Chapter 1 – The Strategic Role of Human Resources Management Welcome to Chapter 1 - HRM manages talent in organization to help organizations achieve mission Affected by internal and external environment – technology, culture, legislation, government, etc. 1.1 Define what human resources management is and analyze how it relates to the management process and non-HR managers Organization: consists of people with formally assigned roles who work together to achieve the organization’s goals Manager: responsible for accomplishing the organization's goals and does so by managing the efforts of the organization’s people - - - Managing involves performing five basic functions: planning, organization, staffing, leading and controlling. Represents the management process: o Planning: establishing goals and standards; developing rules and procedures; developing plans and forecasting o Organizing: giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication’ coordinating subordinates’ work o Staffing: determining what type of employes you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counselling employees; compensating employees o Leading: getting others to get the job done; maintaining morale; motivating subordinates o Controlling: Setting standards such as sales quotas, quality standards or production levels; checking to see how actual performance compares with these standards; taking corrective action, as needed Human Resources Management refers to the management of people/employees in organizations o The mutual gains model indicates that HRM activities, processes and procedures should benefit both the organization and the employees o HR professionals are responsible for ensuring that the organization attracts, retains, and engages diverse talent required to meet operational and performance commitments made to customers and shareholders Job is to ensure the organization finds and hires the best individuals available, develop their talent, create productive work environment, and continually builds and monitors the organization’s workforce Manages workforce to improve organization performance and achieve the organization's strategic goals HRM summarized along the concepts of the what, how and why of labour and talent management in an organization o Understanding of what practices help regulate employees (recruitment, compensation, performance management, training, etc.) o - - Clarity around how these practices or systems impact employee, team, business unit, and company-level attitudes, behaviours and outcomes o Considers why specific HR practices or systems are needed for each unique business setting HRM involves formulating and implementing HRM systems (recruitment, performance appraisal, compensation) that are aligned with the organization’s strategy to ensure the workforce has the competencies and behaviours required to achieve the organization's strategic objectives o Must be aligned with the company’s strategic plan A company’s competitive environment and internal strengths or weaknesses impact the company’s strategic situation, and the strategic situation impacts the strategic plan Organizational goals are viewed from the top down of the firm down to front-line employees as chain or a hierarchy of goals Journal Entry 1.1.1 – explain what HR management is and how it relates to the management process Strategic Plan: company’s overall plan for how it will match its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive position - This is not the same as a business model, which is company’s method for making money in the current business environment Strategy: course of action (what the business is doing) Strategic management: process of identifying and executing the organization’s strategic plan by matching the company’s capabilities (strengths and weaknesses) with the demands of its environment (competitors, customers, supplies) - Employers can’t design their HR polices and practices without understanding the role of these policies and practices in achieving the companie’s strategic goals Human capital: knowledge, education, training, skills and expertise of a firm’s workforce is required as valuable human capital. Economic growth, knowledge and individual capabilities interact to advance workplaces, productivity, and society at large. Different forms for investment – education and training, make a person’s contributions more valuable in the workplace - - To be successful, strategic human capital management must link the organization strategy and objectives with the employe’s sense of identify or purpose, their sense of community and their intrinsic values Effective HR practices are related to better organizational performance o Profit sharing, results-oriented performance appraisal, and employment security have statistically significant positive impact on important accounting measures of performance o Comprehensive employee recruitment and selection, incentive-based compensation and performance management systems and extensive employee involvement and training have a positive relationship with employee retention, productivity and corporate financial performance Why is HRM important to all Managers? - Mistakes managers don’t want to make: o Hire wrong person o Experience high turnover o Have employee work below performance expectations o Waste time with useless interviews o Have company taken to court because of discriminatory actions o Have company cited under occupational safety laws for unsafe practices o Have some employees think their salaries are unfair relative to others in the workplace o Allow lack of training to undermine department’s effectiveness o Commit any unfair labour practices Shared Responsibility for Talent Management - All potential managers must be aware of the basics of HR Journal 1.1.2 – Reflect on your own work experience – paid or unpaid. How was the HR function at the firm organized? Was it centralized or decentralized? What aspects of your employment relationships did the manager have authority over and what did the HR department have authority or primary responsibility for? Do you think the HR function was effective in delivering its services to you? Why or why not? Learning Sim – Holden Evan’s Country Comfort Coffee has been an industry leader for decades. Country Comfort is considered a very high-quality standard style coffee that does not directly compete with the super-premium, super expensive coffee shop style coffee that has become popular in recent years and is available in stores for purchase. Country coffee needs to start strategic planning with respect to the future. Your goal, as a member of CC strategic management team, is to provide input that will help your boss assess the country comfort brand as it currently is configured and make decisions about future strategic and actions. Key threats – many well-financed and well-known competitors in the grocery store market (coffees linked to popular franchises Key opportunities – pod-style coffee Mission statement – to produce the world’s best-tasting coffee; pods fit with mission statement as it encompasses all forms of coffee, including pod coffee as long as it tastes equal to other forms of coffee After deciding pods work, now analyze the market situation and formulate strategy. First step: conduct a SWOT analysis o Competitor also looking to move to pod market, primary external threat – the analysis needs to focus on products that will directly compete with yours. Best choice is an industry insider already published a glowing review of the pod coffee prototype from erudite beans in the local trade publication o Opportunity: according to review of Erudite’s beans pod coffee, company is charging more for its new pod product. Customers are not happy about the higher cost and are beginning to hesitate at the price o o o o o o Strengths: utilize economies of scale due to large company, could compete on price; country comfort’s ground coffee won the coffee of he year award from consumer reports managinze last year Weakness: known for decades as the coffee for conservative, middle brow drinkers who are less likely to be interested in new products Corporate strategy goal: focuses on growth by developing new products or seeking out new markets for HE existing products Growth: concentration strategy which focuses on increasing the number of products offered or markets served in this primary business Competitive strategy: focuses on core competencies – do something better than competitors Core competency: to pursues a cost leadership strategu in which country comfort can deliver better quality at lower price than competitors Quiz 1. A good definition of human resources management would be: the management of people in organizations to drive successful organizational performance and achievement of the organization’s strategic goals 2. The company’s strategic situation is impacted by: (NOT THE COMPANY’S STRATEGIC PLAN) – asking what leads into or influences the company’s strategy) – the organization’s competitive environment 3. An employee who has high levels of education and experience would be perceived as having BLANK for their role in the company: high levels of human capital 4. The collective functions of planning, organizing, staffing, leading and controlling are known as: management process 5. Approximately BLANK percent of the top HR mangers in Fortune 100 firms moved to their role from a non-HR functional area: 33% 1.2 HR Management: Past, Present and Future - Later 1800s, personnel tasks mostly part of manager’s job; labour problems began arising in many of the post-industrial revolution’s new factories – setting up welfare offices and welfare secretaries to manage areas - Early 1900s, hiring offices, training programs and factory schools setup – personnel management o Took over hiring and firing from supervisors, ran payroll departments and administered benefits plan o New union laws in 1930s expanded the role of HR to help the employer work with unions o Globalization made gaining a competitive edge through engaged employees - 1980s and 1990s – technological advances resulted in outsourcing much of operational HR activities o 1995 – equity orientated laws made employers more reliant on HRM experts to engage fairer practices to prevent discrimination in workplace - Present – traditional = silos o Split into executive and technical employees, managers and rank and file employees - - Transactional HR teams – provide specialized support in day-to-day HR activities through centralized call centers or outside vendors Corporate HR teams – assist top management in top-level issues Embedded HR teams – HR generalizes assigned to functional departments such as sales and production o HRBP – focus on coaching and mentoring other department leaders to help align workforce efforts with organizational goals Centers of excellence – specialized HR consulting firms within the company HR managers must speak the CFOs language by defending HR plans in measurable terms (ROI) Must understand strategic planning, marketing, production and finance Must serve as subject matter experts or in-house consultants to line managers, offering advice and formulating HR policies and procedures, providing wide range of HR services Evolved to help organizations achieve their strategic objectives Future of HR Manager - - - - Most organizations focused on workforce growth, recognizing that hiring practices needed to evolve for new technologies and novel workforce expectations o How to best brand company as an employer of choice, how to best integrate employees, and how to determine selection based on evolving job and company requirements Almost all Fortune 500 companies relied on new generation talent platforms (Upwork, Toptal, Amazon Mechanical Turk) to access highly skilled workers on demand as part of gig economy o More strategic approach is required Finding new ways to build employee engagement, organizational culture and manager performance will continue to be pressing issues in most organizations Managing DEI o Need for strategic and integrated approach to providing equal opportunities to potential employees, removing barriers to full employment and reducing biases in the workplace o Allyship is expected, indicates the strength of the organization’s employment brand in the marketplace and directly affects the quality of the workforce Moving forward, involved in complex activities that require higher order thinking, advanced forecasting and communication skills, strategic thinking Journal 1.2 – we know that BLM movement has had a large impact on building awareness regarding social inequities. What systemic issues leave certain groups out of promotion and advancement opportunities? Quiz 1. In the 1800s, who was most likely to complete HR tasks such as attracting, selecting, training and motivating workers?: managers 2. What types of advancements in the 1980s and 1990s resulted in outsourcing of many operational HR activities?: technology 3. In what type of team would HR provide specialized support in day to day HR activites?: transactional 4. On what type of team would HR generalists be assigned to functional departments such as sales and production? : embedded HR teams 5. What metric indicates the strength of the organization’s employment brand in the marketplace and directly affects the quality of the workforce?: allyship 1.3 Evidence-Based HRM 1.4 Identify tools to help make evidence-based HRM decisions Evidence-Based HRM: use of data, facts, analytics, scientific rigour, critical evaluation and critically evaluated research/case studies to support human resources management proposals, decisions, practices and conclusions Using the best available evidence in making decisions about the HRM practices that the company is focusing on May come from actual measures (how did the trainees like this program?), existing data (what happened to company profits after we installed this training program?), research studies (what does the research literature conclude about the best way to ensure that trainees remember what they learn?) Need to be able to measure the value and impact of their organization’s human capital and HRM practices Traditional operation measures focused on the amount of activity and the costs of the HR function but today measures need to reflect the quality of people and the effectiveness of HRM initiatives that build workforce capability o Linked to outcomes such as productivity, product or service quality, sales, market shares, profits o E.g. percentage of first-choice job candidates accepting job offer indicates the strength of the organization’s employment brand in the marketplace and directly affects the quality of the workforce Tools used: o Strategy Map: summarizes how each department’s performance contributes to achieving the company’s overall strategic goals. Graphical tool that summarizes the chain of activities that contribute to a company’s success. It shows the big picture of how their performance contributes to achieving the company’s overall strategic goals Helps manager and each employee visualize and understand their role their department plays in achieving the company’s strategic plan. Clarifies “line of sight” o HR Scorecard: measures of the impact of HRM on organization outcomes. Process for assigning financial and non-financial goals or metrics of the human resource management-related chain of activities required for achieving the company’s strategic aims and for monitoring results Translates organization’s strategy into a comprehensive set of performance measures Balances long-term and short-term actions and measures of success relating to financial results, customers, internal business processes and human capital management E.g. percentage of senior management positions with subordinates who are fully job-ready to move to the management role when or if the position becomes vacant (Succession planning) o Special software is used to quantify relationships between the HR activities, resulting employee behaviors, resulting firm-wide strategic outcomes and performances Digital Dashboard: presents the manager with desktop graphs, charts, showing computerized picture of how the company is doing on all the metrics from the HR scorecard process. Presents managers with desktop graphs and charts so they get a picture of where the company has been and where it’s going in terms of each activity in a strategy map Quiz 1. What is the common element in the strategic map, balanced scorecard and digital dashboard? a. They all link individual or business unit performance to the organization’s goals 2. Evidence based HR means that you are a. Using the best available evidence in making decisions about the human resources management practices you are focusing on 3. What metric best indicates the strength of the organization’s employment brand in the marketplace and directly affects the quality of the workforce? a. Percentage of first-choice job candidates accepting a job offer 4. An HR infographic that shows HR progress or results is known as a a. Digital dashboard 5. What measurement system can balance hard data such as financial measures with soft data such as customer satisfaction in assessing a company’s performance? a. Balanced scorecard 1.4 Growing Professionalism in HRM 1.4 describe professionalism and ethics in the HRM function Every profession has several characteristics: 1. 2. 3. 4. 5. 6. 7. 