Human Resource Management Wk10 060409

Human Resource Management Management- Semester 1 Mgt_Lec_Wk10_060409

LEARNING OUTLINE • What is Human Resources Management (HRM) and why HR Is Important •The Human Resources Management Process •Human Resources Planning •Staffing the Organization •Orientation and Skill Development •Managing and Rewarding Performance •Compensation and Benefits •Career Development •Current Issues in Human Resources Management

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What is Human Resource Management (HRM)? • HRM is the set of organizational activities directed at attracting, developing and maintaining an effective workforce. (Griffin, R.W 5th Edition) •HRM takes place with in complex and ever changing environment. 3

The Importance of Human Resources Management (HRM) • Necessary part of the organizing function of management – Selecting, training, and evaluating the workforce

• An important strategic tool – HRM helps establish an organization’s sustainable competitive advantage.

• Adds value to the firm – High performance work practices lead to both high individual and high organizational performance. 4

Exhibit 11.1 Examples of HighPerformance Work Practices • • • • •

Self-directed work teams Job rotation High levels of skills training Problem-solving groups Total quality management procedures and processes • Encouragement of innovative and creative behaviour • Extensive employee involvement and training

• Implementation of employee suggestions • Contingent pay based on performance • Coaching and mentoring • Significant amounts of information sharing • Use of employee attitude surveys • Cross-functional integration • Comprehensive employee recruitment and selection procedures

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Human Resources for Non-HR Managers • Small vs. large organizations – Large organizations have HR function. – Smaller organizations may rely on managers to handle HR issues.

• All managers need to be aware of federal and provincial legislation and company policies. 6

The HRM Process • Functions of the HRM Process – Identifying and selecting competent employees – Providing employees with up-to-date knowledge and skills to do their jobs – Ensuring that the organization retains competent and high-performing employees

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Exhibit 11.2 The Human Resources Management Process Environment

Human Resource

Recruitment

Selection

Planning

Identification and Selection of Competent Employees

Decruitment

Adapted and competent Orientation

Training

employees with up-to-date skills and knowledge

Performance Management

Compensation and Benefits

Career Development

Competent and high-performing employees who are capable of sustaining high performance over

Environment

the long term

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Environmental Factors Affecting HRM • Labour Union – An organization that represents workers and seeks to protect their interests through collective bargaining

• Collective Bargaining Agreement – A contractual agreement between an organization and a union, covering: • Wage, hours, and working conditions

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Environmental Factors Affecting HRM (cont’d) • Legislation Affecting Workplace Conditions – Canada Labour Code – Occupational Health and Safety Act – Workplace Hazardous Materials Information System (WHMIS) – Employment standards legislation

• Antidiscrimination Legislation – The Charter of Rights and Freedoms and the Canadian Human Rights Act – The Employment Equity Act 10

Managing Human Resources • Human Resources (HR) Planning – The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks – Helps avoid sudden talent shortages and surpluses – Steps in HR planning: • Assessing current human resources • Assessing future needs for human resources and developing a program to meet those future needs 11

Current Assessment • Human Resources Inventory – A review of the current makeup of the organization’s resources status – HR Management Information Systems (HRMIS) • Tracks employee information for policy and strategic needs

– Job analysis • An assessment that defines a job and the behaviours necessary to perform the job: – Knowledge, skills, and abilities

• Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers 12

Current Assessment (cont’d) • Job Description – A written statement of what the jobholder does, how it is done, and why it is done

• Job Specification – A written statement of the minimum qualifications that a person must possess to perform a given job successfully

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Exhibit 11.3 Meeting Future Human Resources Needs Supply of Employees

Demand for Employees

Factors Affecting Staffing Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities 14

Staffing the Organization • Recruitment – The process of locating, identifying, and attracting capable applicants to an organization

• E-recruiting – Recruitment of employees through the Internet • Organizational web sites • Online recruiters

