Copyright © 2006 Pearson Education Canada Inc. 8-1 Chapter 8 Managing Human Resources and Labour Relations.

8-1

Copyright © 2006 Pearson Education Canada Inc.

Chapter 8Chapter 8

Managing HumanResources and Labour Relations

8-2Copyright © 2006 Pearson Education Canada Inc.

Learning Objectives

Define human resource management, discuss its strategic significance, and explain how managers plan for human resourcesIdentify the issues involved in staffing a company, including internal and external recruiting and selection


Learning Objectives

Discuss different ways in which organizations go about developing the capabilities of employees and managersDiscuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers


Learning Objectives

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


Learning Objectives

Trace the evolution of, and discuss trends in, unionismDescribe the major laws governing unionismIdentify the steps in the collective bargaining process


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


Job AnalysisJob 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


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


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


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


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


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


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


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


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


Instructional-Based Programs

Lecture or discussionManagement 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


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


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


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


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


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


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


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


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


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


Equal Employment Opportunity

Regulations protecting people from unfair, or inappropriate, discrimination in the workplaceDecisions are made whenever employees are hired or promotedThe regulations are there to prevent such decisions from being made on any basis other than job-related reasons


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)


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


Employment Equity Act

Federally legislated Designates four groups as employment disadvantaged Women Visible minorities Aboriginal people People with disabilities


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


Dealing with Sexual Harassment

Develop clear and enforceable policiesInform all employees of the policiesTrain employees to recognize and refrain from sexual harassmentTake complaints seriouslyEstablish a procedure to deal with complaintsTake action against those involved


Employee Health and Safety

Health and safety programs reduce absenteeism and labour turnover, increase productivity and morale, by making the workplace safer & healthierEach province has its own regulationsGovernment inspectors come on-site, unannounced, to ensure that health and safety regulations are being metCanada places behind other industrialized nations in safety for mining and construction


RetirementRetirement plans may allow early retirement, usually after the age of 55Flexible 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 soRegular retirement age is 65 years, but many choose to work beyond that timeHealth statistics show that workers over the age of 65 are more likely to suffer from work-related causes


Managing Workforce Diversity

Everyone in the workforce must be treated equitablyThe workforce is becoming more diverse Gender Race Age Ethnicity Physical ability


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


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


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


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


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


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


Collective Bargaining

The bargaining cycle begins when representatives from the union and management get together to negotiate a contractA “bargaining zone” is reached, which is a reasonable range of options acceptable to the partiesUnion members vote to accept or reject a tentative agreement through a ratification voteIf accepted, the contract is signed and becomes the Collective AgreementIf rejected, management and union can resort to different tactics to influence the process


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


Union TacticsStrike 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


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 closuresContracting out


Decertification

The process by which employees terminate their union’s right to represent themThe union organizes membership meetings, house-to-house visits, and other tacticsEmployers may use meetings, letters, improved working conditionsA vote is held to decide whether or not to decertify the union


Conflict Resolution MethodsMediation 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


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)

Copyright © 2006 Pearson Education Canada Inc. 8-1 Chapter 8 Managing Human Resources and Labour Relations.

Documents

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job openings

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