8. a common body of knowledge benchmarked performance standards representative professional association external perception as a profession code of ethics required training credentials for entry and career mobility ongoing need for skill development need to ensure professional competence is maintained and put to socially responsible uses certification: by a professional body indicates that specific professional standards have been met Canada - Chartered Professional in Human Resources (CPHR) Ontario – Human Resources Professionals Association (HRPA) o Certified Human Resources Professional o Certified Human Resources Leader o Certified Human Resources Executive Other important associations for HR specialists: Canadian Industrial Relations Association, WorldatWork for compensation and reward issues, health and safety associations, Construction Safety Association; Canadian society for training and development Group Benefits Association; Registered Professional Recruiter, Canadian Payroll Manager, Certified Professional in Talent Development, Certified Training Professional Ethics: principles of conduct governing an individual or a group o o o o o Rooted in morality Prevalent ethical issues – pertain to security of information, employee and client privacy, environmental issues, governance and conflicts of interest Major reasons for failure = lack of effective leadership and inadequate training How managers can create ethical environments: Reduce job related pressures Make it clear what’s okay and not okay Model the desired behaviour Reinforce the desired behaviour, not the undesirable behaviour Take it seriously How HRM can create more ethical environments: Institute ethics policies and codes Enforce the rules Social responsibility important (e.g. MEC) Quiz 1. The current HR designation in Canada outside of Ontario is known as a. Chartered Professionals in Human Resources 2. What are the three levels of designation (in order of lowers to highest) in Ontario: a. CHRP, CHRL, CHRE 3. Roughly how many HR professionals say they have been coerced into doing something morally or legally ambiguous at least once in their careers? a. Three of every four 4. How can managers create an ethical environment? a. Reduce job related stress 5. By launching green initiatives and supporting workers who are involved in community activities, MEC is demonstrating a. Social responsibility 1.5 Environmental Influences on HRM – Discuss the internal and external environmental factors affecting HRM policies and practices, and explain their impact All managers must monitor the environment on ongoing basis, assess the impact of any changes, be proactive in responding to such challenges External: labour market issues, economic conditions, technology, government, globalization, environment Internal: organizational culture, organizational climate, management practices Labour Market o Changes to workforce composition, generational differences and contingent workers Workforce composition: Emphasis on DEI o Equity – fairness embedded in associated processes. Aimed at ensuring all employees have equal access to opportunities to succeed and grow organization o Diversity reflects variations in group characteristics, which include identity and cognitive skills and personality traits o Inclusion = environment or organizational climate where individuals feel respected, accepted, supported values Four identifiable groups – women, Indigenous Peoples, persons with disabilities and visible minorities Generational differences: From 2021-2025, members of all five generations in the workforce, by 2028 Generation X expected to outnumber baby boomers, highest percentage of startup founders o Gen x – highly pragmatic and self-reliant, often demanding work life balance, skeptical of overly structured environments o Baby boomer – optimistic with high demands for both career equality and career involvement, appreciate team orientated activities o Gen Y – members of labour force appreciate diversity, respect civic duty and often demand immediate access to information and services o Traditionalist – quiet, loyal and self-sacrificing o Gen Z – highly technologically literate, entrepreneurial and value independence and difference Non-standard or contingent workers o Workers who don’t fit the traditional definition of permanent, full-time employment with the same employer on the an indeterminate basis Provide flexible, on-demand labour without the same guarantees for continued employment, employee development or benefits 11.9% Canadians are self-employed according to 2026 census 63% seen increase in use of contract workers in organization in past five years’ 51.2% indicate contract workers in company received no benefits at all; 23.6% company did not have well-defined processes in place to manage contract workers Economic Conditions o Affect supply and demand for products and services, which have a dramatic impact on the number and types of employees required, as well as employee’s ability to pay wages and provide benefits o Primary sector represents only 4% of jobs o Secondary sector represents 17% o Tertiary or service sector represents 79% Technology o Five main types of digital technologies driving transfer of functionality from HR professionals to automation (mobile applications, gaming, cloud computing, data analytics and talent analytics) Using mobile applications to monitor employees’ locations and track work progress cloud computing – enables employers to monitor and report on things such as team’s goal attainment and provide real time feedback data analytics – using statistical techniques, algorithms and problem solving to identify relationships talent analytics – data analytics called this in HR Government Globalization o Emergence of a single global market for most products and services Environmental concerns Organizational culture o Consists of core values, beliefs and assumptions that are widely shared by members of an organization Organizational climate o Prevailing atmosphere that exists in an organization and its impact on employees Management practices Quiz 1. Which of the following is not a key characteristic of members of GenY? a. Technologically advanced 2. Roughly what proportion of persons working in candida or self employed? a. 12% 3. What does productivity refer to? a. The ratio of an organization’s outputs to inputs 4. A legislated increase in minimum wage fall into which category of external environmental influences on HR? a. Government 5. Which groups are identified as protected groups in candida? a. Women, indigenous, person with disabilities and visible minorities Chapter 1 Quiz 1. The company’s plan for how it will balance internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage is known as: strategy 2. The growing integration of the world economy into a single, huge marketplace is increasing the intensity of competition and leading most organizations to expand their operations around the world. This is know as: globalization 3. Which of the following demographic groups is most likely be optimistic and career focused?: baby boomers 4. Data control, accuracy, the right to privacy and ethics are at the core of a growing controversy brought about by: new information technologies 5. How does the professionalization of HRM in Canada hold HR professionals accountable for ethical behaviour?: it has a uniform code of ethics 6. What competency does evidence based HR require?: numeracy 7. What is leading fortune 500 companies to rely on next generation talent platforms like Upwork and TopTal?: access to highly skilled gig workers 8. What is it called when women are overrepresented in jobs such as nursing?: occupational segregation 9. Human capital refers to which of the following?: the knowledge, education, training, skills and expertise of an organization’s workforce 10. Which of the following is NOT a consideration for the future role of HR management?: work simplification Chapter 2 – The Changing Legal Emphasis 2.1 The Legal Framework for Employment Law in Canada – explain how employment-related issues are governed in Canada business acumen most critical piece of knowledge required in HR role, followed by employment law, legislative awareness and talent management primary objective of most employment legislation in Canada is to prevent employers from exploiting paid workers, assuming that an implicit power imbalance exists in favour of the employer Hierarchy of employment legislation in Canada - - precedent refers to how the decision or interpretation of a court of another jurisdiction or comparable case can act as a persuasive authority regarding how legislation is to be interpreted and applied in other jurisdictions or cases constitutional law, particularly Charter of Rights and Freedoms federal provincial and territorial human rights legislation ensure that the rights of every Canadian are protected and that all persons are treated with equality and respect The Canadian Charter of Rights and Freedoms focuses on basic rights guaranteed to all persons residing in Canada Humans Rights legislation provides protection from discrimination in employment relationships and the delivery of goods and services Employment standards legislation establishes minimum terms and conditions of the employment relationship within each jurisdiction (e.g. Minimum wages, hours of work, maternity leave) - Ordinary laws provide protection under context or context-specific laws affecting workplaces (like occupational health and safety) Collective bargaining agreements provide legally binding agreement establishing minimum terms and conditions of employment affecting unionized positions Employment contracts focus on contracts between an individual employee and their employer regarding specified employment conditions in specific roles Tort Law - - Tort law is primarily judge-based law, whereby a victim is provided compensation for losses or damages in civil court (not criminal court) o Intentional torts (assault, battery, trespass, intentional affliction of mental distress) o Unintentional torts (negligence based on events in which harm is caused by carelessness) Bodies like human rights commissions and ministries of labour special regulatory bodies to enforce compliance Who is an Employee? - Government of Canada indicates an employee status is determined by the nature of the working relationship, not based on how people are paid Six factors to consider when determining if the relationship is an employer-employee relationship or a business relationship o Control – who has control over how and what work is done? o Tools and Equipment – who owns and provides the tools and equipment needed to complete the assigned work? o Subtracting – can the individual hire workers directly or subcontract work to others? o Financial risk – are there fixed, ongoing costs that the individual bears for which they are not reimbursed? o Investment and management – who is responsible for making decisions that affect profit and loss? o Opportunity for profit – from the worker’s perspective, do they have a share of the profits or suffer losses when the company as a whole enjoys profits or suffers loses? Benefits? Quiz 2.1 1. According to recent research, what does HR professionals identify as the most critical piece of knowledge required in their roles?: business acumen 2. Who is responsible for abiding by legislated rules and regulations?: HR professionals, supervisors and managers 3. Most employment legislation in Canada assumes that BLANK: there is a power imbalance between employers and employees in favour of employers 4. Which of the following is true about the employment legislation hierarchy in Canada?: the levels of the legislation are set from broad to narrow, with the broader legislation superseding the narrow legislation 5. Under which of the following work situations would the person be defined as an “employee”: the company decides what work is completed and when Legislation Protecting the General Population 2.2 Discuss at least five prohibited grounds of discrimination under human rights legislation and requirements for reasonable accommodation The Charter of Rights and Freedoms - - - Charter of Rights and Freedoms – applies to the actions of all levels of government and agencies under their jurisdiction as they go about their work of creating laws; takes precedence over all other laws o Exceptions: allows practices to infringe on Charter rights if they can be demonstrably justified as reasonable limits in the “Free and democratic society” since demonstrably justified and reasonable are open to interpretation, many issues challenged eventually end up under before Supreme Court of Canada o When a legislative body invokes the notwithstanding provision, which allows the legislation to be exempted from challenge under the Charter The charter provides the following fundamental rights and freedoms: freedom of conscious and religion; freedom of thought, belief, opinion and expression, including freedom of the press and other communication media; freedom of peaceful assembly; freedom of association o Multicultural heritage rights Equality rights – provides the basis for human rights legislation, guarantees the right to equal protection and benefit of the law without discrimination Human Rights Legislation - Every person residing in Canada is protected by human rights legislation, which prohibits intentional and unintentional discrimination in employment situations and the delivery fo goods and services Discrimination Defined - - - Employment discrimination as intergroup biases that occur because of social group membership, which often create an identify of how we define and see ourselves versus others Intentional discrimination – prohibited, not necessarily overt Prohibited rom intentional discrimination in the form of differential or unequal treatment Unintentional discrimination – most difficult to detect/combat, embedded in policies and practices that appear neutral on the surface and are implemented partially but have an adverse impact on specific groups of people for reasons that are not job related or required for safe and efficient operation of the business Permissible discrimination via Bona Fide Occupational Requirements – permitted to discriminate if employment requirements are based on a bona fide occupational requirement (BFOR) o Question of rationale o Question of good faith o Question of reasonable necessity Duty to accommodate o o o Requirement for reasonable accommodation If discrimination does exist, the company must demonstrate individualized attempts to accommodate to the point of undue hardship Employers are expected to accommodate to the point of undue hardship, meaning that the financial cost of the accommodation or health and safety risks to the individual concerned or other employees would make accommodation too difficult for the employer Human Rights Case Examples - - - If there were 20 criteria used to make a decision and even one of those criteria violated protection against discrimination as per the applicable human rights legislation, then the entire decision made but he employer can be deemed illegal Claims of discrimination based on disability make up almost half of all human rights claims 53% increase in the number of complaints received by the Canadian Huma Rights Commission based on race or religion from 2015-2020 Religion – can take many forms Sexual orientation – prohibited in all jurisdictions in Canada Age – justifiable to specific minimum or maximum ages for certain jobs, however evidence rarely available to support the belief that age is an accurate indicator of a person’s ability to perform a particular type of work Based on association – denial of rights because of friendship or other relationships with a protected group member Human Rights Enforcement - - - All costs are borne by the commission, not by the complainant; commission itself can initiate a complaint First heard by human rights tribunal When selecting a Workplace Investigator: o Internal or external investigators o One investigator or two o Respecting the mandate o Impartiality or neutrality o Reliable, thorough and professional o Quality of the written report o Respects confidentiality Employers obligations include the following: o Demonstrating an awareness of the issues of discrimination or harassment o Fulfilling post-complaint actions o Resolving the complaint by demonstrating a reasonable resolution and communication Supreme court of Canada suggested three broad inquiries to determine if discrimination has taken place: o Differential treatment o An enumerated ground o Discrimination in a substantive sense - If discrimination is found, two forms of remedies can be imposed: o Systemic remedies (forward looking) – require the respondent to take positive steps to ensure compliance with legislation o Restitutional remedies includes monetary compensation for complainants to put them back in position they would be in the discrimination had not occurred Lost wages 2.2 Quiz 1. What does bona fide occupational requirement mean?: There is a justified reason for discrimination based on a rale business or job requirement 2. Which one of the following is not one of the established criteria used to assess if discrimination qualifies as BFOR?: question of social impact 3. Up to which point are employers expected to provide reasonable accommodation in employment policies and practices so that no individual is prevented from doing their job on the basis of prohibited grounds for discrimination?: up to the point of undue hardship 4. Which of the following is true about discrimination based on a protected clause in the Human Rights Act?: There was a large increase in complains based on race or religion between 2015 and 2020 5. A local basketball association has a rule that referees must be a minimum of 5’10” tall. What is this an example of?: Unintentional discrimination Harassment 2.3 Describe Behavior that could constitute harassment, and explain employers’’ responsibilities regarding harassment - 1982 sexual harassment case Intentional harassment = bullying Sexual harassment – divided into sexual coercion and sexual annoyance o Coercion = involves harassment of a sexual nature that results in some direct consequence to the worker’s employment status or some gain in or loss of tangible job benefits o Annoyance = sexually related conduct that is hostile, intimidating or offensive to the employee but has no direct link to tangible job benefits Harassment Policies - Effective harassment policies should include the following: o An anti-harassment policy statement o Information for victims o Employees’ rights and responsibilities o Employers’ and mangers’ responsibilities o Anti-harassment policy procedures o Penalties for retaliation against a complainant o Guidelines