HR individual challenges

1. HR individual challenges • Finding the right person for the job • Acting ethically • Increasing worker productivity (ability and motivation) • Granting more empowerment to employees • Preventing brain drain • Dealing with the issue of employee loyalty

2. Discussion Questions: video “Employee Loyalty” • What does it mean to be loyal to the company? • Is loyalty a one-way or two-way street? • Are there conditions that might affect the degree of loyalty? • What can an organization do to enhance employee loyalty?

3. Planning HR strategies Environment Business vision Business strategy HR strategy HR tactics & policies Organizational characteristics & capabilities ( + See Figure 1-5, Chapter 1)

4. Selecting HR Strategies Business Units - Porter

5. Selecting HR StrategiesFigure 1-7 Business Units – Miles and Snow Defenders are conservative business units that prefer to maintain a secure position in relatively stable product or service areas instead of looking to expand into uncharted territory. Prospectors emphasize growth and innovation, development of new products, and an eagerness to be the first players in the new product or market areas, even if some of these efforts fail.

6. Selecting HR Strategies Fit with the Environment

7. Selecting HR Strategies Fit with Organizational Characteristics • Production processes (routine vs. non-routine) • Market Posture (sales growth rate + degree of product innovation) • Managerial Philosophy (risk aversion, leadership, inward or outward focus) • Organizational Structure (formal vs. informal) • Organizational Culture

8. Professionalism of HR practitioners • Common body of knowledge • Certification of members • Self-regulation • Code of ethics

9. HR associations in Canada • Canadian Council of HR associations (CCHRA) • Provincial HR associations • HR specialist associations, e.g., • Industrial Relations Association • WorldatWork (Compensation association) • Health and Safety Associations (e.g., Industrial Accident Prevention Association, Construction Safety Association) • Ontario Society for Training and Development • Canadian National Association of Int’l Personnel Management Association (for public and quasi-public sector HR professionals)

10. National HR certification requirements: • Becoming a member of a provincial HR association (www.hrpao.org) • Completion of 9 required courses (ON): • HRM • OB • Financial and managerial accounting • Compensation • Training and development • Occupational health and safety • Labour relations • HR planning • Recruitment and selection

11. National HR certification requirements (cont’d): • Passing: • The national knowledge exam • Professional practice assessment • Recertification • Every 3 yrs • Proven ongoing professional development

12. Code of ethics of HR professionals (www.hrpao.ca) • Act within the limits of their competence • Adhere to all the legal requirements that apply to HR practices in their jurisdiction • Promote and apply the principles of human rights, equity, dignity and respect in the workplace • Balance organizational and employee interests • Not divulge confidential information unless required by law • Avoid or disclose a potential conflict of interest that might influence personal action or judgement • Maintain professional growth in HR management

13. Ethics of HR professionals • Code of ethics – the 1st step toward ethical culture • Increasing HR role in communicating organizational values and standards (position of Ethics Officer) • 2003 US business ethics survey: • ~ 50% felt pressure to act unethically • 35% actually observed misconduct • 69% : HR act as a primary resource for ethics policies • 40% : HR is not part of “ethics infrastructure” • Hotline stats (US): 61% of allegations are HR issues • HR voice in developing an organizational code of conduct

14. Bottom-line of Class 1 • Over the past 100 years, HR profession has evolved from a subservient role to that of a strategic business partner • HR provides support and assistance to operational function • HR is facing three types of challenges: environmental, organizational, and individual • The changing demographic situation in Canada makes HR adjust its policies and practices

15. Bottom-line of Class 1 (cont’d) • Good HR practices have been proved to have a positive impact on the business • HR strategies should be aligned with the overall organizational business strategies, environment and organizational characteristics and capabilities • To be considered a professional, an HR practitioner should be certified and abide by the relevant laws and the code of ethics

16. Class 2 Legal environment of HRM Employee and labour relations

17. Today’s agenda • Why HR and managers need to understand employment law? • Canadian legal framework for employment • Common law • Employment standards • Human rights legislation • Workplace equity legislation • Employee and labour relations • Alternative dispute resolution

