Chapter 13

Managing Human
Resource Systems

©2004 by Nelson, a division of Thomson Canada Limited

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 What Would You Do?
Albian Sands Energy Inc.
 $86 billion will be invested in 63 projects

between 1996 and 2010

 Tremendous shortage of skilled and unskilled

workers
 Highly competitive environment for workers

 Over the next year 600 employees must be

hired
 How do you hire and retain a qualified

workforce?

©2004 by Nelson, a division of Thomson Canada Limited

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 Learning Objectives:
Determining Human Resource
Needs

After reading the next two

sections, you should be able to:

1. describe the basic steps involved

in human resource planning
2. explain how different employment
laws affect human resource
practice
©2004 by Nelson, a division of Thomson Canada Limited
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 The Human Resource
Management Process
Determining human resource needs
 human resource planning
Attracting qualified employees
 recruiting
 selecting
Developing qualified employees
 training
 performance appraisal
Keeping qualified employees
 compensation
 employee separation
Adapted from Exhibit 13.1

©2004 by Nelson, a division of Thomson Canada Limited

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 Human Resource
Planning
 Forecasting Demand and Supply

 Human Resource Information

Systems

©2004 by Nelson, a division of Thomson Canada Limited

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 Forecasting Demand
and Supply
Workforce Forecasting
forecasts methods
 internal  direct managerial
 external input
 best guess
 statistical/historica
l ratios

©2004 by Nelson, a division of Thomson Canada Limited

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 Workforce Forecasting:
Internal Factors
 New positions  Transfers
 New equipment and  Deaths
technology  Promotions
 Eliminated positions  Organization’s
 Terminations mission
 Retirements  Productivity of
 Resignations current employees
 Turnover  skills/education of
current employees
Adapted from Exhibit 13.2

©2004 by Nelson, a division of Thomson Canada Limited

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 Workforce Forecasting:
External Factors
 Demographics of  Unemployment rate
labour supply  Labour unions
 Geographic  Availability of
population shifts applicants
 Shift from  Technological
manufacturing- to advances
service- to  Strength and number
information-based of competitors
economy
 General economic
 Growth in particular
businesses and
Adaptedconditions
from Exhibit 13.2

©2004 by Nelson, a division of Thomson Canada Limited

markets
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 Human Resource
Information Systems
(HRIS)
Computerized employee information
systems
Uses

 transaction processing
 employee self-service
 decision support systems

©2004 by Nelson, a division of Thomson Canada Limited

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 Common Data Categories
in Human Resource
Information Systems
 Personal data
 Company employment history
 Work history
 Educational data
 Performance appraisal
 Promotion data
Adapted from Exhibit 13.3

©2004 by Nelson, a division of Thomson Canada Limited

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 Employment Legislation
 Federal and provincial employment
laws
 Employment discrimination
 Sexual harassment

©2004 by Nelson, a division of Thomson Canada Limited

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 Major Federal
Employment Laws
Canada Labour Code — Part III
 minimum wage, parental leave, hours of
work, vacation entitlements
Canada Labour Code — Part II
 occupational health and safety
Canada Labour Code — Part I
 guarantees the right to form and join unions
Canadian Human Rights Act
 prohibits discrimination on the basis of race,
origin, gender, religion etc.
Adapted from Exhibit 13.4

©2004 by Nelson, a division of Thomson Canada Limited

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 Employment
Discrimination
 Hiring, promotion, and other
employment decision must be
based on bona fide occupational
requirements
 Measures of selection must have
 reliability
 validity

©2004 by Nelson, a division of Thomson Canada Limited

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 Sexual Harassment
A form of discrimination in which
unwelcome sexual advances,
request for sexual favours, or other
verbal or physical conduct of a
sexual nature occur
Two types:

 quid pro quo

 hostile work environment
©2004 by Nelson, a division of Thomson Canada Limited
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 Common Managerial
Mistakes Regarding Sexual
Harassment

Managers sometimes assume:

 that the victim and harasser must be
of the opposite sex and only women
can be victims
 that harassment can only occur
between co-workers or between
supervisors and subordinates
 that only victims can file complaints

©2004 by Nelson, a division of Thomson Canada Limited

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 Learning Objectives:
Finding Qualified
Workers
After reading the next two sections,
you should be able to:

3. explain how companies use recruiting

to find qualified job applicants
4. describe the selection techniques and
procedures that companies use when
deciding which applicants should receive
job offers

©2004 by Nelson, a division of Thomson Canada Limited

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 Recruiting
 Job analysis and recruiting
 Internal recruiting
 External recruiting

©2004 by Nelson, a division of Thomson Canada Limited

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 Job Analysis and
Recruiting
Job analysis
 a purposeful, systematic process for
collecting information on work-related
aspects of a job
Job description
 a written description of the basic tasks,
duties, and responsibilities required of a job
incumbent
Job specifications
 a written summary of the qualifications
required for a job
©2004 by Nelson, a division of Thomson Canada Limited
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 Internal Recruiting
A pool of qualified applicants who
already work for the company.

 Improves employee commitment,

morale, and motivation
 Reduces recruitment time and
costs
 Job posting
 Career paths
©2004 by Nelson, a division of Thomson Canada Limited
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 External Recruiting
Developing a pool of qualified applicants from
outside the company.