for appeals o Other options such as union grievance procedures and human rights complaints o How the policy will be monitored and adjusted 2.3 Quiz 1. Which of the following is not an example of harassment?: an employee asks a co-worker why they appear so stressed out today 2. Which of the following is true about harassment?: psychological harassment is more prevalent and pervasive in workplaces than physical violence 3. What is the significance of the ruling in the Vancouver Public Library case where a security guard asked a library worker if she was interested in having drinks together after work?: the court determined that a single event with no adverse impact did not meet the threshold of sexual harassment 4. Reen’s boss asked her out on a date. She refused. After her refusal, Reena noticed that her shifts at work were altered, and she had reduced hours. What could this be an example of?: sexual coercion 5. The supreme court has made it clear that protecting employees from harassment is part of a BLANK responsibility to provide a safe and healthy working environment: employer’s Employment Equity and Provincial Employment standards Act 2.4 describe the purpose of employment equity programs and explain the role of minimums established in employment standards legislation - four designated groups (women, indigenous peoples, persons with disabilities, visible mnorites) - The Employment Equity Act applies to federally regulated industries, Crown corporations, federal organizations with more than 100 employees and other specific organizations (RCMP) Employment equity program designed to achieve a balance representation of members of the four designated groups in the organization The status of the Four Designated Groups - In 2020, women accounted for 47 percent of the employed workforce Glass ceiling – invisible barrier caused by attitudinal organizational bias that limits the advancement opportunities of qualified designated group members Equal pay for equal work – specified employer cannot pay males and female employees differently if they are performing the same or substantially similar work Indigenous People - - Bill C-3 (Gender Equity in Indian Registration Act) amended to ensure grandchildren of indigenous women who lost their indigenous status when they married a non-indigenous man would be entitled to Indian status 2015 Truth and reconciliation Commission Persons with Disabilities - In 2017, Canadians 25-64 with a disability had a significant lower employment rte than without (41 vs 80) Visible Minorities - 2016 Census, 21.9 percent of Canadian population reports they were born outside of Canada Employment/Labour Standards Legislation - All employees in Canada covered by employment standards legislation o Intent of an ESA/LSA is to establish minimum terms and conditions for workplaces pertaining to such issues as wages, paid holidays and vacations, maternity, parental or adoption leave, bereavement leave, compassionate care leave, termination notice and overtime pay o Neither party can choose to opt out of or waive the rights established in the applicable ESA/LSA o Conflict between applicable ESA/LSA and another contract, the principle of greater benefit is applied e.g. employment policy or contract is communicated to employes stating that in the case of a layoff, employees will be provided with one-month notice for ever year that they worked if they were laid off. Employees who worked 10 years would be given greater benefit, not the minimum under the ESA/LSA to preserve the greater benefit to the employee o Violators can be fined. Occurs through filing of a formal written or electronic complaint against the violator to the appropriate authorities 2.4 Quiz 1. Employment contracts are required for which group of employees?: all individuals who complete work for the organization 2. In order to comply with employment legislation, the HR department should develop programs, policies and procedures that: are fair, equitable and prevent discrimination 3. The Employment Standards Act in a specific province indicates that employees must get at least 30 minutes of rest during a six-hour shift. What is not allowed in the independent employment contract?: agreeing to remove the breaks from a 7-hour shift as long as the employee signs off on it 4. Two new tenure-track faculty members who just completed their Ph.Ds in management with a specialization in HR were recently hired by a local university. Although their background, training and previous experience were comparable, the person who identifies as female was offered a starting salary of $111,000 and the person who identifies as male was offered a starting salary of $129,000. What legal consideration might be violated in this scenario?: equal pay for equal work 5. An office management company has a head office in Nova Scotia with 150 employees, but also has 50 employees in a branch office in British Columbia and 300 employees in a branch office in Alberta. What provincial employment standards acts should the HR department follow?: the ESA of Alberta, Nova Scotia or British Columbia, depending on where the employee works Chapter 2 Quiz 1. If Zev works with a Canadian chartered bank, what jurisdiction would govern the employment relationship under which Zev works: the federal government 2. Which of the following is not included in the Canadian Charter of Rights and Freedoms?: freedom to refuse unsafe work 3. Mariam is upset. She has been told she did not get a promotion because she may not have enough time to devote to a more senior role. Mariam thinks this is because her employer knows that she has two children. What can Mariam do?: complain to the Human Rights Commission in her province 4. Franklin johns recently signed a collective agreement with his union that provides more vacation than the employment standards act provisions. Johs new plant manager wants to voice the collective agreement provision and use the minimum entitlement in the act instead to save money. Which of the following statements is accurate?: if there is a conflict between the ESA and another contract, the principle of greater benefit is applied 5. A vice-president of human resources for a larger farm equipment contractor has developed a drug-free workplace compliance policy that defines expected employee behaviours and states penalties for non-compliance. This policy should also include: substance abuse awareness programs for al employees 6. Before 1982, sexual harassment was not interpreted as a form of sex discrimination (and therefor not illegal). Employers were also perceived as not being responsible for the actions of their employees: this statement is true 7. What is the definition of tort law?: judge-based law, whereby the precedent and jurisprudences set by one judge through their assessment of a case establishes how similar cases will be interpreted 8. According to the supreme court of Canada, what is the focus of a disability?: not simply the presence of the disability, but the effect of the disability 9. Which of the following is a prohibited ground of discrimination in employment in only some jurisdictions?: language Chapter 3: Human Resources Management and Technology Welcome - Move to remote work and technology enabled 3.1 Trends in the Nature of Work Explain trends in the nature of work and the relationship these have with technology or automation Automation - - Reduces need for manual labour – 2020, 10.6% of workers at risk of having 70% of their job automated Intent of automation is to improve productivity, reduce costs or manage labour shortages o Jobs at risk include: office support occupations, service supervisors, specialized service occupations (chefs, butchers, hairstylists, tailors), industrial, electrical and construction trades Could result in job transformation - - Initial investment in automation may be outside firm’s budget or there may be a shortage of complementary skills o Least risk of automation: professional occupations, community and government services and education services o Higher the level of employee’s education, the lower their risk of job loss due to automation Varies based on industry – accommodation and food services, manufacturing, transportation and warehousing, agriculture, forestry, fishing and hunting all have 57% or greater automation potential o Manufacturing jobs moved to low-wage countries to be more globally competitive, produce more with fewer workers Information and communication Technology (ICT) - - - ICT increases workers’ flexibility and the degree of integration between various functional areas; decreases degree of centralization in the organization, resulting in a flattening of organizational structures – perceived to increase efficiency Main obstacles are lack of interaction with coworkers, caring for children/family, need to do additional work to fulfill job functions, technology access issues and inadequate physical workspaces Increased focus on work-life balance in Canada Knowledge work and Human Capital - Jobs now require more education and more skills development prior to employment than before; this means relying more on knowledge workers and therefore on human capital Collecting and Organization HR information - - HRMs often collect data on matters such as employee turnover and safety via human resources audits – an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR function o Involves reviewing the company’s human resources functions, usually using a checklist, as well as ensuring that the firm is adhering to regulations, lws, and company policies Benchmarks results to those of comparable companies o Roles and headcount o Compliance with federal, provincial and local employment=related legislation o Recruitment and selection o Compensation o Employee relations o Mandated benefits o Group benefits o Payroll o Documentation and record keeping o Training and development o Employee communications o Termination and transition policies and practices Talent Management Analytics - Managers use special workforce analytics software tools to convert their workforce data into actionable information Uses talent analytics to answer six types of talent management: o Human capital facts: what are the key indicators of my organization’s overall health? o Analytical HR: which units, departments or individuals need attention? o Human capital investment analysis: which actions have the greatest impact on my business? o Workforce forecasts: predicts future required headcounts for each unit based on predictions for things like sales trends o Talent value model: why do employees choose to stay with or leave my company? o Talent supply chain: how should my workforce needs adapt to changes in the business environment? Quiz 3.1 1. What is the purpose of an HR audit?: it’s a snapshot of where the organization currently stands in regard to its HR functions and outcomes 2. What is the impact of information and communication technology (ICT) on organizations?: ICT increases both workers’ flexibility and the degree of integration between various functional areas 3. In 2020, roughly what percentage of workers were at risk of having most of their job (70%) automated?: 10% 4. Which of the following jobs are least likely to be automated?: social worker 5. Which of the statements about ICT workers are true?: their average salaries are more than 50% higher than average salaries in Canada The Impact of HR Technology 3.2 Describe the impact that HR technology has on the role of the HR professional and the resulting three major changes to the role of HR The Strategic Importance of Technology in HRM - HR technology: any technology that is used to attract, hire, retain and maintain talent; support workforce administration and optimize workforce management o Strengths determined by seven factors: Visibility – HRM targets and practices known by employees? Clarity – is the information easy for employees to understand? Acceptability: do employees accept or buy into the system? Administrative consistency: ae practices uniformly applied? Effectiveness of administration and design: are hr practices and technologies doing what they are designed to do? Internal consistency: do practices and programs fit across and between organization? Intensity: what time and effort is dedicated to implementing practices? - - Important it reduces administrative burden on HR department members to focus on more meaningful HR activities, such as providing line manages with appropriate decision making tools to enable them to make more effective HR related decision Next decade there will be a significant pressures on HR departments to manage costs and deliver effective and efficient services Strong strategic relationship between HR and technologies will enable HR to achieve three key objectives: o Strategic alignment with business objectives o Business intelligence that provides users with relevant data o Effectiveness and efficiency that changes how HR work is performed by reducing lead times and costs and increasing service levels Impact of Technology on the Role of HR - Has enabled HR to decrease its involvement in transactional activities and to increase its focus on how to improve its delivery of strategic services As a result of technology, traditional HR role has changed: o Decreased transactional activities o Increased client/customer focus o Increased delivery of strategic services HR and IT department: developing good working relationships - HR practitioners need to speak language of IT and gain greater understanding of IT Respecting Employee Privacy - Employers are grappling with monitoring employees and privacy The Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection, use and disclosure of personal information across Canada Courts have permitted electronic surveillance as long as there is proper balancing of opposing interests Quiz 3.2 1. The traditional HR role has changed as a result of the technologically enabled environment in all the following ways except: increased operational focus 2. Which of the following is not an expectation that internal customers have of HR: offer competitive pricing 3. HR system strength is determined by seven factors. What is the term used to identify if information is easy for employees to understand?: clarity 4. In a study of top executives, what was the role most identified for HR leaders?: business partners 5. PIPEDA stands for: Personal Information Protection and Electronic Documents Act Human Resources Information Systems 3.3 Explain the key functions of HR systems and their strategic importance - cost to implement HRIS usually $8,750 per user - human resources information system (HRIS): integrated system used to gather, store and analyze information regarding an organization’s human resources o top reasons: gaining greater functionality, consolidating disparate systems, increasing efficiency o basic purpose is to manage people, policies and procedures like recruitment, benefits administration, absence management, compensation, training and development, workforce, self-service, reporting The Relationship between HRM and HRIS - HRIS composite of databases, computer applications, hardware, and software necessary to collect, record, store, manage, deliver, manipulate and present data regarding human resources o Transaction processor, editor and record keeper, maintaining employee, organizational and HR related data o Provides information to clients Strategic Alignment of Information Systems - Information from system can help organizations align more effectively with their strategic plan The Major Components of an HRIS - Subsystems in an HRIS: administration, recruitment, time and attendance, training and development, pension administration, employment equity, performance evaluation, compensation and benefits administration, organization management, health and safety, labour relations and payroll Quiz 3.3 1. Which of the following is an example of an HR metric that can come from an HRIS: number of accidents and injuries 2. Which of the following is a major benefit of a human resources information system (HRIS)?: reduces administrative and compliance activities through automation 3. A company record showing present performance and promotability of inside candidates for the most important positions is known as an: personnel replacement chart 4. What is the term used to describe the set of activities used to find new, hidden, or unexpected patterns in data: data mining 5. What is the term used to refer to the online system that helps employers attract, gather, screen, compile, and manage applicants?: applicant tracking system Selecting and Implementing an HRIS 3.4 Describe the three-step process involved in selecting and implementing an HR information system and the benefits of online service applications - The choice of technology revolves around what is the desired amount of customization? What type of system is required or preferred? Types of HRIS - - - - - Smaller firms might use generic software applications such as Microsoft Excel and Access; payroll and benefits administration, time and attendance reporting and an employee scheduling function Mid-sized require compliance tracking and reporting, health claims administration, payroll, and compensation and benefits administration; data integration Large organizations require greater functionality, require employee screening, resume processing and tracking and additional compliance and reporting requirements, such as employment equity Phase 1: Adoption – Determining a Need o Company background o Management considerations o Technical considerations o HR considerations o Cost considerations Request for proposals sent to firms Phase 2: Implementation o Getting the system up and running o Privacy and security concern when setting up HRIS Phase 3: Integration o Employees need to be trained Cautions Regarding e-HR - Although 80% of respondents agreed that self-service systems can lower HR operation costs, only 40% believe that their company actually achieving this result Review - - An online system called an applicant tracking system helps employers