• Decruitment – The process of reducing a surplus of 15 employees in the workforce of an organization

Exhibit 11.4 Major Sources of Potential Job Candidates

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Exhibit 11.5 Decruitment Options

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Selection • Selection Process – The process of screening job applicants to ensure that the most appropriate candidates are hired

• Selection – An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance – Selection errors: • Reject errors for potentially successful applicants • Accept errors for ultimately poor performers 18

Exhibit 11.6 Selection Decision Outcomes

Unsuccessful Successful

Later Job Performance

Selection Decision Accept

Reject

Correct decision

Reject error

Accept error

Correct decision

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Validity and Reliability • Validity (of Prediction) – A proven relationship between the selection device used and some relevant criterion for successful performance in an organization • High test scores equate to high job performance; low scores to poor performance

• Reliability (of Prediction) – The degree of consistency with which a selection device measures the same thing • Individual test scores obtained with a selection device are consistent over multiple testing instances 20

Types of Selection Devices • • • • • •

Application Forms Written Tests Performance Simulations Interviews Background Investigations Physical Examinations

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Exhibit 11.7 Selection Devices

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Written Tests • Types of Tests – – – –

Intelligence: how smart are you? Aptitude: can you learn to do it? Ability: can you do it? Interest: do you want to do it?

• Legal Challenges to Tests – Lack of job-relatedness of test to job requirements – Discrimination against members of areas protected by the Employment Equity Act 23

Performance Simulation Tests • Testing an applicant’s ability to perform actual job behaviours, use required skills, and demonstrate specific knowledge of the job – Work sampling • Requiring applicants to actually perform a task or set of tasks that are central to successful job performance

– Assessment centres • Dedicated facilities in which job candidates undergo a series of performance simulation tests to evaluate their managerial potential 24

Other Selection Approaches • Situational Interviews – Interviews in which candidates are evaluated on how well they handle role play in mock scenarios

• Background Investigations – Verification of application data – Reference checks: • Lack validity because self-selection of references ensures only positive outcomes

• Physical Examinations – Useful for physical requirements 25

Questions Not to Ask Job Candidates • • • • • • • • • • • • •

About name changes; maiden name For birth certificate, baptismal records, or about age in general About pregnancy, child bearing plans, or child care arrangements Whether applicant is single, married, divorced, engaged, separated, widowed, or living common-law About birthplace, nationality of ancestors, spouse, or other relatives Whether born in Canada For photo to be attached to application or sent to interviewer before interview About religious affiliation, church membership, frequency of church attendance Whether the applicant drinks or uses drugs Whether the applicant has ever been convicted Whether the applicant has ever been arrested Whether the applicant has a criminal record About the applicant’s sexual orientation

Sample Questions Taken from Exhibit 11.8

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Tips for Managers: Some Suggestions for Interviewing • Structure a fixed set of questions for all applicants. • Have detailed information about the job for which applicants are interviewing. • Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics. • Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours. • Use a standardized evaluation form. • Take notes during the interview. • Avoid short interviews that encourage premature decision making.

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Exhibit 11.9 Quality of Selection Devices as Predictors

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Other Selection Approaches (cont’d) • Realistic Job Preview (RJP) – The process of relating to an applicant both the positive and the negative aspects of the job • Encourages mismatched applicants to withdraw • Aligns successful applicants’ expectations with actual job conditions, reducing turnover

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Orientation and Skill Development • Bringing a new employee into the organization – Work-unit orientation • Familiarizes new employee with work-unit goals • Clarifies how his or her job contributes to unit goals • Introduces employee to his or her co-workers

– Organization orientation • Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules • Includes a tour of the entire facility

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Exhibit 11.10 Types of Training • • • • • • •

Interpersonal skills Technical Business Mandatory Performance management Problem solving/decision making Personal 31

Exhibit 11.11 Employee Training Methods • Traditional Training Methods – On-the-job – Job rotation – Mentoring and coaching – Experiential exercises – Workbooks/manuals – Classroom lectures

