Management
Second Canadian Edition
Chuck Williams
Alex Z. Kondra
Conor Vibert
Slides Prepared by:
Kerry Rempel, Okanagan College
©2008 by Nelson, a division of Thomson Canada Limited
1
Chapter 13
Managing Human Resource
Systems
©2008 by Nelson, a division of Thomson Canada Limited
2
What Would You Do?
As HR manager of the Ekati mine, you must abide by
the agreement with the local Aboriginal people to hire
according to these requirements:


62% Northern residents
31% of those Aboriginal
However, approximately 30% of all northern workers
have less than a grade nine education and functional
literacy is a requirement for almost all of the jobs in the
mine.
Given the shortage of skilled workers in the Northwest
Territories, and the competition for workers, what do
you do?
©2008 by Nelson, a division of Thomson Canada Limited
3
Learning Objectives:
Determining Human Resource Needs
After reading the next two sections,
you should be able to:
1. describe the basic steps involved in
human resource planning
2. explain how different employment laws
affect human resource practice
©2008 by Nelson, a division of Thomson Canada Limited
4
The Human Resource
Management Process
Determining human resource needs

human resource planning
Attracting qualified employees


recruiting
selecting
Developing qualified employees


training
performance appraisal
Keeping qualified employees


compensation
employee separation
Adapted from Exhibit 13.1
©2008 by Nelson, a division of Thomson Canada Limited
5
Human Resource Planning

Forecasting Demand and Supply

Human Resource Information Systems
©2008 by Nelson, a division of Thomson Canada Limited
6
Forecasting Demand
and Supply
Work-force
forecasts


internal
external
Forecasting
methods



©2008 by Nelson, a division of Thomson Canada Limited
direct managerial
input
best guess
statistical/historical
ratios
7
Workforce Forecasting:
Internal Factors







New positions
New equipment and
technology
Eliminated positions
Terminations
Retirements
Resignations
Turnover






Transfers
Deaths
Promotions
Organization’s mission
Productivity of current
employees
skills/education of
current employees
Adapted from Exhibit 13.2
©2008 by Nelson, a division of Thomson Canada Limited
8
Workforce Forecasting:
External Factors




Demographics of labour
supply
Geographic population
shifts
Shift from
manufacturing- to
service- to informationbased economy
General economic
conditions






Unemployment rate
Labour unions
Availability of applicants
Technological advances
Strength and number of
competitors
Growth in particular
businesses and markets
Adapted from Exhibit 13.2
©2008 by Nelson, a division of Thomson Canada Limited
9
Human Resource Information
Systems (HRIS)
Computerized employee information
systems
Uses



transaction processing
employee self-service
decision support systems
©2008 by Nelson, a division of Thomson Canada Limited
10
Common Data Categories
in Human Resource
Information Systems






Personal data
Company employment history
Work history
Educational data
Performance appraisal
Promotion data
Adapted from Exhibit 13.3
©2008 by Nelson, a division of Thomson Canada Limited
11
Employment Legislation



Federal and provincial employment laws
Employment discrimination
Sexual harassment
©2008 by Nelson, a division of Thomson Canada Limited
12
Major Federal
Employment Laws
Canada Labour Code — Part III

minimum wage, parental leave, hours of work,
vacation entitlements
Canada Labour Code — Part II

occupational health and safety
Canada Labour Code — Part I

guarantees the right to form and join unions
Canadian Human Rights Act

prohibits discrimination on the basis of race,
origin, gender, religion etc.
Adapted from Exhibit 13.4
©2008 by Nelson, a division of Thomson Canada Limited
13
Employment
Discrimination


Hiring, promotion, and other
employment decisions must be based
on bona fide occupational requirements
Measures of selection must have


reliability
validity
©2008 by Nelson, a division of Thomson Canada Limited
14
Sexual Harassment
A form of discrimination in which
unwelcome sexual advances, requests for
sexual favours, or other verbal or physical
conduct of a sexual nature occur
Two types:


quid pro quo
hostile work environment
©2008 by Nelson, a division of Thomson Canada Limited
15
Common Managerial Mistakes
Regarding Sexual Harassment
Managers sometimes assume:



that the victim and harasser must be of the
opposite sex and only women can be
victims
that harassment can only occur between
co-workers or between supervisors and
subordinates
that only victims can file complaints
©2008 by Nelson, a division of Thomson Canada Limited
16
Learning Objectives:
Finding Qualified Workers
After reading the next two sections, you
should be able to:
3. explain how companies use recruiting
to find qualified job applicants
4. describe the selection techniques and
procedures that companies use when
deciding which applicants should receive job
offers
©2008 by Nelson, a division of Thomson Canada Limited
17
Recruiting