attract, gather, screen, compile and manage applicants Employee self-service enables employees to access and manage their personal information directly An enterprise resource planning system supports organization-wide or cross-functional requirements rather than a single department within the organization Management self-service enables managers to access a range of information about themselves and the employees who report to them and to process HR related paperwork that pertains to their staff Workforce analytics allows for statistical measures of the impact of HRM practices on the performance of an organization’s human capital Quiz 3.4 1. What are the three steps in the process to choose an HRIS, in the correct order?: adoption phase, implementation phase and integration (institutionalization) phase 2. One privacy concern when stetting up an HRIS is what data can be seen by specific people in the organization. Other privacy concerns include: who can access and change data 3. Getaway Travel, a large tour operator, is determining whether it requires an HRIS. Which factor would not be a consideration in the adoption phase of an HRIS?: the gross revenue of the company 4. When implementing an HRIS, it is common to ask “what type of daily requests and which employee transactions would make the most sense to automate”? This falls into the category of BLANK considerations: HR 5. What is the impact of management self-service systems on HR?: they reduce the HR workload by roughly 20% Chapter 3 Quiz 1. What term is used to reflect the knowledge, education, training, skills and expertise of a firm’s workers?: human capital 2. Which of the following is not a major component of an HRIS?: interviewing 3. What is a learning management system (LMS)?: An LMS includes special software tools to help employers identify training needs, and to schedule, deliver, assess and manage the online training itself 4. Which of the following is not a function offered by employee self-service (ESS)?: changing salary information 5. What is the major advantage of an enterprise resource planning (ERP) system over relational databases?: An ERP allows functions – such as HR information and accounting- to be integrated 6. HR technology is used for all the following purposes except: to discipline employees 7. Human resources information systems (HRIS) are used by various stakeholders including managers, HR professionals and: employees 8. Technology has affected the role of HR by allowing HR to focus BLANK on administrative tasks and BLANK on operational tasks: less; more 9. Shetu, a manager at GloboCor, is responsible for determining the salary budget for her department. When it became time for annual increases, she requested that HR provide her with a report that showed her employees’ current salary, the history of salary increases, a review of the compensation policies and each employees performance history to help her make the most informed decision. In this case, the HRIS was performing which of the following functions: enhancing decision-making 10. Which of the following is a recruitment and selection function that can be performed through an HRIS: scan resumes for key words Chapter 4: Designing and Analyzing Jobs - Creative job titles have downfalls 4.1 Talent Management Process Define talent management and explain what talent management-oriented managers do 1. Decide what positions to fill through job analysis, workforce planning and forecasting 2. Build a pool of job applicants by recruiting internal or external candidates 3. Obtain application forms and perhaps have initial screening interviews 4. Use selection tools like tests, interviews, background checks and legal permissible physical exams to identify viable candidates 5. Decide to whom to make an offer 6. Orient, train and develop employees so they have the competencies to do their jobs 7. Appraise employees to assess how they’re doing 8. Compensate employees to maintain their motivation - Problem with stepwise view (above): process usually isn’t consistently stepwise – view them as holistically; focusing on each step may cause the manger to miss the forest for the trees – results obtained by applying them together that’s important - View steps as coordinated talent management effort: holistic, integrated and results and goal oriented process of planning, recruiting, selecting, developing, managing and compensating employees This looks like: 1. They start with the results and ask “what recruiting, testing, training or pay action should I take to produce the employee competencies we need to achieve our company’s goals? 2. They treat activities such as recruiting and training as interrelated 3. Because talent management is holistic and integrated, they will probably use the same profile of required human skills, knowledge and behaviours (competencies) for formulating job’s recruitment plans as for making selection, training, appraisal and compensation decisions for it 4. And to ensure the activities are all focused on the same ends, the manager will take steps to coordinate the talent management functions (recruiting and training, for example). Doing so often involves using talent management software Talen Management Software - Used to help ensure that their talent management activities are aimed in a coordinated way to achieve the company’s HR aims 4.1 Quiz 1. How is talent management defined?: taking an integrated and results/goal-oriented approach to human resources management 2. Which of the following is true about talent management?: it requires manager coordination for recruitment and training 3. What is the first step in the talent management process?: decide what positions to fill 4.2 The Basics of Job Analysis What is Job Analysis? - - Job analysis is a process by which information about jobs is systemically gathered and organized A job consists of a group of related activities and duties. Ideally, the duties of a job should be clear and distinct from those of other jobs and they should involve natural units of work that are similar and related The collection of tasks and responsibilities performed by one person is known as a position Uses of Job Analyss Information - - - Job analysis: procedure firms used to determine the tasks, duties and responsibilities of each job and the human attributes required to perform it. Once gathered it is used for developing job descriptions and job specifications The supervisor or human resources specialist normally collects one or more of the following types of information via the job analysis: o Work activities o Human behaviours o Machines, tools, equipment and work aids o Performance standards o Job context o Human requirements Recruitment and selection: job description and job specification information should be used to decide what sort of person to recruit and hire; bona fide occupational requirements Compensation: should be based on required skills, physical and mental demands, responsibilities and working conditions Performance management: must be directly related to duties and responsibilities identified through job analysis Training, development and career management: gaps are determined that require training programs Restructuring: ensures all duties that need to be done are assigned, may lead to identification of unnecessary requirements 4.2 Quiz 1. An organization has five cashiers and three inventory clerks working at a given time. How many jobs and positions does it have?: two jobs and eight positions 2. Which of the following is an example of a work activity included in a job analysis?: painting 3. Which of the following is an example of human behaviours included in a job analysis?: walking long distances 4. What is the role of the union in the job analysis process?: job descriptions developed form the job analysis information are generally subject to union approval before being finalized 5. How can job analysis performance standards be legally defensible?: Criteria used to assess employee performance must be directly related to the duties and responsibilities identified through job analysis 6. How can job analysis be used for restricting decisions?: to identify overlap within duties 4.3 Steps in Job Analysis - Six critical steps involved in analyzing jobs: o relevant organizational information is reviewed organizational structure refers to the formal relationships among jobs in an organization organization chart is often used to depict the organization’s structure o Three common types of structures: Bureaucratic, flat and matrix o o o o o jobs are selected to be analyzed job design is the process of systemically organizing work into the tasks that are required to perform the specific job using one or more job analysis techniques, data are collected on job activities interviews: individual interviews, group interviews, supervisory interviews The job analyst and supervisor should work together to identify the employees who know the job best Rapport should be established quickly with the interviewee by using the individual’s name, speaking in easily understood language, briefly reviewing the purpose of the interview and explaining how the person came to be chosen A structured guide or checklist that lists questions and provides spaces for answers should be used When duties are not performed in a regular manner, the incumbent should be asked to list their duties in order of importance of frequency of occurrence The data should be reviewed and verified by both the interviewee and their immediate supervisor Involves a face-to-face or technology-based discussion using a structured format to collect information Questionnaire: have employees or supervisors fill out Observation – a third party often watches the employee perform their work while recording information regarding the nature of performance and desired behaviours Participation diary or log: involves an employee keeping detailed notes regarding the frequency and duration of their activities during the average workday The national occupational classification Functional job analysis: uses the established questions that rate jobs based on responsibility for three different areas: data, people and things Position analysis questionnaire: involves analyzing 194 items in regard to how important they are in relation to job success the information collected in step 3 is then verified and modified, if required verified with any workers performing job and with immediate supervisor job descriptions and specifications are developed based on the verified information written statement of what the jobholder actually does, how they do it, and under what conditions the job is performed job identification job summary relationships duties and responsibilities authority performance standards or indicators working conditions and physical environment the information is then communicated and updated on an as-needed basis 4.3 Quiz 1. What is the definition of organizational structure?: the formal relationships among jobs in an organization 2. what is the first step in the job analysis process?: review relevant organizational information 3. what is the last step in the job analysis process?: communicate information 4. Who is the incumbent?: the person currently employed in the job 5. what are the two major decisions to be made when developing the job analysis questionnaire?: how structured the questionnaire is and who will complete the questionnaire 6. What is the name of the pre-developed questionnaire including 194 work items that is often used by a job analysis?: position analysis questionnaire 7. What is the name of the reference tool prepared by the government for writing job descriptions and job specifications?: National Occupational Classification 8. Which of the following is an example of a job identification?: job title 9. What is no more than 2 percent of units are rejected an example of?: performance expectations 10. Where will information about who the job reports to be identified in a job description: relationships 4.4 The Evolution of Jobs and Job Design - Work simplification: work can be broken down into clearly defined, highly specialized, repetitive tasks to maximize efficiency Industrial Engineering - Industrial engineering: concerned with analyzing work methods and establishing time standards to improve efficiency Business processing reengineering - Means redesigning business processes, usually by combining steps, so that small multifunction teams, often using information technology, do the jobs formerly done by the sequence of departments o Identify a business process to be redesigned o Measure the performance of the existing processes o Identify opportunities to improve these processes o Redesign and implement a new way of doing the work o Assign ownership of sets of formerly separate tasks to an individual or a team who use new computerized systems to support the new arrangement Job Redesign - Job enlargement: assigning workers additional same-level activities Job rotation: workers are systemically moved from one job to another Job enrichment: jobs are redesigned in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth and recognition and therefore motivation Quiz 4.4 1. What type of job design is based on the premise that work can be broken down into clearly defined, highly specialized, repetitive tasks to maximize efficiency?: work simplification 2. How can jobs be enriched?: adding new tasks requiring training, thereby providing an opportunity for growth 3. Industrial engineering is a field of study concerned with analyzing work methods, establishing time standards and: making work cycles more efficient 4.5 Competency-Based Job Analysis - Competency based job analysis: writing job descriptions based on competencies rather than job duties - Competencies are demonstrable characteristics of a person that enable job performance Three reasons to use competency analysis 1. Traditional job descriptions may actually backfire if a high-performance work system is the goal 2. Describing the job in terms of the skills, knowledge and competencies the worker needs is more strategic 3. Measurable skills, knowledge and competencies support the employee’s performance management process How to Write Competency statements - Will include three elements: name and brief description of competency, description of observable behaviours that represent proficiency in the competency, proficiency levels Comparing Traditional versus Competency-Based Job Analysis Team-Based Job Designs - Increasing use of team-based job designs, which focuses on giving a team rather than an individual a whole and meaningful piece of work to do Quiz 4.5 1. Under which situation should an organization consider using traditional job descriptions rather than competency analysis?: when work requires a high degree of supervision and low levels of overlap 2. What sentence is often used to identify a competency?: In order to perform this job completely, the employee should be able to… 3. What is a competency?: a list of demonstrable characteristics of a person that enable performance 4. What proficiency level is the competency “anticipates changing conditions and impact to risks and dependencies and takes preventive action” associated with?: 3 Chapter 4 Quiz 1. A manager is concerned that a key employee is getting bored. The manager ads mor meaningful tasks and duties to the employee’s potion. Which job enhancement technique it he manger using?: job enrichment 2. Hassan is the human resources director of a highly creative organization. Employees have to develop new systems and the organization itself must have a high degree of flexibility. They hired and promoted based on their broad skill set, ability to adapt, and innovation. Hassan is developing a job analysis process. Which of the following would be most appropriate for Hassan’s organization?: competency analysis 3. Traditional job analysis is BLANK focused; competency based analysis is BLANK focused: job;worker 4. Bob has decided that he will specify that entry-level positions at his firm will require a minimum of an undergraduate degree even though job analysis concluded that high school education would be appropriate. Which of the following would be true?: the qualifications are not bona fide occupational requirements 5. Which of the following is not a use of job analysis?: benefits 6. What is the relationship between job analysis, job descriptions and job specifications?: job analysis is the procedure that is used to develop the job description and job specification 7. Huda is meeting with a member of the human resources department to determine if the duties, tasks and responsibilities that HR has determined in her job match what she actually does. What step is this in the job analysis process?: review information with job incumbents 8. Which of these talent management steps can occur in a loop or simultaneously?: orient, train and develop employees; appraise employees 9. What is the difference between a position and a job?: a position is a job that is done by one person 10. When is it best to use the group interview to collect job analysis information?: the group interview is best used when a large number of employees are performing similar or identical work, and it can be a quick and inexpensive way of learning about the job Chapter 5: Human Resources Planning 5.1 The Strategic Importance of Human Resources Planning Human Resources Planning: process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives - Anticipates and influences Key steps in the HRP process include analyzing forecasted labour supply, forecasting labour demands, and then planning and implementing HR programs to balance supply and demand The Relationship Between HRP and Strategic Planning - Must align with the overall goals of the organization as well as both the longterm and short term strategic plans set by the organization Four Seasons lets employees work anywhere in the world and transfer Importance of Environmental Scanning - - Environment Scanning: involves assessing factors that affect the external labour market, as well as the organization’s ability to find and