The World of Human Resources Management

Chapter 1

History of HRM
 Human Resource Management: Concern for People and Productivity

 Human Relations Movement: Concern for People

 Scientific Management: Concern for Production

Responsibilities of HR Departments
 Analyzing & Designing Jobs
 Recruiting & Hiring
 Training & Developing
 Managing Performance
 Total Rewards
 Employee & Labour Relations
 HR Policies
 Legal Compliance

HR Responsibilities of Supervisors
Many HR activities are carried out by supervisors:
 Help define jobs
 Forecast HR needs/interview and select candidates/train, coach and develop employees
 Appraise performance
 Recommend pay increases and promotions
 Communicate policies & comply with laws
 Provide motivational environment

Strategic HR Choices
 Work Flows: Efficiency of Innovation
 Staffing: Internal or External
 Employee Separations: Voluntary or Layoffs
 Performance Appraisal: Custom or Uniform
 Training and Development: Individual or Team
 Compensation: Fixed or Variable
 Employee Relations: Top-down or Bottom-up

Impact of HRM
Figure 1.1
OVERALL FRAMEWORK FOR HUMAN RESOURCES MANAGEMENT

Competitive Challenges and Human Resources Management

Top challenges include:
 Responding Strategically to Changes in the Marketplace
 Competing, Recruiting, and Staffing Globally
 Setting and Achieving Corporate Social Responsibility and Sustainability Goals
 Advancing HRM with Technology
  Containing Costs while Retaining Top Talent and Maximizing Productivity
 Responding to the Demographic and Diversity Challenges of the Workforce
 Adapting to Educational and Cultural Shifts Affecting the Workforce

Challenge 1: Responding Strategically to Changes in the Local and Global Marketplace

Human Resources Managers need to understand:
 Total quality management
 Reengineering
 Six Sigma
 Change management
o Reactive change & Proactive change
o Downsizing, outsourcing and offshoring
 Competing, Recruiting, and Staffing Globally

Challenge 2: Setting and Achieving Corporate Social Responsibility and Sustainability Goals
Corporate Social Responsibility
 The responsibility of the firm to act in the best interests of the people and communities
affected by its activities
 Sustainability is closely related to corporate social responsibility. Sustainability refers to
a company’s ability to produce a good or service without damaging the environment or
depleting a resource.

Challenge 3: Advancing HRM with Technology

 Collaborative software that allows workers anywhere anytime to interface and share
information with one another have changed how and where and companies do business.
 From Touch Labour Knowledge Workers
o Knowledge Workers: Workers whose responsibilities extend beyond the physical
execution of work to include planning, decision making, and problem solving

Challenge 4: Containing Costs While Retaining Top Talent and Maximizing Productivity
Organizations take many approaches to lowering labour-related costs, including:
 Carefully managing employees’ benefits
 Downsizing
 Furloughing Employees
 Outsourcing
 Offshoring
 Employee Leasing

Challenge 5: Responding to the Demographic and Diversity Challenges of the Workforce

Demographic Changes Managing Diversity
 More diverse workforce  Being aware of characteristics
 Aging workforce common to employees, while also
 More educated workforce managing employees as individuals

Challenge 6: Adapting to Educational and Cultural Shifts Affecting the Workforce

Other Factors:
 Cultural and Societal Changes Affecting the Workforce
 Employee Rights
 Privacy Concerns of Employees
 Changing Attitudes toward Work
 Balancing Work and Family

The Partnership of Line Managers and Human Resources Departments

Responsibilities of the HR Manager:
1. Advice and counsel
2. Service
3. Policy formulation and implementation
4. Employee advocacy

Competencies of the HR Manager:

1. Business mastery
2. HR mastery
3. Change mastery
4. Personal credibility

Activity #1 [do it at your own convenience]

Should contract employees be treated the same as “permanent” employees|
1. Watch the video “The Role of Human Resources Today” featuring a keynote speech by
Kelly CEO Carl Camden. https://www.youtube.com/watch?
v=qdZd7H0vfaE&feature=related
2. What does he mean by “Velcro” culture?
3. How can “outside the wall” employees become engaged?

Thinking exercise #2
Which of the following challenges (technology, globalization, corporate social responsibility,
demographic changes) will have the most impact on your working lives? As a future
manager/HR Manager how would you prepare yourself to deal with associated challenges?

