Chapter 8

1. Chapter 8 Managing Human Resources and Labour Relations

2. Learning Objectives • Define human resource management, discuss its strategic significance, and explain how managers plan for human resources • Identify the issues involved in staffing a company, including internal and external recruiting and selection

3. Learning Objectives • Discuss different ways in which organizations go about developing the capabilities of employees and managers • Discuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers

4. Learning Objectives • Describe some of the key legal issues involved in hiring, compensating, and managing workers in today’s workplace • Discuss workplace diversity, the management of knowledge workers, and the use of contingent and temporary workers as important changes in the contemporary workplace

5. Learning Objectives • Trace the evolution of, and discuss trends in, unionism • Describe the major laws governing unionism • Identify the steps in the collective bargaining process

6. Human Resource Planning • Human Resource Management • Set of organizational activities directed at attracting, developing, and maintaining an effective workforce • Job Analysis • A detailed study of the specific duties in a particular job and the human qualities required for that job

7. Job Analysis • Job description • The objectives, responsibilities, and key tasks of a job • Describes the conditions under which the tasks must be accomplished • Explains the relationships between that position and others in the firm • Describes the skills required to do the job • Job specification • The specific skills, education, and experience needed to perform a job

8. Forecasting • Forecasting internal supply • The number and type of employees who will be in the firm at some future date • Forecasting external supply • The number and type of people who will be available for hiring from the labour market at large

9. Forecasting • Employee information systems • Computerized systems that contain information on each employee’s education, skills, work experience, and career aspirations • Replacement chart • An HR technique that lists each important managerial position, who occupies it, and who is now qualified to to move in to it

10. Recruiting Human Resources • Internal recruiting • Consider present employees as candidates for job openings • Promoting or transferring existing staff • Can help build morale and keep high quality employees from leaving • External recruiting • Attracting people outside the organization to apply for jobs • Include advertising, campus interviews,employment agencies, and employment agencies

11. Steps in Selection Process • Application forms • Efficient method of gathering information about applicant’s previous work history, educational background and other job-related data • Tests • Tests of ability, skill, aptitude or knowledge that is relevant to a particular job • Interviews

12. Testing • Assessment centre • A series of exercises in which management candidates perform realistic management tasks while being observed by appraisers • Video assessment • Involves showing potential hires videos of realistic work situations and asking them to choose a course of action

13. Interviews • Structured • Involves the use of a common set of questions • Unstructured • Questions may vary from candidate to candidate • More often used when interviewing managerial or professional candidates

14. Workforce Development • Orientation • The initial acquaintance of new employees with the company’s policies and programs • Training and development • Work-based programs • Instructional-based programs • Training technology

15. Work-Based Programs • On-the-job training • Employees gain new skills while performing them at work • Vestibule training • Employees work in a simulated environment • Systematic job rotations and transfers

16. Instructional-Based Programs • Lecture or discussion • Management development programs • Managers’ conceptual, analytical, and problem-solving skills are enhanced • Networking • Informal interactions among managers • Mentoring • A more experienced manager sponsors and teaches a less experienced manager • Off-the-job training

17. Training Technology • Video teleconferencing • Delivery of centralized training to branch offices allows for cost savings in travel and highly effective training • Interactive video • A combination of video and computer-based instruction

18. Performance Appraisal • Formal evaluations of employee performance • Actual performance is compared to objectives • Should be regularly scheduled • Performance expectations must be made clear • Results are used to determine training needs, promotion opportunities, compensation, and dismissal

19. Methods for Appraising Performance • Ranking methods • Simple ranking (rank order from top to bottom) • Forced distribution (group into predefined frequencies of performance ratings) • Rating methods • Graphic rating scale (statement with rating scale) • Critical incident method • Recall and discussion of especially good, or poor, performance

20. Compensation and Benefits • Basis compensation • Wages and salaries • Performance-based compensation • Merit pay plans • Skill and knowledge based pay systems • Incentive compensation systems • Benefits programs

21. Basic Compensation • Wages • Salaries • Job Evaluation • A method of determining the relative value or worth of a job to the organization so that individuals who perform it can be appropriately compensated • Establishing a Pay Structure • Develop a pay structure by linking a rational pay scale, level by level, to jobs

22. Performance-Based Compensation • Merit pay • Pay awarded to employees according to their relative value of their contributions • Skill-based pay • Employees are paid for acquired skill level, rather than specific performance • Knowledge-based pay • Employees are paid for learning

23. Incentive Compensation Systems • Piece-rate plan • Employees are paid a certain amount for each unit of product they produce • Individual incentive plan • Employees receive a salary increase, or other similar reward, for outstanding performance • Sales commission • Salespeople are paid based on unit, or dollar, sales • Other incentives • May be non-monetary, such as time relief

24. Team and Group Incentive Systems • Gainsharing programs • Employees get a bonus if the firm’s costs are reduced due to increased work efficiency • Performance increases • Awards directed to a team of employees to reward combined effort • Profit-sharing plans • The profitability level of the firm is used to determine the reward level for its employees

25. Benefits • Benefits: non-financial rewards • Mandated protection plans: EI, CPP, Workers compensation • Optional protection plans: health, dental, life insurance • Paid time off: vacation time, personal leave • Other types of benefits: wellness programs, child-care benefits • Cafeteria-style benefits plan: employees choose their own benefits