secure talent from outside of the organization External environmental factors most frequently monitored include the following: o Economic conditions o Market and competitive tends o New or revised laws and the decisions of courts and quasi-judicial bodies o Social concerns such as healthcare, childcare and educational priorities o Technological changes affecting processes, products and people o Demographic trends of an internal and external labour force Impact of Trends of Labour Supply Demand 1. An aging workforce decreases the future supply of talent 2. An increase in customer demand for organizational products or services increases the demand for talent 3. A policy that is focused on hiring from within increases demands for training talent 4. A competitor launching a branch office close to your location decreases demand for talent 5. Automating a work process that was once labour intensive decreases demand for talent 6. A government initiative aimed at increasing the number of scholarships and positions available for people who study in science, technology, engineering and mathematics decreases the supply of talent in the short term and increases the supply the talent in the long term Mini Sim Meet with graphic designer – best choice to do 2 days for product design, and 5 days for graphics – middle cost Meet with the content author - best choice 8 days to outline a simple product, and 20 days for a single writer to author content – middle cost Meet with the Lead Programmer – 30 days to code the application internally, 4 days for 3 people to enter content. – low cost (ok choice) Head of Quality Assurance – minimal proofreading. Rely on users to catch errors – ok choice, should have been no proofreading? PERT Network Flowchart – flawed flowchart in that two of the steps are being performed simultaneously even though one of them depends on the completion of the other Put more people entering content in Gantt Chart Reducing budget in Gantt Chart – reduce the item that has the highest cost but has flexibility to reduce that cost Quiz 5.1 1. What is the current trend in GDP growth and labour force growth in Canada from 2000 to 2019?: GDP growth is greater than labour force growth 2. What can being proactive and strategic about HR plans help an organization do?: ensure it has the right quantity and quality of employees needed in the future 3. What are the correct steps in the hr planning model?: forecast labour supply and demand, conduct gap analysis, and conduct solutions analysis 4. Which of the following is a social concern in the environmental scanning process?: a trend toward securing higher education 5. Which of the following are not frequently monitored external environmental factors?: skills, knowledge and abilities of current employees 5.2 - - Forecasting Human Resources Needs (supply) HRP aligns forecasted labour supply with the predicted labour demands of the organization An organization must forecast future HR demands and forecast future HR supply Two sources of supply: o Internal o External Skills inventories contain comprehensive information about the capabilities of current employees Data pertaining to managerial staff are compiled in management inventories Replacement charts are typically used to keep track of potential internal candidates for the firm’s most critical positions Replacement summaries: list likely replacements for each position and their relevant strengths and weaknesses Succession planning – plans a company makes to fill its most important executive positions Markov analysis: tracks pattern of employee movements through various jobs and develop a transitional probability matrix for forecasting internal supply by specific categories such as position or gender Forecasting the supply of External Candidates - Employers assess general economic conditions, labour market conditions and occupational market conditions Quiz 5.2 1. Which steps of the HR planning process can be done simultaneously?: demand and supply forecasts 2. What type of information is usually not provided in the skills inventory?: number of sick days used 3. What is the difference between succession planning and replacement plans?: succession plans are focused on senior or key jobs, while replacement plans can be focused on any job 4. What is the definition of replacement summaries?: lists of likely replacements of each position and their relative strengths and weaknesses, as well as information about current position, performance, promotability, age and experience 5. What type of information is not provided in a Markov analysis?: employee training initiatives at each level 5.3 Forecasting Future Human Resources Needs (demand) 1. 2. 3. 4. 5. - key component of HRP is forecasting the number and type of people needed to meet organizational objectives managers should consider 7 factors when forecasting such requirements: projected turnover quality and nature of employees decision to upgrade the quality of products or services or enter into new markets planning technological and administrative changes aimed at increasing productivity and reducing employee head count financial resources available to each department in large organizations, needs forecasting is primarily quantitative in nature and is the responsibility of highly trained specialists Quantitative Approach to Forecasting Human Resources Demand - trend analysis – studying the firm’s employment levels over the last three to five years to predict future needs ratio analysis – making forecasts based on the ratio between some causal factor and the number of employees required scatterplot – graphic visualization used to determine whether two factors are related regression analysis – determine line of best fit, involving multiple variables Qualitative Approaches to Forecasting Human Resources Demand - - - rely solely on expert judgements Nominal Group Technique = involves group of experts meeting face to face; used to deal with issues and problems Steps: o Each member of the group independently writes down their ideas on the problem or issue o Going one by one through meeting attendees, each member then presents one idea o Clarification is then sought, as necessary, followed by group discission and evaluation o Each member is asked to rank the ideas Delphi Technique – useful for long-range forecasting and other strategic planning issues Steps: o The problem is identified and each group member is required to submit a potential solution by completing a carefully designed questionnaire. Direct face-to-face contact not permitted o After each member independently and anonymously completes the initial questionnaire, the results are compiled at the centralized location o Each group member is then given a copy of the results o If there are differences in opinion, each individual uses the feedback from other experts to fine-tune their independent assessment o The third and fourth steps are repeated as often as necessary until consensus is reached Quiz 5.3 1. What is the basic assumption in trend analysis?: that the past is a good predictor of the future 2. Which of the following is a good example of a ratio used for demand assessment in HR planning?: sales of $500 per hour worked 3. Which of the following is a strength of the scatterplot?: it provides a visualization of the relationship between two factors 4. Which of the following is an example of a qualitative approach to forecasting HR demand?: Delphi technique 5. What is the key difference between the nominal group technique (NGT) and the Delphi technique?: In NGT, managers meet face to face to discuss estimates; in delphi they independently and anonymously make estimates 5.4 Planning and Implementing HR Programs to Balance Supply and demand - - long-term range plans are general statements of potential staffing needs and may not include specific numbers Short-term plans are more specific and are often depicted in a staffing table o Staffing table: pictorial representation of all jobs within the organization, along with the number of current incumbents and future requirements for each Specific strategies must be formulated ot balance supply and demand considerations. There are three possible scenarios: o Projected labour demand matches projected labour supply (equilibrium) Internal or external replacement/transfers for vacancies only o Projected labour supply exceeds projected demand (surplus) Hiring freeze Openings are filled by reassigning current employees and no outsiders are hired Leave of absence Layoff Terminations Reduced hours through job sharing Reduced workweeks Downsizing through attrition Normal separation of employees because of resignation, retirement or death Accelerate attrition by offering incentives to employees to leave, such as early retirement buyout programs o Projected labour demand exceeds projected supply (shortage) Scheduling overtime hours Hiring temporary workers External recruitment Subcontracting work Internal solutions to labour shortage: transfer, promotion Quiz 5.4 1. A department currently employees 12 workers at 30 hours a week. The department projects a 25% increase in demand and expects one employee to quit and four employees to be hired. What is a gap analysis in this situation?: labour equilibrium 2. What is a possible solution to a labour surplus situation?: layoffs 3. Due to labour surplus, both Bob and Larry agreed to work half-time in their similar positions. What is this solution considered?: job sharing 4. Which of the following is not a possible solution for dealing with a labour surplus?: scheduling overtime hours 5. You are the manager of a local sandwich restaurant. The head office just mailed coupons to Canadian households, and you anticipate demand will double for the next two weeks (while the coupons are valid). What is the best option for dealing with the anticipated labour shortage?: hiring temporary workers 6. Which of the following is a method for dealing with a labour shortage?: recruitment Chapter 5 Quiz 1. Which of the following is a qualitative approach to forecasting human resource demand?: nominal group technique 2. What is the direction of movement in a transfer and a promotion?: transfers involve lateral movement, and promotions involve vertical movement 3. Evelyn, the human resources director for a large power utility, has just determined that half of the organization’s engineers will retire in the next two years and there are no candidates available with the required skills. What function appears to be missing at this organization?: forecasting external and internal candidate supply 4. On average, two out of every three job openings over the next decade will be focused on replacing retiring workers. In addition, fertility rates in Canada continue to decline, resulting in fewer possible workers for the future labour force. These conditions create a situation of: fierce labour competition for employers 5. If the organization finds that there is a shortage of labour within the organization, what solution can be considered?: using interns 6. Ali is engaged in human resources planning for his organization and has realized that there will be a requirement for people who have the ability to operate high-tech equipment in the near future. What factor in human resources forecasting is Aly considering?: forecasting the quality or nature of employees 7. Liam is attempting to forecast the future human resources needs in his organization. It is anticipated that there will be productivity improvements and service changes that will have an impact on the number of people required. These types of changes have occurred in the past also. Which forecasting technique would best fit Liam’s needs?: regression analysis 8. What is the most significant difference between the nominal group technique and the Delphi technique as forecasting approaches?: with the nominal group technique, participants meet; with Delphi, they do not meet 9. John is trying to determine who among his staff can fill a new key position within his organization. Which of the following would be most useful to him in answering this question?: skills inventory 10. A local grocer has decided to use self-serve checkouts to replace cashiers. What impact would this have on the HR plan of the organization?: It would decrease demand for labour Chapter 6 - Recruitment Applicant Tracking Systems - - Software systems actively splice information from your resume and put them into a database. Recruiter on other end uses specific search words to look at a few candidates or in cases of AI enabled systems, allows the system to screen and shortlist candidates – ATS Companies relying too heavily on ATS to screen candidates may miss candidates with great potential – veterans, immigrants, refugees, caregivers, those with disabilities or mental health challenges (hidden group) 6.1: The Strategic Importance of Recruitment - - Recruitment: process of searching out and attracting qualified job applicants Should be designed to minimize social inequities, biases and prejudices Recruitment is the process of making availabilities in the organization known and taking the required steps and efforts to secure the best quality and quantity of applicants. Only information gathering in the recruitment stage, where people become aware of job opportunities and take the active step required to formally apply for a job and let the company know of that applicant’s interest in working for them Selection is the process of screening, evaluating, and assessing recruited applicants until a final hire decision is made from the applicant pool secured in the recruitment phase Organizations have to make decisions about which recruitment method to use based on the resources they have access to: o Human resource considerations – number of HR team members and their skills and competencies o Financial resources – recruitment budget based on time or based on the number, quality and level of employee to be hired o Time – organization has limited amount of time to make decisions and often needs to balance the need for the best candidate with the need to fill the vacancy o Technology – company’s ability to access and capitalize on technology can be a core consideration when assessing which recruitment method to use Employer Branding - Employer branding: image or impression of an organization as an employer based on the perceived benefits of being employed by the organization o Encapsulates employee’s experience when working for a company based on feelings, emotions, senses, realities and benefits o - Involves defining the target audience, developing the value proposition, and reinforcing the value proposition in corporate communications Steps: 1. Define the target audience 2. Develop the employee value proposition 3. Reinforce value proposition in communication Quiz 6.1 1. Which of the following is not part of employer branding?: the candidate’s experience when applying with a competitor 2. Which of the following is the best measure of success of an employer branding initiative?: desirable candidates say I’d like to work there 3. Finding applicants for the employer’s open positions is known as: recruitment 6.2 The Recruitment Process - Recruitment begins with identifying a position that requires staffing and is completed when resumes or completed application forms are received from an adequate number of applicants - Steps: o 1. Job openings are identified through HR planning o 2. The job requirements are determined – reviewing job description and job specifications and updating them o 3. Appropriate recruiting sources and methods are chosen o 4. A pool of qualified recruits is generated Using Recruitment Software and Applicant Tracking Systems - - - For most employers, completion of an application form or uploading a resume into an applicant tracking system that codes and logs data is a critical step in the recruitment process o Provide an efficient means of collecting verifiable historical data from each candidate in a standardized format – education, prior work history, other job-related skills o Most systems are from application service providers (ASPs) Most firms request that a standardized company application form be completed. Many reasons for this practice: o Candidate comparison is facilitated because the information is collected in the uniform manner o Information that the company requires is specifically requested o Application forms typically ask candidate to provide written authorization for reference checking o Candidates are asked to acknowledge that the information provided is true and accurate o Many application forms today have an optional section regarding designated group member status One type of application form is a biographical information blank (BIB) – biodata form 6.2 Quiz 1. When does the recruitment process start and end?: The process starts with the identification of a position that needs to be filled and ends when information is received from an adequate number of applicants 2. Mildred, a recruiter, is reviewing the job description for a vacant position with the manger to whole the incumbent would report. What step of the recruitment process is Mildred engaged in?: specify job requirements 3. What is a challenge associated with using online application forms?: results in too many applicants to review - - - 6.3 Internal Recruitment Filling open positions with inside candidates has several advantages – according to human capital theory, the accumulation of firm-specific knowledge and experience involves a joint investment by both employee and employer, therefore, both parties benefit from maintaining a long-term relationship Employees see that competence is required, thus enhancing their commitment, morale and performance, makes it less likely to leave, require less orientation than outsiders do Recruiting from within also has drawbacks – employees who apply for jobs and don’t get them may experience discontentment, wasting considerable time when they already know who they want to hire, may be less satisfied with an accepting of a boss appointed from within their own ranks tan they would be a newcomer; possibility