Human Resource Management
Fair Treatment
Strategic Importance of Effective Employee Relations
Distributive Justice
-Fairness of a decision outcome
Procedural Justice
-Fairness of a process used to make a decision
Interactional Justice
-Fairness in interpersonal interactions by treating others with dignity and respect.
Employee Engagement
- A positive, fulfilling, work-related state of mind characterized by vigor, dedication and
absorption.
When a employer uses video surveillance, the employees must be made aware
Layoffs and Downsizing
Layoffs
-The temporary withdrawal of employment for economic reasons
Downsizing
-reducing number of employees, usually dramatically.
Discipline and Dismissals
Discipline
-A Procedure intended to correct a employees behavior
Dismissals
-Involuntary termination of an employee’s employment
Insubordination
-Willful disregard or disobedience of the boss’s authority or legitimate orders.
Wrongful Dismissal
-An employee’s dismissal that does not comply with the law or does not comply with the
written or implied contractual agreement
Constructive Dismissal
-The employer makes unilateral changes in the employment contract that are unacceptable to
the employee, even though the employee hasnt been formally terminated
Output Placement Counseling
-A systematic process by which a terminated person is trained and counseled in the techniques
of self-appraisal and securing a new position
Theory of Communicative Action
Compensation
Establishing Pay Rates
Stage 1: Job Evaluation
Stage 2: Conduct a wage/salary survey
Stage 3: Combine job evaluation and salary survey to determine pay for jobs
Job Evaluation
-A Systematic comparison to determine relative worth of job within the firm
Benchmark Job
-Job that is critical to the firm or is most commonly found in most firms
Compensable Factor
-Fundamental, compensable element of a job, such as skill, effort, responsibility and working
conditions.
Job Evaluation Methods
Point Method
-Identify compensable factors
-Determine the degree to which each factor is present to the job
Internal Value of Jobs
-The core jobs are more important in terms of their impact on the companies bottom line. This
means that the same job (i.e Accountant) can be rated and compensated very differently. In a
company in which this job is of key importance ( i.e Accounting Firm) it is highly compensated
while in companies in which it is a support job (i.e Retail Store) it is less highly valued and
compensated
The Hay Compensable Factors
-Skill
-Effort
-Problem Solving
-Responsibility
-Working Conditions
Sub Factor
-Used to measure the responsibility that the incumbent of the position assumes for the
direction and/or supervision of volunteers, external supplier/contractors and staff
Total Rewards Model
- Strategies to attract, motivate and retain employees
Strategies:
-Compensation
-Benefits
-Work life
-Performance and Recognition
-Development & Career Opportunities
Cost of Living
-Compensation rates have to be adjusted upward periodically in order to help employees to
maintain their standard of living (purchasing power). For this purpose the consumer price
index(CPI) is being used which is calculated by Stats Canada. Moreover, differences in pay have
to be related to regional differences in cost living in order to be able to compare real
compensation
Determine Pay for Jobs
Wage Curve
-A graphic description of the relationship between the value of the job and the average wage
paid for this job on the market
Pay Ranges
-A series of steps or levels within a pay grade, usually based on years of service
Broadbanding
- Reducing the number of salary grade and ranges into just a few wide levels or “bands”, each
of which then contains a relatively wide range of jobs and salary levels
Contingent Compensation
Interest Alignment or “Hostage Taking”
-A very popular and important method to address the principle agent theory problem is to
attempt to align the interest of the agent with the principle
-The technical term for this is “Hostage Taking” and any kind of performance related pay
incentives are a form of a particle implementation of this principle
Variable Pay and Motivation
-Any plan that ties pay to productivity, profitability or more generally to individual or team work
Performance Incentive
-If employees meet goals the will be rewarded
Instrumentally Valance Theory
-Expectancy- Whether employees believe that the performance goals can be achieved
-Instrumentality- Whether employees believe that they will receive the incentive
-Valence is the extent the reward is valued.
Workers and Piecework Pay
-The minimum hourly wage an incentive for each piece produced above a set number of
defined pieces per hour
Workers & Standard Hour Plan
-A plan by which a worker is paid a basic hourly rate plus an extra percentage of his or hers base
rate for production exceeding the standard per hour or per day
Similar to piecework payment but is based on a percentage premium
Senior Managers and Executives
-Short Term Incentives- Annual bonus
-Long Term Incentives- Stock options, share units, relating strategy to executive compensation
Popular Incentives for Salespeople
-Salary plan
-Commission plan
-Combination plan
Incentives for Professionals
Merit Pay (merit raise)
-Any salary increase awarded to an employee based on his or hers individual performance
Bonuses
-Onetime payment that does not become part of the employee’s base pay
May be used to reward employees for contributing new ideas, developing skillsm or obtaining
professional certifications.
Organization Wide Incentive Plans
Profit Sharing Plans
-A plan whereby most or all employees share the company’s profits
Employee Share Purchase. Stock Ownership Plan
-A trust is established to hold shares of company stock purchased for or issued to employees.
-The trust distributes the stock of employees on retirement, seperation from service, pr as
otherwise prescribed by the plan.
Gain sharing
- An incentive plan that engages employees in a common effort to achieve productivity
objectives and share the gains.