Strategy and Human Resources Planning

Chapter 2

Strategic Planning and Human Resources

Strategic Planning
 Procedures for making decisions about the organization’s long-term goals and strategies
Human Resources Planning (HRP)
 Process of anticipating and providing for the movement of people into, within, and out of
an organization.
This one-minute clip from Michael Porter is a must-see to learn what strategy really is!
https://www.youtube.com/watch?v=ibrxlP0H84M

linking Strategic Planning and HRP

Figure 4.1 Overview of the Human Resource Planning Process

HR Strategies
Table 4.2 HR Strategies for Addressing a Labour Shortage or Surplus
Step 1: Mission, Vision, and Values
Mission
 The basic purpose of the organization as well as its scope of operations
Strategic Vision
 A statement about where the company is going and what it can become in the future;
clarifies the long-term direction of the company and its strategic intent
Core Values
 The strong and enduring beliefs and principles that the company uses as a foundation for
its decisions

Step 2: Environmental Analysis

Figure 2.2 FIVE FORCES FRAMEWORK
In this 2008 Harvard Business Review video, Michael Porter revisits his 1979 model of five
forces framework that shapes strategy. http://www.youtube.com/watch?
v=2FzYhdS4pqM&feature=related

Step 3: Internal Analysis

Forecasting: A Critical Element of Planning

Figure 2.4 MODEL OF HR FORECASTING
Forecasting a Firm’s Demand for Employees
Quantitative Methods

Forecasting Demand

Qualitative Methods
Watch this interesting video on the future workforce. The future of HR:
http://www.youtube.com/watch?v=bJiVZLbC3Lw&feature=related

Quantitative Approach: Trend Analysis

 Forecasting labour demand based on an organizational index

Forecasting the Supply of Employees: Internal Labour Supply

 Staffing Tables
 Markov Analysis
 Skill Inventories
 Replacement Charts
 Succession Planning

Internal Demand Forecasting Tools

Skill Inventories
 Files of personnel education, experience, interests, skills, etc., that allow managers to
quickly match job openings with employee backgrounds
Replacement Charts
 Listings of current jobholders and people who are potential replacements if an opening
occurs
Succession Planning
  The process of identifying, developing, and tracking key individuals for executives
positions
Time McConnell, SPHR and HR Strategist with McConnell Consulting Ottawa, discusses
Succession Planning Principles & Guidelines http://www.youtube.com/watch?v=96mnrtVIDVo

Step 4: Formulating Strategy

Business Strategy
Value Creation
 What the firm adds to a product or service by virtue of making it; the amount of benefits
provided by the product or service once the costs of making it are subtracted (value =
benefits – costs)
o Low-cost strategy
o Differentiation strategy
o Functional strategy

Step 5: Strategy Implementation

Taking Action: Reconciling Supply and Demand
 Balancing demand and supply considerations
o Forecasting business activities (trends)
o Locating applicants
 Organizational downsizing, outsourcing, offshoring
o Reducing “headcount”
 Making layoff decisions
o Seniority or performance?
o Collective agreements

Step 6: Evaluation and Assessment

Evaluation and Assessment Issues
 Benchmarking: The process of comparing the organization’s processes and practices to
those of other companies
 Human capital metrics
 o Assess aspects of the workforce
 HR metrics
o Assess the performance of the HR function itself

Measuring a Firm’s Strategic Alignment

Balanced Scorecard (BSC): A measurement framework that helps managers translate strategic
goals into operational objectives
 Financial
 Customer
 Processes
 Learning
Summary of the Balanced Scorecard, a management approach to align various business units
toward meeting corporate strategy: http://www.youtube.com/watch?v=3xsE4EvzQAg

Ensuring Strategic Flexibility for the Future

Organizational Capability
 Capacity of the organization to act and change in pursuit of sustainable competitive
advantage
Coordination flexibility
 The ability to rapidly reallocate resources to new or changing needs
Resources flexibility
 Having human resources who can do many different things in different ways

Activity #1
 Why do people quit their jobs? List all the reasons that you and your friends quit their
jobs.
 Watch this video and compare your list https://www.youtube.com/watch?
v=49NrBDBYrpg
As a future manager plan to create a better work environment for your employees so you could
attract, retain and keep your employees motivated!