of inbreeding – tend to make decisions by the book and maintain the status quo when innovative direction is needed 90% of companies continue to use job postings and 84% use job slotting frequently or very frequently Job Posting - Job posting is a process of notifying current employees about vacant positions Involves a notice outlining the job title, duties, qualifications, hours of work, pay range, posting date and closing date Advantages and disadvantages to using job postings to facilitate transfer and promotion of qualified internal candidates: o Advantages Provides every qualified employee with a chance for a transfer or promotion Reduces the likelihood of special deals and favoritism Demonstrates the organization’s commitment to career growth and development Communicates to employees the organization’s policies and guidelines regarding promotions and transfers Provides equal opportunity to all qualified employees o Disadvantages Unsuccessful job candidates may become demotivated, demoralized, discontented and unhappy if feedback is not communicated in a timely and sensitive manner Tensions may rise if it appears that a qualified internal candidate was passed over for an equally qualified or less qualified external candidate The decision about which candidate to select may be more difficult if there are two or more equally qualified candidates Job Slotting - Job slotting: internal recruitment process whereby a manager personally identifies a preferred candidate for a vacancy, discusses the opportunity with the employee, and places the target employee into a position if they are interested o Relational process, candidate is predetermined o Succession planning and replacement planning examples of job slotting Huma Resources Records or Skills Inventories - - HR records are often consulted to ensure that qualified individuals are notified, individually, of vacant positions. Examination of employee files, including resumes and application forms, may uncover employees who are working in jobs below their education or skills levels’ people who already have the requisite knowledge, skills and abilities (KSA’s) or individuals with the potential to move into a vacant position if given some additional training HR records often include a skills inventory, which lists core skills of each employee Rarely possible to fill all non-entry level jobs with current employees Quiz 6.3 1. Which of the following is not a problem associated with internal recruitment?: internal candidates will be less qualified than external candidates 2. Edith is looking for candidates and has been advised to recruit internally. Which of the following is a benefit to the organization for internal recruitment?: Managers have greater knowledge of the performance of the candidate if the candidate has been with the organization for some time 3. What is one of the disadvantages of using job postings when hiring and promoting from within an organization?: Tensions can arise if it appears that an internal candidate was passed over for an external candidate 4. Which of the following is a good example of job slotting?: A preferred candidate is informed about a vacancy and offered the position first 5. According to research, what is a benefit of job posting versus job slotting: Those hired via job postings were more likely to be promoted than those hired via job slotting - 6.4 External Recruitment Advantages of external recruitment: o Access to a larger pool of qualified candidates o availability of a more diverse applicant pool, which can assist in meeting employment equity goals and timelines o acquisition of skills or knowledge not currently available within the organization or the introduction of new ideas and creative problem-solving techniques o o elimination of rivalry and competition caused by employees jockeying for transferring and promotions, which can hinder interpersonal and interdepartmental cooperation potential cost savings resulting from hiring individuals who already have the required skills, rather than providing extensive training Planning External Recruitment - the type of job to be filled has a major impact on the recruitment method selected yield ratios help to indicate which recruitment methods are the most effective at producing qualified job candidates yield ratio: percentage of applicants who proceed to the next stage of the selection process time-lapse data are the average number of days from when the company initiates a recruitment method to when the successful candidate begins to work external recruitment can be divided into four main recruitment methods: o online recruitment internet based job boards, corporate websites and social networking sites o traditional networking cold calls, print advertising, employee referrals, former employees o agency recruitment employment and social development Canada, executive search firms and private employment agencies o recruitment of non-permanent staff can come from temporary help agencies and contract workers Online Recruiting - - two potential problems: o older people and some minority group members are less likely to use the internet o internet overload accessing one or more internet job boards, using a corporate website or using social networking sites: o internet job boards: fast, easy and convenient o corporate websites: pre-screening strategies is essential o online networking sites – Accenture predicts that about 80% of their new recruits will soon come through prospective employees’ social media connections Traditional Networking - cold calls – walk-ins and write-ins – apply without referral or invitation called walk-ins print advertising – ad must attract attention, develop interest, create desire, instigate action o want ads and blind ads employee referrals – 30-50% of vacancies are filled with some element of employee referrals in the recruitment process Accessing External Candidate Pools - multiple methods of organizing, meeting, networking with and collecting information regarding large pools of external candidates, including open houses, job fairs, professional and trade associations, labour organizations and military personnel Agency Recruiters - Employment and Social Development Canada (ESDC) – helps unemployed individuals find suitable jobs and helps employers locate qualified candidates to meet their needs Executive search firms – usually middle-to senior level professional and managerial positions Private employment agencies – provide assistance to employers seeking clerical staff, functional specialists and technical employees o Organization does not have an HR department or does not have anyone with the requisite time and/or expertise o Firm has previously experienced difficulty in generating a pool of qualified candidates for the position or a similar type of position o Particular opening must be filled quickly o Desire to recruit a greater number of designated group members than the firm has been able to attract on its own o Recruitment effort is aimed at reaching individuals who are currently employed and might therefore feel more comfortable answering ads placed by an employment agency and subsequently dealing with one Recruiting Non-permanent Workers - - - Employers increasingly supplement their permanent workforces by hiring contingent or temporary workers often through temporary help employment agencies o Trend toward organizing around short-term projects o Flexibility o Try out potential employees Notable inequities related to temporary workers in Canada: o Compensation – temporary workers earn 21% less than permanent workers, work 17% less hours a week o Gender – women represent 80% of all temporary employees in social assistance and healthcare in Canada, 68% of all temporary employees in the education sector; women 16% more likely to work in casual or term contracts than men, men almost twice as likely to have seasonal jobs than women o Lack of protection – exempt from minimum standards established in employment standards legislation Two common sources of non-permanent staff are temporary help agencies and contract workers o Temporary help agencies – specialize in providing temporary workers to cover for employees who are ill, on vacation or on leave of absence; seasonal work, peak workloads and special projects o temporary workers major benefits: they cost less than permanent employees if temp performs unsatisfactorily, a substitute can be requested immediately - individuals working on temps who are seeking full-time employment are often highly motivated o Contract workers o Offshoring and outsourcing jobs – reduced internal demand for labour to match the lower levels of HR supply Executive search firms can be used to fill critical positions in an organization, including middle to senior level professionals… Private employment agencies are used to find candidates when an organization experiences difficulty… Educational institutions are effective when searching for candidates who require formal training…. Professional and trade associations are extremely helpful when trying to secure candidates with specialized skills… Union hiring halls often maintain a roster of members such as skilled tradespeople… Online networking sites like Facebook, LinkedIn and Twitter… Quiz 6.4 1. In an organization where 400 applicants apply for a position, 100 are interviewed and 59 are hired, what is the number of leads generated?: 400 2. What did employees across Canada identify as the primary tool they used to find their most recent job?: online job boards 3. Which of the following statements about employee referrals are false?: employee referrals decrease the potential for inbreeding and nepotism 4. What job might cold calls (walk-ins or write-ins) be least suited for?: junior public schools 5. Which of the following is an example of a job fair?: fifteen local employers set up booths at a community centre where they share information about their organization and job opportunities with those in attendance 6.5 Recruiting a More Diverse Workforce Attracting Older Workers - - Hiring and retaining older employees has a significant benefits – typically have high job satisfaction, strong sense of loyalty and organizational commitment, strong work ethic, good people skills and willingness to work in a variety of roles, including part-time Ensure policies don’t discriminate against older employees Attracting Younger Employees - Younger generation aims to take advantage of every form of technology to make their job search successful and easier – attract via online searches o Ads should include – fast-paced environment, individual contribution, work-life balance, do it your way, opportunity to grow, no rules and state-of the art technology Recruiting Designated Group Members - BIPIC - Indigenous Peoples, women, members of visible minorities and persons with disabilities Building inclusive environment starts with goal setting from organizational leaders Training about unconscious biases essential step to inclusive recruitment Words such as competitive or determined perceived as masculine Job fairs in accessible buildings Quiz 6.5 1. Which of the following is not a trend that is leading to increased diversity in the Canadian workforce?: an increase in the availability of young people 2. Yolanda has decided to focus on attracting older workers to apply to work with her organization since hiring older workers has many benefits. These workers typically have a strong sense of loyalty and organizational commitment, a strong work ethic, good people skills and: a willingness to work in a variety of roles 3. The formal designated equity groups in Canada include: women, members of visible minorities, Indigenous Peoples and persons with disabilities Chapter 6 Quiz 1. What generation is best targeted for recruitment at educational institutions?: Millennials (Gen Y) 2. What type of advertising works best to attract individuals who hadn’t previously thought about changing jobs and assists with ensuring that the candidates meet the required skill sets and professional capabilities of their profession?: trade associations 3. An executive search firm: fills mid-to senior level professional and managerial positions in the client’s firm 4. Mariam is the human resource director for a large credit union. She wants to ensure that her organization can attract the most appropriate candidates so that it can succeed in the future. Mariam wants her organization to be the employer of choice for the ideal candidate. Which of the following would best describe what Mariam is thinking about: employer branding 5. Which of the following is not a drawback of internal recruiting?: orientation and training costs are increased 6. What is the impact of employee referrals on the diversity initiatives of the organization?: they maintain the existing diversity levels in the organization 7. Which of the following would not be included in a typical job posting?: name of the incumbent 8. Which of the following is not true about the use of web-based application forms for recruitment?: reference checking is easier when web-based application forms are used 9. Provincial Major University is seeking a new president to lead this large institution in a time of significant change. The ideal candidate is highly experienced and successful person who is probably currently working at a senior level in a university. Which recruitment method would be most appropriate in this situation?: executive search firm 10. Kai is reviewing the recruitment yield ratios that he has recently calculated. What can be determined using yield ratios? The percentage of applicants that proceed to the next stage of the selection process Chapter 7- Selection Intro - Choose candidate using selection Interviews and other tools In-person interviews are preferred 7.1 The Strategic Importance of Employee Selection Selection is the process by which recruited applicants are screened, evaluated, and assessed until a final hire decision is made out of the applicant pool secured in the recruitment phase Begins when a pool of applicants has submitted their resumes or completed application forms required in the recruiting process Successful candidates must fit with the strategic direction of the organization Recruiting and hiring is costly o Hidden costs, internal disorganization, disruption, customer alienation Inept hiring has legal consequences Negligent hiring: an employer hires an employee with a questionable background, ignoring concerns that indicate a higher likelihood for issues or workplace accidents e.g. fails to investigate an employee’s background The Selection Process Multiple-hurdle strategy – an approach to selection involving a series of successive steps or hurdles. Only candidates clearing the hurdle are permitted to move on to the next steps Six typical hurdles: o 1. Preliminary applicant screening o 2. Selection testing o 3. Selection interview o 4. Background investigation/reference checking o 5. Supervisory interview and realistic job preview o 6. Hiring decision and candidate notification Five steps to designing an effective selection process: o 1. Decide who will be involved in the selection process and develop selection criteria (prior to recruitment) o 2. Specify must and want criteria and reconsider the want criteria (prior to recruitment) o 3. Determine assessment strategies and develop an evaluation form o 4. Develop interview questions to be asked of all candidates o 5. Develop candidate-specific questions Quiz 7.1 1. For the position of a police officer, which of the following is a “must criteria”? – ability to work independently 2. At what point does the selection process start? – when the job becomes vacant 3. What would be the focus of selection for a company strategically planning an international expansion? – language skills 7.2 Preliminary Applicant Screening - - Initial applicant screening – applicant forms and resumes are reviewed, and those candidates not meeting the essential selection criteria are eliminated first. Then the remaining applications (short list of candidates) are examined to identify those who most closely match the remaining job specifications Technology being used Selection Ratios - - Certain vacant positions may be subject to labour shortage (based on job requirements, location, work environment, etc.); other vacant positions may be subject to labour surplus Selection ratio: ratio of the number of applicants hired to the total number of applicants available, as follows: Number of applicants hired + total number of applicants = selection ratio Small selection ratio may indicate limited number of applicants from which to select, and it may also mean low-quality recruits With a small selection ratio, it is generally better to start the recruitment process over again rather than taking the risk of hiring an employee who will be a marginal performer at best, even if it means a hiring delay Large selection ratio may indicate that the job ad is too vague, that here is an oversupply of available labour in the workforce, or that the company is an employer of choice among candidates Artificial Intelligence and Data Analytics - Technology being used to screen and progress applicants who meet the desired profile more easily AI systems build selection and decision rules based on multiple data points and have been known to perpetuate previous biases embedded in prior decisions Crowdsourcing - Google found a way to foster employee interactions by using crowdsourcing for screening decisions – info goes into applicant tracking system (ATS) – asks Google employees to comment on applicant’s suitability for the position Acquiring Employees and the Law - Entire process must comply with human rights legislation May challenge entire recruitment and selection process’s legality Keep following guidelines in mind: o 1. Ensure all selection criteria and strategies are based on the job description and the job specifications o 2. Do not ask questions that would violate human rights legislation, either directly or indirectly o 3. Obtain written authorization for reference checking from prospective