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Chapter 10 1 Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary Copyright © 2011 by Nelson Education Ltd.

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Page 1: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Managing Human Resourcesand Labour Relations

Managing Human Resourcesand Labour Relations

Prepared byNorm Althouse

University of Calgary

Prepared byNorm Althouse

University of Calgary

Copyright © 2011 by Nelson Education Ltd.

Page 2: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Learning Outcomes1 Discuss the human resource management process, and how

human resource

needs are determined.

2 Explain how firms recruit applicants.

3 Summarize how firms select qualified applicants.

4 List some of the types of training and development programs organizations offer their employees.

5 Show how performance appraisals are used to evaluate employee performance.

6 Analyze the various methods for compensating employees.

7 Explain how labour–management relations are different in a unionized environment.

8 Describe some of the key laws and federal agencies affecting human resource management and labour relations.

9 List some of the trends and issues affecting human resource management and labour relations.

2Copyright © 2011 by Nelson Education Ltd.

Page 3: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Human Resource Challenges

3Copyright © 2011 by Nelson Education Ltd.

Competition for a limited number of employees

Employees are struggling to balance their home and work lives

Managers are challenged to manage and communicate with employees around the globe

A diverse and multicultural workforce requires better workplace communication and training

Technology is impacting decision making, communication, and business operation

Human resource laws are dictating many aspects of the employee-employer relationship

Page 4: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 4

Human Resource Success Factors

Attracting and hiring the best employees

Equipping employees with the skills needed to excel

Compensating employees fairly

Motivating employees to reach their full potential

Managing (and interacting with) people will probably be the most stressful and difficult part of your future career

“L'enfer, c'est les autres” Hell is other people

Jean Paul Sartre

Page 5: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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The process of hiring, developing, motivating, and evaluating employees

to achieve organizational goals

The process of hiring, developing, motivating, and evaluating employees

to achieve organizational goals

Human Resource Management

(HRM)

Human Resource Management

(HRM)

Copyright © 2011 by Nelson Education Ltd.

Page 6: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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6Copyright © 2011 by Nelson Education Ltd.

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Job DescriptionJob Description The tasks and responsibilities of a jobThe tasks and responsibilities of a job

Job SpecificationJob Specification A list of the skills, knowledge, and abilities a person must have to fill the job

A list of the skills, knowledge, and abilities a person must have to fill the job

Job AnalysisJob Analysis A study of the tasks required to do a particular job well A study of the tasks required to do a particular job well

Copyright © 2011 by Nelson Education Ltd.

Page 8: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Estimate the number of peoplecurrently involved who will be

available to fill jobs at some future time

Estimate the number of peoplecurrently involved who will be

available to fill jobs at some future time

Determine the number of people needed by some future time

Determine the number of people needed by some future time

The HRThe HRDemandDemandForecastForecast

The HRThe HRDemandDemandForecastForecast

Copyright © 2011 by Nelson Education Ltd.

Page 9: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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9Copyright © 2011 by Nelson Education Ltd.

Page 10: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Employee Recruitment

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External Labour MarketExternal Labour Market Find and attract qualified applicants from the external sources

Find and attract qualified applicants from the external sources

Internal Labour MarketInternal Labour Market Follow a policy of promotion from within Follow a policy of promotion from within

Job Fairs Job Fairs

Search Firms

Search Firms Advertising Advertising

Open Houses Open

Houses

Copyright © 2011 by Nelson Education Ltd.

Electronic Job Boards Electronic Job Boards

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 11

– External recruiting: managers look outside the firm for people who have not worked at the firm before.

• Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.

– External recruitment is difficult since many new jobs have specific skill needs.

– A multi-prong approach to external recruiting works best.

– Internal Recruiting: positions filled from within the firm.• Internal recruiting has several benefits:

– Workers know the firm’s culture but may not have new ideas.

– Managers likely already know the candidates.– Internal advancement can motivate employees.

Recruitment

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 12

Managers may be tempted to over-rate the attractiveness of the job and firm.– Recruits will not work for dishonest

employers– Research indicates this is a poor strategy.

Realistic Job Preview: provides an accurate overview of the job.– Avoids having to hire, train, and then lose

workers.

Honesty in Hiring

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Employee Selection

13Copyright © 2011 by Nelson Education Ltd.

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 14

After a pool of applicants are identified, qualifications related to the job requirements are determined:

• Background Information: includes education, prior employment, college major, etc.

• Interview: almost all firms use one of two types:– Structured interview: managers ask each person the

same job-related questions.– Unstructured interview: held like a normal conversation. – Usually structured interviews preferred; bias is possible.