Equity and Diversity in HRM

Chapter 3

The Legal Framework for HRM

Federally Regulated (10%) (Partial List) Provincially Regulated (90%)
 Federal government departments,  All other businesses
agencies, and Crowns
 Canada Post/couriers
 Banks, airlines
 TV & radio stations
 Telecommunications
 Railways, trucking etc.

Legislation in Canada
  Charter of Rights and Freedoms
 The Canadian Human Rights Act
 Employment Standards Legislation
 Employment Equity Act
 Pay Equity Act
 Official Languages Act
 Personal Information Protection and Electronic Documents Act (PIPEDA)

Figure 2.1 Prohibited Grounds of Discrimination in Employment by Jurisdiction

Equality in Employment Opportunity

 Discrimination
 Direct Discrimination
 Indirect Discrimination
The Enforcement of Provincial Human Rights Laws
 File a written complaint
 Investigation and submission of report
 If complaint is substantiated, settlement
 If no agreement, then a tribunal

Employer’s Role
 Bona fide Occupational Requirement/Qualifications (Exemption)
 Duty to Accommodate
 Preventing Harassment
 Valuing diversity

Harassment
 Physical assault
 Unnecessary physical contact
 Verbal abuse/threats
 Unwelcome invitation/requests
 Unwelcome remarks, jokes, innuendo
 Leering
 Displaying pornographic/racist pictures
 Practical jokes causing embarrassment
 Condescension

Remedies for Human Rights Violations

 Compensation for:
o Lost wages
o General damages and expenses
o Pain and humiliation
 Restoration of rights denied
 Written letter of apology
 Mandatory training sessions/workshops
 Required employment equity program

Employment Equity Program Implementation Steps

 Step 6: Monitoring, Evaluation, Revising
 Step 5: Implementation
 Step 4: Plan Development
 Step 3: Employment Systems Review
 Step 2: Data Collection and Analysis
 Step 1: Obtaining Senior Management Commitment and Support

Employee Rights
The right to Know The right to participate The right to refuse
About known or foreseeable In identifying & resolving Dangerous work
 hazards in the workplace job-related safety and health
problems

Occupational Health and Safety

 Internal Responsibility System
 Workplace Health and Safety Committees
 Bill C-45 (Westray Bill)

Diversity Management
 Broader/more inclusive than employment equity
 A set of activities designed to:
o Integrate all employees in multicultural workforce
o Use diversity to enhance organization’s effectiveness
Michael Back from KPMG shares his award-winning tips on the sensitive task of creating an
inclusive, equal, and safe workplace for LGBTQ employees.
http://www.hrmonline.ca/tv/diversity-in-the-wrkplace-part-3--

Characteristics of Effective Diversity Programs

 Celebrate diversity  Diversity audits
 Diversity training  Management responsibility and
 Top management commitment accountability
 Support groups/mentoring programs  Inclusive and representative
communications

Quick in class activity: Self-Identification

Discuss the advantages of employees completing self-identification form.

Some employees choose not to self-identify. What might be some of the reasons to not complete
the self-identification form?

Analyzing Work and Designing Jobs

Job Analysis
 Process of getting detailed information about jobs
 Knowledge is needed for:
o Staffing training
o Performance appraisal
o Other HR functions

Sources of Job Information

Incumbent  People who currently hold that
position in the organization
 Provide accurate estimates of time
Observers  Supervisors should review the
information provided by incumbents
  Identify importance of job duties
government  National Occupational Classification
(NOC) provides standardized
information about jobs

Job Analysis Methods

Position Analysis Questionnaire One of the broadest and most researched
instruments for analyzing jobs
 Information input and mental
processes
 Work output
 Relationships with other persons
 Job context and other characteristics
Task Analysis Inventory Focuses on the tasks performed in a particular
job
 Several variations exist
Critical incident method involves the identification of job tasks that are
essential for job success
Functional Job Analysis Identifies performance standards and training
requirements for a job
Responsibility for people, data, things
Occupational Analysis Inventory (OAI) Contains 617 “work elements
Has 5 Categories
Competency based approach A job can be meaningfully defined in terms of
tasks, duties, processes, and skills necessary
for job success