employees, and check references carefully o o 4. Save all records and information obtained about the applicant during each stage of the selecting process 5. Reject applicants who make false statements on their application forms and resume Quiz 7.2 1. What is the selection ratio? - number of applicants hired + totally number of applicants 2. What could a large selection ratio indicate? – there is an oversupply of labour available 3. Which of the following is not an example of managing the selection process in a legally defensible way? – Ask questions about compensation history and childcare arrangements indirectly to determine possible accommodations 7.3 The Basics of Testing and Selecting Employees - Selection testing common screening device used by approximately two-thirds of Canadian organizations to assess specific job-related skills as well as general intelligence, personality characteristics, mental abilities, interests and preferences o Tests of cognitive abilities, job-specific tests, personality and interests, physical examination tests The Importance of Reliability and Validity - Reliability – degree to which interviews, tests and other selection procedures yield comparable data over time - Inter-rater reliability – assesses the extend to which there is agreement between two or more raters - Validity – indicator of the extend to which data from the selection technique, such as test or interview, are related to or predictive of subsequent performance on the job o E.g. high impulsivity correlated with low productivity - Separate validation studies of selection techniques should be conducted for different subgroups, such as visible minorities and women, to assess differential validity - Criterion related validity – extent to which a selection tool predicts or significantly correlates with important elements of work behaviour is known as criterion-related validity - Content validity – when a selection instrument adequately samples the knowledge and skills needed to perform the job, content validity is assumed to exist - Construct validity – extent to which a selection tool accurately measures a theoretical construct or trait deemed necessary to perform the job successfully 1. Lauren took a test for a position as a firefighter. During the test, she was asked to carry 50 pounds up a fight of stairs repeatedly in the two-minute period, created to reflect parts of the job requirement. The first time she took the test, she completed six runs. The second time she took the test, she completed nine runs. This test is: valid and unreliable 2. In an interview for the position of team lead, Daniela was asked how many hours she spends completing group fitness activities when not at work. The interviewer felt this was a good reflection of whether or not she could lead the team effectively. Varied based on weather and other commitments she had: invalid and unreliable 3. Monty, part of test, asked to complete questionnaire measuring level of extroversion. Took it twice, once on paper and once using a computer, both times scored around 150 points. This test is: invalid and reliable 4. Minjin asked questions associated with different situations that she might encounter as a lawyer. In each situation, she was given possible answers and asked to first indicate the best possible answer and then provide rationale for her choice. In both phases, Minjin did exceptionally well on the tests. This test is valid and reliable Tests of Cognitive Abilities - Intelligence (IQ) tests – number of abilities, research suggests that general mental ability is the strongest general predictor of job performance at one’s chosen occupation Emotional Intelligence Tests – measure person’s ability to monitor their own emotions and emotions of others Specific cognitive abilities – aptitude tests Job Specific Tests - Evaluates a candidate’s ability to perform core functions critical to job performance Motor abilities Physical abilities, five considerations: o 1. Basing such tests on job duties identified through job analysis and a physical demands analysis o 2. Checking that the tests duplicate the actual physical requirements of the job o 3. Developing and imposing tests honestly and in good faith o 4. Ensuring that those administering the tests are properly trained and administer the tests in a consistent manner o 5. Ensuring that testing standards are objectively related to job performance Work Sampling - Focus on measuring job performance directly and thus are among the best predictors of job performance Achievement Tests - Measure of what people have learned Micro-Assessments - Entirely performance-based testing strategy that focuses on individual performance Tests of Personality and Interest - Person’s motivation and interpersonal skills, measures personality such as introversion, stability and conscientiousness Interest inventories: compare candidates interest with those of people in various occupations Physical Examinations Main reasons: 1. To determine that the applicant qualifies for the physical requirements of the position and if not to document any accommodation requirements 2. To establish a record and baseline of the applicant’s health for future insurance or compensation claims 3. To reduce absenteeism and accidents by identifying any health issues or concerns that must be addressed - Permitted only after a written offer of employment has been extended Polygraph Tests - Widely rejected tests as they’ve failed to produce valid or reliable results, ESA prohibits use of polygraphs Use of Assessment Centers - Examples: o 1. An in-basket exercise o Leaderless group discussion o Simulations o Individual presentations o Objective tests o Interview 7.3 Quiz 1. According to research, which of the following tests is the strongest predictor of job success? – general mental ability test 2. Which of the following is true about personality tests? – faking us a threat to the validity of personality tests inventory in the assessment process 3. What is differential validity? – confirmation that a selection tool accurately predicts the performance of all possible employee subgroups 4. When a job candidate is asked to perform key tasks associated with the job that they are applying to, this is known as: work sampling 5. What is the major difference between intelligence quotient (IQ) and emotional intelligence (EQ) – IQ measures intellectual abilities and EQ measures a person’s ability to understand emotional cues from others 7.4 The Selection Interview - selection interview involves a process of two-way communication between the interviewee and the interviewer and is defined as a procedure designed to predict future job performance on the basis of applicants’ oral responses to oral inquiries Structure of the interview - unstructured interview – questions are asked as they come to mind – low reliability and validity structured interview – questions and acceptable responses are specified in advance and the responses ae rated for appropriateness of content – high validity and reliability between the two is the mixed (semi-structured) interview – combination of pre-set, structured questions based on job description and specification and a series of candidate-specific questions, job related questions based on information provided on the application form or resume The Content of the Interview - situational interview – questions focus on the individual’s ability to project what their future behaviour would be in a given situation behavioural interview (behaviour description interview) involves describing various sitations and asking interviewees how they behaved in the past in such situations Administering the Interview - - - classified based on how they ae administered: o One on one or by a panel of interviewers o Sequentially or all at once o Face to face or technology-aided Panel interview involves candidates being interviewed simultaneously by a group of interviewers Mass interview – panel poses problem to be solved and then sits back and watches which candidate takes the lead in formulating an answer Phone Interviews – can focus on answers, spontaneous answers Online video interviews – things people overlook: o Test first o Do a dry run o Relax o Look presentable o Clean up the room Common Interview mistakes o Poor planning o Snap judgements o Negative emphasis o Halo effect o Poor knowledge of the job o Contrast (candidate order) error o Influence of nonverbal behaviour o Leading o Too much/too little talking o Similar to me bias o Stereotyping Designing and Conducting an Effective Interview - Planning the interview o Agreement should be reached on the procedure that will be followed - - Establishing rapport o Candidate should be greeted in a friendly manner and put at ease Asking Questions o Questions written in advance should then be asked in order Closing the interview o Time should be allocated to answer any questions candidate may have and if appropriate, to advocate for the firm and position Evaluating the candidate o Interview performance should be rated by each panel member independently 7.4 Quiz 1. in which evaluation technique are candidates presented with hypothetical circumstances representative of the job for which they are applying (often on video) and evaluated on their responses? – situational interview 2. Which of the following is not a common interviewing mistake? – using situational and behavioural questions 3. Which of the following is the major benefit of a semi-structured interview compared to a structured interview? – The interview is more conversational 4. How are the majority of interviews conducted? – sequentially and one on one 7.5 Background Investigation and Selection Decisions - Survey of 700 workers, 37% of Canadian workers admitted they knew at least one person who provided false information on their resume Background checks Steps for making background check more valuable: o Include on the application form a statement for applicants to sign explicitly authorizing a background check o Phone references tend to produce more candid assessment o Persistence and attentiveness to possible red flags improve results o Compare the application to the resume o Try to ask open ended questions to get references to discuss the candidate o Ask references supplied by the applicant to suggest other references o Aim for 360 reference checking Providing references - Qualified privilege is important Obtaining written permission - Applicants should be asked to indicate, in writing, their willingness for the firm to check with current or former employers and other references Supervisory interview and realistic job preview - Supervisor knows the technical aspects of the job, is most qualified to assess the applicant’s job knowledge and skills, best equipped to answer any job-specific questions from the candidate Realistic job preview provides potential employee with a chance to work the actual job in a real or simulated environment for a relatively short time prior to selection, should be provided at the time of the supervisory interview Hiring Decision and Candidate Notification - Statistical strategy – combining all the information, identifying the most valid predictors and weighing them through statistical methods and giving the job to the candidate with the highest score. Research shows this approach is generally more reliable and valid than is a subjective evaluation 7.5 Quiz 1. Mildred has decided to check on the social networking sites of job applicants to get a better awareness of who the applicants are. Which of the following is true? – Mildred can do this as social networking is public 2. Which of the following is not an appropriate question for a reference check, either written or verbal? – information pertaining to lifestyle and personal relationships 3. when you provide a reference for a former employee and your comments are made in confidence for a public purpose, without malice, and are honestly believed, you: can rely on the defense of qualified privilege 4. Who commonly makes the final hiring or selection decision?: immediate supervisor 5. Research has shown that this strategy is best for building a reliable and valid selection decision: using statistical strategy (objective) alone Chapter 7 Quiz 1. Jennifer is frustrated. An important job opening that she advertised has received only four responses and only one person meets the minimum qualifications and only marginally. What is likely the most appropriate course of action for Jennifer? – repost or readvertise the job, perhaps through different media 2. Confirmation that the selection tool accurately predicts the performance of all possible employee subgroups, including white males, women, visible minorities, persons with disabilities, and Indigenous Peoples, is called: differential validity 3. If George has decided to measure the temperature of his coffee using a ruler, which of the following would be true? – George would be getting a reliable measure, but one that is not valid 4. Bob, Stella and Amir interviewed two candidates for a position with their organization, Tradco Industries, but at the end of the interviews, Bob, Stella and Amir had reached vastly different conclusions regarding the candidates. What would be true in this situation?: this interview is not a reliable measure, but it might be valid 5. You are responsible for screening applicants for several vacancies in your company’s sales department. In addition to the usual selection criteria, the hiring manger has asked you to identify outgoing, people-oriented candidates. Which screening tool would be most appropriate? – Myers- Briggs Type indicator 6. A strategy used to provide applicants with information-both positive and negative- about the job demands, the organization’s expectations, and the work environment is known as an: realistic job preview 7. In an interview for a customer service position with a cellular phone company, mike was asked a series of questions such as tell me about a time when you had a conflict with a co-worker. What happened and how was it resolved? What type of interview question is mike experiencing? – behavioural 8. Elisha has just finished interviewing Jennifer for the position of help desk associate for a computer company. Elisha is very impressed when she first met Jennifer. With Jennifer’s firm handshake and confident demeanor, Elisha is sure that she will perform extremely well in this position. Which of the following most correctly described what is happening in this situation? – halo effect 9. Applicants for the job of air traffic controller must be able to visualize objects moving in three dimensions and write a test to determine if they have this ability. What category would this test fall into? – aptitude test 10. Jason was in a hurry to fill his open sales position, so he allowed his new employee to start before the background check was complete. The new employee was involved in an incident of workplace theft, and it was later discovered that this was not the first time. Jason could be held liable for which of the following? – negligent hiring Chapter 8 – Onboarding and Training Onboarding Remote Workers Employers should use some of the following best practices when onboarding and managing remote workers: Provide orientation and training not just on organizational processes, but also on hardware, software, cybersecurity, and other technologies to help employees use these tools to be productive while working remotely. Facilitate socialization and team introductions to the same extent you would for workers in the office. This will assist in building the connections that are required for work completion and help workers know how and with whom to collaborate. Assign a mentor—who may also work remotely—to help acclimatize the new employee to the organizational culture Proactively identify and prepare for the unique health and safety issues and data security concerns of remote workers, such as ergonomics issues and stress management. This might include a home office allowance for an ergonomic chair, an adjustable height desk, audiodictation software, etc. Conduct regular and scheduled one-on-one check-ins to get feedback from employees about what is working and where they might need assistance. 