Job analysis and recruiting
Internal recruiting
External recruiting
©2008 by Nelson, a division of Thomson Canada Limited
18
Job Analysis and
Recruiting
Job analysis

a purposeful, systematic process for collecting
information on work-related aspects of a job
Job description

a written description of the basic tasks, duties,
and responsibilities required of a job incumbent
Job specifications

a written summary of the qualifications required
for a job
©2008 by Nelson, a division of Thomson Canada Limited
19
Internal Recruiting
A pool of qualified applicants who
already work for the company.




Improves employee commitment,
morale, and motivation
Reduces recruitment time and costs
Job posting
Career paths
©2008 by Nelson, a division of Thomson Canada Limited
20
External Recruiting
Developing a pool of qualified applicants from
outside the company.







Advertising
Employee referrals
Walk-ins
Outside organizations
Employment services
Special events
Internet job sites
©2008 by Nelson, a division of Thomson Canada Limited
21
Selection




Application forms and résumés
References and background checks
Selection tests
Interviews
©2008 by Nelson, a division of Thomson Canada Limited
22
Topics to Avoid on Application
Forms and During Selection








Name changes
Addresses outside
Canada
Age
Pregnancy plans
Marital status
Children
Birthplace
Military service outside
Canada










Mother tongue
Race
Photograph
Religion
Height or Weight
Criminal record
Sexual orientation
Disabilities
Drug use or drinking
Doctors care
Adapted from Exhibit 13.7
©2008 by Nelson, a division of Thomson Canada Limited
23
References and
Background Checks
References
 Sources such as previous employers or coworkers who can provide job-related
information about job candidates
Background checks
 Procedures used to verify truthfulness and
accuracy of information provided by job
applicants and to uncover negative, jobrelated background information not provided
by applicants
©2008 by Nelson, a division of Thomson Canada Limited
24
Selection Tests






Specific ability (aptitude) tests
Cognitive ability tests
Biographical data
Personality tests
Work sample tests
Assessment centres
©2008 by Nelson, a division of Thomson Canada Limited
25
Interviews

Unstructured


Structured


free flow of questions
interviewer uses standard set of prepared
questions
Semi-structured

combination of structured and unstructured
questions
©2008 by Nelson, a division of Thomson Canada Limited
26
What Really Works
Cognitive Ability Tests
Work Sample Tests
©2008 by Nelson, a division of Thomson Canada Limited
27
What Really Works
Assessment Centres
Structured Interviews
©2008 by Nelson, a division of Thomson Canada Limited
28
What Really Works
Cognitive Ability + Work Sample Tests
Cognitive Ability + Integrity Tests
Cognitive Ability + Structured Interviews
©2008 by Nelson, a division of Thomson Canada Limited
29
Guidelines for Conducting
Effective Structured Interviews
Planning
the
interview
Conducting
the
interview
After
the
interview
Adapted from Exhibit 13.8
©2008 by Nelson, a division of Thomson Canada Limited
30
Learning Objectives:
Developing Qualified Workers
After reading the next two sections, you
should be able to:
5. describe how to determine training needs
and select the appropriate training methods
6. discuss how to use performance
appraisal to give meaningful performance
feedback
©2008 by Nelson, a division of Thomson Canada Limited
31
Training



Determining training needs
Training methods
Evaluating training
©2008 by Nelson, a division of Thomson Canada Limited
32
Determining Training
Needs
The process of identifying and prioritizing
the learning needs of employees

Can be conducted by:




identifying performance deficiencies
Listening to customer complaints
Surveying employees and managers
Formally testing employees’ skills and
knowledge
©2008 by Nelson, a division of Thomson Canada Limited
33
Training Methods
and Objectives
To choose the best method consider:
 Number of people to be trained
 Cost of training
 Objectives of training
Adapted from Exhibit 13.10
©2008 by Nelson, a division of Thomson Canada Limited
34
Training Methods
and Objectives