Steps in Job Analysis

 Step 6: Develop Job Description/Job Specification
 Step 5: Review Analysis with Incumbent/Supervisor
 Step 4: Analyze the Jobs
 Step 3: Select Representative Positions/Jobs to Be Analyzed
 Step 2: Review Relevant Background Information
 Step 1: Identify What the Information Will Be Used For

Trends in Job Analysis

 Flexibility
 Adaptability
 Competency based approaches
 De-jobbing
 Team-based/Project-based structures

Job Descriptions vs. Specifications

Job Description Job Specifications
 A list of the tasks, duties, and  A list of competencies that an
 responsibilities (TDRs) that a individual must have to perform a
particular job entails particular job
 Focuses on activities  Looks at the required qualities of the
person who will perform the work

Problems with Job Descriptions

1. If they are poorly written, using vague rather than specific terms, they provide little
guidance to the jobholder.
2. They are sometimes not updated as job duties or specifications change.
3. They may violate the law by containing specifications not related to job success.
4. They can limit the scope of activities of the jobholder, reducing organizational flexibility.

Approaches to Job Design

Job Characteristics Model: Designing Jobs to Motivate Employees

Job Characteristics Psychological States Job Outcomes
Skill variety Meaningfulness of the work Improved work performance
Task identity performed Increased Internal motivation
Task significance Responsibility for work Lower absenteeism and
Autonomy outcomes turnover
feedback Knowledge of the results of
the work performed.

Basis for Job Design

Figure 4.3 BASIC FOR JOB DESIGN
Designing Work for Groups and Teams
Employee Involvement Groups (EIs)
 Groups for employees who meet to resolve problems or offer suggestions for
organizational improvement
 Also known as quality circles (QCs)
 Success with EIs requires:
o Comprehensive training for group members
o Recognition of the group’s contributions
o Continuing input and encouragement by management
o Use of participative/democratic leadership style

Forms of Employee Teams

FIGURE 4.7 FORMS OF EMPLOYEE TEAMS
Characteristics of Successful Teams
 A commitment to shared goals and objectives
 Motivated and energetic team members
 Open and honest communication
 Shared leadership
 Clear role assignments
 A climate of cooperation, collaboration, trust, and accountability
 The recognition of conflict and its positive resolution

Flexible Work Schedules

1. Compressed Workweek
2. Flextime
3. Job sharing
4. Telecommuting
Intermountain Healthcare and Job Analysis Design
http://nelson.cengage.com/management/shared/video_wrappers/s04_mstr_jobanalysisdesign.htm
l

Branding the Talent Pool: Recruitment and Careers

Chapter 5

Recruiting Human Resources

Recruiting
 Any practice or activity carried on by the organization with the primary purpose of
identifying and attracting potential employees

 3 Aspects:
o Human Resource Policies
o Recruitment Sources
o Recruiter Traits and Behaviours

Human Resource Policies

Internal vs. External Recruiting Promote-from-within policies make an
organization more attractive
Lead-the-Market Pay Strategies Meeting or exceeding the market rate of pay
to compete for applicants
Recruitment Branding & Image Advertising  Using marketing techniques to
 become an “employer of choice”
 Generate a favourable image

Recruitment Sources
 Current employees (internal recruiting)
 Direct applicants (walk-ins and write-ins)
 Employee Referrals
 Former employees
 Advertisements/Job postings (electronic or paper)
 Employment Agencies
 Executive Search Firms
 Educational Institutions & Job fairs
 HRSDC (Job Bank; Job Match)
 Customers

Which Recruitment Method to Use?

Decisions should be based on:
 How long employees recruited from different sources stay with the organization.
o Typically, recruits who have the most knowledge about the organization before
being hired will stay the longest.
 Cost-effectiveness of source (does the quality of recruits justify the cost?)
Liza Provenzano, associate vice-[resident of employee relations, safety, and HR policy at
Canadian Tire, talks about how her team centralized its staffing function and examined current
processes in order to identify waste in hiring practices.
http://www.hrreporter.com/videodisplay/234-how-canadian-tire-changed-its-staffing-

Global Labour Markets

 Why recruit globally?
o To develop better products via a global workforce
o To attract the best talent wherever it may be
 International recruiting issues
o Local, national, and international laws
o Different labour costs
o Different preemployment and compensation practices
o Cultural differences
o Security
o Visas and work permits