8.1 Onboarding and Orientation of New Employees - orientation: long-term, continuous socialization process that considers both employee and employer expectations or obligations – focusing on organization-specific topics, transfer learning into behaviour using disciplined, consistent efforts - training – short term, discrete efforts in which organization impart information and instructions to help the recipient gain required skills or knowledge to perform the job at adequate levels Content of Orientation Programs - Internal publications, including employee handbooks Facility tours and staff introductions Job-related documents, including an explanation of job procedures, duties and responsibilities, working hours, attendance expectations, vacation, holidays, payroll, etc Expected training to be received Performance appraisal criteria, including the estimated time to achieve full productivity Purpose on Onboarding programs - Accomplish four things when orientating new employee: o Make new employee feel welcome into organization and part of team o Ensure new employee has essential information to function effectively o Help new employee understand organization in the broad sense o Start socializing person into firm’s culture and ways of doing things Considerations for Onboarding - Mentorship opportunities: o Mentorship to women o Mentorship to minorities o Mentorship to persons with disabilities o Mentorship to indigenous Peoples Executive integration critical and should include: - Identifying position specifications Providing realistic information to job candidates and providing support regarding reality shock Assessing each candidate’s previous record at making organizational transitions Announcing hiring with enthusiasm Stressing the importance of listening as well as demonstrating competency and promoting more time spent talking with boss Assisting new executives who are balancing their work to change cultural norms while they themselves are part of culture itself Evaluation of Orientation Programs 1. Employee reaction 2. Socialization effects 3. Cost/benefits analysis Quiz 8.1 1. What is the main difference between onboarding and training?: training addresses doing the job, onboarding addresses working in the organization 2. Which of the following would not typically be included in an onboarding program?: an interview ot determine fit in the organization 3. Which of the statements about executive integration is true?: full integration of executives can take up to 18 months 4. Courts may find that: employee handbook contents are legally binding 5. A well-developed employee orientation (onboarding) program has a number of advantages, such as fewer instances of corrective discipline, fewer employee grievances and: a reduced number of workplace injuries 6. Which of the following phrases best describes socialization?: a process of instilling attitudes, values and patterns of behavior in new employee 7. How long can full executive integration take: 18 months 8.2 The Training Program training focuses on skills and competencies needed to perform employees’ current job, whereas development is broader and long-term nature negligent training occurs when employer fails to train adequately and an employee subsequently harms a third party Quiz 8.2 1. negligent training occurs when an employer fails to: train adequately and an employee subsequently harms a third party 2. according to the text, on average, training costs equate to what percent of an organization’s payroll budget?: 1.4% 8.3 The Five Step Training Program 1. Training Needs Analysis - task analysis + establish training objectives 2. Instructional Design - programmed learning 3. Validation 4. Implementation 5. Evaluation of Training - transfer of training Quiz 8.3 1. there are five steps to the training and development process. Which step identifies specific job performance skills to improve performance and productivity?: Needs analysis 2. what is the difference between task analysis and performance analysis?: Task analysis looks at the job; performance analysis looks at the person doing the job 3. A controlled experiment: uses both a training group and a control group (that receives no training) to isolate and assess the impact of the training 4. Distinguishing between the employee’s ability to do a task and the employee’s willingness to to a task is part of what element of the training process?: performance analysis 5. What is a challenge with on the job training?: it needs quick feedback 6. What training effect is an assessment of how customer satisfaction scores changed after employees were trained?: behaviour 8.4 Training for Special Purposes Literacy and Essential Skills Training - Functional literacy serious problem for employers Training for global business and diverse workforces - Four global literacies: personal literacy, social literacy, business literacy, cultural literacy Customer Service training Training for Teamwork Training for First-time Supervisors and Managers 8.4 Quiz 1. cultural safety training is best described by which of the following phrase?: it develops understanding of views of different groups 2. Which of the following has not been identified as a critical competence required to succeed in the global economy?: financial literacy 3. Which industry would benefit the most from customer service training?: retail 4. Which workplace would benefit the most from training for first-time managers?: workplace with an aging workforce Chapter 8 quiz Chapter 9 – Career and Management Development 9.1 Managing Organizational Change Programs - Most major change programs aim to achieve one of five basic purposes or quests: customer focus, nimbleness, innovation, sustainability, boosting global presence Lewin’s change Process - Three steps to process: 1. Unfreezing means reducing forces that are striving to maintain the status quo 2. Moving means developing new behaviours, values and attitudes 3. Refreezing means building in the reinforcement to make sure the organization doesn’t slide back into former ways of doing things - Establish sense of urgency - Mobilize commitment through joint diagnoses of problems - Create a guiding coalition - Develop and communicate shared vision of benefits and purpose of change - Help employees make the change - Aim first for attainable short-term accomplishments - Reinforce the new ways of doing things with changes to the company’s systems and procedures - Monitor and assess progress Using Organizational Development - Usually involves action research Applies behavioural science knowledge to improve organization’s effectiveness Changes organization in a particular direction – toward empowerment, improved problem solving, responsiveness, quality of work, effectiveness 9.1 Quiz 1. Lewin’s change model includes what phases?: unfreezing, moving, refreezing 2. Which of the following is not a distinguishing characteristic of organizational development?: it uses executives and mangers to collect information for decision making 3. In which situation is change management likely to fall?: the company’s performance is fairly stable 4. In a presentation about upcoming changes for their company, the CEO included the story of a company that didn’t make the necessary changes and went out of business. Which method did the CEO employ to facilitate change?: establishing a sense of urgency 5. you are the CEO of a large supermarket chain. You have decided that your company should switch…hold a meeting with store managers and emphasize that you want your company to become synonymous with healthy lifestyle…engaging which step of Lewin’s change process?: moving 9.2 Career Planning and Development - career series of work-related positions specific to individual and helps them grow in job skills, success and fulfillment Career development-lifelong series of activities Career planning – deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations and other characteristics Three distinct career paths: - Identity-oriented path Contribution-oriented path Practice-oriented path Careers Today The Physchological Contract - Identifies party’s mutual expectations Managing Your Career - Eight career anchors: 1. Technical/functional 2. Managerial competence 3. Creativity 4. Autonomy and independence 5. Security 6. Service/dedication 7. Pure challenge 8. Lifestyle Roles in Career Development - Networking Boundaryless Careers and the Gig economy - To succeed in boundaryless career, individuals need to excel at three main career competencies: o Know how o Know who o Know why Continuous Learning Approaches 9.2 Quiz 1. a more dynamic and holistic approach to career development is emerging, with a focus on lifelong learning, flexibility and: adaptability 2. Which one of the following is not a career anchor?: self-reliance 3. what is career development?: the lifelong series of activities that contribute to a person's career exploration, establishment, success and fulfillment 4. Who is responsible for career development in a person’s career?: the employee themselves 5. In which type of career are individuals most likely to be high skilled and highly educated?: boundaryless career: boundaryless career 9.3 Employee Life Cycle and Career Management Making Promotion Decisions Decision 1: is seniority or competence the rule? Decision 2: how is competence measured? Decision 3: is the process formal or informal Decision 4: vertical, horizontal or other? 9.3 Quiz 1. Which of the following is not highlighted as one of the criteria for making promotion decisions?: is the measure of past performance straightforward? 2. Why should companies consider making the promotion process formal?: it makes promotion a more effective reward for performance 3. why do most employees reject opportunities to transfer to a different location?: family or spousal concerns 4. Catalina is an assistant manager in the customer service department of her company. She has been selected for a position as an assistant manager in human resources. This is an example of which type of promotion?: horizontal 5. juan is an exceptional performer; however, he isn’t a good candidate to become a manager. Instead of promoting juan as management, his company promoted him from engineer to senior engineer. This is an example of which of the following?: parallel career path 9.4 Management and Leadership Development Succession planning steps: 1. Establish a strategic direction for the organization and jobs that are critical to achieving that strategic direction 2. Identify core skills and competencies needed in jobs that are critical to achieve the strategy 3. Identify people inside the organization who have, or can acquire, those skills and providing them with developmental opportunities Management Development Techniques - Developmental job rotation Mentoring Coaching/understudy approach Action learning College/university related programs In-house development centres Behaviour modelling Quiz 9.4 1. What management development technique helps to prevent stagnation through the constant introduction of new points of views in each department: developmental job rotation 2. Behaviour modelling involves the following steps except: allowing for self-assessment of behaviour 3. Which of the following topics would typically not be addressed with reverse mentoring?: navigating political pitfalls 4. At the executive level, 70% of learning comes from job experience, 20% comes from other individuals such as mentors and coaches, and 10% comes from: formal training 5. Which of the following would be the best structure for a leadership development program?:face to face and practice based Chapter 9 Quiz Chapter 10 – The Strategic Importance of Performance Management - - Performance appraisal three step process: setting work standards, assessing the employee’s actual performance relative to those standards, providing feedback to the employee to help eliminate performance deficiencies or to continue to perform above par Performance management Performance management broader/more strategic activity than performance appraisal 10.2 - Performance management process: 1. Defining performance expectations and goals - SMART Goals; basic job dimensions or traits 2. Providing ongoing feedback and coaching 3. Conducting Performance appraisal and evaluation discussions - Electronic Performance Monitoring 4. Determining performance rewards/consequences 5. Conducting development and career opportunities 10.3 Formal Appraisal Methods Comparative Methods: - Graphic Rating Scale Qualitative Methods - Critical Incident Method Narrative Forms Advanced Quantitative Methods - Behaviorally anchored Rating scales Management by Objectives Mixing the Methods 10.4 Performance Appraisal Problems and Solutions - Validity and Reliability - Rating Scale Problems o Unclear performance standards o Halo effect o Central tendency o Strictness/leniency o Appraisal bias - How to avoid 10.5 Who Should do the Appraising? Sources of Performance Appraisal - Supervisors Self Peers Committees Subordinates 360 Degree Appraisal Chapter 11 – Strategic Pay Plans 11.1 – Total Employee Rewards employee compensation includes all forms of pay going to employees and arising from their employment two main components: direct financial payments and indirect financial payments management should produce an aligned reward strategy – creating comp package that produces the employee behaviours the firm needs to achieve its competitive strategy legal considerations: Employment/Labour Standards Acts, Workers’ Compensation Laws, Human Rights Acts, Canada/Quebec Pension Plan union considerations 11.2 – Equity and its Impact on Pay Rates - - - equity theory of motivation – people are motivated to maintain a balance between their perceived contributions and their rewards external, internal, individual and procedural equity o external – how a job’s pay rate in one company compares toa similar job’s pay rate in other companies o internal – how fair the job’s pay rate is when compared to other jobs within the same company o individual – fairness of an individual’s pay compared to what their co-workers are earning for the same or very similar jobs within the company, based on each person’s performance o procedural – perceived fairness of the process and procedures used to make decisions regarding allocations of pay pay equity – original purpose to redress systemic gender discrimination in compensation for work performed by employees in female-dominated job classes o today, pay equity requires that comparable wages be paid for jobs of equal value or worth to the employer, as determined by genderneutral job evaluation techniques women do more part=time work than men, even full-time, gap has stalled at 30% since 1998 address using salary surveys, job analysis, performance appraisals and incentive pay 11.3 Establishing Pay Rates Three stages: 1) Prepare for Job Evaluation 2) Conduct Wage/Salary Survey 3) Combine the Job Evaluation and Salary Survey Information to Determine Pay for Jobs - Job evaluation aims to determine a job’s relative worth, focuses on benchmark jobs - Job evaluation committee Ranking Method 1. 2. 3. 4. Obtain job information Select and group jobs Select compensable factors Rank jobs 5. Combine ratings 6. Compare current pay with what others pay based on salary survey 7. Assign a new pay scale - Job classification method - Point method Conducting a Wage/Salary Survey Combining the Job Evaluation and Salary Survey information to Determine Pay for Jobs - Wage curve Correcting out of line rates 11.4 – Special Considerations in Compensation Pay for knowledge: Competency Based Pay Plans - Pay for knowledge systems are known as competency-based pay and skill=based pay Core competencies Pay for Executive, Managerial and Professional Jobs - Executive compensation tends to emphasize performance incentives more than other employee pay plans do Compensating Professional Employees - Use market-pricing approach Chapter 12 – Pay-For-Performance and Financial Incentives 12.1 Money and Motivation - Frederick Taylor popularized using financial incentives in the late 1800 - need for fair day’s work; scientific management movement; incentive pay to reward employees who produced over standard Fixed and Variable Pay Plans - All incentive plans are pay for performance plans Fixed pay represents compensation that is independent of the performance level of the individual, group or organization Variable pay represents compensation plan that links pay with productivity, profitability or some other measure of organizational performance, is inconsistent Motivation and Incentives - - - Frederick Herzberg best way to motivate someone is to organize the job so that doing it provides the challenge and recognition that we all need to help satisfy higher level needs, such as accomplishment and recognition Factors (hygienes) that satisfy lower-level needs are different than those (motivators) that satisfy or partially satisfy higher-level needs Demotivators and Edward Deci o Extrinsic rewards may backfaire and detract from person’s intrinsic motivation Expectancy theory and victor vroom o Expectancy motivation – person’s motivation to exert some level of effort depends on three things: the person’s expectancy, instrumentality, valence Behaviour Modification/Reinforcement o Behaviour modification – changing behaviours through rewards or punishments 12.2 – Types of Incentive Plans - incentives for all employees - Merit Pay: salary increase awarded to an employee based on individual performance Employee share purchase/stock ownership plans Profit sharing plans Gainsharing plans incentives for professional employees - Making incentive pay decisions for professional employees is challenging Non-financial and recognition-based awards Piecework plans incentives for operations employees team or group incentives - - Set work standards for each member fo the group and maintain a count of the output of each member Paid based on 1. All members receive the pay earned by the highest producer; 2. All members retrieve the pay earned by the lowest producer; 3. All members receive a payment equal to the average pay earned by the group Second is set production standard based on group’s final output as a whole Third is choose measurable definition of group performance or productivity that the group can control incentives for senior managers and executives - Short term incentives, eligibility, how much to pay out, determining individual awards, longterm incentives, stock options, plans providing share units incentives for salespeople - Salary plan for salespeople Commission plans for salespeople - Combination plans for salespeople Maximizing sales results and organization-wide incentives 12.3 Developing Effective Incentive Plans 1. although compensation professionals believed that total rewards programs can influence employee engagement, less than half of them did not specifically include employee engagement as one of the goals of their comp plans 2. compensation professionals indicated that the most direct ways to encourage employee engagement with incentives are to measure extend that supervisors are encouraging their subordinates to be engaged, to use incentives to reward supervisors for improving employee engagement; getting employees involved in developing the rewards programs was fundamental to building employee cooperation and commitment When to Use Incentives 1. 2. 3. 4. 5. Performance pay cannot replace good management Firms get what they pay for Pay is not a motivator Rewards rupture relationships Rewards may undermine responsiveness Financial incentives Non-financial incentives How to Implement Incentive Plans 1. 2. 3. 4. 5. 6. 7. Pay for performance Link incentives to other activities that engage employees in business Link incentives to measurable competencies that are valued by the organization Match incentives to culture of organization Keep group incentives clear and simple Overcommunicate Remember that the greatest incentive is work itself