18. Why need to know the basics of employment law? • To do the right thing • Not to engage in inappropriate behaviours • To create healthy work environment • To make managerial decisions that reduce the likelihood of legal liability • To recognize situations when legal and fairness issues require external expertise

19. Managerial Perspective Managers should consider legal issues when making the following decisions: • Which employees to hire • How to compensate employees • What benefits to offer • How to accommodate employees with dependants • How and when to fire employees

20. Lawsuits are costly! • Hughes v. Gemini Food Corp (ON, 1997): former president and CEO awarded $778,590 in general damages for wrongful dismissal + $75,000 for “public humiliation” • Keays v. Honda Canada Inc. (ON, 2005): worker was awarded 24-month salary for wrongful dismissal + $500,000 in punitive damages for a breach of duty to accommodate • Former RCMP officer got $1 million in harassment settlement (BC, 2006) • Bell Canada has settled a 14-year pay equity dispute with the Communications, Energy and Paperworkers Union of Canada for $100 million on behalf of almost 5,000 telephone operators (2006)

21. Canadian legal framework Employees Common law All employers All governments Constitutional law All individuals and organizations Other laws Federal acts Fed. employers All employers of the province Provincial acts Contract law Parties in contract

22. The common law obligations of employees • Express contractual obligations (restrictive) (e.g., noncompetition, nondisclosure) • Implied contractual obligations (duty of fidelity) • To advance and not to abuse employer’s business interests • To obey lawful and reasonable orders • To avoid absenteeism, lateness, dishonesty, drunkenness, sexual harassment, moral impropriety, incompetent or negligent job performance

23. The common law obligations of the employer • Express contractual obligations (found in written and verbal offers and other ancillary documents incorporated in the contract) • Implied contractual obligations, e.g., • Duty of fairness • Duty to pay for work actually performed • Duty to give notice of termination • Duty to provide sick pay • Duty to provide reasonably safe workplace Note: seldom enforced. Instead, employment standards legislation applied.

24. Major employment legislation: • Employment standards • Human rights legislation • Workplace equity legislation

25. Employment standards • Canada Labour Code (for federal jurisdiction) • Labour standards acts (for provincial jurisdictions) • Common themes in all legislations (see Fig. 3-1): • Wage • Hours of work • Rest days • Termination notice

26. Human rights legislation “One problem, more than any other, dominates human history – the problem of how we deal with those who are different than us.” Beverly McLachlin, Chief Justice of Canada 2003

27. Legal framework for human rights • The Canadian Charter of Rights and Freedoms (part of the Constitution) • The Canadian Human Rights Act (enforced by Human Rights Commission) • Provincial human rights codes/acts (see Fig. 3-2)(enforced by provincial Human Rights Commissions) • Workplace equity, discrimination and harassment policies (e.g., http://carleton.ca/equity/human_rights/index.htm)

28. Discrimination • In 2005, human rights cases resolved: • Canadian Human Rights Commission: 1,743 • Ontario Human Rights Commission: 2,117 • In 2001, 83% of fed. human rights complaints related to disability, sex, and ethnic origin • Intentional and systemic discrimination • Bona fide occupational requirement • Reasonable accommodation • Sexual orientation • Harassment

29. Accommodation may include: • Physical workplace • Scope of work • Hours of work • Job expectations or requirements

30. Duty to accommodate Undue hardship Costs, threat to financial viability Human Rights Commission’s Policy and Guidelines on Disability and the Duty to Accommodate (2000) Outside sources of funding Human rights to equal participation in work Health and safety risks Employer’s duty to accommodate disability, creed, pregnancy, age, family status Principle of proportionality Meiorin principle (1999)

31. Meiorin case (1999) • A female firefighter (Meiorin) was dismissed when she could not meet the new aerobic standards. • Meiorin complained that the aerobic standard discriminated unfairly against women. • The Supreme Court of Canada found that the standard was not a bona fide requirement and was discriminatory. • The Court ruled in favor of Meiorin. • Since then, employers are expected to initially build the conception of equality into their work policies.