 Advertising
 Employee referrals
 Walk-ins
 Outside organizations
 Employment services
 Special events
 Internet job sites

©2004 by Nelson, a division of Thomson Canada Limited

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 Selection
 Application forms and resumes
 References and background
checks
 Selection tests
 Interviews

©2004 by Nelson, a division of Thomson Canada Limited

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 Topics to Avoid on
Application Forms and
During Selection
 Name changes  Military service
 Addresses outside outside Canada
Canada  Mother tongue
 Age  Race
 Marital status  Religion
 Children  Criminal record
 Birthplace  Sexual orientation

Adapted from Exhibit 13.7

©2004 by Nelson, a division of Thomson Canada Limited

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 References and
Background Checks
References
 Sources such as previous employers or

co-workers who can provide job-related

information about job candidates
Background checks
 Procedures used to verify truthfulness

and accuracy of information provide by

job applicants as well as gather
information not provided by applicant

©2004 by Nelson, a division of Thomson Canada Limited

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 Selection Tests
 Specific ability tests
 Cognitive ability tests
 Biographical data
 Personality tests
 Work sample tests
 Assessment centres

©2004 by Nelson, a division of Thomson Canada Limited

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 Interviews
 Unstructured
 free flow of questions
 Structured
 interviewer uses standard set of
prepared questions
 Semi-structured
 combination of structured and
unstructured questions

©2004 by Nelson, a division of Thomson Canada Limited

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 Guidelines for Conducting
Effective Structured
Interviews
Planning
the
interview

Conducting After
the the
interview interview
Adapted from Exhibit 13.8

©2004 by Nelson, a division of Thomson Canada Limited

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 What Really Works
Cognitive Ability
Tests

Work Sample
Tests

©2004 by Nelson, a division of Thomson Canada Limited

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 What Really Works

Assessment Centres

Structured Interviews

©2004 by Nelson, a division of Thomson Canada Limited

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 What Really Works
Cognitive Ability + Work Sample Tests

Cognitive Ability + Integrity

Tests

Cognitive Ability + Structured

Interviews

©2004 by Nelson, a division of Thomson Canada Limited

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 Learning Objectives:
Developing Qualified
Workers
After reading the next two sections,
you should be able to:

5. describe how to determine training

needs and select the appropriate
training methods
6. Discuss how to use performance
appraisal to give meaningful performance
feedback
©2004 by Nelson, a division of Thomson Canada Limited
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 Training
 Determining training needs
 Training methods
 Evaluating training

©2004 by Nelson, a division of Thomson Canada Limited

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 Training Methods
and Objectives
 Impart information or knowledge
 Films, videos, lecture, planned readings
 Develop analytical and problem-
solving skills
 Case studies, coaching and mentoring,
group discussions
 Practise, learn or change job
behaviour
 OJT, role playing, simulations and games,
Adapted from Exhibit 13.10
vestibule training
©2004 by Nelson, a division of Thomson Canada Limited
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 Evaluating Training

 Reactions
 Learning
 Behaviour
 Results

©2004 by Nelson, a division of Thomson Canada Limited

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 Performance Appraisal

Accurately measuring job

performance

Sharing performance
feedback

©2004 by Nelson, a division of Thomson Canada Limited

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 Accurately Measuring
Job Performance
 Objective performance measures
 Subjective performance measures
 Trait rating scales
 Behavioural observation scales
 Rater training

©2004 by Nelson, a division of Thomson Canada Limited

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 Sharing Performance
Feedback
What to discuss in a performance
appraisal feedback session
1. Overall progress — accomplishments
and shortcomings
2. Problems encountered
3. Opportunities to improve performance
4. Long-range plans, opportunities
5. Discussion of plans and goals for
coming year
Adapted from Exhibit 13.12

©2004 by Nelson, a division of Thomson Canada Limited

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 Learning Objectives:
Keeping Qualified
Workers
After reading the next two sections,
you should be able to:

7. describe basic compensation strategies

and how they affect human resource
practice
8. discuss the four kinds of employee
separations: termination, downsizing,
retirements, and turnover
©2004 by Nelson, a division of Thomson Canada Limited
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 Compensation
Decisions and
Employment Benefits
Pay-level decisions
 job evaluation
Pay-variability decisions
 piecework, commission, profit sharing,
employee stock ownership plans, stock
options
Pay-structure decisions
 hierarchical and compressed
Employment benefits
 cafeteria benefit plans
©2004 by Nelson, a division of Thomson Canada Limited
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 Employee Separations
 Involuntary/voluntary
 Terminating employees
 Downsizing
 Retirement
 Employee turnover

©2004 by Nelson, a division of Thomson Canada Limited

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 Terminating Employees
 Termination is often not well
managed
 Minimize problems by:
 not making firing the first option
 firing should be for “just cause”

termination at will
 wrongful dismissal
 deal with employee morale among
“survivors” after a firing
©2004 by Nelson, a division of Thomson Canada Limited
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 Downsizing
 The planned elimination of jobs
 Should be used only as a last
resort
 doesn’t always lead to better
company performance
 Offering outplacement services
can help employees make
adjustments
©2004 by Nelson, a division of Thomson Canada Limited
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 Retirement

Early retirement incentive programs

 Offer financial benefits to

encourage employees to retire

 Are difficult to predict which or

how many employees will use the

program
 May cause the company to lose

valuable employees
©2004 by Nelson, a division of Thomson Canada Limited
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 Employee Turnover

 Loss of employees who voluntarily

choose to leave the company
 Functional turnover
 the loss of poor-performing
employees
 Dysfunctional turnover
 the loss of high-performing
employees
©2004 by Nelson, a division of Thomson Canada Limited
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 What Really Happened?
Recruitment at Albian Sands Energy
Inc.
 Took a long-term view

 Participated in stay-school

programs
 Recruited across Canada

 Developed a rewards package to

retain workers
 In 2001 received 17,000 résumés
©2004 by Nelson, a division of Thomson Canada Limited
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