26. Equal Employment Opportunity • Regulations protecting people from unfair, or inappropriate, discrimination in the workplace • Decisions are made whenever employees are hired or promoted • The regulations are there to prevent such decisions from being made on any basis other than job-related reasons

27. Canadian Human Rights Act • Ensures that any individual who wishes to obtain employment has an equal opportunity to apply • Key anti-discrimination legislation enacted in 1977 • Applies to all federal agencies, federal crown corporations, and firms that do business inter-provincially • Prohibits discrimination based on: age, race, colour, national/ethnic origin, physical handicap, religion, gender, marital status, or prison record (if pardoned)

28. Bona Fide Occupational Requirement • Allows an individual to be chosen over another due to job characteristics • When only a particular type of candidate is acceptable because of the nature of the job • A washroom attendant in a luxurious hotel should be a female

29. Employment Equity Act • Federally legislated • Designates four groups as employment disadvantaged • Women • Visible minorities • Aboriginal people • People with disabilities

30. Comparable Worth • Principle • Equal wages should be paid for work of equal value to the firm • Jobs must be classified based on the qualifications needed to do the job • Jobs with similar requirements must be paid the same • Critics argue that such approaches ignore the supply and demand aspects of labour; More scarce employees are paid more than those with plentiful skill sets

31. Dealing with Sexual Harassment • Develop clear and enforceable policies • Inform all employees of the policies • Train employees to recognize and refrain from sexual harassment • Take complaints seriously • Establish a procedure to deal with complaints • Take action against those involved

32. Employee Health and Safety • Health and safety programs reduce absenteeism and labour turnover, increase productivity and morale, by making the workplace safer & healthier • Each province has its own regulations • Government inspectors come on-site, unannounced, to ensure that health and safety regulations are being met • Canada places behind other industrialized nations in safety for mining and construction

33. Retirement • Retirement plans may allow early retirement, usually after the age of 55 • Flexible plans allow those who wish to leave early to do so, while allowing those who are able and willing to work longer the opportunity to do so • Regular retirement age is 65 years, but many choose to work beyond that time • Health statistics show that workers over the age of 65 are more likely to suffer from work-related causes

34. Managing Workforce Diversity • Everyone in the workforce must be treated equitably • The workforce is becoming more diverse • Gender • Race • Age • Ethnicity • Physical ability

35. Managing Knowledge Workers • Employees who are experts in specific fields like computer technology and engineering • Identify with their profession rather than the firm • Prefer to work independently • Define performance based on their industry and peers, rather than their employer • Pose a special management challenge

36. Managing Contingent and Temporary Workers • Contingent workers • Work for a firm on a basis other than full or part-time • Freelance, on-call, temporary subcontractors • Temporary workers • Hired through outside agencies • Management issues • Fairness and cost issues

37. Labour Unions • Groups of individuals working together to achieve shared job-related goals • higher pay • reasonable work hours • better working conditions • better job security • benefits

38. Collective Bargaining • A process through which union leaders and management personnel negotiate common terms and conditions of employment • Union power is achieved through group action enabled by the collective bargaining process

39. Unionism Today • Unions are experiencing difficulties in attracting new members • Union membership as a percentage of the total workforce is declining • Diversity in the workforce consists of people who are not traditionally members of a union • Women, ethnic minorities • Employers are engaging in more anti-union activities, including more employee-friendly workplaces

40. Canadian Labour Code • Labour legislation for firms operating under parliamentary authority (Federal jurisdiction according to the constitution act) • Fair employment practices • Standard hours, wages, vacations, and holidays • Employee safety • Industrial relations regulations • Deals with all matters related to collective bargaining

41. Collective Bargaining • The bargaining cycle begins when representatives from the union and management get together to negotiate a contract • A “bargaining zone” is reached, which is a reasonable range of options acceptable to the parties • Union members vote to accept or reject a tentative agreement through a ratification vote • If accepted, the contract is signed and becomes the Collective Agreement • If rejected, management and union can resort to different tactics to influence the process

42. Contract Issues • Compensation • Current and future wages • Cost-of-living-adjustment (COLA) • Benefits • Job security • Other issues such as the use of temporary workers, grievance procedures, overtime,and working hours

43. Union Tactics • Strike • Withdraw labour services • Boycott • Members refuse to buy products produced by their firm, and may lobby others to do the same • Picket • Members may picket the company and have large signs at the company entrance • Slowdown • Workers perform their jobs at a slower pace, limiting production

44. Management Tactics • Lockout • Employees are not permitted on the premises to do their jobs • Hire strike-breakers • Employees that cross picket lines to work for management (often called “scabs”) • Plant closures • Contracting out

45. Decertification • The process by which employees terminate their union’s right to represent them • The union organizes membership meetings, house-to-house visits, and other tactics • Employers may use meetings, letters, improved working conditions • A vote is held to decide whether or not to decertify the union

46. Conflict Resolution Methods • Mediation • Appoint a third-party conciliator to recommend a solution • Has no legal authority to enforce the recommendation • Arbitration • Appoint a third-party to devise and impose a solution • Has legal authority to do so • Arbitration may be voluntary or compulsory • Essential services like fire and police protection

47. Voluntary Arbitration & Compulsory Arbitration • Voluntary arbitration • Settles a contract dispute by having a third party hear union and management arguments and issue a binding resolution (voluntary cooperation) • Compulsory arbitration • Settles a contract dispute by having management and union forced to let a neutral third party issue a binding resolution (non-voluntary cooperation)