32. Canadian Human Rights Commission on harassment: • Harassment is any unwanted physical or verbal conduct that offends or humiliates a person. • Harassment is a type of discrimination. • Harassment can create a negative or hostile work environment which can interfere with one’s job performance and result in him/her being refused a job, a promotion or a training opportunity. • Harassment will be considered to have taken place if a reasonable person ought to have known that the behaviour was unwelcome.   • The Canadian Human Rights Commission accepts harassment complaints based on 11 grounds: race, colour, national or ethnic origin, age, religion, sex, marital status, family status, mental or physical disability, pardoned conviction, and sexual orientation.

33. Sexual harassment • Most common form of harassment • Form of gender discrimination • Included in the Canadian Human Rights Act in 1983 • Quid pro quo (this for that) • Creating hostile environment • Applying a “reasonable person” standard • Reducing potential liability for sexual harassment:establishing a written policy prohibiting harassment and communicating it to all employees

34. Forms of sexual harassment • Derogatory or degrading remarks • Displays of offensive material • Unwelcome and invasive comments or inquiries • Unwanted and inappropriate touching • Persistent unwelcome requests for “dates” • Favouring those who comply to harassment • Use of intimidation, threats or coercion

35. Employment Equity in the workplace • = affirmative action in the U.S. • Federal Employment Equity Act • Proportional representation of protected group members in the workforce • Avoiding undue hardship by hiring unqualified persons • Danger of reverse discrimination • Non-mandatory equity programs in provincial jurisdictions

36. Pay equity • Purpose – to reduce gender-related pay discrimination • Equal pay for equal or similar work within the organization– in all jurisdictions • Equal pay for work of equal value – in federal jurisdiction and some provinces (incl. ON) • Criteria: skill, effort, responsibility, and work conditions • Justifiable gender-related wage differentials: performance, seniority, demotion, job re-classification, labour shortage

37. Employee and labour relations • Why do employees join unions? • Labour relations in Canada (6 characteristics) • How do Canadian unions differ from those in other countries? • Similar to the U.S.(a couple of differences) • Europe: greater union impact, stronger social security network, more protective legislation • Germany: industrial democracy, worker councils, codetermination • Japan: enterprise union, labour-mgmt cooperation

38. Employee and labour relations (cont’d) • Labour relations strategies: • Union acceptance • Union avoidance (substitution and suppression) • Developing managerial skills to deal with labour relations: • Union organizing: union solicitation, pre-election conduct • Collective bargaining: bargaining power, distributive and integrative bargaining, bargaining topics, impasses, conciliation • Contract administration: grievance procedures, Fig. 14-10

39. Alternative dispute resolution (ADR) • Treasury Board guidelines on alternative dispute resolution methods • Interest- based vs. rights-based process • Mediation vs. arbitration • Role of the mediator • Role of the union steward • Purpose of mediation • Infrastructure for ADR • ADR office • Network of advisors and internal volunteer mediators • Training • Union – management cooperation

40. Bottom line of Class 2 • HR and other managers need to know the basics of the employment law to make the right decisions and do the right thing to create a healthy work environment and avoid costly lawsuits. • Canadian legal framework is somewhat complicated due to multiple jurisdictions. • Employers are subject to more legislation than employees because of the power imbalance. • Employment standards address such themes as wages, hours of work, rest days, and termination notice.

41. Bottom line of Class 2 (cont’d) • Human rights legislation addresses discrimination against protected groups. • Employer’s duty to accommodate is counterbalanced by undue hardship to the employer caused by such accommodation. However, usually there are options to overcome the undue hardship. • Harassment, including sexual harassment, is one of the forms of discrimination.

42. Bottom line of Class 2 (cont’d) • Workplace equity includes two types of equity: • Employment equity means proportional representation of protected group members in the workforce • Pay equity is meant to rectify gender-related pay discrimination and provide equal pay for work of equal value. • Employees join unions to protect their needs and interests. • Canadian unions are more focused on economic issues than political (in contrast to European unions). • Management has two alternatives with respect to unions: to accept or avoid them.

43. Bottom line of Class 2 (cont’d) • In organizations where good practices are introduced, employees are less likely to unionize. • Managers need to develop skills to deal with labour relations (e.g., communication, bargaining) • Unionized employees have the right to initiate grievance process if the collective agreement is violated or the discipline is believed to be unfair. • Nowadays, more and more organizations encourage their employees to use ADR as an alternative or supplement to the grievance process.