Recruiter Traits & Behaviours

 Characteristics of the Recruiter
o “Warm” and “informative”
 Behaviour of the Recruiter
o Provide the right information
 o Realistic job previews
 Enhancing Recruiter’s Impact
o Timely feedback
o Avoid offensive behaviour
o Recruit in teams i.e., include job experts

Selecting Employees
Chapter 6
Scott Erker, vice-president of selection services at Development Dimensions International (DDI),
talks about the benefits of hiring for culture fit – including lower turnover and higher
engagement – and how HR can determine the factors to screen for when recruiting.
http://www.hrreporter.com/videodisplay/146-hiring-for-culture-fit

The Hiring Process

Recruitment Selection Socialization
 HR Planning  Generalization
 Job Analysis  Practical value
 Recruiting Policy

FIGURE 7.1 Typical Steps in the Selection Process

Guidelines for Avoiding Legal Problems

 Selection criteria based on the job
 Adequate assessment of applicant ability
 Careful scrutiny of applicant-provided information
 Written authority for reference checking
  Save all records and information
 Reject applicants who make false statements

Criteria for Evaluating Selection Methods

Reliability
Refers to the extent to which a tool provides consistent results across:
 Time: “Test-retest reliability”
 Raters (e.g., interviewers): “Inter-rater reliability”
 Tool questions, when questions are measuring the same K or S: “Internal consistency”
More reliability means less error on measurement!

Test-Retest Reliability
Test A – Time 1 Test A – Time 2
1. John (92%) 1. Jane (91%)
2. Mary (87%) 2. John (82%)
3. Jane (75%) 3. Mary (75%)
Test B – Time 1 Test B – Time 2
4. John (92%) 4. John (95%)
5. Mary (87%) 5. Mary (84%)
6. Jane (75%) 6. Jane (77%)

Inter-Rater Reliability
Interviewer A Interviewer B
1. John (great) 1. Jane (great)
2. Mary (average) 2. John (average)
3. Jane (poor) 3. Mary (poor)
Interviewer C Interviewer D
4. John (great) 4. John (great)
 5. Mary (average) 5. Mary (average)
6. Jane (poor) 6. Jane (poor)

Internal Consistency
Test A – 1st half Test A – 2nd half
1. John (92%) 1. Jane (91%)
2. Mary (87%) 2. John (82%)
3. Jane (75%) 3. Mary (75%)
Test B – 1st half Test B – 2nd half
4. John (92%) 4. John (95%)
5. Mary (87%) 5. Mary (84%)
6. Jane (75%) 6. Jane (77%)

Validity
 The extent to which a tool is measuring what it was designed to measure.
 The more valid a selection tool, the more likely it will predict the candidate’s future
performance on the job.

Common Selection Tools

Employment Tests
Types of Interviewers
 Degree of Structure
o Unstructured; Structured; Semi-structured
 Content
o Situational; Behavioural
 Administration
o Face-to-face interview; Panel, computerized
Watch this video on structured, semi-structured, and nondirective interviewers. Discuss the
advantages and limitations of each. http://www.youtube.com/watch?v=nrDONsoVoXE

Capella University’s Career Center Provides tips on answering the commonly asked behaviour-
based interview questions. http://www.youtube.com/watch?v=4sKhOETBSIE

Example of Behavioural Event

Question: “Tell me about time you were working on a team project and a fellow team member
was rarely pulling his or her weight and was also difficult to get along with socially. Describe the
situation, tell me what you did, and what was the result of your actions?”

Example of Situational Question:

“You are a customer service rep, and your boss has asked you to deal with a customer in a way
that you disagree with. Tell me exactly what you would do in this situation.”

This example could either be measuring loyalty to supervisors or customer service orientation or
both (only the interviewer knows).

Interviewing Advantages & Disadvantages

Advantages Disadvantages
 Can provide evidence of  Can be unreliable
communication and interpersonal  Low on validity
 skills  Costly
 Can gain insight into candidate’s  Subjective
personality and interpersonal style  Can be biased

Selection Decisions
Multiple-hurdle model
 Gradually narrowing the pool of candidates for each job i.e. each stage is a hurdle
Compensatory model
 A very high score on one type assessment can make up for a low score on another
Who makes the selection decision?
 Supervisor
 Human resource professional
 Work team
 Other panel of decision makers