January 10, 2007 Commerce 392 Introduction to the Employment Relationship Understand the interests of both the employer and

employee

Role Play Simulation – The Interview Student A (3rd Year Accounting Option) - Currently, Vancity understaffed and very busy - Undergoing interview for teller position - Going to school part-time o Hours and availability - Identify interests in the employment relationship (general terms) o Training o Compensation o Sick Pay o Vacation Pay o Bonuses o Advancement in company o Employment assurance o Company environment and culture o Dental and Medical Benefits o Injury at the job – compensation? o Tuition reimbursement - What do you want in contract? o Training – Offer on-the-job training + pay and future cross-training o Hours and availability – To match school schedule o Compensation – Hourly wage around $13-15/hour o Sick Pay – Receive pay when I am unable to go to work o Vacation Pay – Receive vacation pay and days off over the year o Bonuses – Receive extra compensation for exceptional service o Advancement in company – Possibility to advance position o Employment Assurance – Not to be laid off or terminated due to budget o Company environment/culture – Want more responsibilities, empowerment, and sense of worth in company o Dental and Medical Benefits – Preferably some kind of plan offered o Injury at the job – receive sick pay for not able to work and not to have position terminated o Tuition reimbursement – “we both benefit from further education” - What is your relative power in setting T&A? o Not much considering there are probably other candidates applying for the position but slightly higher than usual due to the current position at Vancity

Student B (Branch Manager)

In Class Discussion (Teacher Notes) Compensation: not usually on the top of employee interests Employee Interests: - scheduling, promotions, compensation, orientation, training, mentoring, EI, benefits, organizational culture, severance pay, evaluation, job security, health and safety Employer Interests: - scheduling, flexibility in term (short/long), customer service, money skills, training costs, personality Terms and Conditions Manager Side - Compensation  probationary period, training pay - Minimum hours per week - Start and end date - Rules Employee Side - Compensation  Backpay for probation period, additional pay - Benefits  Medical, dental, vacation, leave time Interview Steps/Questions: - Why work here? - Situational Question - “Marketing” - Future career plans - Strengths and weaknesses - Why did you leave past employer?

January 15, 2007 “Critical Labour Shortage Looms” - Baby boom generation is so huge and most of them are up in upper management - Creates unprecedented pressure on the labor market - High tuition cost also means fewer educated employees entering the workforce - Pension plans are going to be a huge issue o Air Canada’s pension plan was crucially under funded and that’s how it almost failed as a company Recruitment focuses more on personality, empathy, instead of just a degree. Shortage means possible changes to new immigration laws, faster promotions, and more money put into the HR department. - turnover is an issue right now and keeping employees is important Importance of HRM to Business Success HR Strategies as solution for boosting profits, share value, and in some cases, ensuring company survival and there is evidence to support this (Harvard) HRM Function - Maintaining healthy and safe work environment o Important topic these days because of several work-related deaths Who is Responsible for HRM? - every single manager despite whether or not there is a HR department - manager right above you on chain of command is responsible for your termination Organizational Chart – what is the reporting line to the CEO? - first thing to have on the day of the job - essentially the chain of command in the company - Front Line = entry level positions where no employees are under these people - Tip: when going through interview, ask where on the org. chart you fall HR Department – Employment Services - offers consultation and sets policies and standards - clients are the employees inside the company - “Line Managers” – implementation of policies, staffing, hiring/firing, evaluations

Case Study – Trendy’s
(VERY IMPORTANT TO STUDY THIS FOR MIDTERM!!) Sue
Interests - being treated fairly - keeping her job - future job prospects with good reputation and fair reference - $$ owing to her - assurance that discrimination is dealt with 2 weeks notice

Ron
- Justify his actions - Not sound like a pervert - keep job - future relationship with employees - containment of rumours - wants to set an example - workplace culture, morale - Innocent until proven guilty - Power to terminate - Show up when scheduled - Performance -

Mike
- Solve the conflict - Avoid legal issues - Avoid rumours - possible unionization - maintain reputation - training for all managers (esp. in HR)

Rights

What would you do?

- Bring in a mediator - Investigating - Group discussion - Reinstate Sue - Pay out - Analysis of problem - Legal Advice - Other HR expert advice - Training - Communication

What management policy and practices change?

-

Establish harassment and fraternization policy Job Description – more detailed Safety Policies – more realistic expectations from staff for dine & dash o Policies on having people not pay Absenteeism Reporting Policy Disciplinary policies Tips should not be divided equally Performance Review Policy Lawsuit Rumor might spread and lower employee morale Media, business Unionization Future recruitment problems

What impact on Trendy’s business Success?

-

-

harassment issue here, so falls under legal

January 17, 2007 Environmental Influences on HRM Function Internal Factors - Organizational Culture and Climate o e.g. Relevant: Acquisitions and Mergers, many businesses are being bought out and this changes the culture and climate. Employee fear that there will be layoffs and lots of uncertainty. Question: What external factors would influence recruiting, benefits provision, compensation, performance management, health and safety and other HRM functions? - Competitors - State of the Economy - Unemployment Rate - Government policies and regulations - Demographics (e.g. available work force population – what are their demographics; baby boom generation – companies will lose 40% of their top executives due to retirement) Technology: - Advancement decrease in “blue collar” and clerical jobs and increase in technical, managerial and professional jobs - Robotics and biotech are high in skill demand, booming industry - Use of technology to monitor employees Globalization: - More firms conducting business outside Canada - Locating human resources in other countries where wages are lower, lower operating costs, less government regulation - Challenge: how to recruit/select, manage performance Trends in Employment - Shift from manufacturing to service (people skills important now) o “Knowledge worker” – someone who can transform information into a product or service o Canada competes internationally by producing high quality products in order to remain competitive because operations costs are way cheaper in China, India o Rise in need for knowledge workers o New HRM skills and functions are required to recruit and train these employees and win their commitment

HRM plays pivotal role in: - Improving productivity - Increasing corporation’s responsiveness to market fluctuations and tech change Result: Maintaining a competitive advantage means moving HRM to the center of strategic management planning

Issue: How to “boost profits through people?”
1. Providing employment security 2. Excellent Selection/Recruitment process: marks are less relevant, PEOPLE SKILLS! 3. Utilization of Self-managed teams 4. “Winning” compensation strategies 5. Training 6. Reduction of “status differences” between managers and line workers - Methods: o Symbolically – use of language (“associates” vs. “employees), physical environment o Substantive means – i.e. reducing wage inequality o Examples: Wal-Mart, SW airlines 7. Sharing information (financial performance, business plans, etc) If gains are so great, why aren’t all firms implementing this successfully? - Not as easy as it seems Study question: “If you were advising a business about successful implementation of HR strategies, what key advice would you give them?”

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