Selection Process

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 15

Selection ProcessTesting: includes testing of ability, personality,

physical ability, and performance» Ability test: assess if applicant has right skills for the

job.» Personality test: seek traits relevant to job

performance.» Physical ability test: assesses whether applicant has

physical ability to do job tasks» Be sure test is a good predictor of job performance.

Performance Tests: measure job performance.» Typing speed test is one example.» Assessment Center: candidates assessed on job-

related activities over a period of a few days.

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 16

Selection Process

• References: outside people provide candid information about candidate.

– Can be hard to get accurate information– Sometimes they want to get rid of someone– Usually phone – written comments = lawsuits!

“You will be very lucky if you can get Josephine Smith to work for

you………”

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 17

Selection Devices

SelectionSelectionDevicesDevices

SeniorManag.

Mid-LowerManagers

High-TechWorkers

RoutineOperatives

PositionPosition

Application Forms Written Tests Work Samples Assessment Center Interviews Application Reviews Reference Checks Physical Exams

2

1

--

5

4

3

1

1

2

1

--

5

3

3

1

1

2

2

4

--

2

3

1

1

2

3

4

--

2

3

1

2Note: Scale is 5 (highest) to 1 (lowest) and a dash = N/A.

Quality of Selection Devices as PredictorsQuality of Selection Devices as Predictors

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Employee Training and Development

18Copyright © 2011 by Nelson Education Ltd.

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Employee Training and Development

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mentoringmentoring

apprenticeshipapprenticeship

job rotationjob rotation

on-the-jobon-the-job

employee orientationemployee orientation

Examples ofExamples ofTypes of TrainingTypes of Trainingand Developmentand Development

Examples ofExamples ofTypes of TrainingTypes of Trainingand Developmentand Development

Copyright © 2011 by Nelson Education Ltd.

Off-the-job

training

programmed instructionprogrammed instruction

simulationsimulation

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Performance Planning and Evaluation

20Copyright © 2011 by Nelson Education Ltd.

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Employee Compensation and Benefits

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BenefitsBenefits

SalariesSalaries

Piecework & commissionPiecework & commission

Accelerated commission scheduleAccelerated commission schedule

Profit sharingProfit sharing

Hourly wagesHourly wages

Types ofCompensation

Types ofCompensation

BonusBonus

Copyright © 2011 by Nelson Education Ltd.

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 22

Job Changes within the Organization

TransferTransferA horizontal move to a position with

about the same salary and organizational level.

A horizontal move to a position with about the same salary and

organizational level.

DemotionDemotionThe downgrading or reassignment

of an employee to a position with less responsibility.

The downgrading or reassignment of an employee to a position

with less responsibility.

PromotionPromotion An upward move to a position with more authority, responsibility, and pay. An upward move to a position with

more authority, responsibility, and pay.

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Copyright © 2008 by Nelson, a division of Thomson Canada Limited 23

Separations

ResignationResignation Permanent separation of an employee.Arranged by employee.Permanent separation of an employee.Arranged by employee.

LayoffLayoff Temporary separation of an employee.Arranged by employer.Temporary separation of an employee.Arranged by employer.

TerminationTermination Permanent separation of an employee. Arranged by employer.Permanent separation of an employee. Arranged by employer.

RetirementRetirement Separation of an employee at the end of his or her career. Separation of an employee at the end of his or her career.

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Labour Relations Terms

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collective bargainingcollective bargaining process of negotiating labour agreements process of negotiating labour agreements

national unionnational union a union that consists of many local unions, operating nationally

a union that consists of many local unions, operating nationally

local unionlocal union units of a national union, representing workers in a specific location

units of a national union, representing workers in a specific location

labour unionlabour union organization that represents workers in dealing with management

organization that represents workers in dealing with management

shop stewardshop steward elected union official – represents members to management

elected union official – represents members to management

Copyright © 2011 by Nelson Education Ltd.

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Negotiating Labour Agreements

25Copyright © 2011 by Nelson Education Ltd.

Page 26: Chapter 10 1 Managing Human Resources and Labour Relations Managing Human Resources and Labour Relations Prepared by Norm Althouse University of Calgary

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Common Issues in Collective Bargaining

Union SecurityManagement RightsWages/BenefitsJob Security and SeniorityGrievance ProceduresArbitration/Mediation

26Copyright © 2011 by Nelson Education Ltd.

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Strategies for Unions and Employers

27Copyright © 2011 by Nelson Education Ltd.

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Legislation Affecting HR Management

28Copyright © 2011 by Nelson Education Ltd.

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Trends in Human Resource Management

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Organizational Culture and Hiring for FitOrganizational Culture and Hiring for Fit

Outsourcing HR and TechnologyOutsourcing HR and Technology

Employee Diversity and Competitive AdvantageEmployee Diversity and Competitive Advantage

Copyright © 2011 by Nelson Education Ltd.