Last Week… Last Week…

1.1. Considered the difference between traditional Considered the difference between traditional and contemporary designsand contemporary designs

2.2. Understood why we communicate and how it Understood why we communicate and how it worksworks

3.3. Considered the various methods of Considered the various methods of communication and how to know what workscommunication and how to know what works

4.4. Examined the barriers to effective Examined the barriers to effective communicationcommunication

5.5. Looked at the flow of communication in Looked at the flow of communication in organizationsorganizations

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This Week’s ObjectivesThis Week’s Objectives

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1.1. Understand why Human Resource Understand why Human Resource Management is so importantManagement is so important

2.2. Examine environmental factors Examine environmental factors affecting HRM.affecting HRM.

3.3. Review the eight process steps in Review the eight process steps in HRM.HRM.

4.4. Look at some contemporary issues in Look at some contemporary issues in Human Resource Management.Human Resource Management.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-3

Chapter 11Human Resource Management

The Question…The Question…

As a manager, how much As a manager, how much attention do I have to pay attention do I have to pay

to “people” stuff?to “people” stuff?

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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-5

The Importance of Human Resources Management (HRM)

It’s an Operational Necessity: part of the organizing function of management Selecting, training, and evaluating the workforce

It’s a Strategic Necessity: 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.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-6

HRM is not just for the HR manager 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.

All managers need to be effective in managing HR processes If you do this stuff wrong, you’ll hit a career ceiling

and negatively impact the organization.

11-7

The HRM Process

1. Planning2. Recruitment3. Selection4. Orientation5. Training6. Performance Management7. Compensation and Benefits8. Career Development

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-8

Environmental Factors Affect HRM

Economics and DemographicsEmployment markets, regional economic

conditions, industry conditionsMakeup of workforces, shifts in demographic

factors (e.g. age, gender, education)

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-9

Environmental Factors Affect HRM

Labour Unions and ContractsAn organization that represents workers and

seeks to protect their interests through collective bargaining

Contracts cover things like wages, hours, and working conditions

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-10

Environmental Factors Affect HRM

Government Legislation 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

11-11

1st Step: HR Planning

Having the right number of the right people in the right places at the right times, who are capable of effectively and efficiently performing their tasks

Involves:1. Understanding what you have (assessing current

human resources)

2. Understanding what you need (assessing future HR needs and developing a program to meet those future needs)

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Understanding What You Have

Human Resources Inventory A review of the current makeup of the

organization’s resources status

Job analysisAn assessment that defines a job and the behaviours

necessary to perform the job: Knowledge, skills, and abilities

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-13

The Critical Products of Job Analysis

Job DescriptionA written statement of what the jobholder

does, how it is done, and why it is done

Job SpecificationA written statement of the minimum

qualifications that a person must possess to perform a given job successfully

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-14

Understanding What You Need

1. Know the impact of the environmental factors

2. Know what your demand will be

3. Know what your supply will be

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2nd Step: Recruiting

Locating, identifying, and attracting capable applicants to an organization

Note that this also considers “Decruitment” - The process of reducing a surplus of employees in the workforce of an organization

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-16

What are sources of potential job candidates?

Internet services (e.g. Monster) Employee referrals Company website University/colleges Professional recruiting services

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-17

3rd Step: Selection Selection is the process of screening job

applicants to ensure that the most appropriate candidates are hired

Selection tries to predict which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance.

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Costs for Poor Selection

Wasted investment of time/money resources In hiring process, orientation, training and ongoing

management In repeating processes to replace

Impact on strategies and goals Affects schedules and budgets in planning Lack of support for strategies

Impact on organizational values and culture Negative effect on establishing and maintaining

culture

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-19

Types of Selection Devices

Application FormsWritten TestsPerformance Simulations InterviewsBackground Investigations (reference

checks)Physical Examinations

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-20

4th Step: Orientation

Bringing a new employee into the organizationWork-unit orientation

Familiarizes new employee with work-unit goalsClarifies how his or her job contributes to unit goalsIntroduces employee to his or her co-workers

Organization orientationInforms new employee about the organization’s

objectives, history, philosophy, procedures, and rules

Includes a tour of the entire facility

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-21

5th Step: Training

Developing the necessary skills in employees

Training can be needed for: New employees Promoted employees Performance Management Changed technology, products or processes Legal requirements Career development

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-22

Training Subjects

Personal/Interpersonal skillsTechnicalBusinessMandatory (i.e. legislated, certification)

Problem solving/decision making

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-23

Employee Training Methods

Traditional Methods

On-the-job

Job rotation

Mentoring and coaching

Experiential exercises

Workbooks/manuals

Classroom lectures

Technology-based Methods CD-ROM/ DVD/videotapes/

audiotapes

Videoconferencing/ teleconferencing/satellite TV

E-learning or other interactive modules.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-24

6th Step: Performance Management

Establishes performance standards and appraises employee performance

Provides the information for objective HR decisions and the supporting documentation

ABSOLUTELY CRITICAL PROCESS! How else can we know if we have the right HR

and if we are maximizing their potential?

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-25

Performance Appraisal MethodsWritten EssaysCritical IncidentsGraphic Rating ScalesBehaviourally Anchored Rating Scales

(BARS)Multiperson ComparisonsManagement by Objectives (MBO)360-Degree Feedback

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-26

7th Step: 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

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-27

Factors That Influence Compensation & Benefits

Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1

Level ofCompensationand Benefits

Employee’s Tenure

and Performance

Size of

Company

Kind of

Job Performed

Company

Profitability

Kind of

Business

Geographical

LocationUnionization

Management

Philosophy

Labour- or

Capital-Intensive

How long has employeebeen with company and

how has he or she performed?

Does job requirehigh levels of skills?

What industry is job in?

Is business unionized?

Is business labour- orcapital-intensive?

How large is thecompany?

How profitable is thecompany?

Where is organizationlocated?

What is management’sphilosophy toward pay?

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-28

8th Step: 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

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-29

Some Suggestions for a Successful Management Career

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-30

Contemporary HRM Issues

Managing Large Scale Staffing Changes (e.g. downsizing)

Managing Workforce DiversityRecruitment for diversitySelection without discriminationOrientation and training that is effective

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-31

Contemporary HRM Issues Sexual Harassment

An unwanted activity of a sexual nature that affects an individual’s employment

An offensive or hostile environmentAn environment in which a person is affected by

elements of a sexual nature

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-32

Contemporary HRM Issues

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 careSummer day campsFlextimeJob sharingLeave for personal mattersFlexible job hours

This Week’s Summary This Week’s Summary

1.1. Emphasized why Human Resource Emphasized why Human Resource Management is so important to the Management is so important to the organization and to all managers.organization and to all managers.

2.2. Discussed environmental factors Discussed environmental factors affecting HRM.affecting HRM.

3.3. Went through all eight key process steps Went through all eight key process steps in HRM.in HRM.

4.4. Looked at some contemporary issues in Looked at some contemporary issues in Human Resource Management.Human Resource Management.

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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian EditionCopyright © 2009 Pearson Education Canada 11-34

Top 10 Job Factors for College Graduates

(ranked in order of importance)1. Enjoying what they do2. Opportunity to use skills and abilities3. Opportunity for personal development4. Feeling what they do matters5. Benefits6. Recognition for good performance7. Friendly co-workers8. Job location9. Lots of money10. Working on teams Source: Based on V. Frazee.

“What’s Important to College Grads in Their First Jobs?” Personnel

Journal, July 1996, p. 21.