Résumés
• Intent of the résumé is to introduce the applicant to the organization through a
brief, written self-description
• Applicants voluntarily provide autobiographical information in their résumés
• Résumés are not standardized
• Résumés are unique
• Electronic résumés are more popular today
Application Blanks
• Application blank: a form completed by job candidates to provide an employer with basic
information about their knowledge, skills, education, or other job-related information
• Application forms consist of a series of questions aimed at securing information on the general
suitability of the applicants to the target position. They are used to provide a preliminary preemployment screen, allowing the employer to determine whether the applicant is minimally
qualified for the position.
• They collect information in a consistent format.
• Employers cannot ask for information that is prohibited on discriminatory grounds under human
rights legislation unless it can be established that the information is a bona fide occupational
requirement (BFOR).
What is the purpose of the initial screening
interview?
What are the typical questions asked?
How is it conducted?
How are candidates assessed?
Can Blind Auditions Help Talented Candidates
Succeed?
Who Could Benefit From This Approach?
Employment
Interviews
What are the different types of
employment interviews?
Types of Interviews
• Non Directive Interviews
• Structured Interviews
• Situational Interviews
• Behavioural Interviews
• Panel and Sequential Interviews
• Video and Phone Interviews
• Computer-Administered
(Automated) Interviews
Interview Booklet
Page 1 – Cover page – Interview name, candidate name,
position, date etc
Page 2 – Tips to the interviewer, bias, Human Rights,
opening script etc
Page 3 to n – Question, competency, rubric etc
Last page – overall summary, decision, next steps
https://www.shrm.org/LearningAndCareer/learning/Documents/Template_InterviewGuide.pdf
What could be
some employment
tests that may be
administered on
candidates?
Pre-Employment Tests
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•
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Job Knowledge Tests
Work Sample Tests
Assessment Centre Tests
Cognitive Ability Tests
Biodata Tests
Personality and Interest
Inventories
•
•
•
•
•
Polygraph Tests
Honesty and Integrity Tests
Physical Ability Tests
Medical Examinations
Drug Testing
Personality tests, like other tests used in employee selection, have
been under attack for several decades. Why do you think some
applicants find personality tests objectionable? On what basis could
their use for selection purposes be justified?
Levels of Self-Insight
Reference and Background
Checks
Are Your Questions Legal?
Decision Making Strategy
Clinical and Statistical Approach
Clinical Approach
Subjectivity
Statistical Approach
Objectivity
Compensatory Model - Average
Multiple Cutoff Model - Minimum
Multiple Hurdle Model- Sequential
Why do so few organizations use a statistical approach?
CHAPTER 6
Employee Selection
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Overview of the Selection Process
Selection
• The process of choosing individuals who have relevant
qualifications to fill existing or projected job openings
Selection Considerations
• Person-job fit
• Person-organization fit
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Overview of the Selection Process
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Begin with a Job Analysis
Results of a Job Analysis:
• Job description
• Job specifications
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The Selection Process
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Obtaining Reliable and
Valid Information
• Reliability: The degree to which interviews, tests,
and other selection procedures yield comparable data
over time
• Validity: The degree to which a test or selection
procedure measures a person’s attributes
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Initial Screening
• Cover letters and résumés, including name-blind résumés
• Internet checks and phone screening
• Video résumés: short video clips that highlight applicants’
qualifications beyond what they can communicate on
their résumé
• Application forms
• Online applications
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Employment Interviews
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Employment Interviews
Nondirective Interview
• An interview in which the applicant is allowed the
maximum amount of freedom in determining the course
of the discussion, while the interviewer carefully refrains
from influencing the applicant’s remarks
Structured Interview
• An interview in which a set of standardized questions
with an established set of answers is used
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Employment Interviews
Situational Interview
• An interview in which an applicant is given a hypothetical
incident and asked how he or she would respond to it
Behavioural Description Interview (BDI)
• An interview in which an applicant is asked questions
about what he or she did in a given situation
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Employment Interviews
Panel Interview
• An interview in which a board of interviewers questions
and observes a single candidate
Sequential Interview
• A format in which a candidate is interviewed by multiple
people, one right after another
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Administering Interviews
• Video and phone
interviews
• Computer-administered
(automated) interviews
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Guidelines for
Employment Interviewers
• Variables in the employment interview
• Interviewer training
• Employment equity: Are your questions legal?
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Post-Interview Screening
• Reference checks
• Background checks
• Credit checks
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Preemployment Tests
•
•
•
•
•
•
Job knowledge tests
Work sample tests
Assessment centre tests
Cognitive ability tests
Biodata tests
Personality and interest
inventories
• Polygraph tests
• Honesty and integrity
tests
• Physical ability tests
• Medical examinations
• Drug testing
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Determining the Validity of Tests
Criterion-Related Validity
• The extent to which a selection tool predicts, or
significantly correlates with, important elements of
work behaviour
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Determining the Validity of Tests
Two Types of Criterion-Related Validity:
• Concurrent: The extent to which test scores (or other
predictor information) match criterion data obtained
at about the same time from current employees
• Predictive: The extent to which applicants’ test
scores match criterion data obtained from those
applicants/employees after they have been on the
job for an indefinite period
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Determining the Validity of Tests
Criterion-Related Validity:
• Regardless of the method used, cross-validation
is essential.
• process in which a test or battery of tests is
administered to a different sample of people (drawn
from the same population) for the purpose of verifying
the results obtained from the original validation study
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Determining the Validity of Tests
Content Validity
• The extent to which a selection instrument, such as a
test, adequately samples the knowledge and skills
needed to perform a particular job
Example: typing tests, driver’s license examinations
Construct Validity
• The extent to which a selection tool measures a
theoretical construct or trait
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Reaching a Selection Decision
• Summarizing information about applicants
• Decision-making strategy
• Approaches to decision making
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Reaching a Selection Decision
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Decision-Making Strategy
Clinical Approach
Subjectivity
Statistical Approach
Objectivity
Compensatory Model - Average
Multiple Cutoff Model - Minimum
Multiple Hurdle Model - Sequential
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Decision-Making Strategy
Selection Ratio
• The number of applicants compared to the number of
people to be hired
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Final Decision
• Selection of applicant
by departmental or
immediate supervisor
to fill vacancy
• Notification of selection
and job offer by the
human resources
department
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