• Technology-based Training Methods – CD-ROM/ DVD/videotapes/ audiotapes – Videoconferencing/ teleconferencing/ satellite TV – E-learning or other interactive modules. 32

Exhibit 11.12a Occupations of Employees Who Receive Training 100 90 80 70 60 50 40 30 20 10 0

Professional and managerial white collar occupations Clerical, sales, and service white collar occupations Blue collar occupations 33

Exhibit 11.12b How Employees Train Themselves 100

90

80

70

60

50

40

30

20

10

0

Sought advice from someone Used the Internet or computer software Observed someone perform a task Consulted books/manuals/other documents Taught themselves by trying different methods

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Managing and Rewarding Performance • Performance Management System – A process establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions

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Performance Appraisal Methods • • • •

Written Essays Critical Incidents Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS) • Multiperson Comparisons • Management by Objectives (MBO) • 360-Degree Feedback 36

Exhibit 11.13 Advantages and Disadvantages of Performance Appraisal Methods

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Compensation and Benefits • Benefits of a Fair, Effective, and Appropriate Compensation System – Helps attract and retain high-performance employees – Impacts on the strategic performance of the firm

• Types of Compensation – – – –

Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay 38

Exhibit 11.14 Factors That Influence Compensation and Benefits How long has employee been with company and how has he or she performed?

How large is the company?

Does job require high levels of skills?

Employee’s Tenure and Performance

How profitable is the company?

Size of

Kind of

Company

Company Profitability

Job Performed

Level of Compensation

What industry is job in?

Kind of Business

and Benefits Geographical Location

Where is organization located?

Management Philosophy

Unionization

Labour- or Capital-Intensive

Is business unionized?

What is management’s Is business labour- or philosophy pay?Management, 6th ed. (Upper Saddle River, NJ: Prentice capital-intensive? Sources: Based on R.I. Henderson, toward Compensation Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1

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Public Sector Vs. Private Sector • Governments pay about 9% more compared to private sector. • Public sector employees: better benefit plans, likelihood of pension plans – Public sector pay rates: labour union equity initiatives – Private sector pay rates: “market wages”

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Career Development • Career Defined – A sequence of positions held by a person during his or her lifetime

• Career Development – Provides for information, assessment, and training – Helps attract and retain highly talented people

• Boundaryless Career – A career in which individuals, not organizations, define career progression, organizational loyalty, important skills, and marketplace value 41

Top 10 Job Factors for College Graduates (ranked in order of importance) 1. Enjoying what they do 2. Opportunity to use skills and abilities 3. Opportunity for personal development 4. Feeling what they do matters 5. Benefits 6. Recognition for good performance 7. Friendly co-workers 8. Job location 9. Lots of money 10. Working on teams

Source: Based on V. Frazee. “What’s Important to College Grads in Their First Jobs?” Personnel Journal, July 1996, p. 21.

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Tips for Managers: Some Suggestions for a Successful Management Career 43

Contemporary HRM Issues • Managing Downsizing – The planned elimination of jobs in an organization • Provide open and honest communication • Reassure survivors

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Contemporary HRM Issues (cont’d) • Managing Workforce Diversity – Recruitment for diversity – Selection without discrimination – Orientation and training that is effective

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Contemporary HRM Issues (cont’d) • Sexual Harassment – An unwanted activity of a sexual nature that affects an individual’s employment • The Supreme Court of Canada definition: Unwelcome behaviour of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job-related consequences for the employee • There continues to be disagreement as to what specifically constitutes sexual harassment.

– An offensive or hostile environment • An environment in which a person is affected by elements of a sexual nature 46

Contemporary HRM Issues (cont’d) • Work-Life Balance – Employees have personal lives that they don’t leave behind when they come to work. – Organizations have become more attuned to their employees by offering family-friendly benefits: • • • • • •

On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours 47