Impart information or knowledge


Develop analytical and problem-solving skills


Case studies, coaching and mentoring, group discussions
Practise, learn, or change job behaviour


Films, videos, lecture, planned readings
OJT, role playing, simulations and games, vestibule training
If training is to meet more than one of the above
objectives, combine the methods with computer
based training
Adapted from Exhibit 13.10
©2008 by Nelson, a division of Thomson Canada Limited
35
Evaluating Training




Reactions
Learning
Behaviour
Results
©2008 by Nelson, a division of Thomson Canada Limited
36
Performance Appraisal
Accurately measuring job
performance
Sharing performance
feedback
©2008 by Nelson, a division of Thomson Canada Limited
37
Accurately Measuring
Job Performance

Assessors are prone to rater errors
when rating worker performance



Central tendency
Halo
Leniency
©2008 by Nelson, a division of Thomson Canada Limited
38
Accurately Measuring
Job Performance
To improve performance appraisal
measures:
 Use objective performance measures

Use subjective performance measures if
objective measures are unavailable




Trait rating scales
Behavioural observation scales
Rater training
Rater Training
©2008 by Nelson, a division of Thomson Canada Limited
39
Sharing Performance
Feedback
What to discuss in a performance
appraisal feedback session
1. Overall progress — accomplishments
and shortcomings
2. Problems encountered
3. Opportunities to improve performance
4. Long-range plans, opportunities
5. Plans and goals for coming year
Adapted from Exhibit 13.12
©2008 by Nelson, a division of Thomson Canada Limited
40
Sharing Performance
Feedback
360-degree feedback
 Four sources of anonymous feedback:




boss
subordinates
peers
co-workers
©2008 by Nelson, a division of Thomson Canada Limited
41
Sharing Performance
Feedback
Recommendations:
 Separate developmental feedback from
administrative feedback
 Based on self-appraisals
 Eliminate the “grading” aspect of
performance appraisal
©2008 by Nelson, a division of Thomson Canada Limited
42
Learning Objectives:
Keeping Qualified Workers
After reading the next two sections, you
should be able to:
7. describe basic compensation strategies and
how they affect human resource practice
8. discuss the four kinds of employee
separations: termination, downsizing,
retirements, and turnover
©2008 by Nelson, a division of Thomson Canada Limited
43
Compensation Decisions
and Employment Benefits
Pay-level decisions

job evaluation
Pay-variability decisions

piecework, commission, profit sharing, employee
stock ownership plans, stock options
Pay-structure decisions

hierarchical and compressed
Employment benefits

cafeteria benefit plans
©2008 by Nelson, a division of Thomson Canada Limited
44
Employee Separations


Involuntary/voluntary
Terminating employees



Downsizing
Retirement
Employee turnover
©2008 by Nelson, a division of Thomson Canada Limited
45
Terminating Employees


Termination is often not well managed
Minimize problems by:


not making firing the first option
firing should be for “just cause”



termination at will
wrongful dismissal
deal with employee morale among
“survivors” after a firing
©2008 by Nelson, a division of Thomson Canada Limited
46
Downsizing


The planned elimination of jobs
Should be used only as a last resort



doesn’t always lead to better company
performance
Alternatives are reducing hours, job sharing,
leaves of absence, and employee buy-outs
Offering outplacement services can help
employees make adjustments
©2008 by Nelson, a division of Thomson Canada Limited
47
Retirement
Early retirement incentive programs
 Offer financial benefits to
encourage employees to retire
 Are difficult to predict which or how
many employees will use the
program
 May cause the company to lose
valuable employees
©2008 by Nelson, a division of Thomson Canada Limited
48
Employee Turnover


Loss of employees who voluntarily
choose to leave the company
Functional turnover


the loss of poor-performing employees
Dysfunctional turnover

the loss of high-performing employees
©2008 by Nelson, a division of Thomson Canada Limited
49
What Really Happened?
Ekati mine developed their employee base
through a workplace learning program




Taught basic numeracy and literacy skills
Taught critical thinking and problem solving
Trades training with over 80 apprentices in 7
trades
Sponsored scholarships and summer employment
for Aboriginal and northern students
©2008 by Nelson, a division of Thomson Canada Limited
50